With the rise of health and environmentally conscious consumers, niche markets such as organic are set to debut in the mainstream…
Organic Food Market Trends
Currently only one percent of the world’s agricultural land is organic. However, this figure is forecast to grow in the long term. Organic food production emphasises conservation of water and soil and focuses on environmental concerns, resource use, and limiting the use of harmful pesticides and chemicals in food. The positive trend towards healthy eating behaviours seen in the past number of years is expected to continue fuelling growth of the organic food market. Consumer demand for organically produced food worldwide is growing, reflected in the significant market growth of 11% in the United States, the world’s largest organic market.
Global retail sales of organic food and drink reached 81.6 billion US dollars in 2015 according to Organic Monitor, expanding at about 10% compared to the previous year. Regional markets are taking roots in Asia, Latin America and Africa, illustrated in the figure below, which in turn are decreasing the global market share of the leading North American and European markets.
Michael is a senior agri-food economist with Farrelly & Mitchell and has consulted on numerous assignments across Europe, Middle East, Africa and globally.
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