Organic
foods are foods produced by methods that comply with the standards of organic
farming. The organic food & beverages market provides sizeable
opportunities for expansion of the organic food industries. Organic food is healthier
on comparing to conventional food. These are cultivated though organic farming
and process focusing on using reusable resources. Foods are grown on small,
family-run farms, and in order to conserve the soil and water so as to ensure
environmental quality for future generations, the sale of these goods is
limited to small grocery stores and farmers markets. Organic food production
emphasizes on conservation of water and soil, environment concerns, reusable
resources, limiting the use of harmful pesticides and chemicals in food.
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The
Global Organic Foods and Beverages Market is accounted for $102.76 billion in
2017 and is expected to reach $440.60 billion by 2026 growing at a CAGR of
17.6% during the forecast period. Across the world, awareness and knowledge has
become a crucial factor in changing the attitude and behaviour of consumers
towards organic foods. Its production
and trade has been accompanied by an increase in national legislation in order
to set the minimum requirements for organic agriculture and create the
institutional framework for certification. Organic food and beverages industry
delves into what consumers understand by organic and the main features fuelling
growth of these products. Consumers have extensive information for them to
easily make choices between competing products. On considering all these
aspects, it is advisable to the organizations to invest more capital.
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The
high availability of suppliers and existing substitute products, easy cost
switching poses a scope for high bargain by buyers. Burgeoning consumer
interest in organically grown foods has opened new market opportunities for
producers and is leading to a transformation in the organic foods industry.
Many U.S. manufacturers and distributors are specializing in processing and
marketing organic products, while some long time manufacturers of conventional
products have introduced organic items to their product lines. Hence companies
on these markets are producing profitable income.
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