Organic products are carving a clear niche in the global food and vegetables industry. Social media has helped increase the health concerns regarding obesity, blood pressure imbalance, diabetes, and allergic diseases, and naturally produced food ingredients are identified as a solution. Regardless of the higher price of organic fruits and vegetables, consumers are willing to move forward due to the higher nutritive value and the lower concentration of pesticides in these products. Increasing concerns regarding health and the resultant increase in the adoption of healthy diets and lifestyles are key factors contributing to the growth of the organic fruits and vegetables market. In addition to this, organic fruits and vegetables have higher nutritional value as compared to conventional foods. Organic foods contain heart-healthy omega-3 fatty acids and are grown without pesticides and artificial fertilizers. The market for organic food and vegetables is growing and was valued to be $32 billion in 2018. It is estimated to be growing at a profitable CAGR of 14% during the forecast period 2019-2025.

According to the American Cancer Society, more than two million new cases of global breast cancer were detected in 2018. Organic food is considered to be among the best solution that can help in avoiding breast cancer, according to the findings of the National Health Service, the UK. Consumption of organic fruits and vegetables reduces the intake of toxic metals and increases the intake of nutritionally desirable antioxidants. According to the World Health Organization (WHO), approximately 1.7 million, amounting to 2.8% of deaths globally is attributed to lesser consumption of fruits and vegetables every year. Eating a variety of organic fruits clearly ensures an adequate amount of dietary fibers and micronutrients.

Regional Analysis: Organic Fruits and Vegetables Market

North America dominated the organic fruits and vegetables market with a regional share of 38% in 2018. The region garnered the highest market share owing to implementation of the National Organic Program (NOP) in the U.S., which has elevated the offerings of organic fruits and vegetables by millennials and geriatric population. According to the Organic Trade Association, the U.S. organic fruits and vegetables market sales value reached $47.9 billion in 2019. Demand for organic fruits and vegetables in the country is on the rise due to the increasing number of health-conscious consumers. According to the Organic Trade Association, the U.S. organic fruits and vegetable market was evaluated to be $50 billion as of 2018 and demand is expected to grow by 6.3% in 2019. Also, banana has been the highly consumed fruit among all and the gross import of organic bananas during summers in 2018 was estimated to be 4.7 million tonnes in the US. Furthermore, as of 2018, Canada’s total organic market was valued at $5.4 billion. With millennial being the major buyers accounting for 83% of total sales, as per the Canada Organic Trade Association. In North America, the U.S. and Canada have been the major consumers and importers, due to this, the organic fruits market and organic vegetables market is witnessing significant growth.

Organic Fruits and Vegetables Market: Key Segments

Fruits are the fastest growing product segment in the organic fruits and vegetables market and are estimated to be progressing at a highly notable CAGR of 16% during the forecast period. Additionally, the increasing awareness about the consumption of organic fruits in the daily breakfast, in the form of supplement, and baby food is anticipated to drive the market growth. There is an upsurge in the demand for fruits with an increase in global production and consumption. The input cost on organic fruits is more as compared to organic vegetables to make it pesticide and fertilizer free and are sold at higher prices. Despite higher prices, the consumers are willing to pay more to intake high nutritive value. Therefore, the growing segment is boosting the growth of the organic fruits market.  

Growth Drivers and Market Trends: Organic Fruits and Vegetables Market

•    Growing Health Concerns Boosting Organic Low-Calorie Fruit Infused Beverage

Increase in the number of people adopting a healthy dietary lifestyle in line with growing health concerns are the major factors attributed to the growth of the organic fruits and vegetables market. Increasing incidences of chronic lifestyle diseases such as obesity, diabetes, blood pressure, and bone-related issues are driving the growth of the organic fruits and vegetables market. With this, the low-calories fruit infused beverage is gaining traction in the global market. Organic low-calorie fruit beverages is an emerging trend health-conscious consumers and for those suffering from mentioned diseases. In 2016, Core Nutrition LLC, a beverage company, announced its major product rollout in the market of its innovation, USDA certified organic Hydration premium bottled water made of organic fruits. Similar innovations are expected to increase the demand for organic fruits and vegetables by the manufacturers.   

•    Organic Products Seeking Growth in India

In India, organic products are gaining huge momentum among the urban population. According to the Down to Earth Organization, India is among the major organic fruits and vegetables producers in the world. The major companies in the food and beverage industry such as Sresta Natural Bioproducts Pvt. Ltd., are investing in organic farming. The government is promoting organic producers and farmers in large clusters under the Mission Organic Value Chain Development. This has eventually increased the production of organic products made with organic fruits and vegetables. Such initiatives are influencing other companies from the F&B industry to invest in organic farming, which is further driving growth in the organic fruits market.

•    Online Sales Channels Catapulting Growth of Organic Fruits and Vegetables Market

The online shopping coupled with ease of purchasing and inclination towards fitness in the people is driving the demand for organic products in the market. Owing to this, startup companies in the organic fruits and vegetables market are adopting online marketing channels to expand their customer base. Some of the players have established their online websites such as Naturally Yours, Farm2Kitchen, Organic Shop, and Organic India. Bigger market players have also stepped into distribution online organic fruits and vegetables, for instance, Godrej Nature’s Basket, a venture of Nature’s basket, selling fresh fruits and vegetables to the customers online. These developments are leading to significant growth in the organic fruits and vegetables market.

The Major Players in the Organic Fruits and Vegetables Market

Key players dominating the organic fruits and vegetables market are Morarka Organic Foods Limited, Conscious Food, Sresta Natural Bioproducts Pvt. Ltd., General Mills, Inc., H.J. Heinz Company Iceland Foods Ltd, Organic India Pvt Ltd, and Organic Valley-Family of Farms. These companies have been continuously focusing on R&D investments, partnerships, product portfolio expansion, JVs, and acquisitions to strengthen their portfolio of products. 

·         Nestle Enters Organic Segment and Launches its Products

Nestle has forayed into organic food segment. The company is planning to launch three products in the organic food segment which has an organic variant of ceregrow. The company’s initiative will aspire the other companies and produce more organic products in the coming future that will drive the growth of the organic fruits and vegetables market. 

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