Global Organic Food Market Expected to Reach $294 Billion in 2023 as Consumer Demand Jumps
PALM BEACH, Fla., Jan. 24, 2023 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - The organic food market consists of sales of organic food and beverages and related services. The production of organic food involves practices that promote ecological balance and aim to conserve biodiversity. These food products do not use any food additives or industrial solvents. Increasing health concerns due to growing number of chemical poisoning cases globally is acting as a driver in the organic food market. Consumers are becoming more health-conscious owing to the harmful effects caused by the presence of chemical pesticides in food products. The toxicity of chemical pesticides in food products can cause cancer, hormone disruption, and birth defects. According to a UN report, around 200,000 people die every year due to the toxic effects of pesticides on food products. This is causing consumers to shift their focus towards organic food products. The organic food market is regulated by authorities such as the US Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) to ensure a high quality standard of food products is maintained. A recent report from The Business Research Company projected that the global organic food market grew from $259.06 billion in 2022 to $294.54 billion in 2023 at a compound annual growth rate (CAGR) of 13.7%. Active Companies in the markets today include AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI), Bunge Limited (NYSE: BG), The Scotts Miracle-Gro Company (NYSE: SMG), Corteva, Inc. (NYSE: CTVA), Nutrien Ltd (NYSE: NTR).
The report said: "The Eastern Europe war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe." It added: "The organic food market is expected to grow from $512.01 billion in 2027 at a CAGR of 14.8%. Companies in the organic food market are focusing on the introduction of new product categories and varieties. Organic food manufacturers are coming up with new and innovative organic food products in the form of ready-to-eat snacks, cookies, organic tea, pulses, spices, edible flowers, frozen waffles, medical plants, herbs, and organic juices. North America was the largest region in the organic food market in 2022. Western Europe was the second largest region in the global organic food market."
AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI) BREAKING NEWS: AgriFORCE Announces Binding Letter of Intent to Acquire Berry People LLC, Further Strengthening its Brands Division - Berry People's 2022 unaudited net revenue was USD $37 million - AgriFORCE Growing Systems Ltd. ('the Company'), an intellectual property (IP)-focused agtech company dedicated to advancing sustainable cultivation practices and food and plant products, today announced it has entered into a binding letter of intent ('LOI') to acquire Berry People LLC, ("Berry People"), a berry business with an increasingly international footprint and a scalable platform model. The acquisition bolsters the AgriFORCE Brands division and allows the Company to realize commercial synergies with UN(THINK), which aims at innovating in the specialty flour and grain-based products categories.
Berry People was founded in 2017 by berry industry veterans to create a new platform to meet market demand for a branded, year-round, and full-line supply of organic and conventional berries. Berry People quickly established a recognized global trade brand and scalable operations, comprised of over 200 retail and foodservice clients and over 100 grower and exporter clients across the US, Canada, Mexico, and Peru. Berry People had unaudited net revenues of USD $37 million for the year ended December 31, 2022.
The LOI (which shall be followed by a definitive purchase agreement) sets forth a purchase price of $28 million, consisting of $18.2 million in cash and $9.8 million in AgriFORCE restricted shares, will be paid at closing to acquire 70% of Berry People's equity interests. Berry People will have the opportunity for future earnouts during the five years after closing based on future revenue and EBITDA targets associated with agreed upon growth targets.
In collaboration with AgriFORCE, Berry People aims to further develop backward integration into agricultural production via farming joint ventures and deploy licensed and developed IP as part of a scalable franchising model. The berries market was $9.65 billion in 2021 in the U.S. alone (As per IRI Integrated Fresh, Latest 52 WE 3/20/2022), with growth rates of around 10% or more each year since 2019— a trend that is expected to continue.
Mauro Pennella, President of AgriFORCE Brands, said, "We are very excited to announce the LOI with Berry People, which is a thriving business with promising growth opportunities. The AgriFORCE Brands division offers better and more nutritious food and plant-based products to today's consumers, both in the form of better grains and pulses with UN(THINK), and now in terms of fresh and nutritious berries."
Pennella continued, "We aim to maximize commercial synergies between Berry People and UN(THINK), in terms of distribution, to retail, foodservice and other areas. We anticipate that the additional volume coming in the next year from their new grower relationships in Mexico should drive robust growth in 2023. Furthermore, we see a great fit with Delphy, given their well-established soft fruit and CEA advisory business, as well as their advanced R&D capabilities, which will work with Berry People and its grower-operators to drive increased yields and improved quality, enhance farm operations, and support the deployment of new varietals, fortifying Berry People's vertical integration and growth plans." CONTINUED… Read this full release for AgriFORCE Growing Systems at: https://ir.agriforcegs.com/
Other recent developments in the markets include:
Bunge Limited (NYSE: BG) recently said it will announce its results for the quarter ended December 31, 2022, on Wednesday, February 8, 2023, prior to the market opening. The Company's management will also host a conference call at 7:00 am Central Time to discuss the results. A slide presentation to accompany the discussion will be posted on www.bunge.com.
To access the webcast, go to 'Events and presentations' in the 'Investors' section of the company's website. Select 'Q4 2022 Bunge Limited Conference Call' and follow the prompts. Please go to the website at least 15 minutes prior to the call to register and download any necessary audio software.
To listen to the call, please dial 1-844-735-3666. If you are located outside the United States or Canada, dial 1-412-317-5706. Please dial in five to 10 minutes before the scheduled start time.
The Scotts Miracle-Gro Company (NYSE: SMG) recently announced that it will release its first quarter financial results on Wednesday, February 1, 2023, prior to the opening of the U.S. financial markets. The Company will host a conference call to discuss those results at 9:00 a.m. ET.
Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. If you do not anticipate asking a question, we recommend joining via the live webcast on the Company's investor relations website at http://investor.scotts.com. The replay of the conference call will also be available on the Company's website, where an archive of the press release and any accompanying information will remain available for at least a 12-month period.
Corteva, Inc. (NYSE: CTVA) and Stoller Group, Inc. ('Stoller') recently announced that Corteva has signed a definitive agreement to acquire Houston-based Stoller, one of the largest independent Biologicals companies in the industry. With operations and sales in more than 60 countries and 2022 forecasted revenues of more than $400 million, Stoller brings immediate scale and profitability, with EBITDA margins that will be accretive to Corteva.
The acquisition of Stoller reinforces Corteva's commitment to providing farmers with Biological tools that complement evolving farming practices and help them meet changing market expectations. Stoller's superior reputation for farmer relationships and demand creation centers around a commercial model that's built upon sharing knowledge with the channel and farmers. Stoller has been successful by demonstrating technical excellence and delivering benefits and value of integrated solutions in the field.
"Biologicals provide farmers with sustainably-advantaged tools that complement crop protection technologies, and collectively, can work to address global challenges around food security and climate change. Stoller represents a leader in the Biologicals industry given its commercial presence and market expansion potential, while also delivering attractive growth and operating margins," said Chuck Magro, Chief Executive Officer. "In combination with Corteva's leading innovation organization, Stoller provides a platform for expanding and accelerating Corteva's Biologicals business to become one of the largest players in the rapidly expanding Biologicals market."
Nutrien Ltd (NYSE: NTR) recently announced plans to release fourth quarter earnings results on Wednesday, February 15, 2023, after market close. Nutrien will host a conference call the following day, Thursday, February 16, 2023 at 10:00 a.m. EST to discuss and answer investor questions on fourth quarter results and the outlook.
Investors can access the call by dialing 1-888-886-7786 or 1-416-764-8683. A webcast of the conference call number can be accessed by visiting Nutrien's website, https://www.nutrien.com/investors/events. A recording of the conference call will be available after the completion of the call by dialing 1-877-674-7070 and inputting the conference identification number 345556#. The recording will be available through May 29, 2023.
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