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Europe Organic Food & Beverage Market to grow at an anticipated CAGR of 12.07%. by 2026- Actual Market Research.
Feb, 28
2021

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Europe Organic Food & Beverage Market to grow at an anticipated CAGR of 12.07%. by 2026- Actual Market Research.

 

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In Europe, 3.1% of the agricultural area was organic. Organic farmland has increased by over 1.25 Million Hectares compared to 2017. The countries with the largest organic agricultural areas were Spain with 2.2 Million Hectares, France, & Italy with 2.0 Million Hectares. The region adopted the basic act of its new organic regulation in 2018, which will come into force in 2021. In the year 2015, the region accounted for a value of USD 39.81 Billion. Actual Market Research's recent publication named 'Europe Organic Food & Beverage Market Outlook, 2026' predicts the organic food and beverages market in Europe to grow at an anticipated CAGR of 12.07%.

The organic food segment dominates the European organic food & beverage market, which was at USD 37.01 Billion in the year 2020. The growing aging population in Germany consumes is more inclining towards nutritive products due to rising health concerns, there is a continuous rise in demand for the specialty ingredients in functional and organic beverages in the country. The consumers are turning health conscious and are looking to confectionery that is low sugar, fair trade, and organic. The organic beverage segment is expected to incline towards a share of 9.06% by the end of the forecasted period.

The increasing shelf space for organic food products is the key trend for the growth of the organic food market. It has been observed that the augmented demand for organic food has led to the allocation of more shelf space in retail stores. By the end of 2026, the organic dairy segment in the European region is expected to reach a market of USD 19.04 Billion. Denmark has the largest organic milk market in Europe with organic milk sales accounting for a third of milk sales in the leading retailers. Sluggish growth rates are to cause the Danish market to be one of the smallest in Europe by the end of the forecast period. Although organic products have fully entered mainstream channels and continue to gain traction with shoppers, the organic segment still offers innovation opportunities across numerous drink categories. This is especially true in categories where organic claims have previously played a minor role, such as wine. The organic beer & wine segment is to show a considerable change in the market share and reach 8.11% by the end of 2026.

Germany & France held a share of nearly 50% of the region's market in the year 2020. In 2018, the secondary legislation the delegated and implementing act for production, labeling, controls, and trade, drafted and adopted, which that is in use since 2020. Germany leads the region's organic food & beverage market even at a declining market trend. Domestic production is falling short of the demand, which is driving Germany to import a large quantity of organic food. Thus, the imported organic products hold a major market share and are leading to high prices of conventional products. These scenarios expected to influence the rising demand for the German organic food industry over the forecast period. More than 2,400 organic retail shops are present in Germany, with Denn’s being the leading player among the organic food retail. France held to the second position over the period, with a declining market trend. The vendors are competing based on product differentiation, portfolios, and pricing to gain maximum market traction. The level of competition is to intensify due to an increase in retailers introducing their private labels. Many private label brands are also coming up on the organic food market in Europe, which further intensifies the level of competition between them.