South America Organic Food & Beverages Market Outlook, 2029

South America is one of the regions with the highest use of agrochemicals like glyphosate. However, some producers in the region strive to keep soil and plants free from such synthetic ingredients by growing organic crops. The hectare of organic crops has gone through considerable growth in South America since its first measurement in 2000, with Argentina and Uruguay as the leading countries in terms of organic farmland area. In 2017, there were over 455 thousand registered organic producers in the whole region, and the key permanent organic crops were coffee and cocoa. The interest in this kind of agriculture is shown in the increased market value of bio pesticides and organic fertilizers. At the end of the industries supply chain, South American consumers also have a growing interest in agrochemical-free fruits and vegetables, dairy foods and beverages, and health and wellness foods. In 2017, 8 million hectares were reported as being under organic production, which is 1.1% of the total agricultural land in South America. The country with the largest organic agricultural area was Argentina, with 3.4 million hectares and the country with the largest number of organic producers, with more than 210,000. The rapid rate of urbanization and the growth of emerging markets primarily drive South America’s organic food market. Even though the economy declined due to the COVID-19 pandemic outbreak, it increased the need for people to shift towards organic intake. With the increasing health-consciousness of consumers, there is a growing demand for low-calorie and lactose-free dairy nutrition. All these factors are aiding the growth of the South American organic dairy food and beverage market.

According to the research report, “South America Organic Food and Beverage Market Outlook, 2029” published by Bonafide Research, the market is expected to grow with 12.9% CAGR by 2024-29. The South American market is beginning to ripen in its demand for natural food and beverage products, which extends opportunities for organic offerings. Flavor producer Symrise has surveyed more than 1,500 consumers in Argentina, Brazil, and Colombia, with varied flavor preferences. While price remains an important consideration across the region, the survey found that high proportions of survey participants are willing to pay more for products that ""embrace true naturalness."" Straus Family Creamery deals with the manufacture and sales of organic dairy products. It offers numerous dairy products via its portfolio, which includes organic butter, organic yogurt, organic cream-top milk, organic ice cream, organic sour cream, and a variety of wholesale and specialty organic dairy products. The market has a high dominance of the organic food segment, while the organic beverage segment has hardly any existence in the market. The main organic permanent crops of the region, according to government sources in 2017, were coffee (almost 422,000 hectares), cocoa, and tropical and subtropical fruits. Organic coffee represented 8% of the total coffee area in the region and 47% of the world’s organic coffee. However, a recovering economy, increasing disposable income, and an increase in initiatives to inform consumers about the health benefits of organic non-dairy products are all expected to be key driving factors boosting growth in the coming years. Farm shops are getting popular where families cultivate plants and raise animals in a natural environment far from cities, and they sell their products in a house-shop. The increasing availability of organic food products through various e-commerce platforms is also contributing to the growth of the organic food and beverage market in the region.

In addition to being one of the most rapidly developing economies, Brazil is an emerging market in terms of organic dairy product consumption in the South American region. Price-conscious Brazilian consumers consider organic dairy products to be expensive. Therefore, the manufacturers offering these organic dairy products for lower prices reap the benefits. The improving economic status and the rise in health consciousness attract consumers towards organic dairy food and beverage products. Due to all these factors, the market for organic dairy foods and beverages is expected to continue growing in Brazil in the coming years. Furthermore, Brazil is a leading market in South America, and any changes in this market affect the regional organic dairy market as a whole. There has been a rising demand in the country for traditional dairy products such as requeijoo cheese; this is driving the demand for processed cheese. Also, milk is largely consumed in the region as a daily staple food across various income groups. Argentina's organic crops extend from oilseeds to the traditional yerba mate. The food industry in the South American country also registers positive numbers in organic packaged food and beverage sales. The industry accompanies the expansion, as some important companies selling organic products are based in the country. Furthermore, sales of organic packaged food and beverages are expected to keep growing in these countries, as consumers of all ages, income levels, and genders show an interest in healthier eating habits.

The online stores are to gain more popularity in the region for their vast variety and heavily discounted prices. With the increasing need of the people to gather information about what they consume, the market share of other sales channels like trade shows and exhibition is expected to grow. Farm shops are getting popular where families cultivate plants and raise animals in a natural environment far from cities and they sell products in a house-shop. The major challenges for the organic sector, in order of importance, are access to capital, sourcing ingredients, cost of ingredients, technical sourcing expertise, and sourcing ingredients near the facility and manufacturing in the region. The organic sector in South America feels the responsibility to improve the institutional regulations and control systems in place for the production, taking into account the perception of organic foods as healthier for people and more environmentally friendly. Currently, the key consumer group for organic products is high-income individuals. A significant factor for this low customer base is the current economic scenario, which includes higher unit price items of organic products accompanied by recovering consumer expenditure. However, sales are expected to increase in the short and long term in line with the predicted economic growth and due to an anticipated increase in consumer awareness.

COVID-19 Impacts:
The COVID-19 pandemic has significantly boosted the growth of the global organic food and beverage market. Increased health-consciousness and a shift in consumer focus toward healthy food intake during the pandemic to improve immunity and gut health drive demand for organic food and beverages in the Americas region.



Major Companies considered in Report:
Danone - WhiteWave Foods, General Mills

Considered In the Report
• Geography: South America
• Historical year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecasted year: 2029

Countries covered:
• Brazil
• Argentina
• Columbia

Aspects Covered In the Report
• Market Size By Value for the time period (2018-2029F)
• Market Share by Type (Food & Beverage)
• Market Share by Food (Fruits & Vegetables, Meat, Fish & Poultry, Dairy Products, Frozen & processed Food)
• Market Share by Beverage (Non-Dairy, Coffee & Tea, Beer & Wine)
• Market Share by Sales Channel (Convenience Store, Modern Retail, Online Retail)
• Market Share by Country

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the organic food and beverage companies, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.