In recent years, largely due to the global pandemic people are becoming more cognizant that there most important asset is their health. Moreover, developing a healthier lifestyle, food safety and environmental considerations are playing greater prominence in societyâs decision making process. Food safety has become a fundamental issue impacting all age groups. In addition, there has also been a greater focus on chemical free, Non-GMO and sustainable food production as a solution to many physical and mental health problems facing our global community. In such an environment, people have taken the consumption of organic food as an alternative to avoid food safety issues. As a result this has helped to fuel the rise in consumer spending on organic food.
According to Spherical Insights, the global organic food and beverages market size was valued at USD 227.45 billion in 2023 and Statista estimates in three years by 2026 this market should almost double to 437.4 %.
Global Trends in the Organic Food Market
Every region of the world has seen an increase and interest in organic food. According to Exchange Africa, the global organic food and beverages market size was valued at US $188.35 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.0 per cent from 2022 to 2030. In Europe, The Organic Food & Beverages Market size is estimated at USD 141.29 billion in 2024, and is expected to reach USD 273.85 billion by 2029, growing at a CAGR of 14.15% during the forecast period (2024-2029). Figures by Statista highlight that by 2027, the organic dairy food and beverages industry in Latin America is estimated to reach a value of close to four billion U.S. dollars. That is an increase of nearly 71 percent in comparison to a 2022 estimate.
The evidence is clear, there an increasing consumer demand for non-GMO crops and products, driven by concerns about health, environmental sustainability, and declining population of agricultural producers. By growing non-GMO crops, farmers can tap into this growing market and meet the needs of consumers seeking healthier and more sustainable food options. The global population is growing at a rate of about 1% each year, and by 2030, the worldâs population is expected to exceed 8.5 billion people.
Did you know that food production systems account for an estimated 26% of greenhouse gas emissions? In the coming years, the food and agricultural industry will continue to shine a spotlight on sustainability, including promoting regenerative practices, protecting soil health and our water resources, supporting local farmers, reducing food waste and implementing better packaging and distribution practices.
âRegenerative agricultureâ coupled with renewable energy technologies such as Solar represent the gold standard and are long term viable solutions to replenish soil to a healthier state. At its core, regenerative agriculture is the process of restoring degraded soils using practices (e.g., adaptive grazing, no-till planting, no or limited use of pesticides and synthetic fertilizer, etc.) based on ecological principles.
Firms Taking Sustainability to New Heights
Companies such as Australia Oilseeds Holdings Limited (AOI) ticker symbol: COOT by incorporating pioneering regenerative farming practices have in the past 20 years grown to be the largest cold pressing oil plant in the APAC (Asia Pacific Region), pressing strictly GMO free conventional and organic oilseeds.
Gary Seaton, CEO and Chairman of the Board of Directors at Australian Oil Seeds Investments, says “we, our staff, board of directors, clients, and key stakeholders have an unwavering commitment to reducing carbon emissions, make innovations in regenerative farming methods, and continually redefine standards and best business practices in Sustainability. “
On March 28th Mr. Seaton rang the closing bell on the Nasdaq Exchange in NYC to commemorate AOIâs merger with EDOC Acquisition Group and IPO listing. AOIâs success in selling to clients like Costco has been to not compromise in maintaining the highest standards in Chemical free and Non-GMO sustainable food production.
The company commissioned its first oilseed processing plant in 1992, crushing just over 2000 metric tons (mt). Continuous improvement has resulted in seed processing capacity of 36,000mt per annum. Cold Pressing produces high energy canola meal used in stock feed for most species of animals. All canola seed purchased by Cootamundra Oilseeds is guaranteed NON-GMO. AOI uses Solar panels during the day to store energy from the Sun and then uses biodiesel fuel at night to power equipment and other operational facilities. The company became carbon neutral in 2022.
Other companies setting best business practices in sustainability include Pepsi and Grupo Bimbo. In 2021, PepsiCo announced a new 2030 goal to develop regenerative farming practices across 7 million acresâan amount roughly equivalent to the global land footprint needed to supply crops for the companyâs products. This initiative, part of the company’s broader pep+ (PepsiCo Positive) ambition, advances the companyâs climate goals and its pledge to sustainably source 100% of its key ingredients by 2030. Grupo Bimbo, the worldâs largest baking company, is one of the first major companies outside the United States and Europe to make bold regenerative farming commitments. Based in Mexico City, Grupo Bimbo partnered with CIMMYT on its Bimbo Sustainable Corn and Wheat program, helping farmers transition to regenerative farming practices on over 14,800 hectares.
In conclusion, there is an alarming need in the world to wholistically change our food consumption patterns towards healthier and sustainable food. Companies like Australian Oil Seed Investments, Pepsi & Co, and Grupo Bimbo are leading the charge and represent some of the most innovative companies in sustainability. Not only are concepts like regenerative farming in line with the UN Sustainable Development Goals but over time they have the potential to fundamentally decrease chemicals from our global food supply chain and reduce our carbon footprint and create a more equitable supply chain for future generations. Businesses worldwide are taking notice and adapting their strategies to meet the needs of customer preferences in organic food. Companies who donât innovative will be left behind. Moreover, the growing trend for organic food production is not just a transitory fad, its here for the long term.