The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.
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Learn moreJul 2017
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Consumers’ perception of organic food and beverages as natural and more sustainable has resulted in growing demand for them. Although organic products have already moved into the mainstream in developed markets, they are also seeing development in some emerging geographies. This report gives an overview of the global organic food and beverages industries, exploring key growth areas and challenges and delving into selected markets to understand the most important trends in the organic space.
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Organic packaged food and drinks, valued at USD37 billion at a global level, still represents a small part of the health and wellness market, but shows growth opportunities based on the evolution of consumers’ priorities towards the consumption of natural foods and beverages as well as the increasing interest in social and environmental responsibilities. Both trends will keep driving growth over the forecast period.
Consumers in more economically developed geographies, mainly the US and Western Europe, are demanding greater transparency in their food and drinks. In addition, they are willing to pay a premium in order to support ethical responsibilities and human rights. Organic ranges fit into these trends and therefore are increasingly demanded in these geographies.
China has been awash with food safety scandals in the past. The melamine-tainted milk formula scandal that took place in the country in 2008 made parents increasingly interested in more premium brands and organic ranges as they are perceived as more reliable and trustworthy. This is particularly true in the baby food category, which is boosting growth in China.
As consumer desire for organic ranges grows, manufacturers respond and key players are increasingly investing in the category. Danone acquiring WhiteWave Foods, the largest organic food company in the US, and Coca-Cola investing in Aloe Gloe, a line of organic aloe-water beverages, made clear the position that key players are taking close order to meet consumers’ demand for organic products.
Emerging markets follow on the footsteps of developed markets regarding food and drinks trends but they are still far away. Brazil is a good example of an emerging country that even being the largest organic market in Latin America lags far behind in the global ranking of organic sales. However, it presents growth opportunities with a main focus on improving distribution.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.