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Rapid growth in Asia-Pacific organic food market set to change global market shares
The global market in organic food expanded between 2012 and 2016 at a compound annual growth rate (CAGR) of 10.9%, and is forecast to accelerate to a value of $187.6 billion by 2021, representing a CAGR of 13.8%, according to research firm MarketLine.
The company’s latest report states that the US will remain the largest single market, rising from $44.9 billion in 2016 to $63.4 billion by 2021 at a CAGR of 7.1%, underlining the country’s pivotal role in driving global growth.
Christopher Leyman-Nicholls, Analyst for MarketLine, says: “Although the US currently accounts for over 45% of the global market, its share will fall to 34% by 2021 due to growth in the Asia-Pacific (APAC) region. Despite the continued healthy growth of the US market, China’s rapidly expanding consumer society is propelling that of APAC to grow at a much faster pace.”
Demand for organic food is increasing globally as knowledge surrounding its environmental and health benefits improves.
As Leyman-Nicholls explains: “Growth in the United States is expected to slow because it is the most mature market globally. Those such as China are expected to undergo rapid expansion, reducing the US’s influence on the global market during the forecast period.
“Consumer confidence in organic food has continued to improve around the world, especially in European markets where regulation has clarified what constitutes organic food. Not only have production and processing rules been updated, but also control and labelling.
“Despite increasing global concern about where food is sourced, this has historically been centered around Europe and the US. However, thanks to rising wages, higher standards of living and a burgeoning middle class, more people are able to afford organic food in China. The Chinese market has been helped by greater awareness of malpractice in food production, creating a pull factor towards organic food.”
– Information based on MarketLine’s report: Global Organic Food.