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%. 

DOWNLOAD FREE SAMPLE PDF OF THIS REPORT

The European organic food market is one of the most advanced and influential sectors in the global organic food industry. Over the past decade, it has seen substantial growth, driven by robust regulatory frameworks, heightened consumer awareness, and an efficient supply chain. Europeans prioritize food safety, environmental sustainability, and health, fueling the demand for organic products grown without synthetic fertilizers, pesticides, or GMOs.

European consumers are increasingly selective, choosing products that align with their ethical and health values. Notable trends, such as plant-based diets, clean eating, and sustainable consumption, are especially popular in regions like the Nordic countries, the UK, Germany, and France.

Key Market Insights:

• Organic fruits and vegetables dominate with over 40% of all sales in the European organic food market.
• The organic dairy market, including milk, yogurt, and cheese, is expected to surpass €12 billion by 2025.
• Organic meat and poultry sales are projected to exceed €5 billion by 2024, driven by demand for ethically-sourced, antibiotic-free products.
• Rising popularity in plant-based diets is set to propel the organic plant-based protein market past €2 billion by 2026.
• Over 70% of European consumers express willingness to pay more for organic products.
• E-commerce is booming, with online sales of organic food projected to exceed €10 billion by 2027.

Discover the Future of Your Industry – Get a FREE Sample Report!

Europe Organic Food Market Drivers:

Rising Consumer Awareness and Health Consciousness Drive Growth in the European Organic Food Market

Organic foods are considered healthier because they are free from artificial fertilizers, pesticides, and genetically modified organisms. Studies show that organic produce often contains higher levels of key nutrients, including antioxidants, vitamins, and minerals, compared to conventionally grown foods. Additionally, organic meat and dairy products frequently have higher levels of heart-healthy omega-3 fatty acids. These health benefits are a primary driver of consumer demand for organic food.

Beyond health, many European consumers choose organic products for ethical and environmental reasons. Organic farming practices are designed to be more sustainable, promoting biodiversity, improving soil health, and reducing pollution from synthetic chemicals.

Government Policies and Support Drive Growth in Europe’s Organic Food Market

Many European countries provide financial incentives and subsidies to support organic farmers, including grants for converting 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, encouraging more farmers to adopt sustainable practices.

Investment in research and development (R&D) is also a significant growth driver. Governments and research institutions across Europe are actively advancing organic farming techniques, improving crop varieties, and addressing challenges like pest control and soil fertility in organic systems. These R&D efforts enhance the growth and efficiency of the organic food sector.

Additionally, strict regulatory frameworks and certification processes uphold the quality and authenticity of organic products. The EU Organic Regulation enforces high standards for organic farming and food production through a rigorous certification process, which strengthens consumer trust in organic products and fosters market growth.

Europe Organic Food Market Restraints and Challenges:

The organic food supply chain is often more complex and involves longer logistics compared to the traditional food supply chain. Organic products require careful handling and storage to prevent contamination and preserve their quality, which can lead to higher storage and shipping costs. Additionally, the fragmented nature of organic farming, with many small-scale growers, makes it challenging to develop efficient logistics and distribution systems.

Organic farming is also more susceptible to seasonal variations than conventional farming, which can lead to fluctuations in the supply of organic products, particularly fresh vegetables. Seasonal availability can affect the consistency of supply to both consumers and retailers, impacting prices and market stability. Maintaining the integrity of organic products at every stage of the supply chain is crucial to preserving consumer trust.

Europe Organic Food Market Opportunities:

Urbanization is driving lifestyle changes in emerging markets, with consumers becoming more health-conscious and adopting Western dietary habits. This shift is fueling demand for a wide range of organic products, including fresh produce, dairy, meat, and packaged foods. Urban consumers are increasingly shopping at supermarkets and online platforms, where organic products are easily accessible.

There is a growing demand for diverse organic offerings, such as convenience foods, snacks, beverages, and functional foods. Companies that innovate and create new organic products to meet this demand are well-positioned for significant growth. For instance, the development of organic ready-to-eat meals, organic snacks, and functional beverages aligns with the increasing trend of convenience and health-conscious eating.

Sustainable packaging also presents a significant opportunity in the organic food market. Environmentally conscious consumers who choose organic products often prefer eco-friendly packaging options. Innovations in biodegradable, compostable, and recyclable materials can enhance the appeal of organic products and drive consumer preference.

EUROPE ORGANIC FOOD MARKET REPORT COVERAGE:

Stay Ahead of Market Trends – Request a FREE Sample Report Today!

Europe Organic Food Market Segmentation Analysis

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

Supermarkets and hypermarkets dominate the Europe's 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.

Ready to Dive into Market Trends? Download Your FREE Sample Report!

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)

Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM