Organic Fruits and Vegetables Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Organic Fruits & Vegetables Market is segmented By Product (Organic Vegetables, Organic Fruits), By Form (Slices, Fresh, Frozen, Powder, Puree, Others), By End-Use (Retail Sales, Food Processing Industry, Food Service Industry, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031 

Market Overview

The Global Organic Fruits & Vegetables Market report provides an analysis of the market shares, size, recent trends, future market outlook, and competitive intelligence. The demand for organic fruits and vegetables is increasing due to the rising awareness about health and wellness, along with growing concerns regarding the environmental impact of conventional farming practices. The market is witnessing a surge in demand from the Asia-Pacific region, The competitive rivalry is intensifying with major players such as General Mills Inc., Nestle S.A., Hain Celestial Group Inc. and others actively operating in the market.

Organic fruits and vegetables are those produced in the all-natural way of agricultural practices without the application of synthetic fertilizers and other agrochemicals. Labeling any food product as organic is adding demand and price benefits over conventional foods. Fruits and vegetables evolved as the largest category of organic food sales owing to rising demand from food processors and retailers to cater to their consumer preferences. 

Key Insights

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Market Dynamics

Rising cultivation of organic fruits and vegetables

Organic area share of total farmland in Europe increased from 2.7 percent in 2016 to 3.12 percent in 2018, according to FiBL. Similarly, in Latin America, the organic area share of total farmland climbed from 0.99 percent in 2016 to 1.06 percent in 2018. Farmers all around the world are cultivating crops such as fruits and vegetables in response to the growing demand for organic products. For instance, according to a survey conducted by the Organic Trade Association (OTA) in 2016, in the United States, organic farms are 35% more profitable than average farms. The amount paid to organic farmers can range from 29-32% above the non-organic prices. 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.

The shifting consumer preference towards all-natural food products owing to growing health consciousness is the primary growth factor for the global organic fruits and vegetable market. Furthermore, organic farming is considered an economically friendly practice and is motivating consumers and food service companies towards purchasing these products. Organic produce is gaining popularity among food processors and caterers owing to superior health benefits. Out-of-season fruits and frozen organic fruits are the new growth points of interest in the global market over the forecast period

However, organic fruits and vegetables are relatively costlier typically 20% – 40% higher compared to conventional produce. This is the primary factor limiting consumption among low- and middle-income populations. Also, several cases of detected mislabeling are reported in recent times which is impacting consumer trust in genuine products.

Segmentation Analysis

The fruits segment held the major share of the market in terms of revenue

The market has been segmented by product type into fruit and vegetable segments. The organic fruits segment dominated the market with a share of YY% in the year 2020. The reason is attributed to the rising awareness about healthy and safe food coupled with augmented awareness about the health benefits that is exhibited by the consumption of organic fruit product to its large market share. Furthermore, organic fruits use less pesticide and trigger fewer human side effects. Organic fruits also have more nutrients, such as antioxidants, that are helpful. These factors listed above are responsible for driving this market’s growth. In addition, organic goods have good quality, high nutritional value, and good natural sustainability, attracting the attention of consumers in organic fruits, which are poised to serve more opportunities in the forecast period 2023-2030.

Organic vegetables are expected to grow with a CAGR of YY% during the forecast period. The demand for organic leafy vegetables including Spinach, Kale, and Lettuce has been rapidly growing in the U.S. and European markets. The rising trend of convenience products has motivated households to purchase packaged organic veggies.

Geographical Shares

Europe is expected to dominate the global organic fruits and vegetable market during the forecast period

By geography, Europe is the largest market for organic fruits and vegetables holding approximately 40% of the global sales value. France is leading the organic movement of the European region. Food safety concerns are driving the demand for organic fruits and vegetables in French cuisines. Germany, Italy, and the U.K. are the other major economies witnessing significant sales of organic fruits and veggies.

Also, the market is bolstering in the North American region at a CAGR of nearly 10% owing to the rising consumer demand in the U.S. and Canadian markets. North America has historically been the fastest-growing market for organic food globally. Organic food sales in the country reached USD 54 billion in 2018. Fruits and vegetables evolved as the largest category of this market with a share of 38% in dollar sales.

Global Key players

• General Mills, Inc.
• Iceland Foods Ltd
• H.J. Heinz Company

The global organic fruits & vegetable market is posing significant growth potential across the developed economies of Europe and North America region. The market is highly fragmented with no player holding a considerable share of the market. This is motivating several independent farms towards direct selling of their produce to food retail chains. Private-label products also hold a significant portion of the market. Some of the key market players include General Mills, Inc., Iceland Foods Ltd, H.J. Heinz Company, The WhiteWave Foods Company, and Green Organic Vegetables Inc. In April 2018, Kraft Heinz launched a platform for nurturing, scaling, and growing food brands within the organic, natural, and super-premium sector

COVID-19 Impact on Organic Fruits & Vegetables Market Growth

The covid-19 pandemic has positively impacted the market due to growing awareness of healthy and nutritional diets. Therefore, this led to surging demand for organic fruits and vegetables across the globe. During the COVID-19 pandemic, the demand for organic food went up as consumers perceived them as being healthier and good for immunity. In India, there has been a paradigm shift post the 2020 pandemic as consumers began to buy more organic foods as a preventive health measure. This change in perception is likely to drive the growth of the organic fruits & vegetable market in the future as well. Kraft Heinz, one of the key players in the organic fruits & vegetable market announced that net sales in the year 2020 increased by 4.8% when compared to fiscal 2019. E-commerce sales grew by more than 100% and now account for more than 5% of the company’s global sales. Kraft Heinz in the first quarter of 2021 expects organic net sales growth to be flat to positive. The first quarter will compare to the previous year’s first quarter that included a six-point to seven-point contribution to organic net sales growth.

Why Purchase the Report?

• Understand the current market scenario and viability of organic fruits and vegetables over the forecast period
• Visualize the composition of the global organic fruits & vegetable market in terms of product type, form, and end-use to identify major players, growth potential, and market strategies
• Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period
• Understand the key business factors such as market competition, product pricing, new product developments, and acquisitions in the market

What do we offer?

• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study
• Excel data sheet with valuable data points of the global organic fruits & vegetable market – regional and country-level segmentation
• Product mapping in excel for the key products of all major market players
• Market share analysis covering business revenues ($) and revenue share (%) of key market players

Target Audience:

• Food & Beverage Manufacturers
• Food Retail Chains
• Farmer and Grower Communities
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals