Recent data has revealed that the ethical food market will significantly grow in the coming years, influenced and propelled by increasing environmental concerns from consumers.
Thye demand for fairly traded products, an incentive supported by many organisations, and the robust economic growth in emerging markets have also supported consumers in becoming more selective about the foods they consume and put their money towards.
The ethical food market was valued at USD 134 million in 2022 and is approximated to increase to USD 198.5 million in 2027 at a compound annual growth rate (CAGR) of 8.2 percent. Furthermore, the market is expected to soar to USD 280 million by 2032, at a CAGR of 7.1 percent.
According to the Research And Markets report, growth will be underpinned by increased government initiatives and consumer demand for foods manufactured, sourced and packaged sustainably.
Divided into differing categories, ethical foods are organic and natural, fair trade, free range, animal welfare friendly, and environmentally conscious. Of each category, natural and organic holds the most significant portion of the market in 2022 at 40.2 percent.
Regionally, North America is the largest market for ethical foods, with 44 percent of sales being attributed to the region in 2022. Second was the Asia Pacific, followed by Western Europe.
Given the natural and organics segment holding the current lion's market share, this is where the most significant number of opportunities and expansion will derive from global sales by 2027.
Growth strategies are centred around paying close attention to market trends, which include packaging solutions, flavours, and the reduced use of plastics.
