Market Research Reports - Ken Research Global Organic Food and Beverage Market

Global Organic Food and Beverage Market is Driven by Growing Sales of Organic Tea, Coffee
and Non-Vegan Products and Shift towards Organic Baby Food Products: Ken Research
Analysis
Expanding product portfolio with launch of new variants in organic coffee and tea segment,
rising cases of genetically modified meat, fish and poultry products, introduction of country
specific online sales portal by manufacturers, retails and distributors and quick shift towards
organic baby food products will be the key factors driving growth in global organic food and
beverage market.
Global urban population has increased at a steady pace over the review period (2012-2017).
Coupled with increasing percentage of literates in the overall population, there has been a
significant shift of preference from conventional food products towards organic food products.
Approximately 2% of overall agricultural land was cultivated for organic food and beverage
products in 2016 and every major region has witnessed an increase in organic production
volume. Americas has been the biggest market in terms of organic food and beverage retail
sales followed by Europe, APAC and Middle East & Africa. Demand has increased on the back of
growing base of Millennial, higher per capita income in major markets, presence of well
established players and expanded distribution network in these regions.
Global online retailing of organic food and beverages has been a major trend in 2016 and 2017.
Online retailers in Europe especially in Germany, France and United Kingdom have generated
enormous revenue from this sales channel. In Germany, the online retail sales have grown at
CAGR of 3.6% during 2012 to 2016. Japan and China have also fared well with annual growth
rate of online retail sales of 1.4% and 43.2% respectively in 2016. Leading manufacturers have
analyzed the emerging market expansion opportunity in online retailing. Major online retailers
worldwide include Organic Shop, Vitacost, Sunfood, 3 Bears Organic amongst various others.
Organic tea and coffee have showcased promising growth and potential in organic beverage
category. Global consumption of organic tea and coffee has increased on account of increase in
caffeine intake by the urban population especially in the age bracket of 25 years and above.
Conventional tea and coffee are amongst one of the most chemically treated products.
Consumers are shifting from conventional to organic tea and coffee because of the added
antioxidants found in them. This market has grown at a CAGR of 29.4% over 2011 to 2016 in
terms of value. Latin American countries have been the major producers of organic coffee in
2017. These include Mexico, Brazil, Colombia, El Salvador, and Guatemala.
Organic baby food demand has increased manifold due to increase in parental predilection
towards right nutrition and healthier food intake for their babies, expanded food product
range, well developed distribution channel of major manufacturer, high cases of baby food