Organic Foods & Beverages Market Analysis & Forecasts 2015.

The Global Organic food and beverages market is basically driven by the various key factors like increasing consumer's awareness towards its benefits which helps to increase organic farming across the globe and implementation of the government regulations. In recent times the demand for organic food and beverages has increased since the conventional food supply stores and due to development of private labels and increasing interest of large retailers such as Wal-Mart, Tesco and Safeway to sell organic products.

Organic Beverages Market share, By Products, 2009

The above Diagram gives you the brief idea about how the share of the market are varied by the products in the year 2009.
The Basic challenges likes high conversion cost from conventional farming to organic farming, supply shortage of organic food and beverages in global markets like Europe and North American Markets, and high prices of organic food products. As the attraction of consumers towards the organic products is less as compare to non-organic products since organic products are more expensive as of non-organic products.
Due to large variety of products such as fruits, Vegetables, cereals, dairy products and processed food the organic food is dominates the global organic foods and beverages market by 84%. And in future it will show a greater growth in this market segment.

Asia, Latin America, and Australia that are the major producers of organic foods and beverages are the most affected by higher organic prices. This is the result of availability of cheap conventional and organic (uncertified) substitutes in the local markets. Such trends in the market are affecting large retail players such as Kraft Foods, Wal-Mart, and Dean Foods that are still in the process of expansion in different parts of the world to enhance their organic portfolio at competitive prices. These are facing stiff competition in different regional markets due to direct comparison between their high priced branded organic foods and low priced private labels organic products.

However, these challenges are not going to impact market growth in the long run, owing to increasing support of the government towards organic agriculture and improvement in the supply chain of organic food and beverages.