Global organic food sales reach US$105 billion

Global organic food and drink sales increased by 6% to US$105 billion in 2018, marking the first time it has surpassed the US$100 billion barrier, according to Ecovia Intelligence.

A report titled ‘Global Organic Food & Drink Market Trends & Outlook’ revealed North America and Europe have the largest markets for organic products, with a combined revenue share of 90%. Although sales remain concentrated in these regions, their share has declined from 97% in 2005 due to increasing demand in emerging economies.

The US has the largest market for organic food and drink (45%), followed by the German, French, Italian and Canadian markets. Denmark leads in terms of market share with almost 14% share of retail food sales, the report said, and it is also one of the highest spenders of organic products, alongside Switzerland, Sweden and Austria.

Since being introduced in the late 1990s, the organic products market has grown dramatically, driven by rising consumer awareness and availability of these products. Retail sales increased from US$18 billion in 2000 to US$59 billion in 2010, and they are now over US$100 billion. In spite of this growth, the market share of organic foods remains below 1% in countries outside Europe and North America.

Ecovia Intelligence Founder Amarjit Sahota said there are many challenges ahead, including: demand concentration, in which organic agriculture is practised in 181 countries but the bulk of sales are from the affluent countries; the growing number of national and private organic standards; and increasing competition from sustainability schemes and ethical labels, such as Fairtrade, UTZ Certified and Rainforest Alliance.

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