The organic ingredients market has experienced significant growth over the past two decades, reflecting a broader shift in consumer preferences towards health and sustainability.
The global organic food and beverage market was valued at approximately $150 billion in 2021[i] and is projected to reach over $300 billion by 2028, growing at a CAGR of around 10%. This growth is driven by a range of factors, including increased awareness of health benefits, environmental concerns, and the demand for transparency in food sourcing.
The Primary Factors Driving Growth
- Health Consciousness: Food manufactures are very conscious of consumers increasing awareness of the potential health risks associated with synthetic pesticides, fertilizers, and genetically modified organisms (GMOs). Organic ingredients are perceived as healthier options, leading to a rise in demand among health-conscious consumers which drives new products going to market.
- Sustainability and Environmental Impact: Organic farming practices prioritize sustainability, biodiversity, and soil health, which resonate with environmentally conscious GenZ and millennial consumers. As climate change and environmental degradation become pressing issues, many consumers choose organic products to minimize their ecological footprint.
- Government Support and Regulations: Multiple governments worldwide, and specifically in the US, are promoting organic farming through subsidies, grants, and certification programs. This support makes organic farming more accessible and encourages more farmers to transition to organic practices.
- Innovation in Food Products: The rise of innovative food products made from organic ingredients, such as plant-based foods, snacks, and beverages, has broadened consumer choices and increased market penetration. This is where Icon Foods plays a key role in helping consumer brands move to organic clean label sugar.
The future of organic ingredients, specifically sweeteners, and fibers, show great promise. As food manufacturers push to meet consumer preferences and continue to evolve towards health and sustainability, coupled with increasing government support, this rapidly growing market is expected to expand further.
The growing market for organic sweeteners and fibers reflects changing consumer attitudes towards health, sustainability, and the food supply chain. As the market continues to evolve, it presents significant opportunities for Icon Foods, they pave the way for more sustainable and health-focused food ingredients.
Reach out to your Icon Foods representative for organic KetoseSweet Organic Allulose, and FibRefine Organic Soluble Tapioca Fiber samples, documentation, and usage guidance.
