Technavio’s latest market research report on the global organic packaged food market predicts the market to witness a compounded annual growth rate close to seven percent during the forecast period.
Organic farming is gaining immense popularity as it relies on organic herbicides, fungicides and other natural ingredients, instead of artificial enhancers or harmful pesticides. Organic products are thus safe for human consumption and shouldn't detract the farm land. Governments of several countries are also providing incentives to farmers who adopt organic farming. Therefore, the growth of organic farming is expected to boost the growth of the global organic packaged food market during the forecast period.
Dairy, bakery and confectionaries emerged as the largest segment of the organic packaged food market in 2018 and is expected to maintain its dominance over the forecast period. This market dominance can be attributed to the growing consumer demand for organic bakery products and the increasing online sales of organic products.
“The awareness about the health benefits of the consumption of organic packaged food products is increasing significantly. This has resulted in an increased demand for organic dairy, bread and confectionary products. As a result, vendors in the market have been launching new products to cater to this growing demand, which will fuel the growth of this market during the forecast period,” says a senior research analyst at Technavio .