India has much larger area, which have used minimal pesticides and chemical where potential for conversion exist, organic movement has taken a root in many of the states and there is growing demand especially in cities and market is expected to grow more than 20 per cent annually. It is envisaged that 20 per cent of production shall be organic in 5 years.
As far as the global organic food and beverages market is concerned, it is expected to grow from $57.2 billion in 2010 to $104.5 billion in 2015 at an estimated CAGR of 12.8 percent. The organic beverages segment accounted for nearly 13% of the global market share in 2010 with an expected CAGR of 14.8% from 2010 to 2015.
Markets are evolving to demand highly processed organic products as well as raw commodities. In Europe, markets are expanding for ready-to-eat meals, frozen foods, baby food, snacks, and beverages. Organic food processing ingredients include juices, fruit powders, dried fruit, meat, flavorings, essential oils, herbs and spices, and nuts.
Sample trade flows into Europe are from Israel (fresh produce), Brazil-Chile-Argentina (fresh produce, soy, and wheat), other European countries (baby food, processed foods, cereals, and meat), Canada (wheat, soy, and canola), Mexico-Central America (bananas, citrus, and coffee, cocoa), Sri Lanka-India (tea), and the United States (processed foods of all types, wheat).
As of 2007, almost 35 million hectares are managed organically out of which 11.8 million hectares are in Australia. More than 60 countries have a regulation / law on organic farming (FiBL/IFOAM). More than 60 million hectares of land are certified as organic wild collection (Organic Services ITC)
As of 2007, the countries with the greatest organic areas are Australia (12.1 million hectares), China (3.5 million hectares) and Argentina (2.8 million hectares). The percentages, however, are highest in Europe. In total, Oceania holds 39 percent of the world’s organic land, followed by Europe (21 percent) and Latin America (20 percent). The proportion of organically compared to conventionally managed land, however, is highest in Europe. Latin America has the greatest total number of organic farms.
The international organic sales have reached 38.6 billion US Dollars in 2006 double that of 2000, when sales were at 18 billion US Dollars. It surpassed the 40 billion US Dollar mark in 2007. With demand for organic foods outpacing supply, high growth rates are envisioned to continue in the coming years (Organic Monitor).
For example the fresh produces (fruits and vegetables) are the highest selling organic food categories with 37 percent of the organic foods segment in terms of revenue. Organic supplements are the fastest growing segments in the organic industry with an estimated CAGR of 22.3 percent from 2010 to 2015; with Europe expected to continue its dominance in the segment for the same period.
Leading countries
Organic farming is bound to grow in many parts of the world as many countries are developing their own standards and regulations. The United States and EU started many comprehensive National organic farming regulations in Japan, Canada and Australia. Similarly, countries such New Zealand, Israel, Brazil, China and some more countries have adopted organic standards equivalent to those of USA and the European Union. China.
The organic foods segments account for the highest share (approx. 86%) in the overall organic food and beverages market. Europe is the largest consumer of organic food, beverages and supplements; while Asian and ROW segment is expected to have the highest growth rates of 20.6% and 16.2% respectively due to high domestic production, increasing per capita income, and regulatory reform initiatives in countries including China, India, Singapore, Australia, and Latin American countries such as Brazil and Argentina.
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