Organic Ingredients Market is Segmented By Product Type (Enzymes, Emulsifiers, Flavors, Colorants, Specialty Starches, Others), By Application (Food and Beverage, Pharmaceutical, Personal Care, Others), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Stores, Others), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Size
The Global Organic Ingredients Market reached USD 10.2 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 16.5 billion by 2031. The market is expected to exhibit a CAGR of 6.2% during the forecast period (2024-2031). Organic farming employs methods that conserve biodiversity, cycle resources, and advance ecological equilibrium.
As new manufacturing companies enter the organic ingredient market, there are more organic products available, and these products are extensively distributed in supermarkets, online retailers, and convenience stores.
Growing adoption of new organic standards and regulations, expansion of organic farmland globally, rising per capita income in majority regions of the world, ongoing changes in people's lifestyles, and growing demand for organic foods due to the rise in health issues like high blood pressure, obesity, and diabetes are all important factors driving the organic ingredient market growth.
Market Scope
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Metrics |
Details |
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CAGR |
6.2% |
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Size Available for Years |
2021-2030 |
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Forecast Period |
2024-2031 |
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Data Availability |
Value (USD ) |
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Segments Covered |
Product Type, Application, Distribution Channel, and Region |
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Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle East & Africa |
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Fastest Growing Region |
Asia-Pacific |
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Largest Region |
North America |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
The Increasing Demand for Organic Food is Driving the Organic Ingredients Market Growth.
Clean-label pigment products are becoming increasingly popular as consumers' concerns about their health and knowledge of the advantages of using natural ingredients have grown. The view of organically cultivated ingredients among consumers is that they are wholesome and offer a nutritive substitute for conventionally grown goods.
The variety of organic ingredient products that are present on the market and the retail channels through which they are marketed have developed, which greatly aids in the organic ingredients market expansion. The demand for natural foods and drinks is also projected to increase as people become more aware of the medical benefits of organic food colors, which is driving the organic ingredients market growth during the forecast period of 2023-2030.
The Increasing Demand of Organic Ingredients in various End-User Industries is Driving the Organic Ingredients Market Growth.
The increase in demand for natural colors from a variety of end-use industries, such as food and beverage, bakery and confectionery, dairy products, meat and poultry, seafood, and cosmetics, will positively affect how natural sources like carotenoids, curcumin, anthocyanin, and carmine are used.
During the projected period, this aspect is anticipated to have a substantial impact on the market's expansion. According to the clean label concept, natural products are produced using only natural flavors and colors. Additionally, consumers are choosing natural ingredients over synthetic ones more and more, which is predicted to increase demand for fair trade products with organic certification, clean-label color ingredients and support the expansion of the global organic ingredients market.
Market Segment Analysis
The global organic ingredients market is segmented based on product type, application, distribution channel, and region.
In the Global Market of Organic Ingredients, the Colorants Segment Holds the Largest Market Share.
The global organic ingredients market has been segmented by product type into enzymes, emulsifiers, flavors, colorants, specialty starches, and others. The colorants segment held the largest organic ingredients market share of 32.5% in 2022 in the organic ingredients market analysis report. Natural colors, which function as antioxidants and coloring agents and shield the body from cellular damage, chronic diseases, and the effects of aging, are free of genetically modified organisms (GMOs) and allergens.
According to the Grocery Manufacturers Association, GMOs are currently found in 75 to 80 percent of conventionally processed food in the United States. According to a Pew Initiative on Food and Biotechnology survey, 58% of Americans are ignorant of the GMOs in food issue, which is an instance that proves the raising demand of non-GMO ingredients.
For instance, red sandalwood is employed in Ayurvedic medicine and has the ability to cure wounds. As a result, the market for food components has a chance to expand as knowledge of the health benefits of natural colorants grows. This opens up more chances for manufacturers to concentrate on R&D initiatives for the creation of excellent natural colors with advanced features, such as pH and heat stability.
Source: DataM Intelligence Analysis (2023)
Market Geographical Share
The Asia-Pacific Held the Largest Share in Organic Ingredients Market.
The North America organic ingredients market held the largest market share of 38.4% in 2022 in the organic ingredients market analysis. The market in the region is driven by increasing rates of diabetes and obesity, warning consumers to focus on healthier lifestyles. This is fueling the demand for pesticide-free and herbicide-free food products. According to the Diabetes Research Institute, in 2021, 37.3 million people, or 11.3% of the U.S. population, have diabetes. An estimated 28.7 million people – or 28.5% of the population – had been diagnosed with diabetes. Approximately 8.5 million people will have diabetes in future years, which have not yet been diagnosed
The American population is increasingly becoming health-conscious and thus increasing the demand for healthy food products. Therefore, manufacturers tend to launch products with organic food ingredients. Specialty foods are outpacing their non-specialty counterparts in almost every category due to the rise in awareness regarding food quality.
Source: DataM Intelligence Analysis (2023)
Market Companies
The major global players in the market include The Kraft Heinz Company, Conagra Brands Inc., Coleman Natural, HiPP, Applegate Farms LLC, General Mills Inc., Morrisons Ltd, United Natural Foods, Inc., Hain Celestial, and REWE Group.
COVID-19 Impact on Organic Ingredients Market
Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:
Covid-19 Impact:
The COVID-19 pandemic affected the organic ingredients market strongly. Since 2019, the worldwide crisis caused by the COVID-19 pandemic has majorly impacted most industries. The COVID-19 pandemic affected many economies around the globe in 2021.
Many combat measures, like complete lockdowns and quarantine for two consecutive years, 2020 and 2021, to fight COVID-19, have strongly affected many industries worldwide, including a portion of the ingredient industry.
As a consequence of travel limitations brought on by the COVID-19 epidemic, retail and long-shelf products saw increased sales on the global market. As a result, the vast majority of people in the world are busy hoarding foodstuffs and other food items for their families.
The increase in demand for processed foods through sustainable agriculture and biodynamic farming eventually had a favorable effect on the industrial need for food ingredients produced by good soil health. Additionally, there has been an increase in the demand for ready-to-eat (RTE) meals, creating new business opportunities for businesses that produce organic ingredients.
Key Developments
- In May 2023, Blue Bear Wellness Teas, the U.S.-based healthy drinks manufacturer, launched its ready-to-drink (RTD) sleep teas made with only natural and organic ingredients and natural flavors. The bedtime tea is non-GMO, has no preservatives, and has no sugar.
- In October 2022, a new line of organic pea components, including organic pea protein and organic pea starch, was introduced by the French company Roquette. These ingredients are made at the company's facilities in Portage la Prairie, Manitoba, Canada, with the help of organic Canadian pea growers who are part of a network.
- In November 2022, the producer of plant-based ingredients, Layn Natural Ingredients, announced the introduction of TruGro MYC, a natural animal feed addition intended to lessen the pathogenic effects of mycotoxins.
Why Purchase the Report?
- To visualize the global organic ingredients market segmentation based on product type, application, distribution channel, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities in the market by analyzing trends and co-development.
- Excel data sheet with numerous data points of organic ingredients market-level with all segments.
- The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
- Product mapping is available as Excel consists of key products of all the major market players.
The global organic ingredients market report would provide approximately 93 tables, 109 figures and 190 Pages.
Target Audience 2023
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
