Organic foods are the edible ingredients produced through the method of organic farming. Organic foods can be edible agricultural produce or can include meat, poultry, eggs and dairy products.
Organic farming as a process, method or technique of farming is gaining acceptance worldwide. The process of organic farming consists of the use of biological materials, without using chemical pesticides, synthetic fertilizers, or sewage sludge and involves ecologically consistent agricultural principles like green manure, crop rotation, biological pest control and recycling organic waste. Organic farming as a method is increasingly being preferred by farmers across the globe to maintain soil fertility and balancing ecosystem which results in less pollution and wastage.
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The goal of organic farming as defined by International Federation of Organic Agriculture Movements (IFOAM), an international organization for organic farming organizations is “Organic agriculture combines tradition, innovation and science to benefit the shared environment and promote fair relationships and a good quality of life for all involved”.
Currently the organic farming is conducted in more than 160 countries and as per a reliable estimate using only 0.86% of total farming area the organic food had shared about 80% of total food market in the year 2012.
The industry of organic food and beverage is evolving with increasing consumer concern for healthy food along with rising acceptance of social aspects of traditional farming methods owing to achieving ecological sustainability. Various government policies in different regions especially emerging nations fuel the growth of the organic food and beverages market, with small farmers and agricultural producers predominantly adopting the method to ensure cost-cutting in the production process and achieving economies of scale.
As per FDA, there were over 20,000 different types of organic food and beverages available in United States, which account for about 73% of total conventional food grocery stores.
The increased demand for organic foods and beverages and a single unified standard have led to large scale producers and food processors to devise the entrant strategy for the global food and beverages market. However, shorter shelf-life of these organic products coupled with lack of proper logistic service act as a major constraint in the growth of the market. Moreover, the high cost of raw materials along with labor intensive nature of organic farming method are other key challenges, which the key stakeholders need to overcome to increase their market share in total food industry. Recent developments related to novel product launch and technological innovations in packaging would mount over the aforementioned challenges in future.
An upcoming report by Allied Market Research titled “World Organic Food and Beverage – Market Opportunities and Forecasts, 2014 -2020”, offers an insight into the market dynamics in terms of key drivers and restraints, industry forecast in major geographies and segmentation along with an analysis of effective strategies adopted key market players to grow in the market
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