Ethical Food Market Report 2025

The ethical food market size has grown strongly in recent years. It will grow from $136.28 billion in 2024 to $147.71 billion in 2025 at a compound annual growth rate (CAGR) of 8.4%. The growth in the historic period can be attributed to increasing in environmental concern, growing demand for fairtrade products and strong economic growth in emerging markets.

The ethical food market size is expected to see strong growth in the next few years. It will grow to $195.08 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to government initiatives, growing demand for sustainably packaged food and increasing investments. Major trends in the forecast period include focusing on sustainable packaging to reduce the use of plastics, focusing on mergers and acquisitions, focusing on reducing greenhouse gas emissions and leveraging artificial intelligence, water levels and improve transparency in supply chains.

Growing environmental concerns are anticipated to boost demand for ethical food products. Recent climate changes and issues such as carbon emissions, global warming, plastic pollution, and food waste are compelling companies to prioritize sustainability in their offerings. This shift towards ethical or sustainably certified products is evident among both businesses and consumers. For example, in March 2023, the International Energy Agency, a France-based intergovernmental organization, reported a 1.1% increase in global energy-related CO2 emissions, which added 410 million tonnes, resulting in a record high of 37.4 billion tonnes in 2023. As the impact of food production on the environment becomes more pronounced, the rising demand for sustainable food is prompting companies to adopt sustainable production practices. This trend is expected to significantly drive the growth of the ethical food market in the upcoming period.

The rising focus on health concerns is projected to propel the growth of the ethical food market in the future. Health concerns encompass a broad spectrum of issues related to an individual's well-being and the factors influencing it. These concerns play a pivotal role in encouraging ethical food choices that bring benefits to individuals, communities, and the environment. As reported in July 2022 by Food Insight, a US-based non-profit organization, 52% of participants in the Food and Health Survey adhered to a specific diet or eating pattern, up from 39% in 2021. The top choices included clean eating (16%), mindful eating (14%), and calorie counting (13%). Consequently, the increasing emphasis on health concerns is fostering the growth of the ethical food market.

The adoption of sustainable packaging stands out as a prominent trend embraced by ethical food manufacturers and producers. Companies involved in organic food production are intensifying their emphasis on sustainable packaging to diminish plastic usage and promote environmental friendliness. An example is Alter Eco, which employs eco-friendly packaging for its products, using recyclable plastic for outer boxes. In alignment with this trend, packaging companies are innovating sustainable solutions for organic food and other products. Giro Pack, for instance, has introduced compostable welded bags and compostable net-clipped bags crafted from plant-based or organic materials such as pulp from eucalyptus trees or corn starch. Therefore, the focus of ethical food companies on sustainable or green packaging emerges as a significant trend shaping the ethical food market in the upcoming years.

Prominent companies in the ethical food market are directing their efforts towards the development of innovative products to maintain their market standing, including snack medleys. Snack medleys are assortments or combinations of different snacks packaged together. In June 2023, Ocean Spray Cranberries Inc., a US-based producer of fruit-based beverages, introduced Snack Medley, a delightful blend of dried fruits. Crafted with high-quality ingredients, this product is available in three appealing combinations designed to satisfy diverse palates. It serves as a nutritious and convenient snack option, particularly suitable for families on the go.

In July 2024, Probios, an Italy-based producer of fermented foods, acquired BiotoBio for an undisclosed amount. This acquisition aims to strengthen Probios's position in the European health and wellness food market by leveraging BiotoBio's status as a leading Italian supplier of organic, healthy, and natural foods and cosmetics. The portfolio acquired includes renowned brands such as Baule Volante, Finestra sul Cielo, Fior di Loto, and Vivibio. BiotoBio specializes in producing organic and sustainable food products.

Major companies operating in the ethical food market include Nestlé S.A., PepsiCo, The Kraft Heinz Company, General Mills, Inc., Danone S.A, United Natural Foods, Inc, Arla Foods, The Hain Celestial Group, Organic Valley, Vyas Bio Life Sciences Private Limited, Krungthep Trading Co., Ltd, Bw Binyuy Holdings (Pty) Ltd, Solitude Global Impex, Nutra Healthcare, Curemax Pharma, STDM Food & Beverages Private Limited, Titan Biotech Ltd, Wuxi Biologics, FOODCHEM, Sun Green Group, Alfa Laval, Shandong Yuxin Soybean Protein Co, Hipp Gmbh & Co Vertrieb KG, Alnatura Produktions- Und Handels Gmbh, Rewe Markt Gmbh, Aldi Einkauf Gmbh & Co Ohg, Royal Forest Company, Grass LLC, Individual Entrepreneur (Ie) Maslov D.V, Nuttys LLC, Foodimport LLC, Siberian Ecological Products LLC, Chechenskiye Mineralniye Vody LLC, Barinoff Drinks, Austria Juice, Laurul SA, Amy’s Kitchen, Whole Foods, Impossible Food, Gardein, Ripple Foods, Smartsweets, Fody Food, Sustainable Produce Urban Delivery, Mother Raw, Lufa Farms, Suja Life, Keurig Dr Pepper, Organic Soda Pops, Uncle Matt’s Organic Inc, GURU, Bimbo Group, Illy, Ingredion, Mars Incorporated, Starbucks, RCL Foods Ltd, Astral Foods, Kauai, Ooka, NWK, Natural Herbs And Spices, Daiya Foods Inc, Earth's Own Food Company Inc, Panos Brands Llc, Eden Foods Inc, Freedom Foods Group Ltd, Blue Diamond Growers Inc, Sunopta Inc, Archer Daniels Midland Company.

Asia-Pacific was the largest region in the ethical food market in 2024. Western Europe was the second-largest region in the global ethical food market. The regions covered in the ethical food market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ethical food market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Ethical or sustainable food pertains to food produced through processes and systems that are environmentally friendly, economically efficient, conserve non-renewable natural resources and energy, ensure safety for workers, consumers, and communities, and uphold the needs of future generations. This approach to food production prioritizes the well-being of people (including small farmers, producer co-operatives, and large estates), the environment (with a focus on sustainability), and animals (addressing animal rights and welfare).

The primary categories of ethical food include organic and natural, fairtrade, free-range animal welfare-friendly, environmentally responsible, and sustainably produced options. Organic or natural food refers to products grown without artificial pesticides, fertilizers, or herbicides, and it is free from synthetic ingredients or additives. These foods undergo various processing methods, both processed and unprocessed, and are distributed through various channels, including both online and offline platforms.

The ethical food research report is one of a series of new reports that provides ethical food statistics, including ethical food industry global market size, regional shares, competitors with ethical food share, detailed ethical food segments, market trends and opportunities, and any further data you may need to thrive in the ethical food industry. This ethical food research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The ethical food market consists of sales of organic fruits and vegetables, honey, coffee, tea, meat(chicken, pork, lamb, others), sustainable seafood, chocolate, sugar, and other ethical foods. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.