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The organic beverage segment will reach over a market size of USD 30 Billion by 2026 - Actual Market Research
Feb, 28
2021

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The organic beverage segment will reach over a market size of USD 30 Billion by 2026 - Actual Market Research

 

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According to 'Global Organic Food & Beverage Market Overview, 2020-26' a recent publication of Actual Market Research, the organic foods & beverage industry has grown into a multibillion-dollar industry reaching a value of USD 106.21 Billion in the year 2015. If there is one area where the corona virus pandemic is causing massive rethinking, it is in what we eat, where we get food from, and how the food is produced, stored, and prepared. There is a growing awareness regarding the health benefits of a natural, balanced diet, which is boosting the demand of organic, sustainable foods. In the year 2020, the market experienced a YOY growth at a rate of 13.24%.

Organic foods include fresh produce, meats, and dairy products as well as processed foods such as crackers, drinks, and frozen meals. Majorly divided into two categories of food and beverages, the food category includes- Fruits & vegetables, Meat, fish & poultry, Dairy products and Frozen & proceeded foods. On the other hand, the beverage category includes- Non-dairy, Coffee & tea, and Beer & wine. The market for organic food has grown significantly since the late 20th century, becoming a multibillion-dollar industry with distinct production, processing, distribution, and retail systems. The organic food market has a high share of organic food compared to organic beverages, dominating the market with a share of over 90% since 2015. The emergence of new packaging strategies will also drive market growth. Innovative packaging will help attract consumers and assist in increasing the shelf life of the product. People are still willing to spend more on sustainable drinks, and the total organic area under vine has increased by 234% since 2007 and in 2017 surpassed 400,000 hectares. With the increase in awareness and easy availability, the organic beverage segment has gained more acceptance in the market and reach over a value of USD 30 Billion by the end of the forecasted period.

North America is the largest market since the year 2015 owing to the high presence of the target population in the region. The US, in particular, is the major consumer in this regional market due to high product demand because of changing lifestyles and increasing health consciousness. The country also leads the global market. Moreover, the rising number of cafes and food chains in the country will have a positive impact on product sales. The Europe organic foods & beverages market is anticipated to witness a marginal growth owing to the unique advantages associated with the products such as zero chemical and pesticide residues, eco-friendly, and healthier compared to conventional or inorganic food. Increasing consumer awareness regarding the benefits of non-genetically modified or engineered products intake is anticipated to fuel the region's market in the near future. Asia Pacific is estimated to be the fastest-growing market over the forecast period. This growth is attributed to rapid urbanization, rising disposable income levels, and establishments of various international retail stores in emerging countries like China and India.

The market is fragmented and consists of numerous small and large vendors. The market vendors compete based on factors such as price, quality, innovation, reputation, and distribution. Intense competition among players, along with rapid technological changes, poses significant risk factors for vendor operations. Therefore, to survive and sustain in the competitive market, it becomes important for manufacturers in the market to differentiate their products and services through a clear and unique value proposition. In addition, factors such as heavy investment and supportive investment policies by government organization for organic farming provide lucrative opportunities to market players. However, high price of organic products and low shelf life hamper the market growth. The market is led by the modern retail segment, which contributed to a share of 44.81% in the year 2015. The online segment is projected to grow at a higher anticipated CAGR over the forecast period owing to the easy availability of a wide range of products and attractive discounts.