Organic Fruits and Vegetables Market - Growth, Trends, and Forecast (2020 - 2025)

Organic Fruits and Vegetables Market - Growth, Trends, and Forecast (2020 - 2025)

  • August 2020 •
  • 86 pages •
  • Report ID: 5954277 •
  • Format: PDF
The organic fruits and vegetable market is expected to record a robust CAGR of 6.99% during the forecast period, 2020-2025.

- The increasing demand for organic fruits and vegetables is primarily due to its increased production and rising global consumption.
- However, organic fruits and vegetable supply is limited in relation to its demand, due to its high production cost. Despite a high price for organic fruits and vegetables, consumers are willing to pay more for organic foods, due to less use of pesticides and high nutritive value.
- Increasing awareness about health benefits of organic products among the consumers is expected to boost the sales of organic fruits and vegetables.

Key Market Trends
Rising Cultivation of Organic Fruits and Vegetables

The rise in demand for organic products is driving farmers across the world to cultivate crops, which include fruits and vegetables in this segment. For instance, according to a survey conducted by the Organic Trade Association (OTA) 2016, in the United States, organic farms are 35% more profitable than the average farms. The amount paid to organic farmers can range from 29-32% above the non-organic prices. Due to the constantly increasing demand for organic food and limited supply in relation to the demand, the area under organic farming has increased worldwide, since 2011. The global production area was reported to be 57.8 million hectares in 2016, which is an increase from 37.2 million hectares in 2011. The possibility of farmers switching from conventional farming to organic farming is made easier with the regional regulatory bodies providing the necessary funds supporting the switching cost.

North America to Dominate the Global Market

North America is the largest market for organic fruits and vegetables, followed by Europe and Asia-Pacific. The demand for organic fruits and vegetables in the United States has been continuously rising, due to growing health concerns and an increasing number of health-conscious consumers in the country. According to the Organic Trade Association, as of 2018, of the total organic food market, fruits and vegetables were the largest category, of which fresh produce accounted for 90% of sales. Around 15% of total fruits and vegetables purchased by consumers were observed to be organic. Fresh produce has been observed to be driving the market, with millennials, affluent households, and the younger demographic being the key spenders.

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- The market estimate (ME) sheet in Excel format
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