Organic Processed Food Market Size (2024-2030)

The Global Organic Processed Food Market was estimated to be worth USD 21.68 Billion in 2022 and is anticipated to reach a value of USD 38.13 Billion by 2030, growing at a fast CAGR of 8.4% during the forecast period 2024-2030.

Organic processed foods are food products that are packaged with organic ingredients and undergo organic processing. These food products are free from additives, GMOs, and other synthetics that pose health issues. Further, these food products are available in the form of can or plastic container that prevents the food from getting spoiled. The most common types of organic processed foods include canned vegetables and fruits, frozen peas, packaged granola bars, packaged milk, organic packaged pasta, and others. Furthermore, increasing demand for convenience and healthy foods by consumers has contributed to the demand for organic processed food in the market.

Global Organic Processed Food Market Drivers:

Growing consumer demand for convenient and healthy food products has contributed to the demand for organic processed food in the market.

Consumers, today, have shifted their food preferences towards healthy food products such as vegan, vegetarian, or plant-based diets that improve overall health. Further, a busy lifestyle and hectic working schedule have increased consumer demand for processed foods that require less or no preparation. Further, these food products are free from synthetic chemicals and are rich in proteins, vitamins, minerals, and other nutrients, as they are locally sourced and cultivated organically. Furthermore, due to rising health awareness among consumers, plant-based processed food such as quinoa salads, beetroot or spinach chips, vegan breakfast cereals, pumpkin and banana-based cookies, vegan burger patties, organic frozen berries, vegetable pot pie, and others have gained momentum in recent times.

Environmental concerns have boosted the market demand for organic processed food.

Consumers are constantly recognizing the ill effects of chemicals on the environment and hence shifting their preferences towards organic processed food. These foods are cultivated organically, without pesticides or synthetic chemicals; and are processed without preservatives or additives, making it a popular dietary option for consumers. Further, organic food products undergo natural and environment-friendly packaging method that uses bio-degradable paper, cardboard, or containers to pack food products. These further include the use of clean, transparent, and green labeling that provides all information right from sourcing to processing the food product along with the presence of nutrients. Moreover, this has induced manufacturers to invest in green technology that is energy-efficient and reduces carbon emissions considerably.

Global Organic Processed Food Market Challenges:

Expensive costs can decline the demand for organic processed food in the market. Organic processed food is produced using organic farming methods, which are far more complex and requires more time than traditional synthetic-based farming. This requires manual work and natural processing, which raises the final price of the products, leading to a decline in consumer demand for organic processed food.

Furthermore, since these food products are free from chemicals and additives; and are prepared using natural and organic ingredients that are perishable in nature, usually have a shorter shelf life, which can shift consumer demand towards long-lasting food products. This can reduce the demand for organic processed food in the market.

Global Organic Processed Food Market Opportunities:

The Global Organic Processed Food Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, the rising consumer demand for convenience and nutritious diet is predicted to develop the market for Organic Processed Food and enhance its future growth opportunities.

COVID-19 Impact on the Global Organic Processed Food Market:

The pandemic had a significant impact on the organic processed food market. Lockdown increased the need for digitization and shifted consumer preferences towards e-commerce shopping, which increased the demand for organic processed food, especially organic salad bowls and organic frozen vegetables and fruits. Furthermore, rising health awareness boosted the demand for immunity-boosting snacks and meals that offer nutritional benefits to consumers. However, due to social distancing and movement restrictions, there were supply chain disruptions as major food and beverages manufacturing and processing facilities were closed, leading to delays in distribution and hence a decline in demand for organic processed food in the market.

Global Organic Processed Food Market Recent Developments:

• In August 2023, Sresta Natural Bioproducts, an Indian organic food products company, announced to launch of organic baby and children’s food, snacks, and frozen foods that would include bread, samosas, rotis, and chapatis. Further, these foods will be targeted to the age group 6 months to 4 years, and up to 10 years of children.
• In June 2023, Nortera launched a frozen vegetable brand in the USA, called – Artic Garden. The product line is a variety of pre-washed, pre-cut, and ready-to-cook frozen vegetable items that aim to increase efficiency and reduce food waste.
• In August 2022, Green Giant launched three new categories – Restaurant Style Sides, Zucchini Tots, and Veggies Spiral Skillets. These products are organically processed and come in the form of ready-to-eat or heat form.

ORGANIC PROCESSED FOOD MARKET REPORT COVERAGE:

Global Organic Processed Food Market Segmentation: By Product Type

• Organic Snacks & Beverages

• Organic Dairy

• Organic Bakery & Confectionary

• Organic Sauces & Dressings

• Organic Meals

• Others

Based on market segmentation by product type, organic meals occupy the highest share of the market. Organic meals are packaged ready-to-eat or cooked meals that are prepared using organic ingredients and are meant for quick consumption. These products are packed without chemicals and often have high nutritional value as they contain organically sourced and processed vegetables, fruits, whole grains, and other natural ingredients. Furthermore, increasing consumer demand for convenience foods has increased the usage of organic meals that require less preparation and offer high nutrition to consumers. These include gluten-free, vegan, or low-calorie food that offers various health benefits to consumers. These include organic frozen burritos, quinoa salad bowls, vegetable patties, stir-fries, organic rice and bean bowl, organic pasta and cheese, organic whole-grain sandwich and wrap, and others.

The organic snacks and beverages segment is the fastest-growing segment during the forecast period. Organic snacks & beverages serve as an on-the-go consumption food product that is meant for quick consumption. These products often come in single-serve packaging and offer convenience and portability to consumers, as they can be carried anywhere while traveling or during office hours. In addition, many of them are specialized in nature and are meant for specific consumption requirements such as health & wellness, baby food, specialty diets prescribed by dieticians, children-friendly, and others. These include organic potato chips, trail mixes, fruit and vegetable-based chips, nuts-based salad, dried fruits, energy bars such as granola and oats bars, whole-grain cookies, and others. Organic beverages include non-dairy alternatives such as soy and almond milk, organic green tea, organic coffee, functional and herbal beverages that contain anti-oxidant and immunity-boosting properties, and kid’s beverages such as organic fruit juices, organic milk, and others.

Global Organic Processed Food Market Segmentation: By Distribution Channel

• Online

• Offline

Based on market segmentation by distribution channel, the offline segment occupies the highest share of the market. The offline segment comprises supermarkets and hypermarkets, health stores, convenience stores, farmer’s markets, and others that offer a variety of organic processed food to consumers as per their taste preferences. Further, offline channels such as health and convenience stores offer personalized and customized organic processed food as per the consumer’s dietary requirements. Moreover, growing trends in veganism have increased demand for organic products from farmer’s markets as they offer freshly produced and processed organic food products.

The online segment is the fastest-growing segment during the forecast period. These include e-commerce platforms, subscription-based services, online retail stores, specialty websites, and others that offer various types of organic processed food to consumers. Furthermore, organic snacks and beverages are increasingly demanded from e-commerce platforms due to facilities such as one-day delivery, product reviews, product and price comparison, access to exotic food products from various regions, offers, and others.

Global Organic Processed Food Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

Based on market segmentation by region, North America occupies the highest share of the market. Long working hours and growing trends in veganism have contributed to the demand for organic processed food in the region. As per the US Bureau of Labor Statistics, in 2022, an individual on average worked more than 8.5 hours per day during weekdays. This depicts that individuals get less time to prepare or consume healthy food, increasing the demand for organic processed food in the region. The most common types of organic processed food demanded by individuals in the region are vegan burgers and wraps, frozen salads, ready-to-heat vegan meals, energy bars, and functional beverages such as fruit juices and plant-based milk.

Asia-Pacific is the fastest-growing region during the forecast period. Western influence of veganism, rapid urbanization and increased participation of women in the workforce, and growing trends in organic farming have contributed to the demand for organic processed food in the region.

Global Organic Processed Food Market Key Players:

1. Thistle

2. Sweetgreen

3. SunOpta

4. Amy’s Kitchen

5. Morningstar Farms

6. Boca Burgers

7. Impossible Foods

8. Horizon Organic

9. Rustic Bakery

10. Kaira Organic

11. General Mills

12. Foods Alive