In 2017, more than 1.5 million metric tons of organic beef is anticipated to be consumed across the globe. A recent study from Future Market Insights (FMI) on the global organic beef meat market projects that by the end of this year, the global market will be valued at a little over $8.8 billion. Large retail chains such as Whole Foods already are boosting the presence of organic agricultural produce on their store shelves, and this trend is expected to promote the availability of organic beef meat. Tesco, a prominent retail chain in the U.K., is following this path by offering organic beef in various processed formats, and under its own label.
The report projects that by the end of 2027, the value of global market for organic beef meat will be doubled, surpassing $16.4 billion and reflecting a healthy CAGR of 6.4 percent. Higher on-shelf availability of organic beef meat products in countries such as the U.K. vindicates the report’s key finding that observes Western Europe as a leading region in the global market, says FMI. The report anticipates that through 2027, around 30 percent of organic beef meat consumed in the world will be concentrated in Western Europe.
Developed markets lucrative for sales of organic beef meat
The report’s regional analysis on the global organic beef meat market highlight North America and Western Europe as dominant regions. Beef is a primary source of food for consumers across these developed regions. Moreover, consumers in developed countries such as the U.S. and Canada are more aware of organic certified foods, and their benefits, perceived or otherwise. Throughout the forecast period, more than two-fifths of organic beef meat sold in the global market will be purchased by consumers in the U.S. and Canada.
With North America at the forefront, the global organic beef meat market is expected to witness considerable contribution from Western European countries. The organic beef meat market in Western Europe is pegged to reach nearly $5 billion in value toward the end of 2027. On the other hand, the demand for organic beef meat products will lose traction in the Asia-Pacific excluding Japan (APEJ) region. A highlight of these regional projections is that the Middle East & Africa (MEA) region, which exhibits a higher contribution to global beef consumption, will account for not more than a 2 percent share of global organic beef meat revenues throughout the forecast period.
Sales of processed organic beef meat to gain traction
The report recorded the market’s growth across two sales channels, direct and indirect. In 2017, indirect sales of organic beef meat is projected to account for more than a 60 percent share on global market revenues, and this contribution is slated to see a significant boost toward the end of the forecast period. Across both sales channels, the report has witnessed a considerable rise in demand for processed organic beef meat. By the end of 2017, global sales of fresh organic beef meat will be raking in revenues just over $2.1 billion, whereas organic beef meat in processed format will dominate, with more than a 75 percent revenue share. Towards the latter half of the forecast period, the global demand for processed organic beef meat will gain further traction, bringing in revenues of more than $12.8 billion.
The report profiled key players in the global organic beef meat market, including JBS Global, Danish Crown, Tyson Foods Inc., Meyer Natural Foods, Perdue Farms, OBE Organic, Australian Organic Meats Group Pty Ltd., Eversfield Organic Ltd., Verde Farms LLC, Blackwood Valley Beef, Arcadian Organic and Natural Meat Co. Pty Ltd.