Organic Food and Beverages Market Driven by Increasing Preference for Organic Food over Conventional Food

Change in consumer perception towards organic food is the major factor driving the global organic food and beverages market, “says TMR analyst. An increasing preference for organic food over conventional food due to the notion that organic food offers higher health benefits is driving the growth of this market to a high degree. This is because consumers are recognizing that consuming conventional food, which is cultivated with synthetic ingredients and pesticides, is associated with diseases in the long run. This has resulted in an increased preference for organic food and beverages which are free of chemicals and are less harsh on the environment.

Government regulations that strictly monitor and control additives and ingredients in food are also fuelling the growth of this market. This involves rigorous testing to determine if the food is safe for the intended use. An expansion of the distribution channels for organic food and beverages is considerably benefitting the growth of this market.

Short shelf life of organic food and beverages is a major factor challenging the growth of the organic food and beverages market. While synthetic products are loaded with large amounts of preservatives for a longer shelf life and to preserve the product attributes, organic food and beverages are free of synthetic preservatives. Manufacturers of organic food and beverages find it difficult to source organic ingredients that can be used to increase the shelf life of organic food and beverages.

The high-cost factor of organic food and beverages as compared to conventional food is also challenging the market’s growth. The prices of organic food and beverages are 10 to 20 times higher than that of conventional foods, which limits their affordability to a select class of customers.

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The global organic food and beverages market has been examined in a recent market intelligence report published by Transparency Market Research. The report projects excellent growth prospects for the market over the period from 2013 through 2019 on account of the rising awareness about healthcare among the global population.The report states that the market will expand at a brilliant 15.5% CAGR and rise from a valuation of US$70.70 bn in 2012 to US$187.85 bn by 2019. The report is titled “Organic Food & Organic Beverages Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019.”

The report also presents a detailed overview of the competitive landscape of the global organic foods market, wherein comprehensive details pertaining to some of the key vendors operating in the market are discussed. The report includes detailed profiles of prominent market vendors such as Eden Foods, PepsiCo Inc., Dean Foods Co., Starbucks Corporation, Groupe Danone SA, The Coca-Cola Company, Kraft Foods Group Inc., Kellogg Company, Amy’s Kitchen Inc., Nestle SA, Whole Foods Market, Organic Valley, and The Hain Celestial Group, Inc.

The market has been segmented as follows:

Organic Food Market: Product Analysis

• Organic Fruits & Vegetables
• Organic Meat, Fish & Poultry Products
• Organic Dairy Products
• Organic Frozen & Processed Food
• Others

Organic Beverages Market: Product Analysis

• Organic Non - dairy Beverages
• Organic Coffee & Tea
• Organic Beer & Wine
• Others