Rising consumer demands for high-quality organically produced foods, owing to an increasing health-conscious population and rising incidences of chronic disorders. Organic sales account for approx. 4% of the total food sales in the United States. In 2020, US organic product sales jumped 12.4%, breaking USD60 billion, doubling the previous year’s growth, as per statistics by Organic Trade Association. The growing availability of organic produce in conventional grocery stores, natural food stores, direct-to-consumer markets, and online channels are enhancing accessibility for customers, which is attributing to the overall organic food market growth. Companies in the organic food market are focusing on introducing new product varieties in the form of ready-to-eat snacks, cookies, organic tea, pulses, spices, edible flowers, frozen waffles, medicinal plants, organic juices, etc. Moreover, changing lifestyles of consumers and a rise in income level among the population are projected to be the biggest driving factors for the growth of the global organic food market in the coming years.
Here are some of the trends positively impacting the global organic food market growth.
Rising Demand for Organic Poultry
According to the Centre for Disease Control and Prevention, 75% of emerging infectious diseases originate from animals and birds. Factory farm animals are crammed in filthy and feces-ridden conditions, and are injected with hormones, antibiotics, and tiny amounts of pesticides, which affect the quality of meat produced from them. Consuming unhealthy meat can lead to puberty in females, male fertility problems, salmonella dysentery, and other disorders. Thus, the growing number of disease outbreaks and the rising number of infectious diseases have led to the increasing adoption of organic poultry among consumers. Companies involved in the organic poultry industry raise animals and birds without the use of any harmful chemicals and antibiotics. As consumers are becoming more aware of the negative impact of consuming commercially grown animals and the safety and quality of organic produce, the demand for organic poultry is expected to grow further in the coming years.
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Increasing Awareness Regarding Health & Well-being
The growing use of insecticides, herbicides, rodenticides, and chemical fertilizers in modern farming is impacting the quality of fruits and vegetables. Prolonged consumption of chemically treated foods can lead to cancer, hormone disruption, congenital disabilities, etc. Rising incidences of chemical poisoning cases and enhanced awareness towards the toxic effects of pesticides in food products are increasing the adoption of organic produce worldwide. Despite comparatively high prices of organic products, consumers are willing to spend more to ensure their health and well-being. Governments around the world are also issuing guidelines barring the use of chemicals, pesticides, growth hormones, and other synthetic chemicals, compelling farmers to adopt ethical farming practices, contributing to the growth of the organic food market.
Easy Accessibility to Organic Produce
Rising internet penetration and growing smartphone penetration have resulted in the e-commerce boom. As consumer purchasing behavior is shifting, brands are resorting to online sales channels to boost their sales. This has enhanced accessibility to healthy and organic foods for customers, which is positively impacting the growth of the organic food market. Besides, local markets, club stores, supercentres, and hypermarkets are increasing shelf space for organic foods due to growing demand from consumers. Major supermarket chains such as Walmart, Target, Costco, Kroger, etc., are increasing accessibility to organic foods, which is anticipated to boost the organic food market growth in the coming years.
According to TechSci Research report on “Global Organic Food Market By Product Type (Organic Meat, Poultry & Dairy; Organic Fruits & Vegetables; Organic Processed Food; Organic Bread & Bakery; Organic Beverages; Organic Processed Food and Others), By Distribution Channel Type Hypermarket/Supermarket, Speciality Stores, Departmental Stores, Online and Others (Spices, Pulses, Cereals &Food Grains etc.), By Region, Competition, Forecast Opportunities, 2027”, the global organic food market is expected to reach around USD370 billion by 2027. The market growth can be attributed to the increasing health concerns among consumers regarding the ill-effects of consuming chemically infused fruits, vegetables, etc. Besides, increasing personal disposable income of the population and rising awareness about organic foods are expected to propel the growth of the global organic food market.
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