North America Organic Food & Beverage Market Research Report, 2027

North America covers an area of about 24,709,000 square kilometers, about 16.5% of the Earth's land area. North America is the third-largest continent by area, following Asia and Africa, and the fourth by population, after Asia, Africa, and Europe. The value of agricultural land (sq. km) in North America was 4,685,338 as of 2016. In 2020, the area of organic agricultural land in North America amounted to about 3.74 million hectares. The area under organic cultivation now represents 5% of the global organic agricultural land. Between 2016 and 2017, the area increased by almost 93,000 hectares, or 3%. Almost 1.8% of the farmland in Canada is organic, and in the United States, it is 0.6%. There are more than 1900 producers in North America; most of them are in the United States. In North America, 3.3 Million Hectares of farmland were managed organically in 2018. Of these, 2 Million were in the US and 1.3 Million in Canada, representing 0.8% of the total agricultural area in the region. Almost 6% of the food sold in the US is now organic. According to the recent publication of Actual Market Research, titled "North America Organic Food & Beverage Market Research Report, 2027," the region's market was valued at around USD 76 billion in the year 2021. Due to the COVID pandemic, people became more involved with the food they consume. Never before has food been more important, and consumers have turned to the trusted organic label, which is expected to allow the market to grow with an anticipated CAGR of more than 10%. The 2014 Farm Act helped organic producers with the cost of organic certification. In addition, Congress passed a USD 867-billion farm bill that includes funding for organic farming research. The organic food segment in the region had higher revenue generation in 2021, while the beverage segment has a limited market, majorly due to the lack of awareness and easy availability. However, by the end of the forecasted period, the organic beverage segment in North America is expected to grow at a higher CAGR. Also, the North American organic food and beverage market is estimated to grow due to high awareness about chemical-free food, the high prevalence of various chronic diseases like cancer, and the presence of a large number of leading supermarkets and hyper-smart chains such as Costco, Walmart, and plenty of others. Americans are deeply concerned over whether organic fruits and vegetables are better for one’s health than conventionally grown foods. The organic fruit and vegetable segment is the highest contributor in North America's organic food market, followed by the organic frozen & packaged food segment in 2021. Younger Americans are the ones who are eating at least some organic food and are more likely to believe organic produce provides health benefits. The organic beverage segment witnessed a dominance of the organic non-dairy segment, which is expected to continue to be the market leader but show a decline in market share. Growing consumer demand for healthy and nutritious foods and increasing distribution in conventional grocery channels are the major drivers of market growth. On the other hand, the growth of organic beverages in North America is majorly driven by factors such as increased interest in organic beverages, easy accessibility of the products, increasing health consciousness, regulatory support, and a rising focus on innovative product development and launches. The key restraints on the market are the shorter shelf life and premium pricing of the products. Rising concerns about the environment and health benefits associated with organic foods are mainly driving the North American organic food market. Furthermore, rising average household annual food spending, an increase in chronic diseases, greater accessibility of these products through small to medium scale retailers, changing lifestyles, the implementation of initiatives to encourage farmers to switch to organic farming, a growing working women population base, and an increase in the number of organic food manufacturers who also comply with international standards and label their products are all driving growth. However, the lack of a skilled number of professionals and the high cost of equipment for farming are hindering the growth of the market. Due to the presence of the target population in the region, North America was the largest market. Due to high product demand because of changing lifestyles and increasing health consciousness, the US is the major consumer in the regional market. Moreover, the rising number of cafes and food chains in the country will have a positive impact on product sales. One of the many barriers that hinder the market development of organic food products is the relatively low availability of these products in the market. Thus, there are potential consumers who want to buy these products but cannot do it because they cannot find them in stores. Yet the region has a high degree of modern retail, expected to reach over USD 60 billion in 2027. With the increasing demand, the number of dairies in the country producing organic milk has also increased. Hence, with the increase in production, the supply of organic milk has outpaced its demand. As consumers in the US are on the lookout for sustainable products, they are showing a growing inclination towards organic dairy products. Because of this, a lot of farmers have started organic dairy farming. These developments suggest that the market for organic dairy food and beverages in the US has immense potential for growth. Chobani LLC manufactures and sells dairy products. The various organic dairy products in its product portfolio include ice-creams, yogurt, milk powder, milk, and other dairy products. Chobani is the leading brand for Greek yogurt, and its product "Chobani Champions" is specifically marketed as a children’s product. The company is headquartered in New York, the United States. According to the United States Department of Agriculture, there are around 20,000 stores and three out of four conventional grocery stores are producing organic food in the U.S. Additionally, consumer demand for organic food is also helping in the growth of startup companies. Recently, General Mills invested around $3 million in the new organic granola company due to the rising demand for organic foods. For instance, new startup company Yumi has come up with organic foods and products for babies. The company has gained the attention of consumers rapidly. The start-up has raised the demand for organic foods globally. One of the major branded players in organic beverages in the USA is Unilever United States Inc. In an attempt to boost brand share and leverage the rising demand for premium tea, Unilever acquired the Pukka and Pure Leaf brands to expand its hot tea business. Both brands have witnessed positive performance within organic categories such as organic black, green, fruit/herbal tea, thus presenting an opportunity for Unilever to improve its share within hot tea. COVID-19 Impacts: The COVID-19 pandemic has substantially boosted the growth of the organic food and beverage market. According to the Organic Trade Association, the US witnessed an all-time high sale of organic food and non-food items in 2020–2021. Organic sales in the US were recorded at USD 61,900 million in 2020–2021. Organic food witnessed an increase of 13% and the revenue from sales reached USD 56,500 million in 2020–2021. This is supported by the growth in health-fitness trends and the rise in the attention of consumers in the direction of healthy meal consumption during the pandemic to improve their immunity response and gut health. Major Companies considered in Report: Amy’s Kitchen, Danone - WhiteWave Foods, Eden Foods, Inc., General Mills, Hain Celestial Group, Nature's Path Foods, Inc., Organic Valley, SunOpta Inc., United Natural Foods, Inc, Whole Foods Market Considered In the Report • Geography: North America • Historical year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecasted year: 2027 Countries covered: • US • Canada • Mexico 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.