Global Organic Food Market Makes A Mark in Developed Economies
Buyers throughout the world are becoming more and more health cognizant, which has occasioned in an alteration in their palates and inclinations. The global organic food market was worth US$88.1 billion in 2015 is anticipated to record a CAGR of over 16% between 2015 and 2020. Amongst the various different food products available, the fruits and vegetables segment is the most profitable making for 37% of the market’s value. The fruits and vegetables fragment was worth US$32.6 billion in 2015. The US and Germany are projected to be significant providers to the revenue. The steady economic growth in the US and Germany are likely to drive the organic market in these nations.
Growth in the global organic food market can be accredited to increasing health trepidations amongst consumers and snowballing consciousness regarding health benefits of organic food. Other dynamics driving organic food sales globally include growing income levels, refining standard of living, and government ingenuities designed to encourage extensive acceptance of organic products.
A rising sum of buyers are shifting towards consuming organic food as opposed to conventional food, to elude adversarial health effects triggered by chemical preservers or genetically altered constituents present in inorganic food. Furthermore, the amassed acceptance of organic products has considerably extended the accessibility of organic food throughout the world. With organic food becoming effortlessly available, the global organic food market is estimated to see noteworthy growth over the next few years.
Companies in the global organic food market are concentrating on new product development. With the intention of achieving development in products, makers are capitalizing in research and development. This is facilitating makers to add innovative ingredients and produces to their assortment. This is in the offing to help corporations upsurge their customer pool. Businesses are endeavouring to accomplish global development through partnerships and business associations. These progress stratagems are projected to boost the product portfolio and upturn the market stake of companies. With an amassed number of vegetarians, companies are likely to focus on gaining with the vegetarian market.
The increasing fondness for organic food is a major driving aspect for the global organic food market. Innumerable guidelines by governments that sternly screen and limit the use of additives and components are also assisting the growth of the organic food market. Health conscious buyers are progressively becoming more apprehensive about the injurious effects of additives and chemicals in food and therefore, a hefty number of agriculturalists are shifting from age old farming practices, to yield organic food. However, organic food has little shelf life in comparison with inorganic food as these have artificial preservatives. Another feature hindering the growth of the market is the expensive cost of organic food. Their affordability is restricted to a designated section of consumers.
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