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Global Organic Food and Drink Market 2012-2016

Global organic food market: 14% CAGR between 2012-2016

The Global Organic Food market is to grow at a CAGR of 14.3 percent CAGR over the period 2012-2016. One of the key factors contributing to this market growth is the increased purchasing power of consumers. The Global Organic Food and Drink market has also been witnessing an increasing focus on organic farming. However, the high cost of organic food and drink could pose a challenge to the growth of this market.

Organic farming involves the production of crops without the use of chemical fertilizers and synthetic pesticides. Organic farming provides long-term benefits to the environment and consumers. The Global Organic Food and Drink market is witnessing the increasing adoption of organic farming methods because of the increasing demand for organic food products. Governments of various nations are offering strong support and are promoting organic farming as it will increase the contribution of the Agricultural sector to the GDP of their respective countries. This will contribute toward reducing the supply shortage in the supply chain as the market enters next stages of growth. Organic farming also has a positive impact on the biodiversity and enables effective soil management, which could go a long way in mitigating and even reversing the effects of climate change, as also minimizing carbon emissions. Thus, the adoption of organic farming is a positive trend that could propel the growth of the market during the forecast period.

One of the major drivers in this market is the increasing purchasing power of consumers. The improvement in the economic growth in developed and developing countries has resulted in higher disposable income, thereby leading to the increasing purchasing power of consumers. Thus, consumers can afford to buy organic foods and drinks, which are generally priced higher than conventional food products. This will tend to increase the growth prospects of the market during the forecast period.

One of the major challenges in this market is the higher cost of organic food products when compared with conventional food products. The high cost of organic foods will restrict the purchase of these products to the affluent class of consumers. As a result, organic food will not be affordable to a majority of consumers, which could reduce the profitability of the market.

The key vendors dominating this market space include AMCON Distributing Co., Dean Foods, Hain Celestial Group Inc., Spartan Stores Inc., the Kroger Co., United Natural Foods Inc., and Whole Foods Market Inc. The other vendors mentioned in the report are Amys Kitchen Inc., Clif Bar and Co., Dole Food Co. Inc., EVOL Foods, Frito-Lay, Newmans Own Inc., Organic Valley, and Stonyfield Farm Inc.

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