Currently, 7.5% of the total agricultural land in the European Union (EU) is organic, covering a total area of 13.4 million hectares (ha), with the expectation of growth in the future. In Europe, the industry is witnessing a demand for cleaner and more minimalistic food products, which is clearly demonstrated by the rising consumer awareness as they seek more from products that claim to be organic or free form. Some leading companies in the market include Amy's Kitchen Inc., General Mills Inc., The Hain Celestial Group Inc., and Clipper Teas. In order to capitalize on the potential market opportunities, leading players are actively investing in the development of innovative products. 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. According to the report, "Europe Organic Food & Beverages Market Research Report, 2027" published by Actual Market Research, the market witnessed a difference of around USD 26.45 billion from 2016 to 2021. Further, the market is anticipated to grow at a more than 12% CAGR for the 2022–2027 period. The market is dominated by the organic food segment in the year 2021. Furthermore, increasing awareness among consumers about the health and benefits of organic food products has further stimulated the market's growth. With the growing number of chronic diseases such as cardiac issues, cancer, and diabetes, and the rise in healthcare costs, consumers are increasingly focusing on their diet. The organic beverage segment is expected to increase towards a share of more than 9% during the forecast period.
Asia-Pacific dominates the market and is the largest and fastest-growing market in the animal growth promoters industry globally
Download SampleDenmark 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 will cause the Danish market to be one of the smallest in Europe by the end of the forecast period. Generation Z has grown up at a time when health and wellness are high profile. For younger generations, the social and environmental impact of consumption is of great importance, and this is likely to help fuel future growth of organic beverages. The increased visibility and accessibility of organic beverages in retail outlets will make it more convenient for consumers to purchase such products. This improved accessibility and visibility will impel the sale of organic food in Europe during the forecast period. In Europe, the industry is witnessing a demand for cleaner and more minimalistic food products, which is clearly demonstrated by the rising consumer awareness as they seek more products that claim to be "organic" or "free-from". The rising consumer concerns about the negative health impact of GMOs, preservatives, synthetic additives, etc., are primarily augmenting the demand for organic food and beverages. In line with this, the growing adoption of healthy dietary patterns due to the high prevalence of lactose-and gluten-intolerance among the masses is also driving the demand for gluten-free and lactose-free product variants. Moreover, the increasing levels of urbanization, coupled with improving consumer living standards, have increased the demand for high-quality, organic food and beverages. The consumer preference for innovative flavors, health benefits, convenience, and alternative natural sources of nutrient supplements has augmented the clean-label food and beverage products market across the region. Also, the consumer interest in identifying the ingredients present in food and beverage products has triggered the growth of the organic food and beverage market. European consumers are highly concerned about the long-term effects of the food products they are consuming in terms of nutrition content and their impact on their health, environmental sustainability, sourcing, and social responsibility. This has triggered an increasing demand for organically sourced food and beverage products in the European region. In the year 2021, Germany and France held a share of more than 45% of the region's market. In Germany, the industry has witnessed a cut in synthetic ingredients due to the wider use of botanicals and the replacement of emulsifiers with enzymes and other texturizers. This changing trend and demand for nutritive products are expected to further fuel the demand for organic food and beverage products. Domestic production is falling short of the demand, which is driving Germany to import a large quantity of organic food. Thus, imported organic products hold a major market share and are leading to high prices of conventional products. These scenarios are 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 organic food retailers. Furthermore, as the growing elderly population in the region is more inclined 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 growing ageing population in Germany consumes more nutritive products due to rising health concerns. There is a continuous rise in demand for specialty ingredients in functional and organic beverages in the country. Furthermore, according to the investment group, Germany and Trade Invest (GATI), German consumers are becoming health-conscious and are looking for confectionery that is low in sugar, fair trade, and organic. As a result, the demand for sustainable products is on the rise in the country.
In Europe, the rising consumer concerns about the negative health impact of GMOs, preservatives, synthetic additives, etc., are primarily augmenting the demand for organic food and beverages. In line with this, the growing adoption of healthy dietary patterns due to the high prevalence of lactose-and gluten-intolerance among the masses is also driving the demand for gluten-free and lactose-free product variants. Moreover, the increasing levels of urbanization, coupled with improving consumer living standards, have increased the demand for high-quality, organic food and beverages. Besides this, the emergence of numerous e-commerce platforms supported by their related advantages, such as diverse product range, hassle-free shopping experience, doorstep delivery, etc., is also bolstering the demand for organic food and beverages in the region. The increasing focus of manufacturers on the development of clean-label products with prolonged shelf life and easy storage benefits is expected to drive the market further in the upcoming years. Although Germany has the largest organic market, the highest levels of per capita consumption can be found in Switzerland and Denmark. The average per capita expenditure in the European Union is about 102 Euros. Among European consumers, some popular reasons for buying organic foods include supporting local businesses, health reasons, and avoiding pesticides or other sprays, among others. Although many consumers want to support organic, they might not be willing to tolerate higher price tags. The majority of respondents expected to pay about 5% more for organic foods. However, only about 14% indicated a willingness to pay more than 10% more for organic products. The increasing shelf space for organic food products is the key trend for the growth of the organic food market. In recent times, it has been observed that the augmented demand for organic food products has led to the allocation of more shelf space to organic food brands in retail stores. The increased visibility and accessibility of organic food products and beverages in retail outlets will make it more convenient for consumers to purchase such products. This improved accessibility and visibility will, in turn, impel the sale of organic food in Europe during the forecast period. This paradigm shift in the consumer’s preferences will spur the demand for organic food products and beverages during the forecast period.
People's growing concern about health problems is accelerating the growth of organic beverages in Europe. There is no question that there is a growing interest in organic sodas that do not use preservatives or artificial flavors. People prefer European organic drinks to those that are high in sugar, high in chemicals, and low in nutritional value. Together, all of these factors are driving the demand for organic beverages around the region. Recently, consumers have started paying attention to their health, whether they drink or eat. This important factor is expected to drive demand for organic beverages in Europe during the Research Report period. The demand for sugar-free and decaffeinated beverages will also increase the demand for products in the future. High demand for products in Europe and rising levels of disposable income in developing countries are some of the key factors driving the European organic beverages market's growth. Providing products with new flavors and ingredients like turmeric, aloevera, and activated charcoal in attractive packaging that is easy to transport and store will also drive the demand. However, organic drinks are quite expensive compared to conventional drinks. Several manufacturers are focusing on producing labeled organic food and beverages, including introducing natural fruit ingredients and no sugar added to their juices to capture the growing demand in the European organic beverage market. The prices of the European organic beverage market are expected to decline in the near future with advances in technology and increased adaptability of the soil to organic farming. Additionally, investment in the organic food and beverage sector is increasing not only by governments but also by private investors, giving the European organic beverage market an opportunity to nurture itself. The rise of supermarkets, retail stores, and convenience stores has also fueled the growth of the European market as products are showcased and some of them assign different sections for organic food in their stores. Recent Developments • In July 2021, Hain Celestial Debuts, a leading organic and natural products company providing consumers with A Healthier Way of LifeTM, announced several innovations across snacks and tea segments. The newest Celestial Seasonings offering, Cold Brew Iced Tea, comes in five flavors. New Garden Veggie Puffs come in three delicious flavors. They are baked, never fried, and contain 30% less fat than the leading puffed snack. Garden Veggie Puffs are made with non-GMO ingredients, contain no artificial flavors or preservatives, and are the ideal serving size for any snack time or lunch box. These products are made available in the European market as well. • In September 2020, General Mills announced that its partnership with Gunsmoke Farms to transition 34,000 acres of conventional farmland to organic culminates with USDA certification. Gunsmoke Farms received organic certification from the U.S. Department of Agriculture’s National Organics Program. • In July 2016, Danone and The WhiteWave Foods Company ("WhiteWave") announced that they had entered into a definitive merger agreement under which Danone would acquire WhiteWave. WhiteWave is well positioned in high growth categories that are supported by strong secular trends. Organic foods and beverages and non-GMO plant-based alternatives to milk and yoghurt are among the fastest growing categories in the industry in Europe. COVID-19 Impacts: According to researchers, the COVID-19 outbreak is causing EU consumers to seek higher-quality food and health-related items. According to reports, the pandemic is affecting Europeans' eating patterns and broader consumer lifestyles, with many adjusting their diets to emphasize wellness and sustainability. Organic food products are selling at a higher rate than the national average. Major Companies considered in Report: Amy’s Kitchen, Danone - WhiteWave Foods, General Mills, Hain Celestial Group, Whole Foods Market Considered In the Report • Geography: Europe • Historical year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecasted year: 2027 Countries covered: • Germany • UK • France • Spain • Italy • Russia Aspects Covered In the Report • Market Size By Value for the time period (2015-2026F) • Market Share by Type (Food & Beverage) • Market Share by Food (Fruits & Vegetables, Meat, Fish & Poultry, Dairy Products, Frozen & processed Food) • Market Share by Beverage (Non-Dairy, Coffee & Tea, Beer & Wine) • Market Share by Sales Channel (Convenience Store, Modern Retail, Online Retail) • Market Share by Country The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the organic food and beverage companies, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.
We are friendly and approachable, give us a call.