Source: Sustainable Food News
The global organic food market is forecast to reach $187.6 billion by 2021, representing a CAGR of 13.8 percent, according to market research firm GlobalData plc.
In a new Global Organic Food report, the company said the global organic food market at $98.5 billion in 2016, representing a compound annual growth rate (CAGR) of 10.9 percent between 2012 and 2016. The organic food market's fruit and vegetable segment posted 2016 revenue of $35.8 billion, representing more than 36 percent of the global market.
GlobalData said that while the United States will remain the largest single market for organics, increasing from $44.9 billion in 2016 to $63.4 billion by 2021 at a CAGR of 7.1 percent, its market share will decline.
"Although the U.S. currently accounts for over 45 percent of the global market, its share will fall to 34 percent by 2021 due to growth in the Asia-Pacific (APAC) region," said Christopher Leyman-Nicholls, GlobalData analyst. "Despite the continued healthy growth of the U.S. market, China’s rapidly expanding consumer society is propelling that of APAC to grow at a much faster pace.”
Demand for organic food is increasing globally as knowledge surrounding its environmental and health benefits improves, Leyman-Nicholls said.
"Consumer confidence in organic food has continued to improve around the world, especially in European markets where regulation has clarified what constitutes organic food. Not only have production and processing rules been updated, but also control and labelling," he said. "Despite increasing global concern about where food is sourced, this has historically been centered around Europe and the U.S.. However, thanks to rising wages, higher standards of living and a burgeoning middle class, more people are able to afford organic food in China. The Chinese market has been helped by greater awareness of malpractice in food production, creating a pull factor towards organic food.”