Organic Fruits and Vegetables Market Size, Share & Trends Analysis Report By Product Type (Organic Fruits, Organic Vegetables), By Form (Fresh, Frozen), By End-User (Residential, Commercial), By Distribution Channel (Supermarkets, Hypermarkets, Convenience Store, Online Sale Channel, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global organic fruits and vegetables market size was worth USD 37 billion in 2021. It is estimated to reach USD 75 billion by 2030, growing at a CAGR of 8.1% during the forecast period (2022–2030). 

Fruits and vegetables with the organic label let consumers know they were made using specific techniques. Fruits and vegetables are grown using the organic approach, which involves raising plants and crops without using chemicals from pre-harvest through post-harvest. The market for organic fruits and vegetables is expanding primarily due to increased consumer awareness of the advantages of organic products and their reasonable prices and easy accessibility. Additionally, the government actively promotes organic farming to prevent pollution in the air and water, which is likely to encourage farmers to use organic farming.

Market Dynamics

Market Drivers

Consumer Awareness of Healthy Diet is Key Driver Setter for the Market

Increased health awareness, growing fitness trends, and a shift toward healthy products, such as organic fruit and vegetable juice and syrups, are expected to boost the organic fruits and vegetables market growth. For instance, organic aloe vera juice has gained significant traction among consumers. It is consumed for hydration, liver function, constipation, clear skin, nutritious boost, heartburn relief, digestive benefits, and beauty hacks. The high nutritional benefits of organically grown fruits and vegetables also increase their demand among health-conscious customers.

In addition, the prevalence of chronic diseases, such as cardiac disorders and cancer, has increased at an alarming rate due to changes in food habits and sedentary lifestyles. Therefore, consumers have adopted a healthy diet through organic and natural products to reduce the risk of developing chronic disorders. This, in turn, has fueled the demand for organic fruits and vegetables and related processed food products across the globe, accelerating the market growth.

Changes in Lifestyle and Food Habits to Favor Market Growth

Fast food, bakery goods, ice cream, and other lifestyle products are becoming increasingly popular as consumer spending on upscale food items rises quickly. Due to the introduction of cutting-edge products by various businesses, there is a rising demand for organic fruits and vegetables in processed food products, such as beverages and confections. Additionally, as people become more concerned about their health and look for food products made with natural and organic ingredients to preserve it, sales of organic veggies are rising in emerging nations like China and India, which considerably aids in expanding the global market.

Market Restraint

High Price of Organic Fruits and Vegetable Products May Impede Growth

Essentially, the high cost of organic food impedes its adoption. Organic food is challenging to grow and requires more involvement and time. Moreover, lower yields of such crops and a poor supply chain further increase the production cost, leading to the higher price of organic food products. People minimally buy it, which is expected to hinder the growth of the global organic fruits and vegetables market during the forecast period. Another hurdle to adopting organic farming is the high registration, accreditation, and certification fee to become organic farmers. Therefore, the production and supply of organic fruits and vegetables are limited compared to the demand, and prices are increasing.

Market Opportunities

Exploration of Organic Fruits and Vegetables in Skin Care and Beauty Care Products

Various skincare and beauty care brands are launching their products with an organic label. These organic skincare and beauty care products comprise organically grown almonds, strawberries, apples, grapes, carrots, oats, and aloe vera. Artificial chemical and non-organic fruits and vegetable ingredients in skincare and beauty care products lead to severe side effects.

Big giants are benefitting from growing consumer demand for organic and clean-label cosmetics. For instance, Garnier launched its organic skincare and beauty care products in 2018. The new Garnier Organic range is based on six organically sourced ingredients: lavender, cornflower, and thyme from France, argan from Morocco, lemongrass from Sri Lanka, and konjac root from the Asian Highlands. The new players entering skincare and beauty care product care can collectively explore their product range with organically grown fruits and vegetables.

Regional Analysis

Region-wise, the global organic fruits and vegetables market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Which region accounts for the highest demand for organic fruits and vegetables?

North America commands the market and is predicted to rise at a CAGR of 6.7% over the forecast period. Due to increased health consciousness, the North American market is changing its consumption habits. Products with organic and natural labels are witnessing an increased demand compared to other conventionally grown food products, including fruits and vegetables. Moreover, the need for frozen organic meat, organic chicken, organic pork, and organic seafood products has been consistently increasing over the years, contributing to the market growth in North America.

Furthermore, frozen fruits and vegetables are expected to increase because of their perceived health benefits. Other significant factors include the high purchasing power of consumers and the inclination toward a luxurious lifestyle that boosts the market growth. Upsurge in several retail outlets, hotels, and restaurants bolster the demand for frozen meat and chickens, seafood, fruits & vegetables, confectionery, and other frozen food products. The market is competitive, with many small and big players fighting to gain a more significant market share. Food and beverage giants have been consistently investing in research and development to meet the changing demands of customers in the organic food segment.

Asia-Pacific is the fastest-growing region. The market for organic fruits and vegetables in Asia-Pacific has grown mainly due to increases in purchasing power and changes in lifestyle and eating habits. Community farming and individual or contract farming are essential parts of organic farming. For instance, few individual organic farmers exist in China, and the country's organic agriculture is primarily focused on structured systems rather than individual farming. Growing urbanization and disposable income in developing countries, including China and India. In addition, the consumption of processed organic frozen fruits and vegetables and related processed products were increasing because of busy lifestyles, and a rise in dining out fueled the market growth.

Europe is the second-largest region and is projected to reach USD 42 billion by 2030, growing at a CAGR of 7.2%. The high spending capabilities of consumers and economic stability are some of the primary reasons for the growth of the organic food market in the European region. The frozen organic ready-to-eat product market in Europe consists of frozen bakeries, ready-to-eat meals, and various confectionery products labeled with organic tags. Europe has been home to some of the most prominent frozen bakery players, including future kitchen, Spiruella.nl, Merck Access, superfoods online, and HappyGoodFood.

Segmental Analysis

The global organic fruits and vegetables market is categorized into product type, form, end-user, distribution channel, and region. 

By Product Type Analysis

By product type, the global market is categorized into Organic Fruit and Organic Vegetable.

The Organic Fruits segment is the highest contributor to the market and is estimated to grow at a CAGR of 7.6% over the forecast period. The growing food and beverages industry and dynamic changes in food habits and lifestyles of the people are considerably influencing the growth of the organic fruits market during the forecast period. People have been inclined to consume ready-to-eat and ready-to-drink products, likely motivating the food and drink processing industries. Many big giant companies that deal in food & beverages are heavily investing in organic food and drink products, which is further likely to support the global organic fruits and vegetables market growth. 

The Organic Vegetable segment is the fastest growing. Growing other applications of the vegetables in cosmetics, skincare, body care, and pharmaceuticals is expected to escalate the demand for organic vegetables market during the forecast period. People are increasingly and attentively investigating the product ingredients while purchasing cosmetic and beauty care products. Therefore, manufacturers of beauty care, personal care, and pharmaceutical products are actively investing in producing organic vegetable-labeled products. 

By Form Analysis

By form, the global market is segmented into fresh and frozen.

The Frozen segment is the highest contributor to the market and is estimated to grow at a CAGR of 7.7% over the forecast period. The global frozen organic fruits and vegetables market demand comprises retail and business customers. Retail consumers of frozen organic fruits and vegetables are individuals and households, whereas business consumers include hotel chains, fast food outlets, caterers, and other business buyers. Frozen fruits and vegetables include broccoli, corn, spinach, edamame, peas, strawberries, raspberries, and pineapple. The commercial or industrial segment has been holding a significant share of the global organic frozen fruits and vegetables market, owing to the growing traction of hotels and restaurants where required raw food items are purchased in bulk and are stored and used as per the orders of the customers. 

The Fresh segment is the fastest growing. Fresh organic fruits and vegetables are significantly preferred to eat by the consumers rather than processed products of fruits and vegetables. People majorly purchase fresh or unprocessed fruits and vegetables to avoid food adulteration and unnecessary additions of chemicals and flavors, which might be risky for consumption. The growing food processing industry has been continuously favoring the growth of the organic fruits and vegetables market during the forecast period. There are enormous processing industries where fresh organic fruits and vegetables are in demand, such as nonalcoholic fruits and packaged drinks, bakery processing, and confectionery.

By End-User Analysis

By end-user, the global market is segmented into Residential and Commercial.

The Residential segment is the highest contributor to the market and is estimated to grow at a CAGR of 7.3% over the forecast period. The rise in popularity of organic fruits and vegetables and related processed products are owing to growth in health concerns among consumers and increased awareness concerning the health benefits of organic food. Another significant attribute of developing organic fruits and vegetables is rising awareness of the benefits of organically grown food crops. Compared to synthetic counterparts has resulted in an upsurge in demand for different processed and non-processed food products. This is attributed to an increase in awareness of consumers regarding the risks associated with products containing harsh chemicals, petrochemicals, and preservatives.

The Commercial segment is the fastest growing. Due to increased investments in commercial venues like airports, hospitals, hotels, and restaurants, the demand for organically cultivated fruits and vegetables is anticipated to increase significantly. Some main market-driving variables include pricing, brand variety, and ease of sales and purchases.

By Distribution Channel Analysis

By distribution channel, the global market is segmented into Supermarkets, Hypermarkets, Convenience Stores, and Online Sale Channels.

The Hypermarket segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.2% over the forecast period. Urbanization and population density in metro cities are expected to boost hypermarket demand. 

The Online Sales Channel segment is the fastest growing. E-commerce platforms are more often used to buy organic fruits and veggies because of how simple they are to utilize and how rapidly customers can access them. Easy availability of information about the ingredients and methods of cultivation used in organic fruits and vegetables and related processed food products, time-saving features, and home delivery facility contribute to the growth of organic fruits and vegetables through the online sales channel. 

Impact of covid-19

COVID-19 has positive and negative market consequences, as carbon emissions have decreased globally due to the lockout. COVID-19's reduction in emissions is a short-term benefit. Still, when industries and enterprises attempt to recoup some of their financial losses in the first quarter of the year, carbon emissions will rise dramatically. COVID-19 had a negative impact on global recycling efforts. Countries, notably the United States, have halted or decreased recycling programs to focus on collecting additional domestic waste or because services have been disrupted by the virus.

Also, with industries slowly returning to normalcy following the COVID-19 outbreak, this shift in workplace health and safety is expected to increase due to mandatory social distancing and continuous personal care through sanitization to eliminate even the tiniest possibility of COVID-19 spread. COVID-19 has impacted various companies' revenues, and if the lockdown is lifted, companies will turn their attention to operations to make up for their losses.

Recent Developments

• June 2022 - General Mills and Regrow Agriculture established a multi-year agreement to monitor agricultural practices and their effects on the environment through 175 million acres of farmland in Europe, North America, and South America.
• June 2022 - General Mills (NYSE: GIS) revealed that the acquisition of TNT Crust was complete. TNT Crust produces high-quality frozen pizza crusts for regional and national pizza companies, food service distributors, and retail stores. Peak Rock Capital had TNT Crust as one of its portfolio companies.