Natural foods and drinks are those products which are produced with natural ingredients. These foods had a limited sale within farmers markets and small grocery stores. These foods have gained prominence over the years due to its health benefits. Adults prefer foods which offer balanced and nutritious combination, while they prefer a concoction which improves memory and intelligence when compared to children.
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The rising levels of obesity among adults who consume snacks and frozen foods are a major factor driving consumers towards natural foods. Major trends of the industry are locally grown foods, healthy kids’ meals, and gluten-free cuisine. Demand for organic foods has grown more than 10% since 2007. But the higher cost of natural foods can restrict their growth in the years ahead.
Organic fruits & vegetables were the leading product segment of the market, followed by meat. Fish, meat, and poultry will be the fastest growing segment in the years ahead on account of the need for protein. Organic tea & coffee has emerged as the latest product offered by the all natural food & drinks industry. Organic beer & wine has emerged as a new market opportunity.
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Regions of interest to the all natural food and drinks industry are USA, Europe, China, and Japan. USA earned major shares of the market owing to its arable land and plentiful resources. Europe followed USA due to its eco-friendly approach and strict regulation policies. Asia Pacific is projected to be the fastest growing market due to the demand of crops from the burgeoning population.
Notable players of the all natural food and drinks consumption industry include Con-Agra Foods, Nestle, Archer Daniels, Tyson Foods, and Bunge. The market is currently fragmented and could benefit from consolidation. Players will need to rely on innovation to launch new products and increase market exposure.
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