Page 72 - FoodFocusThailand No.197 August 2022

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Organic Market Insights 2022

It is painfully obvious that the global food industry’s heavy reliance on ultra-processed foods is endangering
both human and planetary health. That’s why more and more people are now choosing to buy healthier, more
nutritious foods with fewer environmental consequences. As a result, organics are thriving in 2022, even
though it is a difficult time for most businesses due to the pandemic and other global crises.

What does "organic" really mean? Market trends
According to the United States Department of Agriculture, or USDA, The organic fruits and vegetable segment has the largest market share
organic foods must contain no food additives and be grown and and is expected to maintain its dominance over the forecast. However,
processed by relying on natural substances to the maximum degree major players in the organic food market are concentrating their efforts
possible. In this respect, organic legislation could be comprehensive, on introducing new product categories and varieties by developing novel
especially in the United States, the European Union, Canada, and products such as ready-to-eat snacks, cookies, organic tea, spices,
Japan, where certified producers can only use the term "organic". In edible flowers, herbs, and organic juices. Let's take a quick look at these
the food trade, the seal of approval on a product can help verify whether examples.
the organic standards have been met. The most common ones include
the USDA organic seal, the EU organic seal, the UK Soil Association #Organic soft-baked wild blueberry
certification, the UK Organic Farmers and Growers certification, and General Mills, the largest provider of natural and
the Japanese Agricultural Standard (JAS). organic packaged foods in the US, offers a diverse
mix of certified organic cereals, yogurt, frozen fruit
Countries with high growth potential and vegetables, snacks, meals, and baking products
In 2021, North America was the largest region in the organic food like this Cascadian Farm's soft-baked wild blueberry
market, followed by Western Europe and Asia-Pacific. The organic made with wholesome rolled oats and wild blueberries.
food market in the United States was worth USD 59.28 billion in 2020 #Organic raspberry-flavored milk and organic
and is expected to grow at a compound annual growth rate (CAGR) chocolate-flavored milk
of 13.83 percent between 2022 and 2026, reaching a market value of Last year, Yeo Valley Organic, the UK's largest
USD 125.65 billion by 2026 (US Organic Food Market Report 2022). organic brand, ventured into the flavored milk category
The UK organic industry has also performed admirably, exceeding by introducing organic raspberry and chocolate-
the GBP 3 billion mark for the first time ever in 2021. Or an astounding flavored milk.
23% growth since 2019, prior to the pandemic, outperformed the non-
organic market for two years consistently (UK Organic Market 2022 #Naturally brewed organic soy sauce
by the Soil Association). An organic version of Kikkoman Naturally Brewed Soy
And last but not least, according to the Global Organic Trade Guide, Sauce from Japan's Kikkoman Corporation is available in the
Japan ranks 14 in terms of global market size, with a value of USD US and Europe. It is made from organic whole soybeans, wheat,
th
602.6 million in 2021. For the forecast period of 2021-2026, the salt, and water—nothing more- and is fermented naturally and
Japanese organic market is expected to grow at a marginal rate of 0.4 preservative-free.
percent. Even with such small figures, compared to the above countries,
organic food is widely consumed in Japan, and it is the largest market Export potential for Thai organic products
in Asia. Thailand is a major global food producer with the goal of becoming the
Back in Thailand, organic products account for 0.04 percent of ASEAN region's organic food production leader. To achieve this position
global demand, with market size of USD 25.5 million and a per capita and stay ahead in the intense competition, food exporters and
expenditure of USD 0.37 in 2021, indicating that organic products are manufacturers should focus on our strengths, such as organic rice
niche and still supported by a small group of wealthy consumers. products, cereal drinks, seasonings, and raw ingredients like curry paste.
Despite its small global market size, Thailand ranks among the top ten
in terms of projected growth, with an 8.8 percent value CAGR from
2021 to 2026 (The Global Organic Trade Guide).
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