The popularity of the organic food and beverage market is already high and will continue to grow over the next few years, a trend that will occur across the globe.
With a growing concern on the environmental impact that conventional farming creates, the high use of pesticides and fertilizers that are contaminating both crop soil and water resources, along with potential health hazards such as toxicity from chemicals, it’s obvious that organic foods are here to stay.
Impact of COVID19 on Organic Food Market
When it comes to the global organic food and beverage market, the impact of Covid-19 is complex, in both a positive and potentially negative way. According to the Director of Economics for Mercaris, Ryan Koory, “the global spread of Covid-19 has generated a multitude of risks for organic commodity markets. With the potential to impact trade, labor, consumer demand, and the greater global economy, its ripple effects will likely be widespread and long-lasting. Taking stock of these risks is crucial as we look to understand the market in the year to come and navigate this unprecedented event.”
However, the pandemic is creating a lot of introspection for general public, bringing health to the forefront of a everyone’s minds. Because of this, organic foods have become more appealing and a bigger priority, prompting growth in the market. This is partially due to the fact that eating at home has skyrocketed since the beginning of global stay-at-home orders. As such, there are more demands for groceries. That coupled with the rising awareness of nutrition and health has placed a steeper demand on organic foods—a trend that doesn’t seem to be slowing down.
Alternatively, the impact that the pandemic will have on the economy, with potential job losses and a long-term recession could mean there will be less money to spend, and organic foods may not be the most economical choice for consumers. So, the development of the market might hinge on consumer priorities: eating an organic diet versus the economic practicality of doing so.
What’s evident is that the pandemic has spurred the growth of interest in food, from how it’s being produced to how it impacts the body. While the short-term demand on the market is in question, we are undoubtedly seeing a concrete shift in the way that consumers look at their food.
Organic Food Market Trends and Projections
- The global organic food and beverage market should reach $211.3 billion by 2024 from $122.8 billion in 2019 11.5% annually.
- North American will lead the market for organic foods and beverages with a projected revenue of $105.7 billion by 2024, up from $66 billion in 2019.
- The organic food and beverage market in Asia will see the most rapid growth at 22% annually and is expected to reach $28.4 billion by 2024.
- High organic prices are affecting large retail players such as Kraft Foods, Wal-Mart and Dean Foods who are in the process of expansion across the globe to enhance their organic portfolio at very competitive prices.