Latin America Organic Food & Beverage Market Outlook, 2026

Latin America Organic Food & Beverage Market Outlook, 2026

In 2017, 8 Million hectares were reported as being under organic production, which is 1.1% of the total agricultural land in Latin America. The country with the largest organic agricultural area was Argentina with 3.4 million hectares and the country with the largest number of producers in Mexico with more than 210000. According to the report titled- Latin America Organic Food & Beverage Market Outlook, 2026; a recent publication of , the region is positioned as the least contributing region in the global market with a value of USD 0.96 Billion in the year 2015. The rapid rate of urbanization and the growth of emerging markets primarily drive Latin America’s organic food market. Even though the economy declined due to the Covid pandemic outbreak, it increased the need in the people to shift towards the organic intake. Through the forecasted period, the market is expected to grow with a CAGR of over 12%.

The market has a high dominance of the organic food segment, while the organic beverage had hardly any existence in the market. In the year 2020, the organic food market accounted for a value of USD 1.44 Billion, of which the organic fruit & vegetable segment contributed 51.44%. The main organic permanent crops of the region according to government sources in 2017 were coffee (almost 422000 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. Despite this, organic coffee & tea accounted for USD 0.034 Billion in 2017. 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 products in a house-shop. However, the market is to be considerably dominated by the modern retail segment event through the forecasted period which by the end of 2026 would account for over 42% of the market. The increasing availability of organic food products through various e-commerce platforms is also contributing to the growth of the organic food & beverage market in the region.

Many Latin American countries remain important exporters of organic products such as coffee, cocoa, and bananas. Being one of the most developing economies in Brazil is an emerging market, in terms of organic consumption. Price-conscious Brazilian consumers consider organic dairy products to be expensive. Therefore, the manufacturers offering these organic dairy products for lesser prices reap the benefits. The improving economic status and the rise in health consciousness attract consumers towards organic dairy food & beverage products. Brazil is a leading market in Latin America, and any changes in the market affect the regional organic market. There has been a rising demand in the country for traditional dairy products such as requeijão cheese; this is driving the demand for processed cheese.

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 Latin 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 environmental-friendly. Currently, the key consumer group of organic products is high-income individuals. A significant factor for this low customer base is the current economic scenario, 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.



 

Companies Mentioned: Whole Foods Market, United Natural Foods, Inc., Danone, Hain Celestial Group, Organic Valley, General Mills, SunOpta Inc., Amy’s Kitchen Inc., Nature's Path Foods, Inc., Eden Foods, Inc.

CONSIDERED IN THE REPORT
• Geography: Latin America
• Base year: 2020
• Historical year: 2015
• Forecasted year: 2026

REGIONS COVERED:
• Latin America
• Brazil
• Argentina
• Colombia

ASPECTS COVERED IN THE REPORT
• Market Size By Value for the time period (2015-2026F)
• 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

This report would help you answer the following questions:

1. What is the market size and forecast of the Latin America Organic Food & Beverage Market?

2. What are the inhibiting factors and impact of COVID-19 shaping the Latin America Organic Food & Beverage Market during the forecast period?

3. Which region outstands in the Latin America Organic Food & Beverage Market?

4. Which are the segments to invest in over the forecast period in the Latin America Organic Food & Beverage Market?

5. What is the competitive strategic window for opportunities in the Latin America Organic Food & Beverage Market?

6. What are the technology trends and regulatory frameworks in the Latin America Organic Food & Beverage Market?

7. What are the major company in the Latin America Organic Food & Beverage Market?