LONDON, Nov. 17, 2019 /PRNewswire/ -- The global organic food market was valued at about $166.28 billion in 2018 and is expected to grow to $305.56 billion at an annual growth rate of more than 16% through 2022. The production of organic food involves practices that promote ecological balance and aim to conserve the biodiversity. These food products do not use any food additive or industrial solvent. Increasing health concerns due to the growing number of chemical poisoning cases globally is acting as a driver in the organic food market. Consumers are becoming more health conscious owing to the harmful effects caused by the presence of chemical pesticides in food products. The toxicity of chemical pesticides in food products can cause cancer, hormone disruption, and birth defects. According to a UN report published in the year 2017, around 200,000 people die every year due to toxic effects of pesticides in food products. This is causing consumers to shift their focus towards organic food products.

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Low Shelf Life Could Hinder The Growth Of The Organic Food Market

Low shelf life of organic food and beverages compared to conventional foods and beverage products is restraining the global organic food market growth. For instance, in a research conducted by MSNBC in 2018, it was reported that the shelf life of organic food product tends to be shorter than conventional produce. Similarly, some researchers found that many organic foods had higher levels of bacteria than conventional products that cause food to spoil. As organic foods are not exposed to the similar amount of preservatives that conventional foods contain, organic foods tend to be prone to bacteria attacks and have a shorter shelf life. For example, organic food products like turnip greens, mustard greens, and endive have a very short shelf life with shrinkage percentage of 50%. Thus, high packaging, logistics, and distribution costs to increase shelf life is limiting the growth of the organic food market.

Major Players And Their Strategies In The Organic Food Market

Major players in the organic food market are General Mills Inc., Cargill, Inc., Danone, United Natural Foods Inc., and Amy's Kitchen. Companies in the organic food market are focusing on the introduction of new product categories and varieties. Organic food manufacturers are coming up with new and innovative organic food products in the form of ready-to-eat snacks, cookies, organic tea, pulses, spices, edible flowers, frozen waffles, medical plants, herbs and organic juices. For example, Lidl, an organic grocery chain, is coming up with 28 new and innovative organic food products to choose from. Similarly, Nestle plans to launch new and innovative organic milk products in India.

Regulatory Landscape Of The Global Organic Food Market

The organic food market is regulated by authorities such as the US Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA), to ensure high quality standard of food product is maintained. For instance, the EFSA oversees whether labelling is used to mislead consumer on the nutritive proportions of a product in the EU. The EFSA performs occasional checks on the nutritional value to check whether correct labelling has been used or not. In order to maintain transparency and effectiveness, regulatory authorities have come up with strict food labelling regulations for the organic food market.

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