Outlook for Global Organic Food and Drink Market

Outlook for Global Organic Food and Drink Market

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Organic food is a category of food that is grown and processed using eco-friendly and animal- friendly farming methods such as recycled resources. They are either organically produced or grown in farms without the use of synthetic pesticides and chemical fertilizers. In addition, packaged organic food products are not processed using food irradiation, industrial solvents, or artificial food additives and flavors; this makes organic food safe and healthy for consumption. In recent years, the extensive promotional activities undertaken by governments in various countries have led to the increased adoption of organic farming methods. Moreover, the growing popularity of organic products has led to retailers increasing the shelf space for organic foods and drinks. Thus, the growing awareness among consumers about organic products is expected to increase the penetration of organic foods and drinks globally.

Major products in the Global Organic Food and Drink market

 

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The Global Organic Food and Drink market is one of the fast growing food markets. The growing awareness about health and environmental issues are paving a way for the increasing demand for organic products globally. The majority of the growth is contributed by the Americas, followed by the EMEA region and the APAC region. Currently, the Retail sector accounts for the majority of the growth; however, restaurants are another high-growth area that is expected to makesignificant contributions to this market during the period 2012-2016. The overall market is expected to grow at a CAGR of 14.3 percent during the forecast period.

The growth of the Global Organic Food and Drink market is driven by several factors. One of the major drivers in this market is the increasing purchasing power of consumers. The improvement in the economic growth in developed and developing countries has resulted in higher disposable income, thereby leading to the increasing purchasing power of consumers. Thus, consumers can afford to buy organic foods and drinks, which are generally priced higher than conventional food products. This will tend to increase the growth prospects of the market during the forecast period. Another major driver is the increasing demand for organic foods in the APAC region.

Despite the presence of several drivers, the growth of the Global Organic Food and Drink market is curtailed by some serious challenges. One of the major challenges in this market is the high cost of organic food products when compared with conventional food products. The high cost of organic food products will restrict the purchase of these products to the affluent class of consumers. As a result, these products will not be affordable to a majority of consumers, which could reduce the profitability of the market. Another major challenge is the lack of awareness among consumers about the benefits of organic food products.

Despite the presence of serious challenges, the Global Organic Food and Drink market shows immense potential to grow rapidly because of the emergence of some positive trends. One such trend is the increasing adoption of organic farming methods. Another major trend is the increasing health-conscious population that attaches a lot of importance to nutrition, health, and quality of food they eat. Thus, the combined effect of various trends is expected to exert a positive influence on the Global Organic Food and Drink market during the forecast period.

 

Market Overview

This report covers the present scenario and the growth prospects of the Global Organic Food and Drink market for the period 2012–2016. The report covers the entire range of organic foods and drinks. To calculate the market size, the report considers revenue generated from the sales of organic foods and drinks to the players operating in the key customer segments in 2012. It also presents the vendor landscape and a corresponding detailed analysis of the top seven vendors in the Global Organic Food and Drink market. In addition, the report discusses the major drivers that influence the growth of the Global Organic Food and Drink market. It also outlines the challenges faced by vendors and the market at large, as well as the key trends that are emerging in the market.

Some of the products offered by the major vendors in the Global Organic Food and Drink market are listed below:

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Market Size and Forecast by Value

The Global Organic Food and Drink market was valued at US$70.5 billion in 2012 and is expected to be valued at US$123.5 billion in 2016, growing at a CAGR of 14.3 percent. One of the major drivers in this market is the increasing purchasing power of consumers. The improvement in the economic growth in developed and developing countries has resulted in higher disposable income, thereby leading to the increasing purchasing power of consumers. Thus, consumers can afford to buy organic foods and drinks that are generally priced higher than conventional food products. This will tend to increase the growth prospects of the market during the forecast period.

 

Global Organic Food and Drink Market 2012-2016 (US$ billion)

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The Global Organic Food and Drink market is expected to witness continuous year-on-year growth during the forecast period. Some of the factors contributing to the growth are governments promoting the consumption of organic foods, increasing health-conscious population, and the increasing research being conducted on the health benefits of organic foods. Moreover, retailers are increasing the shelf space for organic foods and drinks. In addition, there has been a growing demand for organic foods from key developing economies, which augurs well for the growth of the market. However, the rising food inflation and economic recession in some countries is expected to restrict the growth of the market during the forecast period.

 

Publish Date: November 2016

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