Organic food &amp; beverage market to reach $211.44 billion by 2020

Organic food & beverage market to reach $211.44 billion by 2020

According to Grand View Research Inc. (grandviewresearch.com), the global organic food & beverage market is expected to reach USD 211.44 billion by 2020. Increasing consumer awareness regarding ill effects of inorganic food on human health has compelled consumers to adopt organic food & beverages. Growing popularity of the product among consumers owing to health benefits associated with its consumption is expected to drive the demand over the forecast period. Moreover, regulatory support to organic farming is also expected to have positive influence on industry by improving supply and product quality.

Organic fruits and vegetables accounted for more than 35% of revenue share and hence was the dominant product in 2013. However, increasing consumption of poultry, meat and fish, the meat segment is expected to grow substantially at a CAGR of more than 13% over the forecast period.

Non-dairy beverages such as rice, oat beverages and soy accounted for 43% of the total organic beverage market in 2013. However, organic beer and wine are projected to grow substantially at a CAGR of more than 23% over the forecast period. Global market for organic coffee and tea is expected to grow at a CAGR of over 20% over the forecast period. Global market for organic frozen and processed food is poised to grow at a CAGR of more than 11% over the forecast period.

North America was valued at U.S. $38 billion in 2013. The region was dominated by U.S. as the largest consumer of the market. U.S. accounted for over 90% of the regional share in 2013. Growing consumer awareness regarding the benefits of organic products as compared to its counterparts is expected to propel demand over the forecast period.

Asia Pacific is projected to witness highest growth at a CAGR of more than 25% over the forecast period. Japan dominated the region with a 44% share by revenue in 2013. However, China is expected to be the fastest growing country with CAGR of more than 27%. Growing agriculture sector in the country coupled with robust domestic demand has led to significant demand for the product, which is expected to continue over the next seven years.

The market is highly fragmented and has substantial potential for consolidation. The industry is highly competitive in nature which has led companies to continuously innovate and develop new products in order to increase market presence. Key players in the industry include Whole Foods Market, Organic Valley Family of Farms, Starbucks, Hain Celestial Groups and Amy's Kitchen.

Grand View Research has segmented the global organic food & beverage market on the basis of product and region:

Organic Food Product Outlook (Revenue, $U.S. Million; 2012-2020)