Organic Food and Beverages Market size is estimated at USD 283.8 billion in 2024 and is set to exceed USD 1381.7 billion by the end of 2037, expanding at over 14.1% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of organic food and beverages is evaluated at USD 323.8 billion.
Globally, consumer awareness of health and wellness has seen a significant boost leading to the rapid growth of the organic food and beverages market. In 2022, the World Health Organization (WHO) published a report that global health is the best investment that one can make especially in the wake of the COVID-19 pandemic. As per a United Nations (UN) report, there will be a 90% increase in global health issues by 2048. These trends have increased awareness of health and wellness among consumers, resulting in rising demand for organic food products and beverages. In addition, consumer accessibility to organic products has improved manifolds which is paramount for organic food and beverages market growth.
Organic food and beverages are products that do not contain synthetic chemicals or genetically modified organism (GMO) components. As per a Research Gate publication on consumer behavior trends, there has been an increasing belief that organic food is less harmful to the environment and much healthier. The increased focus on sustainability has impacted the trends of key market players to incorporate sustainable practices such as ethical sourcing in their products. As product innovation continues, the market is poised for continued robust expansion.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
14.1% |
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Base Year Market Size (2024) |
USD 283.8 billion |
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Forecast Year Market Size (2037) |
USD 1381.7 billion |
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Regional Scope |
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Product (Organic Food, Organic Beverages)
The vegetables and fruits segment is expected to register rapid revenue growth during the forecast period driven by rising consumer awareness of the health benefits of integrating organic vegetables and fruits in the diet and demand for environmental sustainability. There is a high rate of demand for organic vegetables and fruits free of chemicals in North America and Europe.
The beer and wine segment is expected to register rapid revenue CAGR during the forecast period. Many governments have identified the potential of local organic drinks and have started the process to market them. The demand for organic beer and wine is fueled by a greater sense of cultural pride and demands for sustainability. For instance, in 2021, the organic rice wine Judima was presented with the geographical indication tag by the Government of India, and its commercialization process was given a green light.
Distribution Channel (Offline, Online)
Offline segment is projected to dominate over 67.2% organic food and beverages market share by 2037. Convenience stores, supermarkets, farmers markets, and hypermarkets offer a plethora of choices in organic foods and beverages. Since a considerable portion of organic sales depends on buyer awareness of health, offline channels are convenient for personal inspection to consumers.
There are several organic food and beverages market players in the offline distribution segment such as Whole Foods, Sprouts Farmers Market, and Fresh Market, and their sales have been growing steadily. For instance, in 2023, Walmart which focused more on mass-market products has been steadily increasing its catalog of organic products from emerging brands.
The online distribution channel segment has been expanding at a staggering rate since the COVID-19 pandemic where consumers did the bulk of their shopping via online retailers. Major players including Amazon have added an Amazon fresh section in their catalog that exclusively sells organic products. With increased digitization, especially in emerging economies, this segment is expected to see a considerable growth during the forecast period.
Our in-depth analysis of the organic food and beverages market includes the following segments:
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Product |
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Distribution Channel |
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Process |
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North America Market Statistics
By the end of 2037, North America organic food and beverages market is projected to account for more than 49.8% revenue share owing to rising public awareness and demands for organic food and beverages to supplement healthier living and increasing levels of disposable income allowing consumers to purchase premium organic products.
The U.S. is poised to remain the organic food and beverages market leader in North America. The demand for organic vegetables and fruits is considerably high in the country. As per a Research Nester report, in 2022, 30% of American customers preferred to buy organic over conventionally produced goods. The demand for organic meat is also growing in the country. For instance, in 2020, Craft Cow, renowned for organic meat announced a USD 8 million funding. Another marker of consumer preference for organic food and beverages in the U.S. is the Pew Research Center report that stated 73% of Americans preferred to buy locally grown food and vegetables while 44% bought food that was labeled as non-GMO free. These trends are expected to continue to drive the demand for organic products.
In Canada, the demand for organic products is rising owing to consumer awareness of health, growing calls for sustainability, and a high rate of import of organic products. As per an Export Development Canada report, the demand for organic products in Canada is growing at 8% annually. The farming of organic vegetables has grown in the country with Quebec accounting for three-quarters of certified organic vegetables. There is also a surge in the import of organic vegetables to Canada since the demand is surging more than the produce within the country. New product launches have been boosted due to consumer demand. For instance, in August 2024, Guru Organics released an organic Peach Mango Punch in Canada.
APAC Market Analysis
Asia Pacific is projected to witness a massive surge in the organic food and vegetables market due to rising disposable incomes, improving the affordability of premium organic products, large population numbers, and increasing demand for organic produce due to wellness concerns.
India is the leading organic food producer in the world. The consumer base in India has a growing awareness of health which has boosted the demand for organic food along with a trend in consumer behavior to support local organic produce. In addition, there has been a sustained effort by the government to promote organic farming in the country. For instance, Paramparagat Krishi Vikas Yojana promotes organic farming with certification and monetary grants.
The startup ecosystem in the country has also seen the foray of new emerging players in the organic food and beverages market by leveraging the rich organic history of various regions. For instance, Diaspora Co. raised USD 2 million in financing in 2021. In 2022, NE Origins, a Sikkim-based startup raised USD 2 million pre-seed funding.
In China, the organic farming market is export-oriented with 28% of its agricultural land devoted to organic farming. Health is a key issue in China that boosts the demand for organic products. As per the U.S. Agricultural Trade Office in Guangzhou, most supermarkets in China have doubled floor space for organic goods.
Japan is a significant player in APAC that is poised to grow its revenue share during the forecast period, owing to increasing public awareness of organic products and a robust regulatory framework that ensures quality control. The government has focused on promoting organic consumption by planning to convert 1 million hectares of agricultural land to dedicated organic farming by 2050.
South Korea is a bourgeoning market, expected to steadily expand during the forecast period. The driving factors are a high focus on health and well-being and a call for ethical consumption by the millennial and Gen Z demographics. Key players in the market are focused on increasing their production and acquisitions to increase market share. For instance, in 2021, Maeil Dairies purchased land and assets from Corio Bay Dairy Group for USD 13.5 million.
Organic food and beverages market growth is predicted to have a lucrative share during the forecast period. It is a competitive market with the presence of local and global players. The surge in market growth is credited to the rise in consumer awareness of health leading to the demand for organic products that are chemical-free..
Author Credits: Parul Atri
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