Asia-Pacific Organic Food & Beverage Market to grow with an anticipated CAGR of 13.96%- Actual Market Research

Based on the report titled- Asia Pacific Organic Food & Beverage Market Outlook, 2026, published by Actual Market Research, the market was recorded at USD 14.69 Billion in the year 2015. Rising consumer attention towards food safety is to make Asia the market of the future for the organic industry. A major driver of growth in Asia can be attributed to consumers’ fears for food safety and numerous food scandals, which include melamine in dairy products and infant formula, rotten meats, sewage oil in food products, adulteration, counterfeiting, etc. These mishaps in the region are to allow the market to grow with an anticipated CAGR of 13.96% through the forecasted period. A prominent factor exacerbating the challenge of Indian organic agriculture is waste due to ample supply, demand that is confined from urban centers and often inaccessible for many producers and other supply chain inefficiencies.

With factors like environmental protection and animal welfare are likely to play a prominent role in the region's organic food market. The organic food segment in the region was at USD 13.85 Billion in the year 2015. The fruits & vegetable segment with a numerous value of USD 9.97 Billion lead the organic food segment in the year 2020. The high cost and a shorter shelf life remain the significant challenge in the region. The opportunities for new product development lie beneath the increasing investments by the private firms and supportive governmental regulations. The need to improve the quality of nutraceuticals and creating a profitable market is the driving force in the region. The organic meat, fish, & poultry segment is expected to show a marginal difference in the market value and reach USD 3.73 Billion by the end of the year 2026. The organic beverage industry is flourishing right now in the region. The organic non-dairy segment is growing with the increase in awareness about the same and was at USD 0.48 Billion in the year 2015. In South Korea, the growing preference of consumers towards luxury items, along with the rising income level among the affluent, are major factors driving the demand for organic beverages. Holding the least share in the market, the organic beer & wine segment is expected to account for merely USD 0.22 Billion by the end of the forecasted period.

In 2017, 1.1 million organic producers were reported in Asia. India is the country with the most organic producers, followed by the Philippines. In China, India, and South Korea, leading food and beverage companies have launched organic products. In addition, this is strongly supported by government incentives. Most Asian countries have also introduced national standards for organic foods, with labelling and certification schemes. China held a share of 50.22% in the year 2015, leading the Asia market. Organic products are still rare in Japan and are usually priced very high compared with regular products. This is due to the lack of domestically harvested organic ingredients, with most organic products being imported. Adhering to Japan’s strict organic standards and requirements is the biggest hurdle for overseas firms trying to get a foothold in the nation’s fledgling sector, which is now being tipped for a growth spurt. Organic foods are perceived to be safer than conventional foods, and Japanese consumers are more than ready to pay a premium for high-quality organic products. There are very few organic beverages produced in Japan and apart from organic green tea and organic drinking milk, all the major products are imported.

Factors such as increasing retail distribution, rising consumer awareness of organic production methods, large companies entering the organic sector, and government support have also contributed to market growth. With increasing retail distribution, this trend has resulted in organic food becoming widely available to Asian consumers and it is common now for organic food to be actively marketed by many supermarkets and hypermarkets in Asian countries, including South Korea, Singapore, and Hong Kong. Thus, this added factor of convenience has boosted the popularity of organic food in Asia. Although the spending on organic food & beverage remains lower in the region when compared to North America & Europe, it is on an inclining trend. In India, the demand is increasing, with many new organic brands entering. Supply-wise, the country boasts a number of organic producers worldwide, and organic exports remain a source of income. With competitive pricing, Indian organic products are well perceived by international buyers.