Global organic food and beverages market expected to reach $327,600 million by 2022 from $115,984 million in 2015 at a CAGR of 16.4% from 2014 to 2022. Organic foods and beverages are manufactured from products those are grown using organic farming techniques. The organic food and beverages market forecast estimated notable growth in the near future, due to the unique advantages of the organic food and beverages such as chemical and pesticide-free, eco-friendly, and very healthier compared to inorganic food.
Rise in awareness regarding the advantages of organic food and beverages industry intake is expected to fuel the market growth in the near future. Moreover, increase in income levels, improvement in standards of living, growth in environmental concerns, increase in health hazard diseases due to inorganic foods are some other driving factors of this market. The impact of these drivers is expected to increase significantly due to growth in health concerns among the consumers.
Some of the restraints associated with the market are high price of organic products and the low shelf life in organic food and beverages industry in comparison with conventional foods. In addition, the investments in the organic food and beverages sector also increase from the private investors as well as from the government, which provide the opportunities for the organic food and beverages market to nurture. With the advancement in the technology and the increase in soil adaptability to organic farming the prices of organic food and beverages is expected to decline in the near future.
Organic food and beverages market analysis revealed product launch as the key growth strategy adopted by market players, followed by merger & acquisitions, business expansion, partnership, and joint ventures. Several companies have developed innovative products to enhance their product portfolio. This strategy is widely adopted by various companies to increase their market outreach and serve global customers.
At present, organic coffee and tea have witnessed higher demand potential. This segment has high rate of adoption in the organic food and beverages market due to unique advantages provided by the organic coffee and tea such as helping in weight loss. Organic fruits and vegetables is the next segment, which registered highest organic food and beverages market share, currently also expected to register the higher growth rate in the near future. The rapid growth of demand for fresh and healthy foods drives the market to take a hike.
Increase in adoption of organic groceries and also the organic baby foods made the other organic foods segment as one of the lucrative targets for investment. Other emerging segments such as organic non-dairy products, organic dairy products, and organic meat fish & poultry products with appreciable growth, also offer huge opportunities for the investments. However, organic beverages segment is expected to showcase a less growth rate but the organic food and beverages market size is huge. Moreover, the organic frozen and processed foods and other organic beverages are also transpiring segments which are expected to fetch good revenue.