Published By : 25 Feb 2016 | Published By : QYRESEARCH
In the last few years, the demand for organic vegetables has significantly risen across the globe. Both developed and developing nations are exhibiting growing demand for vegetables grown eschewing the use of any synthetic inputs such pesticides, fertilizers, or other artificial chemicals. The exponential growth witnessed by the organic vegetables market is mainly driven by the growing awareness among consumers regarding their personal health, coupled with several other environmental reasons. Furthermore, consumers nowadays have become more educated, hence have grown concerned about the presence of toxins in non-organic food. This is encouraging them to replace non-organic foods with organic alternatives.
Demand from Developed Regions to Boost Global Organic Vegetables Market
In response to the growing demand for organic foods, the organic vegetable production has substantially increased over the past few years. The market has witness remarkable growth particularly in developed countries such as the U.S. While, the organic vegetables industry is still at a nascent stage, the industry is likely to witness a double-digit CAGR across these countries in the forthcoming years. The emergence of private labels in the global organic vegetables market and the growing government funding are supporting the expansion of the organic vegetables market in several countries across the world.
Demand for Organic Vegetables in Concentrated in Urban Regions
Costs incurred for market organic vegetables include the cost incurred on labor and transportation, because a majority of the potential customers of organic vegetables are located in urban and high-income locations. This locations in general are at a considerable distance from the local farms. The demand for organic vegetables is thus, localized in countries where customers boast a higher disposable income. This is a key factor limiting the worldwide expansion of the global organic vegetables market. Furthermore, the industry faces limitations due to its underdeveloped infrastructure, inadequate availability of raw materials, and the lack of proper information.
The industry also faces trouble in procuring certifications from emerging nations, which inhibits the market from capitalizing on the opportunities prevailing across the developing countries. Nevertheless, the market in the near future is likely to capitalize on the introduction of the next-generation technology.