The Continuous Rise of the Organic Food and Beverage Market

by Carrina LaCorata May 9, 2024

No matter the age, people are becoming more health conscious. Due to the health benefits of organic products (and the increasing consumer awareness of said benefits), this is causing the organic food and beverage market to grow with no signs of stopping. In 2023, the global organic food and beverage market was valued at USD 231.52 billion (with an expected CAGR of 13.9% from 2024 to 2030). The global beverage industry alone was valued at USD 20.31 billion in 2018 (with an expected growth CAGR of 13.0% from 2019 to 2025). In this article, we will examine some of the trends and drivers behind this growth along with some of the challenges the organic market faces. Finally, we will discuss the organic beverage market specifically.

Trends and Drivers

Consumers are looking for health benefits in their products, convenience, and alternative natural sources of nutrient supplements and do not shy away from reading the labels to identify the ingredients in a product. The desire to improve health coupled with the health benefits of organic products and the health risks associated with synthetic chemicals and additives will likely be a contributing factor in the growth of the organic food and beverage market.

Consumers are concerned with the long-term effects of the food and beverages they consume in regards to nutrition, health, environmental sustainability, sourcing, and social responsibility. Due to these increased concerns and awarenesses, companies are now expected to have greater transparency and disclosure of ingredients on their labels. A USDA certified organic label can also help create trust between the consumer and a product due to the rigorous criteria used to obtain this certification.

Non-GMO (USDA certified organic products are also non-GMO) products are increasing in popularity, and organic products in general are now no longer confined to niche stores and more accessible to all consumers (including through online channels). Consumers’ desires for healthier products and their increased awareness and education in health and organic along with greater accessibility for organic products and transparency from companies are all contributing factors in the growing organic market.

Challenges

Although the organic food and beverage market is poised for growth, there are a few challenges it faces. Organic farming, production, and certification are more expensive than non-organic methods which leads to higher production costs for the food and beverage companies and challenges pricing the products to make them affordable for consumers. Organic food and beverage products also come with the challenges of limited shelf life and preservation concerns, inconsistent organic sourcing, and certification challenges.

It’s possible that the more consumers demand organic food and beverages and transparency on labels, more solutions will arise to help address these challenges. Regardless of the challenges, it’s a good idea for companies to start finding ways to incorporate organic products into their offerings because the organic food and beverage market is showing no signs of slowing down.

Organic Beverages

When it comes to organic beverages specifically, there are several types: non-dairy beverages (soy, rice, oat), fruit beverages, coffee and tea, beer and wine, and others. The range of organic beverages available caters to different consumer preferences and dietary needs.

When it comes to beverages, consumers are looking to get health benefits beyond hydration from their drinks including added vitamins, minerals, antioxidants, probiotics, and other bioactive compounds. Consumers are looking to support their immune health, digestion, energy levels, and overall wellbeing. The beverage market will also be impacted by an increased demand for sugar-free, low-sugar, and low-calorie drinks and non-caffeinated drinks along with the availability and preference of new flavors and ingredients.

Graasi Organic Barley Water is a USDA certified organic barley water infused with vitamin C, D, and zinc. Dive into the world of organic beverages and try it today!