Organic Food Demand in Asia

The demand for organic food in Asia has been growing at 15 to 20 percent every year over the last decade (FiBL and IFOAM, 2009). This sustained growth can be seen as remarkable in a region where agriculture has to compete fiercely for land and other resources with the industrial and construction sectors.

Experts forecasts an estimated compound annual growth of 12.8 percent for the global organic food and beverages market. This will result in a significant expansion of the market, which was estimated at $57.2 billion in 2010. By 2015, the global organic food market is expected to reach $104.50 billion.

The organic food market is driven by key factors such as increasing consumers’ awareness towards organic benefits, increased organic farming in the world and implementation of government regulations. Demand for organic food is also increasing in conventional food supply stores because of development of private labels and increasing interest of the large retailers such as Walmart, Tesco, and Safeway to sell organic products.

Consumer Awareness

Over the last decade, consumers’ health consciousness is becoming an important factor driving the food market. Healthier food products have entered the global markets with considerable force in the past years and have rapidly gained market share. Consequently, the food industry has reacted to this trend by developing a growing variety of new products with health-related claims and images, including organic foods that are selected by consumers for their health-promoting properties.