The global organic food market is expected to surge to $324.1 billion by 2031, driven by health-conscious consumers and increasing support for organic farming.
Global Organic Food Market Set to Reach $324 Billion by 2031
Redding, Calif.— The global organic food market is on track to reach a staggering $324.1 billion by 2031. This projection is outlined in a recent report by Meticulous Research, which anticipates a compound annual growth rate (CAGR) of 10.1% over the forecast period.
Key Drivers of Growth
Several factors are driving this robust expansion. An increasing number of health-conscious consumers are leading the charge toward organic foods, attributed to their preference for clean-label products. Support from both government and non-government organizations for organic farming is also a significant catalyst. Additionally, shifts in lifestyle and rising disposable income are poised to create numerous growth opportunities in the market.
Market Segments and Performance
The market has been analysed across various segments. In 2024, the fruits and vegetables category is expected to dominate, accounting for 27.7% of the market share. The demand for fresh organic products and the pervasive health and wellness trends are the primary factors behind this segment’s rapid growth.
E-commerce emerges as a major player among distribution channels, expected to register the highest CAGR of 15.3% over the forecast period. E-commerce’s growth is fuelled by the convenience it offers, along with competitive pricing and a broader selection of products.
Regional Insights
Geographically, North America is projected to hold the largest share of the organic food market in 2024, accounting for 48.1%. The area’s market size is expected to reach $79.3 billion by the same year. However, the Asia-Pacific region is anticipated to experience the most rapid growth, with a CAGR of 12.6% from 2024 to 2031. Factors driving Asia-Pacific’s growth include increasing urbanization, higher disposable incomes, and greater awareness of the health benefits of organic foods. Government initiatives supporting organic farming also contribute to this upward trend.
Market Leaders
The market features several key players, including well-known brands like Hain Celestial Group, General Mills, United Natural Foods, Nature’s Path Foods, Amy’s Kitchen, and Organic Valley. Other significant entities include Whole Food Market Co-op, Sunopta, Eden Foods, Newman’s Own Foundation, Stonyfield Farm, Danone, Nestle, Clif Bar & Company, and Kroger.
Future Outlook
The report segments the organic food market into various categories, including by type (such as fruits, vegetables, dairy, and grains), distribution channel (like supermarkets, specialty stores, and e-commerce), packaging type, and process (unprocessed, processed, and ultra-processed). Each segment’s performance and growth trends have been meticulously assessed.
Conclusion
As consumer preferences evolve toward healthier and environmentally sustainable choices, the organic food market is set to expand dramatically. With strong support from various sectors and regions, the industry is well-poised for substantial growth in the coming years.