Organic Food and Beverages: Increased Government Initiatives and Funding to Elevate the Volume of Organic Farming Practices Worldwide

Organic Food and Beverages Market

Organic food and beverages are the food and beverage products that are manufactured with raw products developed with the help of organic farming methods, these farming methods are generally different for different regions although the ultimate focus of this farming practice is the sustainability and protection of the biodiversity around the farm. This method focuses on conversation of resources, helping create a more balanced ecological farming process and ensuring that the quality of produce developed is of pristine quality.

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Organic food and beverages market is growing due to surging health concerns and standard of living, surging income levels of consumers which has increased the purchasing power, the effects of these factors are mentioned below:

  • Surging health concerns and standard of living: Consumers are becoming highly self-aware and more importantly more conscious regarding the products that they are consuming on a daily basis. These preferences of consumers wanting to utilize better quality of products that are organically produced and cultivated are acting as one of the most significant factors for the growth of the market. Although, organically cultivated food products are more expensive than the traditionally cultivated products the enhanced disposable income levels of individuals has also been acting as promoters for organic food and beverages consumption as consumers are more than capable of easily affording these products
  • Surging income levels of consumers which has increased the purchasing power: With the availability of larger income base for individuals, their levels of affordability have risen significantly and that has meant that the volume of goods being purchased by these individuals coming under the expensive category has risen dramatically. This growth of purchasing power has literally translated to higher demands for organic food products and beverages sourced from the ingredients developed with the help of organic farming methods

Innovative product launches and expansion of market share by the different market players:

  • In September 2019, THE COCA-COLA COMPANY through their subsidiary, “Honest Tea” announced the launch of a new product line consisting of organic cold brew coffees in three different flavor offerings. The flavors include “Unsweet Black”, “Just a Tad Sweet Cubano” and “Just a Tad Sweet Mocha” which will be made available in recyclable glass bottles and commercialized across the United States by the start of 2020
  • In May 2019, Nestlé through their subsidiary Nestlé India announced their entry into the organic food products with the launch of three new product launches, one of which is the company’s “Ceregrow” variant for organic products. This launch has been strategically created to be in line with the company’s focus on enhancing the current portfolio they have for food and nutrition products

The market is segmented on the basis of product type as organic food and organic beverages. Distribution channel has been segmented into supermarket/hypermarket, convenience stores, specialist stores, internet retailing and others.

“According to Data Bridge Market Research, Global Organic Food And Beverages Market is expected to be growing with a CAGR of 14.75% during the forecast period of 2019 to 2026”

Some of the major players operating in market are Tesco PLC,, Ahold Delhaize, The Kraft Heinz Company, Walmart, Conagra Brands Inc., COLEMAN NATURAL, Clif Bar & Company, HiPP, Applegate Farms LLC, General Mills Inc., Morrisons Ltd, FLORIDA CRYSTALS CORPORATION, Carrefour, AEON CO. LTD., United Natural Foods, Inc., Waitrose & Partners, Hain Celestial, REWE Group, Wegmans Food Markets, Costco Wholesale Corporation, and Whole Foods Market IP. L.P. among others.

There has been an upward trend in regards to the government’s initiatives for promoting the usage of organic farming in their region. The government has been focusing on ensuring that the farmers and individuals are well aware of the benefits associated with organic farming and as such, have provided different forms of reimbursement scenarios and imposed favorable regulations in combination with awareness programs to enhance the volume of produce being cultivated with the help of organic farming methods.

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