Global Organic Market
According to a new report, the demand for organic food & beverages was valued at $70.70 billion in 2012.
The global market has witnessed growth in recent times due to increasing consumer health awareness. In addition, widening distribution channels and increased government regulation and intervention are some of the other factors contributing toward the market growth. Shorter shelflife of the organic products and high prices of the raw materials are the major growth barriers of the market. However, increased R&D efforts for new products development provides huge market opportunity for the market players.
In 2012, organic food dominated the global market and accounted for 80.6% share of the overall demand. Organic fruits & vegetables led the food segment and accounted for 38.9% share of the market and are expected to maintain their dominance over the next six years. Organic dairy products are expected to grow at a CAGR of 14.1% from 2013 to 2019 due to advancement in technologies which provide products with an extended shelflife. Organic meat, fish and poultry products occupied a very small share in the current market but are expected to increase their market share in future due to development of new and innovative products in this segment and is expected to exhibit the fastest growth rate of 14.6% from 2013 to 2019.
Organic coffee and tea and non dairy beverages were the market leaders in the organic beverages space. Organic coffee and tea accounted for 39.8% of the total beverage revenue share in 2012. Organic beer and wine beverage are expected to grow at a rate of 24.5% from 2013 to 2019. Organic beverages markets are witnessing growth due to increasing consumer awareness regarding health benefits associated with it. Moreover, due to their finished quality and better formulation flexibility, the market is witnessing a steady rise, which leads them to gain a significant position in the market.
North America dominated the market and accounted for over 48% of the global demand in 2012, followed by Europe which accounted for 45.6% share for the same year. This dominance is driven by new product launches and widening distribution channels. Growing demand for organic food, increasing spending habits, life quality, and changing trends in ethnicity are expected to drive organic food & beverages market in Asia Pacific.
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