The global organic food and beverages market is expected to grow at a CAGR of nearly 14% by 2021, according to a new market research report by Technavio.
This growth will be propelled by three emerging trends:
- Innovation in products and new product launches
- Increased marketing and promotions
- Growing demand for organic wine
On the innovation front, Technavio analyst Manjunath Reddy notes that high competition is driving vendors to formulate new ingredient combinations and flavors to gain market share. The report calls out organic bamboo, organic soy sauce, and biological milk as “well-admired innovations” in the space.
As for marketing, Technavio focuses on Europe, where retailers are “spending heavily to target all the customer segments,” as well as engaging in promotional activities like live cooking, in-store promotions, price cuts, and free samples.
Finally, organic wine is gaining popularity, particularly in the Americas and the APAC region, thanks to “increasing health consciousness among consumers.”