CNS Canada — Organic food and beverages are headed for a combined annual growth rate of 17.6 per cent, reaching US$440.6 billion by 2026.
That’s according to an Aug. 28 report titled Organic Foods and Beverages – Global Market Outlook, 2017-2026. It said the global organic food and beverage market accounted for US$102.76 billion in 2017.
The report credited continued industry growth to increased consumer awareness and the availability of organic products through mainstream sales channels.
As well, it said changing organic standards, farmland being switched to organic production systems and a continued increase in global per capita incomes were also positive influencing factors.
On the downside, the report — issued by U.S. market research firm Stratistics MRC — stated that the high costs of converting to organic production, the industry’s inability to meet current strong demand and high prices were challenging growth.
The organic food sector in North America held the largest market share for the forecast period, when compared to other geographic regions. Easy consumer access to organic food products is expected to continue to boost growth on the continent. Canada and the U.S. were seen as the major contributors to organic growth in North America.
Perceived consumer health benefits and crops raised without the use of potentially harmful chemicals were cited as key reasons behind the growth.