The global organic foods market was valued at USD 177.08 billion in 2023 and is anticipated to grow from USD 199.35 billion in 2024 to USD 529.64 billion by 2032, reflecting a compound annual growth rate (CAGR) of 12.99% over the forecast period. Europe accounted for the largest share of the global revenue in 2023, contributing 44.17%. Meanwhile, the U.S. market is set for strong expansion, projected to reach USD 185.47 billion by 2032, driven by increasing consumer focus on health and wellness, alongside a growing selection of organic offerings.

Organic food items include a wide range of products such as fruits, vegetables, dairy, grains, and other consumables that are cultivated and processed following certified organic farming methods. This market's growth is fueled by rising health consciousness, supportive government initiatives promoting organic agriculture, and consistent innovation within the packaged food sector. Other contributing factors include increasing disposable income, improved standards of living, and rapid urbanization. The COVID-19 pandemic further amplified interest in organic foods, as consumers prioritized health and nutrition, accelerating demand.

Information Source: https://www.fortunebusinessinsights.com/industry-reports/organic-foods-market-101470

Market Segmentation

Fruits & Vegetables Dominate Owing to Nutritional Superiority

The market is categorized into fruits & vegetables, dairy, meat, fish & poultry, frozen & processed foods, cereals & grains, beverages, and others. Among these, fruits and vegetables are expected to lead, given their dense nutritional composition rich in vitamins, minerals, fiber, and antioxidants.

Unprocessed Organic Items Expected to Hold a Larger Share

In terms of product type, the market is segmented into processed and unprocessed goods. The unprocessed segment is likely to lead, driven by increasing consumer preference for fresh, natural, and minimally processed food options.

Supermarkets and Hypermarkets to Maintain Lead in Distribution

Key distribution channels include supermarkets/hypermarkets, specialty retailers, convenience stores, e-commerce platforms, and others. Supermarkets and hypermarkets are set to remain dominant due to their extensive selection of organic products available in one place.

Report Coverage

This report offers comprehensive insights into vital market segments, key trends, growth opportunities, and challenges. It analyzes the impact of the COVID-19 pandemic and evaluates regional dynamics alongside strategic moves by leading market players.

Key Growth Drivers and Challenges

Eco-Friendly Agricultural Practices Driving Market Expansion

The transition toward sustainable farming and growing awareness about the adverse effects of chemical fertilizers and pesticides are major growth drivers for the organic food sector. Increased emphasis on sustainable agriculture is helping to enhance both accessibility and affordability of organic options. Continuous innovation by industry leaders also supports growth. However, premium pricing and limited shelf life may hinder broader consumer adoption.

Regional Insights

Europe to Continue Leading the Global Market

Europe is expected to remain the largest regional market due to heightened environmental awareness and ethical consumerism. For instance, data from AgenceBio in 2020 showed that fresh produce accounted for 17% of organic food consumption in France, second only to grocery items at 31%.