Market Size in 2024 | Market Forecast in 2034 | CAGR (in %) | Base Year |
---|---|---|---|
USD 1.9 Billion | USD 3.8 Billion | 7.1% | 2024 |
The global sustainable food market size was worth around USD 1.9 billion in 2024 and is predicted to grow to around USD 3.8 billion by 2034, with a compound annual growth rate (CAGR) of roughly 7.1% between 2025 and 2034.
Sustainable food is defined as food that is grown in a way that is good for the environment, society, and business. They keep the earth and its inhabitants healthy for a long time. This means that food production must not harm ecosystems, utilize natural resources like water and energy in the most efficient manner possible, treat supply chain workers fairly and ensure their safety, and ensure that healthy food is available to people today and in the future.
The sustainable food market is being driven by several factors such as rising consumer awareness of health & environment, government regulations & policies, corporate sustainability commitments, growth of ethical & conscious consumerism, and technological advancements in food production. However, the high production cost might be hampering the sustainable food industry.
Why does the rising consumer awareness of health & environment drive the sustainable food market growth?
Increasing numbers of people who are discovering how their choices affect their health and the environment, in turn, the sustainable food industry is growing substantially. There is a growing number of individuals who prefer foods which is better for the environment, such as organic, plant-based, and sustainably grown foods. People are concerned about their health, such as avoiding harmful substances and minimizing their risk of getting sick from their diet. They're also concerned about issues such as climate change, the decline of biodiversity, and the sustainable use of resources without harming the environment.
For instance, the organization IFOAM—Organics International estimated that the amount of land used for organic farming around the world would grow by 2.5 million hectares in 2023, bringing the total to more than 99 million hectares. The organic food sales reached $160 billion globally in 2023. The aforementioned stats positively impact the industry expansion.
How high production costs hinder the growth of the sustainable food market?
The high production cost of sustainable food poses a major challenge to the industry's growth. The cost of producing food has increased due to the use of organic components, eco-friendly farming practices, fair trade certifications, and sustainable supply chain procedures. Also, producers spend more on things like organic seeds, specialized feed, and eco-friendly tools that are hard to get and expensive.
Further, organic and sustainable farming may be more expensive because it takes more work, time, and resources than regular farming. High manufacturing costs make it hard for people to enter the market and boost pricing. This could hinder people from buying sustainable products even while demand is rising.
How do the technological advancements in food production offer a potential opportunity for sustainable food industry growth?
Technological advancements are significantly influencing the transformation of sustainable food production. Innovations make things more efficient, less harmful to the environment, and safer for eating. Carbon Utilization, Artificial Intelligence (AI), Precision Fermentation, and others are important technologies that are changing the way one grows and sustainably eats food.
Carbon utilization technologies turn CO2 into key food elements, such as proteins, without utilizing soil. This method uses microbes to cut down on emissions and make food sources that will last. AI also makes food production more efficient, speeds up research and development, improves quality control, and makes the supply chain work better. AI-driven ingredient design enables protein growth in an environmentally friendly manner, while predictive analytics reduce waste. So, new technologies could be the opportunity for a long-term increase in market revenue.
Why do the premium pricing & affordability issues pose a major challenge to market expansion?
The sustainable food market often has problems with high prices and being affordable. Organic, eco-labeled, and plant-based foods are examples of sustainable products that are often more expensive than regular ones. This premium is due to expensive production methods, including using organic materials, sustainable farming, fair-trade certification, and ethical sourcing, all of which make the cost of making the product pricey.
Also, the stringent regulations and high certification costs are raising prices. These higher prices make things less affordable and accessible for many people, which is an enormous challenge for getting more people to use them, especially those who are sensitive to price.
Report Attributes | Report Details |
---|---|
Report Name | Sustainable Food Market |
Market Size in 2024 | USD 1.9 Billion |
Market Forecast in 2034 | USD 3.8 Billion |
Growth Rate | CAGR of 7.1% |
Number of Pages | 216 |
Key Companies Covered | Beyond Meat, General Mills, Tyson Foods, Kellogg Company, Archer Daniels Midland, PepsiCo, Cargill, Campbell Soup Company, Hain Celestial Group, The Coca-Cola Company, Organic Valley, WhiteWave Foods, Conagra Brands, Mars, Incorporated, Kraft Heinz Company, Mondelez International, Applegate Farms, Dean Foods, Amy's Kitchen, and others. |
Segments Covered | By Product, By Distribution Channel, and By Region |
Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA) |
Base Year | 2024 |
Historical Year | 2019 to 2023 |
Forecast Year | 2025 - 2034 |
Customization Scope | Avail customized purchase options to meet your exact research needs. Request For Customization |
The global sustainable food industry is segmented based on product, distribution channel, and region.
Based on the product, the global sustainable food market is bifurcated into fruits and vegetables, seafood and seaweed, cereals and grains, and mussels and mushrooms. The fruits and vegetables are expected to capture the largest market share over the projected period. The sustainable fruits and vegetables market is developing as customers demand healthier, more ethically produced, and ecologically friendly options, which are being met by technology and supply chain improvements. Thus, driving the segment expansion.
Based on the distribution channel, the global sustainable food industry is bifurcated into hypermarkets/supermarkets, e-commerce, and convenience stores. The hypermarkets/supermarkets segment holds the major market share. Rising health awareness and environmental consciousness are driving demand for organic, plant-based, non-GMO, and sustainably sourced goods, which are becoming more common in supermarkets and hypermarkets. These retail layouts provide easy access to sustainably grown fruits and vegetables, meat alternatives, dairy substitutes, and other eco-friendly food products under one roof, catering to convenience-seeking customers.
Why does North America dominate the sustainable food market over the projected period?
North America is expected to dominate the global sustainable food market over the projected period. People in North America are becoming increasingly concerned about their health, the environment, and the ethical production of food. The regional sustainable food market is growing because of this rising demand. Since the economy is strong, people can afford to buy more expensive sustainable food products. This makes people more likely to use sustainable practices.
The rules and regulations in North America, which include severe rules on how food can be made, labeled, and marketed, as well as government incentives and subsidies, help the market grow even more. The North American ecosystem, filled with innovative entrepreneurs and food companies, is also helping to go forward in sustainable farming, making food, and getting it to people.
The global sustainable food market is dominated by players like:
By Product
By Distribution Channel
By Region
FrequentlyAsked Questions
Sustainable food is defined as the food that is grown in a way that is good for the environment, society, and business.
The sustainable food market is being driven by several factors such as rising consumer awareness of health & environment, government regulations & policies, corporate sustainability commitments, growth of ethical & conscious consumerism, and technological advancements in food production.
The high production cost poses a major challenge to the industry's expansion.
Based on the distribution channel, the hypermarkets/supermarkets segment is expected to dominate the industry growth during the projected period.
The increasing health consciousness among consumers and technological advancements are major impacting factors for the industry growth over the projected period.
According to the report, the global sustainable food market size was worth around USD 1.9 billion in 2024 and is predicted to grow to around USD 3.8 billion by 2034.
The global sustainable food market is expected to grow at a CAGR of 7.1% during the forecast period.
The global sustainable food industry growth is expected to be driven by the North American region. It is currently the world’s highest revenue-generating market, driven by high disposable income and growing sustainable practices.
The global sustainable food market is dominated by players like Beyond Meat, General Mills, Tyson Foods, Kellogg Company, Archer Daniels Midland, PepsiCo, Cargill, Campbell Soup Company, Hain Celestial Group, The Coca-Cola Company, Organic Valley, WhiteWave Foods, Conagra Brands, Mars, Incorporated, Kraft Heinz Company, Mondelez International, Applegate Farms, Dean Foods and Amy's Kitchen, among others.
The market report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, sentiment analysis, PESTLE analysis, trend analysis, SWOT analysis, trade area analysis, demand & supply analysis, Porter’s five forces analysis, and value chain analysis.
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