LONDON, Sept. 23, 2020 /PRNewswire/ -- According to a new market research report titled "Organic Food Market by Type (Dairy, Grain, Bakery, Meat, Fish & Poultry) Retail Channel (Food Retail, Supermarket, Farmer Market) Packaging (Fresh, Frozen, Canned, Dried) Process (Unprocessed, Processed, Ultra-Processed) - Global Forecasts to 2027, the organic food market is expected to grow at a CAGR of 12.2% from 2020 to 2027 to reach $272.18 billion by 2027.

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In recent years, the organic food sector has been growing rapidly due to rising support from government and non-government organizations. In the past couple of decades, the consumer demand for organically grown food has shown double-digit growth. Certified organic lands and livestock have been expanding at a faster pace due to rising concern for food and environment safety, and population willingness to spend on organic products.

Impact of COVID-19 on the Organic Food Market

The COVID-19 pandemic has spread over 200 countries, bringing economic activity to a near standstill, as countries imposed tight restrictions on movements to halt the spread of the infection. Under this scenario, multiple facets of life have been affected, ranging from consumer products to industrial activities. Among the most exposed verticals to the ongoing COVID-19 outbreak is the transportation industry, which faces unprecedented uncertainty. From public transport to commercial aviation, all have been affected by the pandemic. Thus, rising restriction on vehicle movement has affected the supply chain management of raw ingredients in different countries.

Numerous organic food ingredients consumed by developed regions such as North America and Europe are majorly produced and exported from Asia, Latin America, and Africa. Thus, the restriction on transportation has affected the availability of organic food in stores and supermarkets. Furthermore, shifts in consumer purchasing behavior due to the uncertainty surrounding the pandemic has had significant consequences for the industry's near-future growth. Meanwhile, shortfall and cash crunch have already affected fleet operators' sales, which is expected to widen further in the coming months.

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However, as the situation has begun to normalize with the unlock process in the world, a measurable jump is seen in the organic market. Online retailers reported the highest sales growth. For instance, U.K.'s Abel & Coel, an organic food delivery company, reported a 25% increase in its sales orders. Further, Nourish Organic, an Indian retailer, experienced a 30% rise during the pandemic.

The global organic food market study presents historical market data in terms of value (2018 and 2019), estimated current data (2020), and forecasts for 2027. The market is segmented based on type, retail channel, packaging type, process, and geography. The study also evaluates industry competitors and analyses the market at the country level.

Based on type, the fruits and vegetables segment is estimated to command the dominant share of the overall organic food market in 2020. The rising demand for fresh organic products is one of the major factors driving the growth of this segment.

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Based on retail channel, the food retailers segment is estimated to command the largest share of the overall organic food market in 2020. The growing consumer preference and convenience for retail markets is driving the growth of this segment. However, the online shopping segment is expected to grow at the highest CAGR during the forecast period.

Based on packaging material, the fresh packaging segment is estimated to command the largest share of the global organic food market in 2020. The rising demand for organic products with minimal processing is one of the major factors accelerating the growth of this segment.

Based on process, the unprocessed segment is estimated to command the largest share of the overall organic food market in 2020. The large share of this segment is mainly attributed to the rising awareness among consumers in regards to the handling and packaging of products. Further, processing leads to the loss of valuable biomass and nutrients from the original products.

Geographically, North America is estimated to command the major share of the global organic food market in 2020. The leading position of the North American market can be attributed to the presence of leading organic product manufacturers and high purchasing power parity of the population.

The key players operating in the global organic food market are Hain Celestial Group, Inc. (U.S.), General Mills, Inc. (U.S.), United Natural Foods Inc.(U.S.), Nature's Path Foods Inc., (Canada), Amy's Kitchen, Inc. (U.S.), Organic Valley (U.S.), Whole Foods Market Co-op, Inc. (U.S.), Sunopta Inc. (Canada), Eden Foods, Inc. (U.S.), Newman's Own Foundation (U.S.), Stonyfield Farm, Inc. (U.S.), Danone S.A. (France), Nestle S.A. (Switzerland), and Clif Bar & Company (U.S.) among others.

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Scope of the report

Organic Food Market, by Type

• Fruits & Vegetables
• Bananas
• Apples
• Tomatoes
• Dried Onions
• Others
• Dairy
• Milk
• Butter
• Cheese
• Yogurt
• Milk Powders
• Grains
• Wheat
• Maize
• Rice
• Oats
• Others
• Beverages
• Tea & Coffee
• Non-dairy Alcoholic Beverages
• Others
• Condiments
• Bakery
• Snacks
• Meat, Fish, & Poultry

Organic Food Market, by Retail Channel

• Food Retailers
• Supermarkets
• Online Sales
• Others Channels

Organic Food Market, by Packaging Type

• Fresh
• Frozen
• Canned
• Dried

Organic Food Market, by Process

• Unprocessed
• Semi-process
• Processed

Organic Food Market, by Geography

• North America
• U.S.
• Canada
• Europe
• France
• U.K.
• Germany
• Italy
• Spain
• Denmark
• RoE
• Asia-Pacific (APAC)
• China
• Japan
• India
• Australia
• Switzerland
• RoAPAC
• Latin America
• Mexico
• Brazil
• Argentina
• RoLATAM
• Middle East and Africa
• Saudi Arabia
• Rest of MEA

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