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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