Europe Organic Food Market Size (2024-2030)

The Europe Organic Food Market was valued at USD 50.08 Billion in 2023 and is projected to reach a market size of USD 99.15 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 10.25%. 

One of the most developed and important areas of the worldwide organic food business is the European market. The market has grown significantly over the last ten years, and its characteristics include strict regulatory frameworks, high consumer awareness, and a strong supply chain. Food safety, environmental sustainability, and consumer health are top priorities for Europeans, and organic food—which is grown without the use of artificial fertilizers, synthetic pesticides, or genetically modified organisms (GMOs)—is becoming more and more popular. European customers are quite discriminating and are starting to choose goods that are consistent with their moral and health beliefs. Particularly prominent trends include plant-based diets, clean eating, and sustainable consumption in the Nordic region, the UK, Germany, and France.

Key Market Insights:

With more than 40% of all sales in the European organic food industry going to organic fruits and vegetables, this market category is the biggest.

Growing consumer interest in organic milk, yogurt, and cheese is expected to propel the European market for organic dairy products to over €12 billion by 2025.

With rising demand for animal products supplied ethically and free of antibiotics, sales of organic meat and poultry in Europe are predicted to surpass €5 billion by 2024.

Demand for organic plant-based proteins is expected to soar by 2026, surpassing €2 billion due to the growing popularity of plant-based diets.

More than 70% of European customers said they would be prepared to spend a little more for organic food items.

The importance of convenience is rising; more than half of European customers say they would be interested in easily accessible organic solutions.

The European organic food sector is being increasingly captured by e-commerce platforms; by 2027, it is anticipated that online sales would surpass €10 billion.

Subscription box services that provide organic food straight to customers are expanding rapidly; the business is estimated to be worth more than €500 million.

Studies indicate that using organic farming methods might eventually result in a 20% increase in soil organic matter, which can enhance biodiversity and soil health.

Organic farming is thought to be able to cut greenhouse gas emissions by 15% to 30% when compared to conventional methods.

There are more than 300,000 certified organic growers within the European Union thanks to a robust organic certification program.

Europe Organic Food Market Drivers:

One of the primary drivers of the European organic food market is the rising consumer awareness and health consciousness.

Due to their lack of artificial fertilizers, pesticides, and genetically modified organisms, organic foods are thought to be healthier. According to studies, compared to food cultivated traditionally, organic produce has higher concentrations of certain nutrients, such as antioxidants, vitamins, and minerals. Furthermore, the heart-healthy omega-3 fatty acids found in organic meat and dairy products are frequently greater. The demand of consumers for organic food is mostly driven by these health advantages. Organic food is preferred by many European customers for ethical and environmental grounds in addition to health concerns. Organic farming methods are intended to be more environmentally friendly, encouraging biodiversity, enhancing soil health, and lowering pollution from artificial chemicals.

Government policies and support mechanisms play a vital role in driving the growth of the organic food market in Europe.

Many European countries offer financial incentives and subsidies to support organic farmers. These include grants for conversion to organic farming, subsidies for maintaining organic practices, and funding for organic certification. These financial supports help offset the higher costs associated with organic farming and encourage more farmers to adopt organic practices. Investment in research and development (R&D) is another critical driver. Governments and research institutions in Europe are actively involved in developing new organic farming techniques, improving crop varieties, and finding solutions to challenges such as pest control and soil fertility in organic systems. These R&D efforts contribute to the growth and efficiency of the organic food sector. Strict regulatory frameworks and certification processes ensure the integrity and credibility of organic products. The EU Organic Regulation sets high standards for organic farming and food production, which are enforced through a robust certification process. This regulatory assurance builds consumer trust in organic products, driving market growth.

Europe Organic Food Market Restraints and Challenges:

Compared to the traditional food supply chain, the organic food supply chain frequently entails lengthier and more intricate logistics. Handling and storing organic products carefully are necessary to avoid contamination and maintain their quality. Costs for storage and shipping may increase as a result. Additionally, it might be difficult to create effective logistics and distribution due to the fragmented structure of organic farming, which includes a large number of small-scale growers. Seasonal changes are more likely to occur in organic farming than in conventional farming. This may result in fluctuations in the supply of organic goods, especially in the case of fresh vegetables. The supply of organic products to consumers and merchants can be impacted by seasonal availability, which can cause changes in the market's supply and pricing. To keep customers' trust, organic product integrity must be upheld at every stage of the supply chain.

Europe Organic Food Market Opportunities:

Urbanization is leading to lifestyle changes in emerging markets, with consumers becoming more health-conscious and adopting more Western dietary habits. This shift is driving demand for a variety of organic products, including fresh produce, dairy, meat, and packaged foods. Urban consumers are also more likely to shop at supermarkets and online platforms, where organic products are readily available. There is a growing demand for a diverse range of organic products, including convenience foods, snacks, beverages, and functional foods. Companies that can innovate and develop new organic products to meet this demand are likely to see significant growth. For example, the development of organic ready-to-eat meals, organic snacks, and organic functional beverages can tap into the growing trend of convenience and health-conscious eating. Sustainable packaging is an area of significant opportunity in the organic food market. Consumers who choose organic products are often environmentally conscious and prefer products with eco-friendly packaging. Innovations in sustainable packaging, such as biodegradable, compostable, and recyclable materials, can enhance the appeal of organic products and drive consumer preference.

EUROPE ORGANIC FOOD MARKET REPORT COVERAGE:

Europe Organic Food Market Segmentation:

Europe Organic Food Market Segmentation: By Types:

• Fresh Produce
• Dairy Products
• Meat and Poultry
• Beverages
• Packaged foods
• Others

Fresh produce, including fruits and vegetables, is the largest and most dominant segment of the organic food market. European consumers prioritize fresh, organic produce due to its perceived health benefits and superior taste. Countries like Germany, France, and Italy are significant markets for organic fresh produce, with a high demand for locally sourced and seasonal fruits and vegetables.

Packaged organic foods are the fastest-growing segment in the European organic food market. This category includes a wide range of products such as snacks, cereals, pasta, sauces, and baby food. The convenience and variety offered by packaged organic foods appeal to busy consumers looking for healthy and quick meal options. The growing demand for organic snacks and ready-to-eat meals is driving the expansion of this segment.

Europe Organic Food Market Segmentation: By Distribution Channel:

• supermarkets and hypermarkets
• specialty organic stores
• online platforms
• direct-to-consumer sales

In Europe, supermarkets and hypermarkets dominate the organic food distribution landscape. Customers may easily buy organic food alongside their usual groceries because major retail chains like Tesco, Carrefour, and Edeka have wide selections of organic products. The market for organic food is expanding due in large part to supermarkets' accessibility and broad reach.

In Europe, online distribution channels are the ones that are expanding the quickest for organic food. A vast array of organic items are delivered straight to customers' doors by e-commerce giants like Amazon and Ocado as well as specialist organic merchants like Farm drop. This channel's rise is being driven by the ease of online shopping as well as the rising use of digital gadgets. The trend of food buying online gained momentum during the COVID-19 epidemic.

Europe Organic Food Market Segmentation: Regional Analysis:

• Italy
• Spain
• Russia
• Germany
• UK
• France
• Rest of Europe

Germany is the clear market leader for organic food in Europe, holding a strong 22% of the market. Many variables that are strongly embedded in German culture, consumer behaviors, and government regulations can be ascribed to this supremacy. With a strong predilection for items that are both healthier and more ecologically friendly, German consumers have long been at the forefront of the organic food movement. The strong environmental movement in the nation, which gained considerable traction in the 1970s and 1980s, is the source of this consciousness. This environmentally conscious mentality has been further strengthened by the Green Party's influence on German politics, which has resulted in laws that favor sustainable agriculture and organic farming.

Spain is the nation with the greatest rate of growth in the European organic food industry, while currently having an 8% market share. With remarkable yearly growth rates, the Spanish organic food market has been surpassing its European peers and establishing itself as a prominent force in the sector. Spain's organic food industry is expanding rapidly due to a number of causes. First, there has been a notable change in the knowledge and tastes of consumers. Spanish customers are becoming more aware of the health advantages of organic products, especially the younger generations. Media coverage, social media effects, and educational programs that emphasize the benefits of consuming organic food have all contributed to this increased awareness.

COVID-19 Impact Analysis on the Europe Organic Food Market:

The early stages of the pandemic witnessed a surge in panic buying across Europe. Consumers, concerned about potential food shortages and supply chain disruptions, flocked to supermarkets, often stripping shelves of essential goods, including organic products. However, this initial frenzy soon subsided as logistical networks adapted, and online grocery shopping gained traction. As the pandemic progressed, health concerns became a dominant factor influencing food choices. Consumers, more aware of their well-being, gravitated towards organic products perceived as healthier and potentially boosting immunity. This resonated with the existing trend towards preventative healthcare and a focus on natural, unprocessed foods. The pandemic exposed some vulnerabilities within the European organic food supply chain. Disruptions in global logistics and transportation impacted the availability of certain organic ingredients, particularly those sourced from outside Europe. Additionally, small-scale organic producers faced challenges in adapting to the sudden shift towards online sales and potentially higher distribution costs.

Latest Trends/ Developments:

Organic food is often perceived as healthier, with minimal exposure to synthetic pesticides and fertilizers. This perception, coupled with a growing focus on preventive healthcare, is attracting a wider range of consumers, including young families and health-conscious individuals. While core organic consumers remain dedicated to ethical and sustainable practices, the market is expanding to attract a more mainstream audience. Convenience and affordability are becoming increasingly important factors, with a growing demand for readily available and competitively priced organic options. Consumers are increasingly interested in the origin of their food and supporting local farmers. This trend is driving the growth of local organic food markets, farm-to-table initiatives, and partnerships between retailers and regional organic producers.

Key Players:

• 1. Alnatura (Germany)
  2. Tesco (UK)
  3. Carrefour (France)
  4. Edeka (Germany)
  5. Ahold Delhaize (Netherlands)
  6. Planet Organic (France)
  7. Bio c' Bon (France)
  8. Abel & Cole (UK)
  9. Ocado (UK)
  10. DM-drogerie markt (Germany)