GLOBAL ORGANIC FOODS & BEVERAGES MARKET

Transcription

1 GLOBAL ORGANIC FOODS & BEVERAGES MARKET ANALYSIS BY PRODUCTS, GEOGRAPHY, REGULATIONS, PRICING TRENDS, & FORECASTS ( ) MarketsandMarkets

2 MarketsandMarkets (M&M) is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. M&M covers thirteen industry verticals, including advanced materials, automotive and transportation, banking and financial services, biotechnology, chemicals, consumer goods energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2011 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets 2

3 1 MARKET OVERVIEW FIGURE 1 SUPPLY CHAIN OF ORGANIC FOODS & BEVERAGES Organic farms Intermediaries (Brokers, distributors, whole sellers Retailers & restaurants Intermediaries Processing plants Packaging facilities Ingredient manufacturers Intermediaries Direct sales Domestic consumers Retailers Restaurant Intermediaries Manufacturer & processors Intermediaries & shipper Export market Exporters & importers Domestic market Retail chains Restaurants Private label retailers In the above diagram a typical supply chain of the organic foods and beverages is shown, where organic produce from the farms is sold initially through two main channels. First is direct sale, where regional consumers, retailers, and restaurants can directly buy organic products from the farm owners at low prices. These direct sales channels have a small market share in terms of overall organic food and beverages sales. However, regional sales MarketsandMarkets 3

4 market has an advantage in terms of prices of organic food and beverages. This is because of minimal or no intermediary participation in the supply chain. Hence, consumers can directly buy organic products from local farmers at low prices. Second channel is sales through intermediaries; for example, in North America, there are many organic food distributors such as Earth Source Organics, Foods Alive, and others that collect or source organic produce in the region and then supply to the distant urban areas for processing, packaging, manufacturing, and sales. Due to participation of intermediaries, prices of the final organic product get increased when it reaches the consumers in urban areas. Similarly, organic food and beverages are exported to the international markets complying with the organic regulation requirements. Here, at every step, intermediaries play an important role; right from the procurement of organic products to sales; that ultimately affects the final product prices INCREASING AWARENESS AMONG CONSUMERS Organic foods industry is witnessing high growth rates from the past few years and is expected to increase further in the coming years. This is due to increasing awareness of consumers towards organic foods benefits; which is increasing their demand in the market. In the European and North American region, in particular, people are willing to purchase relatively expensive organic foods for health benefits. Education level is also an important part of consumer awareness. It has been observed that people with high educational level have more willingness and attraction towards organic foods and beverages. MarketsandMarkets 4

5 FIGURE 2 FACTORS INFLUENCING CONSUMER PREFERENCE FOR ORGANIC PRODUCTS Increasing willingness to pay for organics Increasing demand for chemical testing in food products Increasing resistance towards GM crops Increasing preference of consumers for organic foods Inclination towards locally grown products MarketsandMarkets 5

6 1.1.2 AVAILABILITY OF ORGANIC FOOD THROUGH MAINSTREAM CHANNELS Retail scenario is changing in the organic foods industry. Initially, organic foods and beverages were reaching the end consumers through independent small retail chains such as natural food stores and food cooperatives at regional levels. Owing to such a small supply network, organic foods were not easily available and their market was small. However, the trend has changed and organic foods are now easily available through the conventional channels such as general stores, food marts, and supermarkets. It is estimated that in more than of the retail food stores- especially in the U.S. and Europe, one can easily provide varieties of organic food. FIGURE 3 SHIFT IN MARKETING CHANNELS FOR ORGANIC FOODS & BEVERAGES SALES IN THE U.S Export & direct sales Export & direct sales Natural foods stores Export & direct sales Natural foods stores Conventiona l stores Natural foods stores Conventional stores Conventional stores The above diagram shows a shift in the organic food sales channel from 1998 to It can be clearly observed that organic foods are making their mark in the main stream food sales channels. As compared to of conventional stores sales in 1998, organic food sales through conventional stores increased to in This has led to the easy availability of organic foods and beverages in the market. MarketsandMarkets 6

7 1.2 INTRODUCTION Organic food and beverages market is a niche market where buyers are mostly from high or medium income group. The organic industry witnessed a good growth of more than in the past few years except when the global economic recession led to a small drop in the demand. Developed economies of North America and Western Europe are the largest markets (more than ) for organic food and beverages in terms of retail organic sales. Asia, Latin America, Australasia, and Africa are the major producers of organic food and beverages. Domestic consumption in these regions is very low due to low awareness, relatively high prices of organic products, and lack of regulatory standards for organic food and beverages. Most of the production from these countries is exported to the high demand markets of North America and Europe. TABLE 1 ORGANIC FOODS & BEVERAGES MARKET, BY GEOGRAPHY ($MILLION) Region CAGR% ( ) North America XX XX XX XX XX Europe XX XX XX XX XX Asia XX XX XX XX XX ROW XX XX XX XX XX Total XX XX XX XX XX The global organic food and beverages market is expected to grow from $XX million in 2010 to $XX million in 2015, at an estimated CAGR of from 2010 to Europe commanded MarketsandMarkets 7

8 the largest share of the overall market in 2010 at $XX million; and is expected to reach $XX million in 2015, at a CAGR of for the same period. FIGURE 4 ORGANIC BEVERAGES MARKET SHARE, BY PRODUCTS (2009) Non dairy beverages Cofee & Tea Beaverages (Excluding Beer & Wine) Beer & Wine Organic beverages market is dominated by non-dairy beverages with of the market share. This includes energy drinks such as soy milk and rice milk. Organic coffee and tea also have significant share of nearly in the organic beverages market; followed by organic beer and wine with a share. MarketsandMarkets 8

9 FIGURE 5 ORGANIC FOODS & BEVERAGES MARKET SHARE IN NORTH AMERICA (2010) Canada Mexico U.S. The above pie represents organic food and beverages market share in North America, where the U.S. accounts for a maximum market share of. Canada and Mexico are relatively very small markets because of low consumer awareness and are having a share of only and respectively in North American region U.S. The U.S. is one of the largest markets for organic food and beverages in the world with an estimated size of more than $XX billion in 2010, and is growing at an expected CAGR of from 2010 to One of the major reasons behind such high growth is increasing consumer awareness in the U.S about the health benefits of organic food. Also, people in the U.S are resisting genetically modified and chemically grown crops and therefore opt for organic alternatives in food and beverages. Major organic crops grown in the U.S. include corn, soybeans, and wheat that account for of the overall crop production. MarketsandMarkets 9

10 Number of organic retailers are also increasing in the country; including large retail chains such as Carrefour, Wal-Mart, and Whole Foods Market. This is increasing the availability of organic foods and beverages in the main stream food channels. On the other hand, national standards for organic food and beverages (National Organic Program) and USDA organic standards are also standardizing and streamlining the regulations concerning organic food and beverages in the country. As per estimates California contributes about of total us organic foods & beverage sales. Also, most of the major organic retailers such as Organic valley, Earthbound farms, Wal-Mart, and Whole Foods Market have setup store in southern California SIZE OF ORGANIC FOODS & BEVERAGE MARKET It is estimated that more than of the Asian organic food and beverage production is exported to the developed economies such as the U.S. and Europe. Market size for organic food and beverages consumption in the Asian continent is very low but is expected to have a higher growth rate from 2010 to 2015 because of the increasing awareness among consumers and with the emergence of new domestic markets such as India, China and Philippines. Regional trade is also increasing rapidly where organic produce from China and India are exported to the large organic retail markets of Japan and Singapore. MarketsandMarkets 10

11 TABLE 2 ASIA: ORGANIC FOODS & BEVERAGES MARKET, BY GEOGRAPHY ($MILLION) Region CAGR% ( ) Japan XX XX XX XX XX South Korea XX XX XX XX XX China XX XX XX XX XX India XX XX XX XX XX Singapore XX XX XX XX XX Malaysia XX XX XX XX XX Thailand XX XX XX XX XX Rest of Asia XX XX XX XX XX Total XX XX XX XX XX The organic food and beverages market in Asia is expected to grow from $XX million in 2010 to $XX million in 2015, at an estimated CAGR of from 2010 to Japan commanded the largest share; i.e. of the overall Asian organic food and beverages market in 2010 at $XX million; and is expected to reach $XX million in 2015, at a CAGR of for the same period. MarketsandMarkets 11

12 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge when ordering that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. For information regarding permission, contact: Tel: sales@marketsandmarkets.com MarketsandMarkets 12