Organic food market back on a growth track

Organic farming is spreading

Organic farming continues to grow globally, reaching 98.9 million hectares by the end of 2023 and representing 2.1% of the world’s agricultural area. In total there is certified organic farming practiced in 188 countries, and in 22 of these more than 10% of total agricultural land is used for organic production. In parallel with the rise of organic farming, sustainable solutions such as regenerative agriculture, soil renewal technologies and sustainable packaging are gaining ground. The EU’s Farm to Fork strategy wishes to acquire a 25% share for organic farming by 2030, with EUR 16bn earmarked between 2023 and 2027 for this purpose. In 2023 the global organic food market reached a value of EUR 136.4bn, a slight increase on the previous year. With a EUR 59bn value the United States remains the biggest market, followed by the European Union with annual organic food sales of EUR 46.5bn. Consumer demand has stabilised, but shopper behaviour is showing signs of increasing price-sensitivity.

Superb sales performance by the top organic products

The most popular products on the organic market – fresh fruit and vegetables – have a market share over 10% in several countries (Austria, Switzerland). Organic eggs have a 30% share of the total egg market in Denmark and Switzerland. There is stable demand for organic dairy products in Western Europe, while meat substitutes and plant-based drinks have already reached a share over 50% in the Netherlands and Sweden. Demand for organic bakery products and cereals is steadily increasing, with the volume of organic cereals imported surging by 67.4% in one year. Organic fruit juice imports fell by 25.1% in 2023, but organic olive oil import was up 25.1%.

Discounter and private labels are coming up

Organic food distribution channels went through a major transformation in 2023. General grocery and discounter chains showed the biggest growth, while the role of specialised organic supermarkets diminished. In France, Italy and Germany organic supermarkets still play a significant role, but organic sales in retail chains are growing faster. Private label organic products are more and more important on the European market, especially in discount chains and large retailers. In Germany and France private label products now account for more than 50% of organic food sales. In Hungary 320,251 hectares of agricultural land was used for organic farming in 2023, representing 6.4% of the total agricultural area. The export of organic products is important, because domestic consumption is still below the level of Western Europe. In recent years demand has been growing for premium organic products and private label organic food from major retail chains. //