The global organic food and beverages market to grow at a CAGR of 13.76% during the period 2017-2021.
Global Organic Food and Beverages Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
According to the report, one of the major drivers for this market is Increasing awareness about benefits of organic food and beverages. There has been an increasing awareness of the health benefits among people owing to the consumption of organic food and beverages. The growing health-related problems across the globe have made the consumer be aware of the ingredients that they consume and, hence, they are more akin to the consumption of organic food and beverages.
The use of excessive pesticides, fertilizers, ionizing radiation may make things easier for the producers of inorganic food and beverages, but it also increases health-related issues among the general populace in direct proportion. The consumer today, becoming aware of such rampant usage of harmful chemicals, has been hugely dissuaded from the consumption of inorganic products, directly leading to the growth in demand for organic food and beverages.
The latest trend gaining momentum in the market is Innovation in products and new product launches. The organic food and beverages market has seen steady and strong growth. Yet, this market requires product innovations and dynamism to be able to remain lucrative. Producers of organic products innovate greatly in terms of nutrition and health.
The populace is becoming gradually aware of the ill-effects associated with the consumption of inorganic products, which has led the organic products manufacturers to develop greater varieties and newer products only to be able to gain a greater market share. Some of the well-admired innovations in the organic food and beverages market are organic bamboo tea, organic soy sauce, and biological milk.
Further, the report states that one of the major factors hindering the growth of this market is High prices of organic products. The retail prices of organic food products are much higher than conventional food products. The factors causing high prices are limited farming, time-consuming production, and greater labor input. As chemicals, pesticides, artificial fertilizers, and growth hormones are not used to produce organic food products; they consume greater time and effort. High prices often restrict the purchases by affluent classes of the society residing in developed European countries.
Other problems such as recession and economic uncertainties also affect the purchasing power of consumers. This can further affect the sales of organic food products in the market. However, with advancements in technology and emergence of private label brands, this concern will go down to some extent.