Global Organic Fruits & Vegetables Market - 2021-2028
発行: DataM Intelligence
ページ情報: 英文 180 Pages
Organic fruits and vegetables are those produced in all-natural way of agricultural practices without application of synthetic fertilizers and other agrochemicals. Labeling of any food product as organic is adding demand and price benefits over conventional foods. Fruits and vegetables evolved as the largest category of organic food sales owing to rising demand from food processors and retailers to cater their consumer preference. The global organic fruits & vegetables market valued USD XX billion in 2020 and is estimated to reach USD XX billion by 2028, at a CAGR of XX% during the forecast period
Organic area share of total farmland in Europe increased from 2.7 percent in 2016 to 3.12 percent in 2018, according to FiBL. Similarly, in Latin America, the organic area share of total farmland climbed from 0.99 percent in 2016 to 1.06 percent in 2018. Farmers all around the world are cultivating crops such as fruits and vegetables in response to the growing demand for organic products. For instance, according to a survey conducted by the Organic Trade Association (OTA) 2016, in the United States, organic farms are 35% more profitable than the average farms. The amount paid to organic farmers can range from 29-32% above the non-organic prices. The possibility of farmers switching from conventional farming to organic farming is made easier with the regional regulatory bodies providing the necessary funds supporting the switching cost.
The shifting consumer preference towards all natural food products owing to growing health consciousness is the primary growth factor for the global organic fruits and vegetables market. Furthermore, organic farming is considered as economically friendly practice and is motivating the consumers and food service companies towards purchasing these products. Organic produce is gaining popularity among food processors and caterers owing to superior health benefits. Out-of-season fruits and frozen organic fruits are the new growth points of interest in the global market over the forecast period
However, organic fruits and vegetables are relatively costlier typically 20% - 40% higher compared to conventional produce. This is the primary factor limiting the consumption among low- and middle-income population. Also, several cases of detected mislabeling are reported in recent times which is impacting the consumer trust towards genuine products.
The market has been segmented by product type into fruits and vegetable segments. Organic fruits segment dominated the market with share of XX% in the year 2020. The reason is being attributed to the rising awareness about the healthy and safe food coupled with augmented awareness about the health benefits that is exhibited by the consumption of organic fruit product to its large market share. Furthermore, organic fruits use less pesticide and trigger less human side effects. Organic fruits also have more nutrients, such as antioxidants, that are helpful. These factors listed above are responsible for driving this market's growth. In addition, organic goods have good quality, high nutritional value and good natural sustainability, attracting the attention of consumers in organic fruits, which are poised to serve more opportunities in the forecast period 2020-2025.
Organic vegetables are expected to grow with a CAGR of XX% during the forecast period. The demand of organic leafy vegetables including Spinach, Kale and Lettuce has been rapidly growing in the U.S. and Europe markets. The rising trend of convenience products has motivated the households towards purchase of packaged organic veggies.
By geography, Europe is the largest market for organic fruits and vegetables holding approximately 40% of the global sales value. France is leading the organic movement of the Europe region. Food safety concerns is driving the demand for organic fruits and vegetables in French cuisines. Germany, Italy and U.K. are the other major economies witnessing significant sales of organic fruits and veggies.
Also, the market is bolstering in the North America region at a CAGR of nearly 10% owing to the rising consumer demand in the U.S. and Canada markets. North America has historically been the fastest growing market for organic food globally. The organic food sales in the country reached USD 54 billion in 2018. Fruits and vegetables evolved as the largest category of this market with a share of 38% in dollar sales.
The global organic fruits & vegetables market is posing significant growth potential across the developed economies of Europe and North America region. The market is highly fragmented with no player holding considerable share in the market. This is motivating several independent farms towards direct selling of their produce to food retail chains. Private-label products also hold significant portion of the market. Some of the key market players include General Mills, Inc., Iceland Foods Ltd, H.J. Heinz Company, The WhiteWave Foods Company and Green Organic Vegetables Inc. In April 2018, Kraft Heinz launched a platform for nurturing, scaling and growing food brands within the organic, natural and super-premium sector
The covid-19 pandemic has positively impacted on the market due to growing awareness towards the healthy and nutritional diets. Therefore, this led to surging demand for the organic fruits and vegetables across the globe. During the COVID 19 pandemic the demand for organic food went up as consumers perceived them as being healthier and good for immunity. In India, there has been a paradigm shift post the 2020 pandemic as consumers began to buy more organic foods as a preventive health measure. This change in perception is likely to drive the growth of the organic fruits & vegetables market in future as well. Kraft Heinz, one of the key players in the organic fruits & vegetables market announced that net sales in the year 2020 increased 4.8% when compared to fiscal 2019. E-commerce sales grew by more than 100% and now account for more than 5% of the company's global sales. Kraft Heinz in the first quarter of the 2021 expects organic net sales growth to be flat to positive. The first quarter will compare to the previous year's first quarter that included a six-point to seven-point contribution to organic net sales growth.