Natural and Organic Food Market By Product Type (Fruit and Vegetables, Meat Fish and Poultry, Dairy Products, Frozen and Processed Foods, Coffee and Tea), Distribution Channel (Specialty Stores, Supermarket, Convenience Stores, Online Stores), & Region for 2024-2031

Natural and Organic Food Valuation – 2024-2031

Consumers are becoming more environmentally conscious, taking into account the influence their food choices have on the globe. Natural and organic farming approaches frequently stress sustainable land management, reduced use of chemical fertilizers and pesticides, and increased animal welfare. This appeals to consumers who wish to support environmentally responsible agriculture methods and help create a more sustainable food system. Thus, the consumer environment-friendly is surging the growth of the market size surpassing USD 174.37 Billion in 2024 to reach the valuation of USD 419.55 Billion by 2031.

The natural and organic food sector has expanded beyond specialty stores. Major supermarkets and online retailers are increasingly allocating significant shelf space and online presence to natural and organic items. This increased accessibility makes it easier for consumers to locate and acquire these things, accelerating market growth. Thus, the easy availability of natural and organic food to the consumer is enabling the market to grow at a CAGR of 11.60% from 2024 to 2031.

Natural and Organic Food MarketDefinition/ Overview

Natural and organic food typically refers to products that undergo minimal processing and contain no artificial ingredients, colors, flavors, or preservatives. These foods are grown without the use of synthetic fertilizers, pesticides, or herbicides. The natural and organic food sector is rapidly expanding, driven by rising consumer demand for sustainable alternatives to conventional agriculture practices. This transition may be seen in the adoption of ecologically friendly tactics such as organic fertilizers produced from plant and animal waste, as well as the use of insecticides based on plant extracts and microbial.

Organic agriculture is a comprehensive approach that uses sustainable natural resources and practices. This system relies heavily on practices such as biofertilizer application, biological pest management, and crop rotation. Unlike standard agriculture, which uses synthetic fertilizers, pesticides, and growth regulators to increase crop yields, organic farming prioritizes natural alternatives. Furthermore, in animal husbandry, organic producers avoid using hormones, antibiotics, and synthetic chemicals are avoided in favor of approaches that prioritize livestock welfare. This emphasis on natural and organic methods reflects a market-wide shift toward healthier, more ecologically sensitive food production processes.

How the Increasing Health Consciousness in People is Surging the Growth of Natural and Organic Food Market?

Increasing awareness of health consciousness in people globally is driving the demand for natural and organic food products. With a rising number of chemical-related health risks, such as cancer and hormone disturbances associated with pesticides, customers are turning to cleaner alternatives. For instance, according to the in the United States, in 2021, organic sales represented approximately 3 percent of total U.S. farm receipts, even though organic acreage comprised less than 1 percent of U.S. farmland.

The surge in global disposable income is expected to promote the shift towards natural and organic foods. The increasing disposable income in the regions is contributing to the growth of the natural and organic food market. Furthermore, the convenience of purchasing organic things online, as well as customers’ growing preference for organic foods, are driving drivers behind increased demand.

Furthermore, the expansion of organic farming practices, aided by government restrictions, and the increasing availability of organic products in traditional retail channels are driving market growth. According to , India produced 2.9 Mn of certified organic crops.

In India, organic food is cultivated across 2.6 million hectares, ranking it as the fifth largest organic farming area globally. The report also highlights that organic farming occupies 1.5% of the total agricultural land, with India witnessing a notable 145.1% increase in organic agricultural land over the past decade. According to the Economic Survey 2022-2023, India boasts the highest number of organic farmers in the world, totaling 4.43 million. Factors including increased income levels, improved living standards, and growing environmental concerns linked with traditional farming practices are also surging the preference of consumers towards natural and organic food.

In addition, as consumers place greater emphasis on their health and wellness, there’s a growing preference for natural and organic foods, which are perceived to be more nutritious and less processed. Worries about the potential health risks associated with pesticides, antibiotics, and artificial additives in conventional food are fueling this shift. Individuals actively seek out products with natural ingredients and minimal processing, believing such choices contribute to a healthier lifestyle.

How the High Cost and Shorter Life Span of Organic Products is Hampering the Growth of the Natural and Organic Food Market?

The higher cost and shorter shelf life of organic products, attributed to increased labor inputs and broader business scope, pose significant obstacles to market growth. Concerns about bacterial contamination in organic production also contribute to consumer hesitancy. Nevertheless, government initiatives to educate consumers about product authenticity and investments from both private and public sectors are creating opportunities for market expansion. Private label development and the involvement of major retailers like Wal-Mart, Tesco, and Safeway in organic product sales further enhance market prospects. Additionally, subsidies, financial support, and research and development initiatives from various governmental and non-governmental entities are expected to bolster the growth of the natural and organic food market.

The reliance of organic agriculture on seasonal variations and avoidance of practices that manipulate natural growing cycles can result in the limited availability of certain organic products outside their natural growing seasons. This aspect could significantly influence consumer choices, as they may face challenges finding their preferred organic items year-round. Moreover, while organic farming methods prioritize reducing the use of synthetic chemicals, they may be more susceptible to certain types of pests or diseases compared to conventional methods. This susceptibility can pose challenges in maintaining consistent food safety standards, necessitating stringent control measures from producers to mitigate risks and ensure product quality and safety. These factors collectively represent restraints for the natural and organic food market, potentially impacting its growth and accessibility to consumers.

Category-Wise Acumens

How the Health-Conscious Consumer is Booming Growth in the Fruit and Vegetables Segment?

The fruits and vegetables segment is showing significant growth in the natural and organic food market and is projected to continue its growth throughout the forecast period owing to the compelling choice for health-conscious consumers. These products are renowned for being free from synthetic pesticides and herbicides commonly found in conventionally grown produce. By opting for organic fruits and vegetables, consumers can significantly reduce their exposure to potential health risks associated with these chemicals, thereby prioritizing their well-being.

Furthermore, organic farming practices often emphasize the maintenance of healthier soil conditions, fostering environments that promote optimal plant growth and development. As a result, organic fruits and vegetables may boast higher levels of certain nutrients and antioxidants compared to their conventionally grown counterparts. This nutritional advantage adds to their appeal among discerning consumers seeking to maximize the health benefits of their dietary choices.

Despite the potential premium associated with organic options, many consumers find the peace of mind derived from knowing they’re consuming produce cultivated with minimal chemical intervention and potentially greater nutritional value to be a worthwhile benefit. This growing awareness and appreciation for the health advantages of organic fruits and vegetables contribute significantly to their dominance within the natural and organic food market.

How the Extensive Variety of Online Retailers is Fostering the Growth of Natural and Organic Food Market?

The online store segment is experiencing significant growth in the natural and organic food market. Online retailers often boast the most extensive variety of organic products, surpassing even specialty stores. With access to national and international brands, consumers enjoy a wide array of options to cater to diverse preferences and dietary needs.

The competitive pricing that online platforms frequently provide by online retailers. Thanks to lower overhead costs compared to traditional brick-and-mortar stores, these retailers can offer organic products at competitive prices. This affordability makes organic foods more accessible to a broader range of consumers, thereby driving demand and fueling market growth.

Additionally, convenience plays a significant role in the dominance of online shopping for organic foods. Consumers can browse and purchase these products from the comfort of their homes, at their convenience. The availability of home delivery options further enhances this convenience, eliminating the need to visit physical stores and saving time for busy individuals. These factors collectively underscore the significant appeal and dominance of online stores in the natural and organic food market.

Gain Access to Natural and Organic Food Market Report Methodology

Country/Region-wise Acumens

How Sustainability and Judiciously is Driving the Growth of the European Natural and Organic Food Market?

Europe is substantially dominating the natural and organic food market and is projected to continue its growth during the forecast period owing to the underpinned by the conscientious practices of its organic farmers. The farmers place a premium on sustainability, judiciously utilizing energy and natural resources while championing animal health and biodiversity conservation. Key organic farming techniques in the EU include crop rotation, which optimizes resource efficiency and enhances soil health. Strident regulations banning chemical pesticides and synthetic fertilizers ensure both consumer safety and environmental preservation.

Additionally, stringent limits on livestock antibiotics mitigate the risk of antibiotic resistance and uphold animal welfare standards. The EU’s steadfast prohibition of genetically modified organisms (GMOs) safeguards biodiversity and consumer choice. Furthermore, by harnessing on-site resources for natural fertilizers and animal feed, farmers minimize external inputs and bolster self-sufficiency. Embracing free-range livestock rearing practices, including access to open-air environments and organic fodder, underscores the EU’s commitment to meeting stringent animal welfare criteria. These tailored agricultural approaches epitomize Europe’s dedication to sustainable and ethical food production, solidifying its prominent position in the natural and organic food market.

According to the , the proportion of agricultural land in the EU dedicated to organic farming witnessed a notable rise from 5.9% in 2012 to 9.9% in 2021. This increase can be attributed to the growing demand for organic products as well as supportive policies aimed at fostering organic agriculture. The land used for organic farming in 2021 is 16 million hectares of the EU’s UAA. In 2021, Austria, Estonia, and Sweden boasted the highest shares of agricultural land under organic farming among all EU Member States, with each exceeding 20% of their Utilized Agricultural Area (UAA). Conversely, six Member States reported less than 5% of their UAA dedicated to organic farming, with Ireland, Bulgaria, and Malta recording the lowest shares.

Among the EEA member and cooperating countries with available data, organic farming covered less than 5% of their UAA, except for Switzerland, where it accounted for 17%. Notably, Switzerland witnessed an increase in the share of organic farming areas, while Norway experienced a decrease between 2012 and 2021.

How the Government Initiative in the Region is Surging the Growth of Asia Pacific Natural and Organic Food Market in the Forecast Period

Asia Pacific is projected to be the fastest growing region during the forecast period owing to the increasing organic farming in the region. The government initiatives for organic farming in the region are fueling the growth of the natural and organic food market. The government’s concerted efforts have propelled India’s organic food sector to new heights. According to in 2021, the country’s organic products exports surged past $1 billion, with the United States emerging as the largest importer, accounting for 54% of these exports, followed by the EU and Canada. Notably, organic processed foods constituted the largest share of India’s organic exports. According to despite this remarkable growth, there remains ample room for expansion, considering that the global organic market exceeds $133 billion.

Various government initiatives have played a pivotal role in nurturing the organic food industry. Paramount among these is the implementation of schemes like the Paramparagat Krishi Vikas Yojana (PKVY) and the Mission Organic Value Chain Development for North East Region (MOVCDNER), which aim to bolster organic farming practices and value chain development. Additionally, platforms like the Jaivik Kheti organic e-commerce portal facilitate direct linkage between farmers and buyers, fostering transparency and accessibility.

Moreover, the National Programme for Organic Production (NPOP) ensures the accreditation of certification bodies and sets standards for organic production, bolstering consumer confidence in Indian organic products. Furthermore, the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI) incentivizes the production of innovative and organic products, promoting entrepreneurship in the sector.

These initiatives, coupled with efforts to promote Indian millets, secure Geographical Indication (GI) tags, and advocate for local consumption through campaigns like “vocal for local,” underscore India’s commitment to fostering a vibrant organic food ecosystem. With the US Department of Agriculture forecasting India’s organic products market to reach $10.1 billion by 2026, the future of the country’s organic food sector appears promising, poised for continued growth and global recognition. According to the , the demand for organic products in the Indian market is on a steady rise and is projected to increase at a compound annual growth rate (CAGR) of 25.25% between 2022 and 2027.

Competitive Landscape

The competitive landscape in the natural and organic food market is constantly evolving. Players who can adapt to consumer demands, innovate with unique offerings, and leverage technology effectively will be well-positioned to secure a dominant share in this flourishing market.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the natural and organic food market include

• Dole Food
• Hain Celestial
• Nature’s Path Foods
• Quaker Oats
• Kroger
• United Natural
• Foods, General Mills
• Amy’s Kitchen
• Danone
• Cargill

Latest Developments

• In October 2023, Dole Food announced the launch of a specialist division, Dole Organics, and the New Dole Go Organic a Consumer Brand.
• In June 2023, Nature’s Path Foods announced the acquisition of Love Child Organics, This acquisition demonstrates Nature’s Path Organic Foods’ dedication to enhancing accessibility to organic food for consumers and their families. It strategically positions the company within the thriving baby food market, which is valued at $499 million in Canada and $8.5 billion in the US.

Report Scope

Natural and Organic Food Market, By Category

Product Type

• Fruit and Vegetables
• Meat Fish and Poultry
• Dairy Products
• Frozen and Processed Foods
• Coffee and Tea

Distribution Channel

• Specialty Stores
• Supermarket
• Convenience Store
• Online Stores

Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Research Methodology of Market Research

To know more about the Research Methodology and other aspects of the research study, kindly get in touch with our .

Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players• T