Non-GMO Food Market Size, Share & COVID-19 Impact Analysis, By Type (Cereals & Nuts, Fruits & Vegetables, Meat & Poultry Products, Beverages, Dairy Products, Processed Food, and Others), Distribution Channel (Hypermarkets/Supermarkets, Specialty Stores, Online Retail Stores, and Others), and Regional Forecast, 2021-2028

The global non-GMO food market size was USD 577.74 billion in 2020. The market is projected to grow from USD 623.96 billion in 2021 to USD 1,231.13 billion in 2028 growing at a CAGR of 10.20% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with non-GMO food witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a higher growth of 7.0% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Non-genetically modified organisms (non-GMO) food is prepared without ingredients derived from genetically engineered organisms. The rising awareness amongst customers regarding the health benefits of non-GMO food consumption is anticipated to drive market growth. Moreover, environmentally-conscious consumers are willing to pay a much higher price for sustainable products such as non-GMO and locally-produced foods since ethical considerations are becoming important in their decision-making process. Several organizations are encouraging farmers to grow non-GMO food, which is also likely to support the market growth in the forthcoming years.

Rising Significance of Nutritious and Healthy Food amid COVID-19 to Drive Revenue Growth

The coronavirus pandemic has had a profound influence on the non-GMO food industry. Customers are turning towards natural food ingredients as they look more closely at nutrition, wellness, and personal health. The pandemic is anticipated to change the global non-GMO food industry, with several trends affecting the further development of non-GMO agriculture in several ways. The pandemic has helped various manufacturers strongly comprehend the correlation between nutrition and health in front of consumers. This has contributed to a considerable increase in the number of consumers. The consumer base is predicted to increase at a decent pace in the upcoming years.

The sector's most significant problems in 2020 were restricted movement, lockdowns, and border closures, which led to a decline in the supply from the product manufacturing companies across the board. Import and production of raw materials slowed down, hampering the overall output. Along with this, limitation in the workforce due to initial lockdowns has also affected the industry performance. As these limitations are not continued for an extended period, these supply chain shortages will not create a ripple effect on the marketplace.

LATEST TRENDS

Market Players Emphasize Creating Name and Brand Awareness

Creating a name and brand awareness through digitalization is the latest trend in the industry. But if companies don’t have a huge marketing budget to do a heavy advertising push like the larger companies. In that case, they can find attention-getting strategies to generate unpaid publicity or collaborate with a well-known company. For instance, tout the company as environmentally conscious by asking consumers to return their bottles to you for recycling and publicize the program with a press release to local and national newspapers. The company can enter into a joint marketing agreement so that its name and products can become famous, gain inroads into its consumer base, and share expenses.

DRIVING FACTORS

Significant Increase in Certified Non-GMO Processors to Augment Market Share

The non-GMO food industry is moving from being a niche market to a mainstream market within the food and beverage industry. The increasing number of consumers inclined towards purchasing sustainable food is encouraging prominent food producers to get a certification for sustainability and non-GMO ingredients to increase their consumer base. For instance, in December 2020, Amy’s Kitchen and the Berliner family’s Nor-Cal-based organic and non-GMO fast-food concept Amy’s Drive-Thru have declared that it is now a Certified B Corporation. This certification is given to companies that meet the highest standards of environmental and social performance. Similarly, in May 2018, SunOpta Inc. announced that it is the first food-producing facility in the U.S. to receive USDA Process Verified Program verification for Non-Genetically Modified Organisms/Non-Genetically Engineered products.

Several organizations and government bodies such as The Non-GMO Project, NSF International, and USDA encourage food processors to get Non-GMO certification, which is likely to support market growth.

Rising Investment in Research and Development Activities to Support Market Growth

The increasing investments by market players and associations in the research and development of innovative products are projected to positively impact the market's growth. For instance, in September 2021, Nature's Path announced the launch of a new keto line of granolas and cereal. The novel range of Keto products includes a couple of organic keto cereals and three new Ketola Crunch granolas. All of Nature's Path's new keto products are non-GMO, gluten-free, 100% organic, plant-based, dairy-free, and do not contain any artificial sweeteners or flavors. 

The companies are embarking on digitalization to diversify their consumer offering and increase their presence across the globe. For instance, in April 2021 - United Natural Foods introduced a Community Marketplace, a business-to-business digital e-commerce solution for developing brands that want to expand distribution with UNFI customers. This virtual marketplace will help manufacturers gain immediate access to UNFI's digital infrastructure to sell and promote their products to UNFI's broad customer base.

RESTRAINING FACTORS

Presence of Competing Labels is Expected to Hinder Market Growth

Non-GMO is the dominant eco-label; nonetheless, the food and beverage industry has more than 150 labels that symbolize sustainable/ethical attributes. Consumers now have various options to buy food and beverage with any sustainability or health aspects. In terms of ethical labels, there is competition from organic, natural, vegan, and free-from foods. The presence of competing labels is expected to restrain the market growth in the upcoming years. Furthermore, another major issue is that manufacturers and retailers must worry about maintaining a steady supply of non-GMO raw materials. The producers should take extra precautions to source and secure reliable quantities of non-GMO ingredients for product manufacturing.

SEGMENTATION

By Type Analysis

Consumer Demand for Non-GMO Fruits & Vegetables will Propel Market Forward

Based on type, the market is divided into cereals & nuts, fruits & vegetables, meat & poultry products, beverages, dairy products, processed food, and others. The fruits & vegetable segment is expected to hold a significant share in the market. Fruits and vegetables have become an essential part of the wholesome diet. The rising per capita consumption and increasing demand for premium quality fruits and vegetables are anticipated to support the segment's growth. The increasing aging population and the upsurge in life expectancy have boosted demand for non-GMO fresh products across the globe.

Meat and poultry products, especially eggs, are anticipated to grow at a significant pace. The increasing health consciousness among customers and rising demand for protein-rich food are expected to increase non-GMO meat and poultry products. In addition, other segments, including baby or infant food, edible oil, and others, are also witnessing steady growth. The increasing focus of prominent as well as niche market’s key players on the launch of novel non-GMO products is anticipated to support the segment's growth. For instance, in January 2021, The India-based company, Timios, entered into the manufacturing of baby or infant food with a new 'Made to Order' Porridge range for infants and toddlers. All the ingredients used for manufacturing baby food products are organic and non-GMO certified.

By Distribution Channel Analysis

Online Sales of Non-GMO Food to Surge owing to Ease and Convenience

On the basis of distribution channels, the market is categorized into hypermarkets/supermarkets, specialty stores, online retail stores, and others. The retail sector of the world is enormous. The presence of many supermarkets and hypermarkets located throughout the world will typically adapt business models to increase their consumer reach. The retail sector continues to adapt and change, with e-commerce becoming the latest trend in the industry.

The hypermarkets/supermarkets segment is anticipated to hold a significant share in the market. As the demand for non-GMO goods and products continues to climb, these stores are devoting more shelf space to the non-GMO brands that appeal to conscientious shoppers. Furthermore, sometimes they also offer home delivery and freebies to attract consumers. These factors are anticipated to support the product sales from these stores.

The online retail stores segment is likely to grow at a flourishing CAGR in the upcoming years. The trend of shopping for food items from E-commerce has exploded across the globe in recent years. Customers value the convenience that e-commerce brings them, mainly residents in more rural areas without access to certain goods. The online retail sector has evolved to become a new norm in the market, aided by the COVID-19 pandemic, which witnessed a significant shift towards E-commerce. Recently Amazon has launched its Amazonfresh service, which aims to facilitate the rapid delivery of fresh foods all across the globe. Such initiatives taken by major e-commerce stores are likely to support the segment’s growth.

REGIONAL INSIGHTS

North America is projected to dominate the global market in terms of revenue during the foreseeable period. Strong economic growth and rising urbanization in North America are driving rapid growth in the middle class and the purchasing power of its approx. 500 million consumers. In the U.S., big grocery stores that demonstrate personal interest in environmental and human health are more likely to offer these products in their stores, likely to support the regional market's growth. Moreover, strong and increasing consumer awareness of health and environmental issues, including a rising resistance amongst customers towards food products made with genetically modified organisms and GM farming, is expected to drive the market.  

Europe is one of the leading customers of non-GMO food, and the region is predicted to perform decently throughout the forecast period. The retail sector's gradually aggressive and targeted marketing and promotion of the products will likely intensify as mainstream retailers move into the non-GMO trade. The wide availability of the product type at every distribution channel is likely to impact the market growth positively. Furthermore, the introduction of good policies from the government to encourage the production and consumption of non-GMO food are likely to have a significant positive impact on the further development of the industry. The increased focus on non-GMO products from the industry itself and from customers is driving the regional market.

Asia Pacific is an emerging region in the market, and it is expected to grow at the highest CAGR in the forecast period. While there is a major interest in the product among the higher-income, better-educated population in Korea, Japan, and Australia, consumers in China and India drive demand expansion within the region.

South American market continues to grow both in terms of production and sales; in 2020, retail sales were around USD 30.50 billion, and in 2028 it is expected to reach about USD 61.68 billion. Brazil is predicted to have the largest market in the region, with increasing production and rising consumer awareness expands and the market. The Middle East and Africa would witness steady growth in terms of consumption and sales of these products, which would further positively impact the market growth.

KEY INDUSTRY PLAYERS

Prominent Players are Focusing on Novel Product Development to Expand Business

Cargill Inc., Amy’s Kitchen, Danone S.A., United Natural Foods, and Hormel Food Corporation are focusing on certification and expanding their product portfolio. These companies are investing in the research and development, and marketing of novel products. Similarly, these companies acquire, collaborate, and partner with relevant stakeholders to surge their geographic presence.

In June 2021 - United Natural Foods revealed its new growth strategy, outlining the pillars of its “Fuel the Future” plan and its major focus on a rising market share through network optimization, stronger innovation, and an improved client experience.

In September 2019 - Hormel Food announced the launch of the Happy Little Plants brand, a plant-forward protein portfolio made as part of the company's first job under its Cultivated Foods umbrella. The product contains non-GMO soy protein, with no preservatives, no cholesterol, and is gluten-free.

LIST OF KEY COMPANIES PROFILED:

• Cargill Inc. (Minnesota, U.S.)


• Amy’s Kitchen (California, U.S.)


• Danone S.A. (Paris, France)


• United Natural Foods (Rhode Island, U.S.)


• Hormel Food Corporation (Minnesota, U.S.)


• Hain Celestial (New York, U.S.)


• Organic Valley (Wisconsin, U.S.)


• The Kellogg Company (Michigan, U.S.)


• PepsiCo Inc. (New York, U.S.)


• Clif Bar & Company (California, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In November 2021, Protein Industries Canada co-invested in a project that will expand Canada’s meat-alternative product offerings. Merit Functional Foods, Wamame Foods, Winecrush Technology, and Wismettac Asian Foods are partnering to manufacture plant-based, non-soy alternatives to Wagyu beef and pork. The new products will include Canadian-grown crops, non-GMO peas, and canola.


• In November 2021, Plant-based foods maker LikeMeat introduced a new product, Like Chick’n Wings. The meat-free wings are packaged with Buffalo sauce for easy preparation and are non-GMO.


• In October 2021, U.K.-based company Quorn Foods has expanded its meatless substitute portfolio with new chicken offerings, with breaded cutlets and wings. The new range consists of meat-free ChiQin cutlets and ChiQin Wings. These new products are soy-free, non-GMO, and vegetarian. 


• In August 2021, U.S.- based company McConnell’s Fine Ice-cream announced the launch of a new dairy-free frozen dessert line. The products are manufactured by using a base of cocoa butter, coconut oil, and oat-milk alternative. All the products are kosher and non-GMO certified.


• In May 2021, Hen Up has launched a full line of non-GMO, USDA organic products for baby chicks and laying hens. This chicken food is made with superfoods, ancient grains, and USDA-certified organic food ingredients such as cranberries, oats, barley, corn, peas, and wheat.


• In April 2021, Blue Diamond Growers introduced single-serve dessert cups and baking mixes made with almond flour. The products are free from gluten and dairy, and Non-GMO Project verified.


• In January 2021, Modern Meat introduced a dairy alternative milk line featuring Oat Milk, Almond Milk, and Barista Edition Alternative Milk. The ingredients used in the products will be all vegan and GMO-free.

REPORT COVERAGE

The market research report includes quantitative and qualitative insights into the global market. It also offers a complete analysis of the non-GMO food market growth forecast, ­market size, and growth rates for all possible market segments. Several key insights mentioned in the report are an overview of the parent market, competitive landscape, non-GMO food market trends, recent industry developments such as base expansion, the regulatory scenario in critical countries, and key industry trends.

Report Scope & Segmentation