The US organic food market is estimated to cross US$45 billion in 2015 on the back of rising per capita expenditure, increasing health consciousness, growing awareness about the benefits of chemical free organic food and rise in organic farming in the US, according to a report by TechSci Research.
Increasing per capita expenditure, growing health awareness and rising inclination towards chemical and pest-free products to drive US organic foods market
Strong distribution channels of manufacturers and their tie ups with retailers have added to the accessibility and visibility of various organic food products such as fruits and vegetables, organic dairy products and packaged food in the market.
The availability of organic products is no longer limited to traditional sources but is available in more than 20,000 natural food stores and nearly three out of four grocery stores in the country.
Manufacturers are also increasingly collaborating with retailers such as Walmart and Whole Food to widen their product distribution and market reach.
Besides fruits and vegetables, the demand for organic dairy products has also increased with significant rise in online stores over the last five years.
The market is dominated by a number of players including Amy’s Kitchen, Hain Celestial Group and Mondelez.
“The industry is projected to witness increasing number of mergers and acquisitions along with expansion plans of various major players to cater to the exponentially growing demand for organic foods” said research director Karan Chechi.
“Moreover, continuing growth in the number of organic food retailers, manufacturers and distributors would push the consumption to higher levels in coming years.”
“The market is anticipated to witness an increase in number of certified organic farms as the demand for premium product ranges is likely to grow in the future,” he said.
