ORGANIC FOOD SECTOR TO BE WORTH $380 BILLION IN 2025, REPORT FORECASTS
Reports have indicated that the global organic food market is set to grow at a brisk rate, with one forecast suggesting it will be worth more than $380 billion in 2025.
Two major market research studies have just been released, with one from The Business Research Company indicating that the sector will grow from $201.77 billion in 2020 to $221.37 billion in 2021.
This forecast growth, of almost 10%, is said to be “mainly due to companies resuming their operations” as they recover from the Covid-19 pandemic.
Over the coming years, fuelled by concern over the environmental impact of food and beverage production, growth in demand is set to accelerate further.
By 2025, the study suggests, the market, including beverages as well as food, will be worth $380.84 billion, which represents a compound annual growth rate (CAGR) of 14.5%.
“Increasing health concerns due to growing number of chemical poisoning cases globally is acting as a driver in the organic food market,” The Business Research Company said in a statement.
“Consumers are becoming more health conscious owing to the harmful effects caused by the presence of chemical pesticides in food products.”
Another report, called the Organic Food and Beverages Market Report and published by Allied Market Research, offers higher estimates for the size of the market in future.
With a CAGR of 16.4% between 2016 and 2022, the market will be valued at $327.6 billion next year, the report forecast, with about three-fifths of this accounted for by organic beverages.
In other news regarding the organic sector, Sial Paris Newsroom recently reported that demand for organic produce in Australia had increased as a result of the pandemic.