Health has been in the spotlight since the outbreak, thus driving the use of organic ingredients in a range of food and beverage products.
According to Innova Market Insights, the use of organic ingredients in new food and beverage products is increasing globally, growing 5% year-over-year compared to 2020 and 2021.
In 2021, the product category with the most organic ingredients launched globally is baby food (19%); plant ingredients become the main ingredient category for organic ingredients in products launched globally; %), gluten-free (31%) and vegan (29%).
Health and sustainability are more important to consumers today than ever, and both trends are driving demand for organic food and beverages. Consumer interest in nature and health is a major driver of organic food.
"Another area where organic products are driving growth is the global infant formula market, with more than 15% of infant formula launched in the past three years claiming to be organic,” the experts noted.
"The industry is expected to grow by 10% over the next five years, but with demand for organic whey and lactose rapidly outpacing supply, the lack of supply of baby-grade organic ingredients may so far hinder growth," the expert explained.
For example, the United States has recently faced a shortage of infant formula due to complex issues such as a supply chain crisis and the conflict between Russia and Ukraine, and parents are scrambling to find supplies.
Experts emphasize that, in addition to organic whey and lactose, there is a growing demand for organic functional protein products from health-conscious consumer groups. The range of organic beverages has also expanded to include alcoholic beverages, including organic ingredients, unconventional flavors, and overall health benefits.