The global organic foods and beverages market is expected to reach USD 416 billion by 2027, growing at a CAGR of 12.4% from 2019 to 2027. This anticipated growth is attributable to consumers increasing awareness of genetically modified crops and artificial fertilizers and pesticides and their belief that organic food products are safer, are more nutritious, and taste better than conventional food items. Thus, consumers prefer an organic diet that is environmentally friendly and free of toxic chemicals.
European and North American countries dominate the organic food and beverage industry. The U.S. held the largest share in 2019, with approximately 37% of global revenue. The organic market is highly fragmented; to keep up with the marketplace and gain some competitive advantage, companies are continuously looking to develop new products and functions with the help of ongoing research and development activities.
The increase in adoption of organic groceries and organic baby foods made the other organic foods segment a lucrative target for investment. Other emerging segments such as organic non-dairy products, organic dairy products, and organic meat, fish, and poultry products show appreciable growth and also offer huge opportunities for investment. Organic frozen and processed foods and other organic beverages are also rising segments and are expected to fetch good revenue. The organic beverages market is exponentially growing as customers prefer natural or organic drinks to carbonated functional beverages due to a wide range of health benefits. Non-dairy beverages such as soy milk dominated the organic beverage segment in 2019.
Rising ethnic diversity worldwide has contributed toward growing consumer preference for spicy flavors and savory items over the past few years. The shift toward convenient packaging has offered ample scope for implementing innovative product packaging and launching multiple blends of flavored seasonings across various categories such as sauces, dips, dressings, and pickles.
Thanks to the growing organic foods and beverages market, CJs natural savory flavor solutions can satisfy food manufacturers needs for better-tasting options.
*source: Innnova database