Organic Food Market Size Expected to Cross USD 658.38 Bn by 2034

The global organic food market size reached USD 204.62 billion in 2023 and is estimated to cross around USD 658.38 billion by 2034 with a CAGR of 11.17% from 2024 to 2034.

Organic Food Market Highlights

• North America dominated the market with the largest market share of 44% in 2023.
• Asia-Pacific is expected to grow at a significant rate during the forecast period.
• By product, the fruits and vegetables segment dominated the market in 2023.
• By distribution channel, the offline segment dominated the market in 2023.

The organic food market comes under the food and agriculture sector and is concerned with producing, distributing, and selling food products. The global market for organic food is growing rapidly due to the rising awareness about health and the drawbacks of harmful chemicals. Organic crops are grown without using pesticides, antibiotics, or growth hormones that relieve pressure on animals, too.

Organic farming conserves the soil and reduces nutrient loss. Organic products contain high calories, sugar, and salt; their flavors are also better and are more nutritious. Consumption of organic foods reduces the risk of heart disease, as they are high in antioxidants. Organic farming is becoming highly popular due to rising environmental awareness and a growing need for a healthy diet.

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Organic Food Market Segmental Analysis

North America dominated the market in 2023 due to the rising consumer awareness and desire for sustainable food alternatives. The demand for organic food has increased in the region, as people seek products that are free of synthetic chemicals and pesticides. Environmental sustainability and ethical agricultural methods have also bolstered the market. Advancements in distribution and retail channels have made organic products more accessible, resulting in an increase in sales of organic food. Government rules and certifications supporting organic agricultural techniques have increased customer trust, thereby driving the market.

The market in Asia Pacific is expected to grow at a significant rate during the forecast period. Asian consumers are becoming more conscious of their health, resulting in a significant increase in the demand for organic food. Organic farming practices are given high priority in Asian countries, such as India. Furthermore, rising government initiatives to support organic farming and the increasing regional player’s efforts to develop organic goods boost the market growth.

• In February 2024, Cheer Pack North America (CPNA) and Amcor worked together to offer a sustainable packaging solution for Stonyfield Organic, a prominent organic yogurt manufacturer. CPNA’s Sustainability+ program includes the CHEERCircle All-PE recycle-ready spouted pouch, which promotes eco-friendly packaging practices.

Analysis by Product Type

The fruits and vegetables segment dominated the market in 2023 due to the heightened demand for organic fruits worldwide and the increasing awareness about the health benefits of consuming natural fruits and veggies. A study revealed that organic fruits and vegetables increase the overall antioxidant intake by 20-40%.

Organic strawberries and tomatoes have higher antioxidant content. Organic tomatoes contain 50% more vitamin C content than hybrid or pesticide-grown tomatoes. Organically grown fruits and veggies contain 19% more phenolic acids, 69% more flavanones, 28% more stilbenes, 26% more flavones, 50% more flavanols, and 51% more anthocyanins.

Analysis by Distribution Channel

The offline segment dominated the market in 2023. A good location coupled with good footfall and a wide product range can make almost every walk-in sellable. Many consumers prefer in-store shopping, especially for fruits and vegetables, as it allows them to inspect the quality and freshness of products before making a purchase, thereby increasing their buying experience.

The online segment is expected to grow significantly during the forecast period owing to the availability of a wide range of products from different brands. The convenience of shopping is a key factor, encouraging consumers to shop through online distribution channels. Online distribution channel allows people to browse a wide array of organic food from the convenience of their home. Furthermore, home delivery offered by online retail channels propels the segment.

Report Scope of the Organic Food Market

Organic Food Market Dynamics

Driver

Rising awareness about organic foods

The rising awareness about organic foods drives the market. According to a study on the Impact and Awareness of Organic Food among Consumers, about 80.8% of adolescent girls knew that organic foods are grown without synthetic fertilizers, pesticides, chemicals, toxic substances, artificial additives, and colors. Only 13.8% of boys know what organic foods are. Nearly half, 45.4%, of adolescents, irrespective of sex, are fully aware of organic foods.

The study also revealed that consumers are aware of the health benefits of organic foods and their potential harm. Urban consumers are more aware of organic food. Furthermore, rising export of organic products is boosting the market. For instance, a study revealed that India’s export of organic food products increased by 51% during 2020-21 compared to the previous fiscal (2019-20).

Data for Organic Export in India