Organic Food and Beverages Market Segmentation:
Product
The vegetables and fruits segment is expected to register rapid revenue growth during the forecast period driven by rising consumer awareness of the health benefits of integrating organic vegetables and fruits in the diet and demand for environmental sustainability. There is a high rate of demand for organic vegetables and fruits free of chemicals in North America and Europe.
The beer and wine segment is expected to register rapid revenue CAGR during the forecast period. Many governments have identified the potential of local organic drinks and have started the process to market them. The demand for organic beer and wine is fueled by a greater sense of cultural pride and demands for sustainability. For instance, in 2021, the organic rice wine Judima was presented with the geographical indication tag by the Government of India, and its commercialization process was given a green light.
Distribution Channel
Offline segment is projected to dominate over 67.2% organic food and beverages market share by 2035. Convenience stores, supermarkets, farmers markets, and hypermarkets offer a plethora of choices in organic foods and beverages. Since a considerable portion of organic sales depends on buyer awareness of health, offline channels are convenient for personal inspection to consumers.
There are several organic food and beverages market players in the offline distribution segment such as Whole Foods, Sprouts Farmers Market, and Fresh Market, and their sales have been growing steadily. For instance, in 2023, Walmart which focused more on mass-market products has been steadily increasing its catalog of organic products from emerging brands.
The online distribution channel segment has been expanding at a staggering rate since the COVID-19 pandemic where consumers did the bulk of their shopping via online retailers. Major players including Amazon have added an Amazon fresh section in their catalog that exclusively sells organic products. With increased digitization, especially in emerging economies, this segment is expected to see a considerable growth during the forecast period.
Our in-depth analysis of the organic food and beverages market includes the following segments:
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