Food and Beverages Industry Overview

The organic food market consists of sales of organic food and beverages and related services. The production of organic food involves practices that promote ecological balance and aim to conserve biodiversity. These food products do not use any food additive or industrial solvent. The organic food market covered in this report is segmented by product type into organic meat, poultry & dairy, organic fruits & vegetables, organic bread & bakery, organic beverages, organic processed food, other organic products. The organic food market is also segmented by application into conventional retailers, natural sales channels, others and by distribution channel into supermarkets/hypermarkets, convenience store, specialty stores, online stores. The global organic food market is expected to grow from $201.77 billion in 2020 to $221.37 billion in 2021 at a compound annual growth rate (CAGR) of 9.7%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The organic food market is expected to reach $380.84 billion in 2025 at a CAGR of 14.5%. Increasing health concerns due to growing number of chemical poisoning cases globally is acting as a driver in the organic food market. Consumers are becoming more health conscious owing to the harmful effects caused by the presence of chemical pesticides in food products. The toxicity of chemical pesticides in food products can cause cancer, hormone disruption and birth defects. According to an UN report, around 200,000 people die every year due to toxic effects of pesticides in food products. This is causing consumers to shift their focus towards organic food products. Low shelf life of organic food and beverages compared to conventional foods and beverage products is restraining the organic food market. For instance, in a research conducted by MSNBC, it was reported that the shelf life of organic food product tends to be shorter than conventional produce. Similarly, some researchers found that many organic foods had higher levels of bacteria than conventional products that cause food to spoil. As organic food is not exposed to the similar amount of preservatives that of conventional food, organic food tends to be prone to bacteria attacks and has a shorter shelf life. For example, organic food products like turnip greens, mustard greens, and endive have a very short shelf life with shrinkage percentage of 50%. Thus, high packaging, logistics and distribution costs to increase shelf life is limiting the growth of the organic food market. Companies in the organic food market are focusing on introduction of new product categories and varieties. Organic food manufacturers are coming up with new and innovative organic food products in the form of ready-to-eat snacks, cookies, organic tea, pulses, spices, edible flowers, frozen waffles, medical plants, herbs and organic juices. For example, Lidl, an organic grocery chain is coming up with 28 new and innovative organic food products to choose from. Similarly, Nestle plans to launch new and innovative organic milk products in India. The organic food market is regulated by authorities such as the US Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) to ensure high quality standard of food product is maintained. For instance, EFSA oversees whether labelling is used to mislead consumer on the nutritive proportions of a product in the EU. EFSA performs occasional checks on the nutritional value to check whether correct labelling has been used or not. In order to maintain transparency and effectiveness, regulatory authorities have come up with strict food labelling regulations for the organic food market. Major players in the organic food market are General Mills Inc., Cargill, Inc., Danone, United Natural Foods Inc. and Amy’s Kitchen. The regions covered in the organic food market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the organic food market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA. The global organic food market is segmented - 1) By Product Type: Organic Meat, Poultry & Dairy, Organic Fruits & Vegetables, Organic Bread & Bakery, Organic Beverages, Organic Processed Food, Other Organic Products 2) By Application: Conventional Retailers, Natural Sales Channels, Others 3) By Distribution Channel: Supermarkets/Hypermarkets, Convenience Store, Specialty Stores, Online Stores

The milk substitutes (non-dairy milk) market consists of sales of milk substitutes. This industry includes establishments that produce milk substitutes such as soy milk, almond milk and rice milk. The milk substitutes (non dairy milk) market covered in this report is segmented by type into soy milk, almond milk, rice milk, others. The milk substitutes (non-dairy milk) market is also segmented by application into food, beverages; by distribution channel into supermarkets, hypermarkets, convenience stores, specialty stores, online retail stores, others; by formualtion into plain-sweetened, plain-unsweetened, flavored-sweetened, others. The global milk substitutes (non dairy milk) market is expected to grow from $19.93 billion in 2020 to $21.44 billion in 2021 at a compound annual growth rate (CAGR) of 7.6%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The non-dairy milk market is expected to reach $31.28 billion in 2025 at a CAGR of 9.9%. The increasing consumers’ preference for vegan food is driving the milk substitutes market. Consumers are increasingly becoming aware about animal abuse at dairy farms and are avoiding animal-based products. Vegan milk is cholesterol-free, rich in vitamin D and proteins and provides more calcium than animal milk. According to a report by Mintel, sales of non-dairy milk in the USA grew 61% over the last five years. The rising shift towards veganism and health consciousness is driving the milk substitutes market. Presence of highly toxic arsenic compounds in rice milk is acting as a restraint on the milk substitutes market. Rice milk is made from rice that carries huge levels of arsenic, a highly toxic chemical which is dangerous for human health and may cause cancer. According to a journal on food additives & contaminants, arsenic proportion in rice milk has a mean value of 63%, which is dangerous for human health. Non-dairy milk producing companies are increasingly focusing on improving the shelf life of their products. Companies are trying to decrease the rate of bacterial formation in non-dairy milk through bacterial clarification using separators intended to remove bacterial spores. Ultra-pasteurization involves heating milk to a temperature of more than 280°F for at least 2 seconds that will kill harmful bacteria and increases shelf life to up to 120 days. For instance, soymilk produced by SunOpta is processed using ultra-pasteurization and has an extended shelf life of 12 months. Also, ultra-pasteurized almond milk by Pacific Foods has a shelf life of about a year. Non-dairy milk producers are governed by various regulations related to product quality, labelling and others. For instance, in the EU, the Regulation (EU) No 1169/2011 was introduced to provide nutritional information about food products to consumers. According to the regulation, non-dairy milk producing companies have to adhere to different protocols pertaining to nutritional labelling, presentation, advertising of foodstuffs and the printed information must be of a minimum font size. The allergens (e.g. soy, nuts, gluten, and lactose) for prepacked foods should be clearly mentioned. For non-dairy products like milk substitutes, an indication of substitute ingredient should be clearly mentioned. Major players in the milk substitutes (non-dairy milk) market are Hain Celestial Group, WhiteWave Foods, ADM, Nutriops S.L and Blue Diamond Growers. The regions covered in the milk substitutes (non-dairy milk) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the milk substitutes (non-dairy milk) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA. The global milk substitutes (non dairy milk) market is segmented - 1) By Type: Soy Milk, Almond Milk, Rice Milk, Others 2) By Application: Food, Beverages 3) By Distribution Channel: Supermarkets, Hypermarkets, Convenience Stores, Specialty Stores, Online Retail Stores, Others 4) By Formualtion: Plain-Sweetened, Plain-Unsweetened, Flavored-Sweetened, Others

The coffee capsules market consists of sales of coffee capsules product and related services used to prepare instant and convenient coffee at restaurants, bar, homes and offices. A coffee capsule is a small cylindrical shaped container that contains coffee sealed with an aluminum foil. Coffee capsules contain fine ground coffee in a measured amount. Coffee capsules comes in different flavors and can be used with or without a coffee machine. The coffee capsules market covered in the report is segmented by material into conventional plastic, bio plastics, fabric, others. The coffee capsules market is also segmented by application into household, commercial. The global coffee capsule market is expected grow from $4.06 billion in 2020 to $4.09 billion in 2021 at a compound annual growth rate (CAGR) of 0.7%. The slow growth is mainly due to the outbreak of COVID-19 outbreak that has led to closure of offices that majorly use coffee capsules. The coffee capsules market is expected to reach $5 billion in 2025 at a CAGR of 5%. The growing popularity of instant non-alcoholic beverages such as coffee in restaurants and office cafeterias propel the growth of the coffee capsule market. The coffee capsules reduce the time and effort required in preparing a cup of coffee when used in coffee machines in coffeehouses, office cafeterias. Increasing need of non-alcoholic beverages drinks among millennials, consumer awareness towards low sugar and non-alcoholic drinks, busy work schedules and changing consumer taste are a few of the reasons that has attributed towards the rise in the popularity of instant non-alcoholic beverages such as coffee. According to the study conducted in 2019 by MarketInspector, a UK based provider of digital marketplace for businesses and institutions, the annual coffee consumption per capita in Finland was 11.7 Kg while Portugal had 41.6 coffee shops per 10,000 people. The increasing use of coffee machines in restaurants, office cafeterias to fulfill the increased demand for instant non-alcoholic beverages such as coffee increases the demand of coffee capsules, thus increasing the growth of the coffee capsule market. Coffee pods (coffee pads) are prepackaged in environmentally friendly filter paper and provides an easy alternative for coffee capsules while offering compatibility with all kinds of coffee machines. Unlike coffee capsules, coffee pods are simpler to use and dispose, and does not contain plastic or aluminum packaging. Coffee pods are available at a lower price than coffee capsules due to the absence of plastic or metal used in capsules. Moreover, different machines require different types of coffee capsules making it tedious for the users. For instance, the three types of machines offered by Lavazza, an Italy based provider of coffee products, requires different types of coffee capsules. Further, as reported by Halo, a U.K based manufacturer of compostable coffee capsule, in 2018, out of a total of 59 billion coffee capsules produced almost 95% were in plastic and aluminum. Thus, the market for coffee capsules is restricted by the growing demand of its alternative products such as coffee pods. One of the latest trends for the companies in coffee capsules market is to use bioplastics and bio-degradable materials for making coffee capsules. Companies in the coffee capsules market are investing in finding ways to use bioplastics and biodegradable materials for making capsules instead of using aluminum and plastic to hold the coffee extract. Capsules made from aluminum and plastics are non-biodegradable and harm the environment thus, pushing the companies towards finding new innovative bio-degradable material such as polypropylene, which can be shredded and recycled to be used to make coffee capsules. Following the trend, in 2019 Woken launched its line of Nespresso-compatible capsules which are completely bio-degradable. The bio capsules offered by Woken are made from a bioplastic named Terrablend, which contains 62% of raw materials and is trademarked by Woken. Similarly, Lavazza, an Italy based food and beverages company, launched its 100% compostable coffee pods, named Eco Caps, in 2019.These Eco Caps can be disposed of in the food waste bin and requires six months to degrade. In 2018, Nestle, a Switzerland based multinational food and drink processing company, acquired marketing rights of Starbucks Corporation’s consumer packaged goods and food service products other than ready-to-drink products for USD 7.15 billion. Through the acquisition Nestle aims to strengthen its coffee business by adding products from Starbucks. In 2019, Nestle in collaboration with Starbucks launched the first Starbucks coffee capsules developed using Nestle's Nespresso and Nescafe Dolce Gusto coffee and system technologies. Starbucks is a USA based coffee company that also includes a chain of coffeehouse across the globe. Major players in the coffee capsules market are Nespresso, Keurig, Gloria jean’s Coffees, Nescafe, Nestle, Lavazza A Modo Mio, Starbucks, Bestpresso, Kissmeorganics, and Gourmesso. The regions covered in the coffee capsules market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the coffee capsules market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA. The global coffee capsule market is segmented - 1) By Material: Conventional Plastic, Bio plastics, Fabric, Others 2) By Application: Household, Commercial 3) By Product: Closed Source System, Open Source System

The organic bakery products manufacturing market consists of sales of organic bakery and related products. Organic bakery products are made using organic ingredients such as wheat gluten, milk, butter, honey, eggs, oils, starch, sugar, spices, raisins, cereals, grain flours and meat-based ingredients. To meet the requirements of organic certification the manufacturers produce organic bakery products as per the set guidelines of the food safety organizations of their respective countries. The organic bakery products market covered in this report is segmented by product type into bread & rolls, savory snacks, cakes & pastries, cookies & biscuits, others. It is also segmented by distribution channel into wholesalers/ distributors/ direct, supermarkets/ hypermarkets, convenience stores, online retailers, other retail formats and by category into gluten-free, sugar-free, low-calories. The global organic bakery products market is expected grow from $9.42 billion in 2020 to $9.91 billion in 2021 at a compound annual growth rate (CAGR) of 5.2%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The organic bakery products manufacturing market is expected to reach $12.57 billion in 2025 at a CAGR of 6%. The organic bakery products manufacturing market covered in this report is segmented by product type into bread & rolls, savory snacks, cakes & pastries, cookies & biscuits, others. It is also segmented by distribution channel into wholesalers/ distributors/ direct, supermarkets/ hypermarkets, convenience stores, online retailers, other retail formats and by category into gluten-free, sugar-free, low-calories. Increasing consumer preferences towards healthy ingredients is a major driver for the organic bakery products market. The growing urbanization is leading to hectic lifestyles and unhealthy eating options which has resulted in lifestyle disorders and deterioration of health of the consumers. Therefore, changing consumer preference is forcing manufacturers to switch to the use of organic ingredients such as organic baking powder, gluten-free powder, and aluminium-free baking powder. Moreover, the rising disposable income of the population is expected to contribute to the higher demand for organic bakery products in the near future. According to Trading Economics, the disposable personal income in India increased to USD 2,971,770 million in 2019 from USD 2,964,090 million in 2018. Certifying and labelling organic bakery products follows very strict and unwavering guidelines and is hampering the growth of the organic bakery products market. For a product to be considered certified organic, the product must not be produced using any genetic engineering, irradiation, and must be comprised solely of ingredients included on the National List of Allowed and Prohibited Substances. For instance, in United States, the production of organic bakery products must be overseen by the United States Department of Agriculture National Organic Program. Therefore, following all the mandatory guidelines and meeting the certification requirements will hamper the growth of the organic bakery products market. The use of innovative technology for enhanced taste and flavor is the trend in the organic bakery products manufacturing market. The rising preference for organic bakery products among consumers, owing to their health benefits is motivating manufacturers to use innovative technology and methods to offer new organic bakery products with enhanced taste and flavor. The manufacturers are trying to study new methods to increase the shelf-life of the products such as the use of natural preservatives along with enhanced taste till the time of consumption. In December 2018, Flowers Foods, Inc., U.S. based largest producer of freshly packaged bakery food announced the acquisition of Canyon Bakehouse LLC, a private company engaged in manufacturing gluten-free baked products based in Johnstown, Colo for an undisclosed amount. The acquisition is expected to add Canyon’s gluten-free innovative products to Flowers Foods’s product portfolio, in order to expand the company’s consumer base. Major players in the organic bakery products manufacturing market are Flower Foods, Inc., Hain Celestial Group (Rudi's Bakery), Manna Organics LLC, Toufayan Bakery, Inc, Mestemacher GmbH, United States Bakery, Alvarado Street Bakery, Flowers Food, Natures Bakery Cooperative, and New Horizon Foods Inc. The regions covered in the organic bakery products manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the organic bakery products manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA. The global organic bakery products market is segmented - 1) By Product Type: Bread & Rolls, Savory Snacks, Cakes & Pastries, Cookies & Biscuits, Others 2) By Distribution Channel: Wholesalers/ Distributors/ Direct, Supermarkets/ Hypermarkets, Convenience Stores, Online Retailers, Other Retail Formats 3) By Category: Gluten-Free, Sugar-Free, Low-Calories

The tea capsule market consists of sales of tea capsules and related services. Tea capsules are encapsulated tea leaves that contain ingredients similar to an ordinary cup of tea. Tea capsules offer convenience and comfort when making tea at home, in public places, or even when traveling. The tea capsules market covered in this report is segmented by product type into red tea capsules, oolong tea capsules, black tea capsules, yellow tea capsules, others. The tea capsule market is also segmented by distribution channel into hypermarkets & supermarkets, specialty stores, online stores, convenience stores, others and by application into residential, commercial. The global tea capsule market is expected grow from $1 billion in 2020 to $0.99 billion in 2021 at a compound annual growth rate (CAGR) of -1%. The slow decline is mainly due to the outbreak of COVID-19 outbreak that has led to closure of offices that majorly use tea capsules. The tea capsule market is expected to reach $1.45 billion in 2025 at a CAGR of 10%. Increasing consumption of tea is predicted to boost the demand for tea capsules market over the forecast period. According to the International Institute of Sustainable Development (IISD), tea has become the second most popular beverage, with 3 billion cups consumed every day across the globe. According to a World Atlas report published in September 2020, China produces more than 2 million tonnes of tea, making it the world's leading manufacturer of tea, and India ranks second on the list at a tea production rate of 1.2 million tonnes. Furthermore, according to the Global Dubai Tea Forum, per capita consumption of tea is projected to increase to 37.7 litres by the end of 2021. The growing per capita consumption is likely to propel the demand for tea capsules in the near future. High prices of tea capsules are projected to hinder the growth of the market. In addition to this, changing consumer preferences towards healthy options in hot beverages such as almond & maple hot chocolate, warm spiced coconut-almond milk, hot lemon water, apple cider with cinnamon, and others are likely to hamper the demand for tea capsules in the forecast period. Additionally, the rising price of tea is anticipated to have an adverse effect on the tea demand including powder tea and capsule tea. According to Trade Economics, the price of tea increased to USD 2.61 per kg in December 2019 up from USD 2.48 per kg in December 2018. The players engaged in the manufacturing and selling of tea capsules are adopting various strategies such as mergers & acquisitions, new product launch, and plant capacity expansion in order to maintain their position in the competitive business environment. For instance, in March 2019, Nestle’s premium capsule tea system Special.T partnered with Kusmi Tea, a Paris-based tea brand to launch a new range of jointly created tea capsules in Europe and other markets. This scenario of launching new products by the companies is anticipated to attract new customers for the tea capsules market, resulting in increased tea capsules market revenue. In March 2019, Nestle’s special T brand partnered with Kusmi Tea to create a new range of specialty tea capsules. The collaboration of two companies aimed at expanding the company’s product portfolio to serve the increasing demand for tea in the forthcoming years. In December 2020, Layn Natural Ingredients Corp., a China based ingredients supplier specializing in natural extracts and other solutions acquired Wagott Bio-tech for an undisclosed amount. The purpose of this equity acquisition is to integrate and leverage resources, combining intellectual property and advantages in management, products, processes and relationships to deliver increasing compelling value to customers. Wagott Bio-tech, a USA based manufacturer of green tea caffeine, green tea extracts and other herbal extracts. Major players in the tea capsule market are Dualit Limited, Teespresso, Nestle Nespresso, Lipton, Corsini, Bonini S.r.l., and Red Espresso. The regions covered in the tea capsule market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the tea capsule market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA. The global tea capsule market is segmented - 1) By Product Type: Red Tea Capsules, Oolong Tea Capsules, Black Tea Capsules, Yellow Tea Capsules, Others 2) By Distribution Channel: Hypermarkets & Supermarkets, Specialty Stores, Online Stores, Convenience Stores, Others 3) By Application: Residential, Commercial

The immunity boosting food products market consists of sales of food products used to boost the immune system. The market consists of revenues generated by sales of immunity-boosting food products by companies producing them. The immunity boosting food products market covered in this report is segmented by product type into herbs & spices, nuts & seeds, fruits & vegetables, dairy-based products, probiotics and prebiotics, others. The immunity boosting food products market is also segmented by form into tablets, capsules, powder, liquid, others and by distribution channel into store-based, non-store-based. The global immunity boosting food products market is expected to grow from $843.81 billion in 2020 to $900.21 billion in 2021 at a compound annual growth rate (CAGR) of 6.7%. The change in growth trend is mainly due to the companies stabilizing their output after catering to the demand that grew exponentially during the COVID-19 pandemic in 2020. The immunity boosting food products market is expected to reach $1217.24 billion in 2025 at a CAGR of 8%. The increasing consciousness about health and fitness to live a healthier lifestyle will drive the immunity-boosting food products market. According to the Global Wellness Institute, in 2018, the global wellness market was valued at $4.5 trillion. According to the IHRSA (International Health, Racquet & Sportsclub Association), the health and fitness industry in the U.S. was valued at $30 billion in 2018. It has been growing by at least 3-4% annually for the last ten years. Also, the World Health Organization has declared the novel coronavirus (COVID-19) as a pandemic. A strong immune system is a key factor in the treatment of COVID-19 patients. This has resulted in an increase in the demand for immunity boosting products, thereby driving the immunity-boosting food products market. The high cost of raw materials and lack of awareness among people about the benefits of the products are hampering the growth of the immunity-boosting food products market. Nutrition care, which is an essential element of preventive health care, is simultaneously experiencing a major evolution in highly populous countries like India. There is a lack of awareness about the immunity boosting food products in a swiftly growing middle-class population. On the other hand, the high cost of raw materials used in the manufacturing of immunity-boosting food products has a great impact on the price of the final product, which may render them a practical option only for the urban and rich population, thereby limiting the market growth. Instant immunity booster products are increasingly being used to boost immune function, which is used when under stress in the modern world. For instance, in January 2020, ZAND, the natural lozenge brand in health food stores known for herbal-based immune support, has launched the first rapid immunity product, Immune Fast. This breakthrough new supplement delivers clinically supported immune support whenever and wherever at work, the airport, school, large gatherings, anywhere. Thus, it is used on the spot to boost the immune system within two hours. In 2019, Olam International, a major food and agri-business company acquired Hughson Nut Inc., (HNI) from APB Partners, L.L.C. for $54 million. The acquisition of HNI is consistent with Olam’s strategic plan to offer differentiated solutions such as ingredients and product innovation and to target new customer segments in co-manufacturing, foodservice and e-commerce. Hughson Nut is a grower, buyer and processor of California almonds. Major players in the immunity boosting food products market are Danone SA, Nestle S.A., Blue Diamond Growers, Diamond Foods, LLC., Dole Food Company, Inc., Pinnacle Foods Corp., Olam International, Hines Nut Company, Fonterra Group Cooperative Limited, and Associated British Foods PLC. The regions covered in the immunity boosting food products market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the immunity boosting food products market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA. The global immunity boosting food products market is segmented - 1) By Product Type: Herbs & Spices, Nuts & Seeds, Fruits & Vegetables, Dairy-Based Products, Probiotics And Prebiotics, Others 2) By Form: Tablets, Capsules, Powder, Liquid, Others 3) By Distribution Channel: Store-Based, Non-Store-Based 4) Imaging Systems: Video Processors, Light Sources, Camera Heads, Wireless Displays & Monitors, Other Components

The ethical food market consists of sales of ethical food items and related services. Ethical or sustainable food refers to food produced using processes and systems that are non-polluting, economically efficient, conserve non-renewable natural resources and energy, safe for workers, consumers, and communities, and do not compromise on the future generation needs. It uses a method of food production wherein the people (small farmers, producer co-operatives, large estates), the environment (environment sustainability), and animals (concerned with animal rights and welfare) are given considerable importance. The ethical food market covered in this report is segmented by type into organic and natural, fairtrade, free range animal welfare friendly, environmentally responsible and sustainably produced, others; by mode of distribution into online, offline. The global ethical food market is expected grow from $542.84 billion in 2020 to $574.42 billion in 2021 at a compound annual growth rate (CAGR) of 5.8%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The ethical food market is expected to reach $727.86 billion in 2025 at a CAGR of 6%. Increasing concern about the environment is expected to contribute to higher demand for ethical food. The recent climate changes and environmental issues such as carbon emission, global warming, plastic, and food waste is forcing companies to concentrate on sustainable products. The rising environmental concerns are shifting companies and shoppers towards ethical/ sustainable-certified products. According to Our World In Data’s statistics on environmental impact of food published in January 2020, the food accounts around 26% of the global greenhouse emissions, with half of the world’s habitable land used for agriculture and 70% of the freshwater used for agriculture. According to the survey of 1000 adults by International Food Information Council Foundation (IFIC foundation) in 2019, 54% of the consumers responded that the products they buy be produced in an environmentally sustainable way. Therefore, the growing impact of food production on the environment and the growing demand for sustainable food is increasing companies to focus on sustainable production which in turn is expected to the drive the demand for the ethical food market in the forecast period. The high cost of ethical food limits the growth of the market during the forecast period. The production and sales of ethical food include the cost of natural fertilizers, high labor, ethical or sustainable certification, and others which raises the overall cost of production. According to a new study commissioned by ethical certification, 45% of the people in the UK put off buying ethical products owing to their high cost. The high cost of ethical food makes it inaccessible to larger population, thereby hindering the growth of the market during the forecast period. Sustainable packaging is a leading trend adopted by ethical food manufacturers and producers. The companies engaged in organic food production are increasing their focus on sustainable packaging in order to reduce the use of plastics and go environment friendly. For instance, Alter Eco uses clean packaging for its produce and the plastic packaging used for outer boxes are recyclable. Following the trend, packaging companies are also coming up with sustainable packing solutions for organic food and other products. For instance, Giro Pack developed compostable welded bags and compostable net clipped bags that are produced using plant-based or organic materials such as pulp of eucalyptus trees or corn starch. Thus, the focus of ethical food companies on sustainable or green packaging is a major trend shaping the ethical food market over the forthcoming years. In September 2018, Kraft Heinz Canada announced the acquisition of the assets of Ethical Bean Coffee for an undisclosed amount. This acquisition is expected to expand Kraft Heinz Canada’s product offerings and global presence to serve a large number of consumers worldwide. Ethical Bean Coffee was founded in 2003 and is a leading roaster of 100% Fairtrade and certified organic coffee. The company is based in Vancouver, British Columbia, and is committed to global awareness, social responsibility, and environmental accountability. Major players in the ethical food market are Bimbo Group, Illy, Ingredion, Kellogg’s, Mars Incorporated, PepsiCo, and Starbucks. The regions covered in the ethical food market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the ethical food market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA. The global ethical food market is segmented - 1) By Type: Organic And Natural, Fairtrade, Free Range Animal Welfare Friendly, Environmentally Responsible And Sustainably Produced, Others 2) By Mode Of Distribution: Online, Offline

Functional Food Market Definition