Organic products are promoted as healthy because they rarely contain artificial colorings, preservatives, aromas and flavorings, and are grown without the use of pesticides. Also, the demand for greater transparency is resulting in strong growth organic and GMO-free foods.
Innova Market Insights reports 11% CAGR in organic claims on global food & beverages launches (2014-2018). The percentage of new products featuring an organic positioning grew from 8.8% of launches in 2014 to 10.5 percent in 2018. In Europe, the rise is even more pronounced, where there was 15.5% annual average growth in organic claims on European food & beverages launches (CAGR, 2014-2018). In 2018, 58% of all launches with an organic claim were reported in Europe, compared to 22% in North America. Snacks is the fastest growing category, with an average annual growth of 18.6% (CAGR 2014-2018).
Top market categories of food & beverages launches with an “organic” claim (Global, 2018):
Market category Penetration (%)
(Source: Innova Market Insights)