The global organic food and beverages market is expected to reach $327.6 billion by 2022, according to a new report by Allied Market Research. This projection would nearly triple the 2015 market, valued at nearly $116 billion.
The organic beverages market accounted for about three-fifths of the 2015 market, according to the report, and this trend is expected to be maintained through 2022. Organic nondairy beverages are projected to grow particularly rapidly within this sector.
Organic fruits and vegetables held the second most significant portion of the market after beverages.
The growth of the organic market overall has been attributed to rising income levels, improvement of organic farming techniques, and increased awareness regarding the health advantages of organic food and beverages, including the popularity of the Environmental Working Group’s Dirty Dozen list of produce particularly affected by pesticides in conventional agriculture.
North America and Europe contributed to more than four-fifths of the global organic market in 2015, though projections show that the Asia-Pacific region is anticipated to grow at an unprecedented rate during the forecast period.
Despite the increase in the organic food and beverages market and the recent record of 4.1 million acres of organic farmland reached by the United States — an 11 percent increase as compared to 2014 — organic supply is still not able to meet increasing consumer demand.
Due in part to this gap between supply and demand, the USDA announced last Wednesday that it would be launching a program to certify the farmland of growers in transition to organic production, to encourage more farmers to achieve organic certification.
Farmers in transition will be allowed to increase the prices of their products before they receive full organic certification, thus enabling them to cover extra costs associated with transitioning to organic farming in the three years that this certification generally takes to complete.
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