Organic Fruits and Vegetables Market Outlook 2031
The global organic fruits and vegetables market size was USD 42.2 Billion in 2022 and is likely to reach USD 85 billion by 2031, expanding at a CAGR of 8.1% during, 2023–2031. The market growth is attributed to the growing consumer awareness regarding healthy diets coupled with changing food consumption habits.
Increasing lifestyle changes in recent years, due to the emergence of the COVID-19 pandemic have boosted the inclusion of fruits and vegetables in regular diets. The nutrient-rich characteristics of organic fresh products have propelled their sales across the globe. The rising development of various food products derived from organic vegetables and fruits, such as powder, jams, pickles, beverages, and other food items, for the convenience of consumers, is projected to create growth opportunities in the market.
-
According to the Organic Industry Survey published in May 2023 by the Organic Trade Association (OTA), a membership-based organic industry business association in North America, in 2022, organic food sales in the US surpassed USD 60 billion for the first time. The total sales of organic products, including non-food products, were recorded at USD 67.6 billion.
The research report finds that the COVID-19 pandemic hindered the organic fruits and vegetables market. The labor shortage and government-imposed regulations declined production. Global trade activities witnessed major restrictions, owing to supply chain restraints.
In addition, the sourcing of equipment and raw materials required for organic farming practices took the hit of lockdowns imposed by governments, as only essential commercial places were allowed to operate. However, individuals started adopting healthy diets, due to health concerns which is fueling the growth of the market.
Impact of Artificial Intelligence (AI) on Organic Fruits and Vegetables Market
Advances in AI are projected to propel the market during the forecast period, owing to the rising smart farming practices. AI-powered tools are expected to optimize organic farming, making it efficient and preventing unnecessary loss of resources. The emerging smart agriculture solutions are focusing on improving the quality and volume of vegetables and fruit production.
AI-integrated Internet of Things (IoT) technologies, drones, monitoring systems, robots, and sensing technologies, among others, are enhancing organic farming. Such multilateral advantages of AI are anticipated to support the market in the coming years.
-
In February 2023, Source.ag, a major AI solution provider for greenhouse growers, closed USD 23 million in its series A funding. This has brought the total funding of the company to USD 35 million in just two years. The company aims to use these new funds to launch two innovative AI products to make food production safe, reliant, and climate-resilient.
Organic Fruits and Vegetables Market Dynamics
Key Trends
Increasing retail sales of organic fruits and vegetables is boosting the market. The organized retail sector is expanding worldwide with growing urbanization. The consumer preference for freshly-cut ready-to-cook and-eat convenience food has been boosted in recent years with a change in lifestyle and increasing disposable income.
Consumers are spending extra bucks to purchase healthy organic foods. Furthermore, retail sector players across the world are expanding their offerings of organic fruits and vegetables by streamlining the sourcing of fresh produce, innovative packaging, and attractive offers, to meet the growing demand for organic foods.
Major Drivers
Increasing awareness about the health benefits of organic fruits and vegetables is one of the primary drivers of the market. The idea of organic foods being nutrient-rich and better quality than conventional foods is shifting consumers' preference towards including them in regular diets. Producers are focusing on developing organic fruits and vegetables with advances in agriculture and horticulture.
The increasing demand for organic produce is resulting in rising adoption of organic farming over traditional practices. This, in turn, is expected to boost the diverse offerings of fresh produce and products derived from them, to fulfill consumer demands, thereby, propelling the market.
-
According to the study published by the Research Institute of Organic Agriculture FiBL in 2022, organic agriculture is in practice in 190 countries, with about 75 million hectares of farming land managed organically. Globally, about 3.4 million farmers practice organic agriculture. The revenue from organic food and beverages surpassed EUR 120 billion in 2020.
Existing Restraints
High cost of packaged products and the limited shelf life of organic fresh produce are anticipated to restrain the market during the forecast period. The gap in demand and supply, due to limited production and packaging & logistics costs is driving the prices of organic products, which makes them costly for low-to-middle-income groups.
Additionally, these products need to be sold within a limited time, otherwise, their quality starts to decline. If not sold within the designated period, these products cause losses to the owners. Such factors are leading to their limited availability in the market, thereby restricting the market.
Emerging Opportunities
Emergence of online retail is expected to create significant growth opportunities in the market. The informed buying, convenient payment mode, and quick delivery options are attracting a considerable proportion of consumers to use dedicated retail e-commerce mobile applications and websites for buying organic produce.
Rising use of organic produce as an ingredient in cosmetics and personal care products is projected to generate growth prospects for players in the market. The demand for artificial chemical-free products is on the rise, owing to the expanding awareness about their side effects. Thus, manufacturers are using organically grown substitutes for chemicals to make natural cosmetics and personal care products.
-
As per a survey published in July 2023, China ranked first in the market of natural and organic cosmetics, earning EUR 2.5 billion in 2022. The US and Japan ranked second and third position, respectively.
Scope of Organic Fruits and Vegetables Market Report
The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Organic Fruits and Vegetables Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Product Type (Organic Vegetables [Leafy Vegetables, Potato, Tomato, and Others] and Organic Fruits [Apple, Banana, Grapes, Kiwi, Berries, and Others]), Form (Frozen, Pureed, Powdered, Fresh, and Others), Distribution Channel (Online and Offline [Supermarkets & Hypermarkets, Convenience Stores, Wholesale, and Others]), and End-user (Residential and Commercial)
|
|
Regional Scope
|
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
ACTIVZ Global; BioGrowing Co. Ltd.; CAMPBELL SOUP COMPANY; Danone North America Public; Benefit Corporation; DSM; General Mills Inc.; Grande Cheese Company; Green Organic Vegetable Inc.; ICELAND FOODS LTD; Organic Valley; Saipro Biotech Private Limited; The Kraft Heinz Company; and Z Natural Foods, LLC.
|
Organic Fruits and Vegetables Market Segment Insights
Product Type Segment Analysis
Based on product type, the organic fruits and vegetables market is bifurcated into organic vegetables and organic fruits. The organic vegetables segment is further subcategorized as leafy vegetables, potato, tomato, and others.
Similarly, the organic fruits segment is subdivided into apple, banana, grapes, kiwi, berries, and others. The organic vegetables segment is projected to lead the market revenue share during the projection period, owing to the rising purchases of ‘organic’ labeled products, due to their health benefits.
Vegetables are an essential part of regular diet in households across the globe. The increasing awareness about the nutrient-dense nature of organically grown vegetables and no risk of artificial chemicals has fueled their purchases. The increasing number of farmers opting for organic farming is further expected to propel this segment.
-
According to the Organic Trade Association, in 2022 organic produce ranked highest in the organic category in the US. Their sales revenues reached USD 22 billion, contributing 15% of the total fruit and vegetable sales in the nation.
The organic fruits segment is anticipated to register rapid growth in the market, owing to their rising consumption, as a part of the regular diet, among consumers of different age groups. Organic fruits are widely adopted by professionals and students. It is supported by the changing consumer spending habits towards healthy options available on the racks, with health awareness and fitness routines.
Additionally, the development of a variety of products from organic fruits, such as jams, pickles, and beverages, is anticipated to drive the segment in the market.
Form Segment Analysis
On the basis of form, the global market is segregated into frozen, pureed, powdered, fresh, and others. The fresh segment is projected to register a considerable CAGR during the forecast period, owing to the rising number of health-conscious populations, which follow healthy diet routines.
Availability of fresh products has boosted in recent years across shopping platforms, allowing consumers to choose from diverse options. The availability of freshly cut vegetables and fruits further drives their demand, as people are choosing convenient options to consume food, due to their busy urban lifestyle.
The frozen segment is anticipated to register significant growth in the coming years, due to the growing demand for convenience foods. The packaged frozen vegetables require less to no preparation. They come in ready-to-cook form, which allows those consumers with busy schedules to quickly cook the food.
These frozen food items are preserved in such a way their nutritional value and freshness stay unaffected for a long time. The growing availability of diverse frozen food options coupled with the increasing spending on easy-to-cook food items is further projected to propel the segment.
-
According to a study published by the American Frozen Food Association in April 2022, the robust increase in sales of frozen vegetables and fruits in 2020 brought high revenues across the store. This growth remained on the rise in 2021. Frozen fruit sales witnessed a small dollar increase, which stood at +0.7%. However, it did not quite reach the previous year's levels in units and pounds, which was affected by an average in-stock rate of 90%.
Distribution Channel Segment Analysis
On the basis of distribution channel, the organic fruits and vegetables market is segmented into online and offline. The offline segment is further split into supermarkets & hypermarkets, convenience stores, wholesale, and others.
The offline segment is expected to register a robust growth rate during the forecast period, owing to rising urban households buying organic produce from convenience stores and supermarkets/hypermarkets. The major retail players are expanding their stores across urban and semi-urban cities, to boost their share in the market, with the changing consumer spending behavior.
The online segment is anticipated to exhibit steady growth over the assessment period, due to the increasing number of online retail platforms. The convenience and flexibility enabled by these platforms for those with a busy lifestyle are driving the online purchases of organic vegetables and fruits. The rising subscription of smartphones and affordable internet plans are creating a digital ecosystem for the retail industry, which is anticipated to fuel this segment.
End-user Segment Analysis
Based on end-user, the global market is divided into residential and commercial. The residential segment is projected to register a considerable CAGR during the forecast period, owing to the rising disposable income and focus on including nutrient-rich food in daily diet. The rise of infrastructure and industrialization in urban areas across the world has surged urbanization.
The lifestyle changes in modern households are westernizing, with growing cultural influences and digital media. The demand for convenience food/frozen food, ready-to-cook, and ready-to-eat food items is rising at a consistent growth rate. All of these factors are boosting the purchase of organic vegetables and fruits, contributing to segmental growth.
Regional Outlook
In terms of region, the global organic fruits and vegetables market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the forecast period, owing to the shifting diet preferences with an increased focus on buying healthy food products.
The significant presence of organized retail chains, supermarkets/hypermarkets, and the increasing spending power of consumers is further boosting organic food sales in this market. Growing organic farming practices and growing investment by private players are anticipated to expand the growth opportunities for the market players in this region.
The market in Asia Pacific is projected to register rapid growth during the assessment period, due to the increasing number of working professionals and rising consumer spending on nutritional food products. Rising urbanization and the expanding operation of the retail industry are further expected to boost the purchase of organic products.
Development of various types of consumable products from organic vegetables and fruits is creating significant opportunities in this region. In addition, the growing demand for organically produced ingredients as raw materials in the cosmetics and personal care industry is expected to propel the market in this region.
Segments
The global organic fruits and vegetables market has been segmented on the basis of
Product Type
- Organic Vegetables
- Leafy Vegetables
- Potato
- Tomato
- Others
- Organic Fruits
- Apple
- Banana
- Grapes
- Kiwi
- Berries
- Others
Form
- Frozen
- Pureed
- Powdered
- Fresh
- Others
Distribution Channel
- Online
- Offline
- Supermarkets & Hypermarkets
- Convenience Stores
- Wholesale
- Others
End-user
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- ACTIVZ Global
- BioGrowing Co. Ltd.
- CAMPBELL SOUP COMPANY
- Danone North America Public Benefit Corporation
- DSM
- General Mills Inc.
- Grande Cheese Company
- Green Organic Vegetable Inc.
- ICELAND FOODS LTD
- Organic Valley
- Saipro Biotech Private Limited
- The Kraft Heinz Company
- Z Natural Foods, LLC.
Competitive Landscape
Key players competing in the Organic Fruits and Vegetables Market are ACTIVZ Global; BioGrowing Co. Ltd.; CAMPBELL SOUP COMPANY; Danone North America Public; Benefit Corporation; DSM; General Mills Inc.; Grande Cheese Company; Green Organic Vegetable Inc.; ICELAND FOODS LTD; Organic Valley; Saipro Biotech Private Limited; The Kraft Heinz Company; and Z Natural Foods, LLC.
These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. The competitive landscape covers key insights into growth strategies adopted by major market players.
-
In May 2023, Akshayakalpa Organics, a Bengaluru-based organic dairy product company, announced its entry into the organic fruits & vegetables category. As a first step, the company has introduced its services across 50-plus towns in southern states of India. The brand aims to further expand its Organic Greens services in phases, across these states.
-
In June 2021, The Kraft Heinz Company, a key player in the organic food industry, announced reaching an acquisition agreement to obtain control over Assan Foods from Kibar Holding, a private Turkish conglomerate. The deal was valued at approximately USD 100 million. Before this deal, Assan Foods had been Kraft Heinz’s certified production partner.
Request For Customization
Enquiry Before Buying
Speak With Analyst
