Diving deep into the organic market

The market for organic food and beverage was valued at USD 188.35 billion in 2021, and it is anticipated to increase at a CAGR of 13.0% from 2022 to 2030. Growing public knowledge of the health advantages of consuming organic food is one of the main reasons propelling market expansion. The shift in consumer purchasing behaviour is expected to increase sales of organic foods and beverages. The market is expanding in part due to customers' growing preference for non-GMO products.

Even though organic food is more expensive than non-organic alternatives and the global GDP fell by the most in decades in 2020, sales of organic food increased. Out of all the health and wellness categories, packaged foods and drinks that are organic grew at the fastest rate. Beginning in 2020, consumers changed their eating and drinking habits during the COVID-19 period when eateries were closed and home cooking replaced eating out.

Due to the growing emphasis on health issues, consumers are moving toward organic food and beverages. A wide variety of organic items are being introduced by companies who produce organic food and beverages.

On the other hand, conventional foods have a multitude of health risks because they are grown and raised with synthetic chemicals like pesticides and antibiotics. The rising demand has led to a rise in organic product manufacturing. Approximately 39 million acres, or 16 million hectares, will be managed as organic agricultural land in 2020, according to recent USDA predictions.

Government involvement in organic food and beverage management and in educating consumers about the distinction between products with fraudulent labels and genuine ones has also aided in the growth of the sector as a whole. Worldwide regulations prohibiting the use of chemicals, pesticides, growth hormones, and other synthetic compounds have also been established by governments. Additionally, the National Horticulture Mission of the Indian government promotes organic growing by providing incentives to producers of organic food (NHM). In India, farmers are being awarded Rs. 10,000 per hectare for up to four hectares of land per beneficiary, as well as Rs. 5.00 lakh for a group of farmers covering 50 hectares of land.

Traditionally, the organic food and beverage business was dominated by North America and Europe. But there's also a steady rise in demand for organic food and beverages in countries like China, Brazil, India, Mexico, and Argentina.

The market for organic food and beverage management in India had a value of $1,013.4 million in 2021 and is anticipated to increase to $3,594.0 million by 2028, with a predicted CAGR of 19.90% over that time. The market is expanding quickly as a result of consumers' increasing preference for wholesome foods devoid of chemicals and the growing popularity of organic food items. Government rules governing the safety and quality requirements for organic food are also projected to have an impact on market growth in India over the forecast period.

Companies are releasing a wide range of products to meet the nutritional needs and tastes of customers as well as to seize market opportunities in India, where there is a growing potential and demand for organic food. As an illustration, Amul recently declared it would enter the organic food market by introducing organic "atta", rice, honey, chocolates, and potato goods.

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