Market Trends of Organic Fruits And Vegetables Industry
Grapes Emerge as the Leading Crop Type
With the rise in global disposable incomes, there is a noticeable shift towards healthier diets, emphasizing the increased consumption of fruits and vegetables. This trend is further driven by a heightened focus on wellness and immunity, resulting in a surge in demand for organic produce. Grapes have become a leading fruit crop in this context. Over recent years, the area dedicated to organic grape cultivation has expanded significantly. According to a 2022 report from FiBL (Research Institute of Organic Agriculture), organic management covered nearly 562,000 hectares, or 8.3%, of the world's grape-growing area. This represents a significant increase from just 17,619.4 hectares in 2021, highlighting the segment's growth potential.
Europe dominates the organic grape sector, accounting for 87% of the global organic grape production area. While most grapes are consumed locally, a significant portion is used for winemaking, with only a small fraction consumed fresh. The rising demand for organic wine in Europe further drives market expansion. Data from ISMEA (Institute of Services for the Agricultural and Food Market) shows that Italy's organic wine retail sales increased from USD 43.3 million in 2019 to USD 45.5 million in 2022, underscoring the growing consumption trend.
Additionally, global initiatives by organic grape producers are energizing the market. For example, California's Fruit World company launched its organic grape program in 2023, introducing unique heritage varieties like Champagne and Thomcords in 2024. With the expanding area of organic grape cultivation, rising consumption, and proactive producer initiatives, the market is poised for growth in the coming years.
North America Dominates the Market
North America leads the organic fruits and vegetables market and is poised for further expansion, fueled by increasing disposable incomes and supportive initiatives. Growing health and fitness awareness is driving consumers to prioritize organic produce, which is free from harmful chemicals. Moreover, a strong commitment to sustainable development is spurring a rise in organic farming throughout North America, further strengthening the market.
A key driver of this market's growth is the intensified focus on grape production. The Growing Future Opportunities Initiative, bolstered by a USD 4.4 million investment from the Sustainable Canadian Agricultural Partnership (Sustainable CAP), is championing projects that aid 128 producers of apples, tender fruits, and table grapes in Canada and Ontario. These efforts aim to cultivate more sought-after and resilient produce varieties.
Moreover, the rise in greenhouse-grown produce is fueling market expansion. In September 2024, Globalmex International Inc., under its Magic Sun brand, rolled out high-tech hydroponic greenhouse-grown Roma tomatoes in central Mexico. This launch adds to Magic Sun's portfolio of USDA-certified organic greenhouse tomatoes. Consequently, the combined focus on sustainable farming, increasing investments, and the rising production of organic greenhouse produce are pivotal drivers of market growth during the forecast period.
