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Non-GMO Sector Expanding at Rapid Pace

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Published on : Dec 31, 2015

In the past few decades, the demand for healthy foods has grown by leaps and bounds. Organic food, low-fat food, sugar-free foods, etc., are some of the healthy foods that are in high demand presently. Another healthy food that has been added to this list in the past few year is non-GMO food. In recent years, over the Internet, the rumors regarding the harmful effects of genetically modified foods (GM foods) have grown by a substantial degree. This has resulted in a high demand for GMO-free foods.

Hence, many companies have introduced GMO-free foods products in the market. The non-GMO foods and beverages market has enjoyed significant growth in the past few years. In 2014, in the United States alone, the non-GMO foods and beverages market segment generated US$200 bn in sales past year. According to estimates, there are roughly 2,000 non-GMO product launches every year in the U.S. which is a significant gain from just a few hundred launches, which was the average a decade ago. This spike in launches of non-GMO foods is due to the growing awareness of consumers regarding genetically modified organisms and the controversy surrounding them.

Many companies operating in the global food and beverages market are responding to the non-GMO movement and adding new products to their portfolio which ranges from vegetables and fruits to consumer goods. Take the example of Kellogg’s Kashi brand which released a few months ago several of its organic and GMO-free breakfast options. Similarly, Diamond Foods is working towards cleaning up its product labels and the firm previously vowed that 70% of their sales in North America will be verified by Non-GMO Project by the end of 2016’s summer.

A majority of international companies are supporting anti-GMO labeling efforts. According to a recent study, a GMO label will not necessarily deter a customer from buying that product. Presently, organic and natural foods are dominating the non-GMO category. Around 60% of the non-GMO beverages and foods are considered either organic or natural.

This shows how fast the global non-GMO foods and beverages market is expanding and the positive momentum it is gaining from large firms. In addition to this, the growing capability of consumers to distinguish between the GMO and non-GMO labels will also help to drive the growth of this market.

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