Organic Food & Organic Beverages Market to Grow at 15.5% CAGR between 2013 and 2019

Organic foods are food raised or grown without the use of any synthetic chemicals, additives, coloring agents, genetic manipulation or radiation on organic farm and satisfy the criteria set by the USDA National Organic Program (NOP). The raw materials used in the production of organic food & beverages are soybean, corn, spring wheat, oats and others. Raw material suppliers and distributors such as SunOpta, Earth Supplied products and Bio - Botanica inc. and others supply various raw materials and ingredients to the manufacturers of organic food & beverages for R&D and manufacturing of these products. The global organic food & beverages market in terms of revenue was valued at USD 70.70 billion in 2012.

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The market for organic food by products in 2012 was led by organic fruits & vegetables accounting for 38.9% share of the market and is expected to maintain their dominance in the coming years. Organic frozen & processed food occupied second largest share in the market in 2012 but it is expected to lose its market share by the year 2019. Organic dairy products due to advancement in technologies provide products with an extended shelf life; therefore it is expected to increase its share by 2019. Organic meat, fish & poultry products occupied a very small share in the market and are expected to increase their market share in future due to development of new and innovative products in this segment.

Organic coffee & tea and non-dairy beverages together accounted for more than 75% share of the global organic beverages market. However, in terms of demand and growth, the market for these beverages is stagnant as these have been in the market for a while now, with little or no new product development. On the other hand, others segment which includes beverages excluding wine & beer is the highly attractive market, and is expected to drive the market for organic beverages over the next six years. Organic beer & wine is the other most attractive segment of organic beverages market, and are expected to grow at a higher rate of 24.5% from 2013 to 2019.

The global organic food & beverage industry is spread around the world, with many countries currently producing and exporting these products. Traditionally, Europe and North America were the major markets for organic food & beverages products. But, increase in the demand for organic food & beverages products in Brazil, Mexico, China, India, and Argentina have gained the attention of manufacturers, prompting them to expand in these countries. In future, Asia Pacific market is expected to be the most promising market expected to grow at a rate of 28.2% from 2013 to 2019 with economies such as India, Japan, Australia and China being the chief contributors. The growth in the market is driven due to rising green consciousness and growing awareness and affinity for organic ingredients. Rest of the World (RoW) is also expected to increase its market share by 2019.

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The organic food & beverages products market is a highly fragmented market with players accounting for very less market share in 2012. Hain Celestial Group Inc due to its wide range of product portfolio and brands is the market leader of the organic food & beverages market. Premium brands are targeting high-end retailers while other brands are targeting supermarkets, club stores, discount store and health food stores. Private labels of retailers are becoming prominent and are the most successful in the organic food & beverages products market. Companies such as 365 Everyday Value/Whole Foods, Starbucks and Amy's Kitchen Inc are some of the major players of this market.

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