Carbon Neutral Food Market Report 2026

The carbon neutral food market size has grown strongly in recent years. It will grow from $94.02 billion in 2025 to $102.8 billion in 2026 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to growth of organic and sustainable food consumption, increasing environmental awareness among consumers, early adoption of carbon offset programs, expansion of eco-labeled food products, development of sustainable farming practices.

The carbon neutral food market size is expected to see strong growth in the next few years. It will grow to $145.96 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to rising demand for verified carbon-neutral foods, increasing regulatory focus on food sustainability disclosures, expansion of regenerative farming investments, growing consumer preference for low-impact diets, rising use of blockchain-based traceability. Major trends in the forecast period include expansion of regenerative agriculture food products, growing adoption of carbon footprint labeling, rising demand for sustainable protein alternatives, increased use of renewable energy in food production, enhanced supply chain transparency.

The growing demand for sustainable food is projected to drive the expansion of the carbon-neutral food market during the forecast period. Sustainable food encompasses items that are produced, processed, and consumed in ways that are environmentally, socially, and economically responsible, ensuring future generations can meet their needs without harming the planet or public health. This demand surge is largely due to increased consumer awareness about the environmental, social, and health-related consequences of conventional food systems. More consumers are recognizing the high carbon emissions, resource depletion, and biodiversity loss tied to traditional agriculture and food production. The rising interest in sustainable food is pushing producers to adopt carbon-neutral practices, such as using renewable energy, regenerative farming, and carbon offsetting, which together help reduce greenhouse gas emissions throughout the food supply chain. For example, in January 2025, Sodexo, a France-based food services and facilities management company, reported that in 2024, 68% of consumers continued to favor sustainable food, a figure nearly matching the 69% from the previous year. The company has pledged that by 2030, 70% of its main dishes in the UK and Ireland will qualify as low-carbon, cutting the average carbon footprint of these meals from 2-2.5 kg CO₂e to just 0.9 kg CO₂e. As a result, the increasing appetite for sustainable food is accelerating the growth of the carbon-neutral food market.

Key players in the carbon-neutral food market are prioritizing the development of technologically advanced offerings, such as plant-based meats, to provide sustainable, ethical, and health-conscious alternatives to traditional meat. These products help reduce environmental impact, avoid animal cruelty, and often contain less cholesterol and saturated fat. Plant-based meats are formulated from plant-derived ingredients such as soy, wheat, or peas to mimic the flavor, texture, and nutrition of conventional meat. For instance, in September 2024, vEEF, an Australian meat alternative brand, launched a range of four carbon-neutral products, competitively priced to match or undercut traditional meat. The line includes plant-based smokey sausages, classic sausages, beef mince, and chorizo sausages. These chef-developed items are nutrient-rich and feature 50% less plastic packaging than earlier versions, supporting consumers’ goals of healthier eating, environmental protection, and cost savings.

In October 2024, Smart Foods, a food manufacturer based in Australia, acquired The Aussie Plant-Based Co. for an undisclosed sum. Following the acquisition, Smart Foods resumed operations at The Aussie Plant-Based Co.’s facility on the Sunshine Coast, with plans to scale distribution nationwide and achieve placement in major retail outlets. The Aussie Plant-Based Co. specializes in plant-based products and produces carbon-neutral food, aligning with Smart Foods’ commitment to sustainable and innovative food solutions.

Major companies operating in the carbon neutral food market are Kroger, Mars Incorporated, Sodexo, Charoen Pokphand Foods PCL, Conagra Brands Inc., Maple Leaf Foods Inc., Yorkshire Tea, Quorn Foods, Gerber, Leon Restaurants Ltd., LightLife Foods Inc., Bread Alone, Alter Eco, Planet FWD, Puffin Produce, Future Farm, Alara Wholefoods Ltd., Neutral Foods Inc., Organic Tap, vEEF.

Asia-Pacific was the largest region in the canola meal market in 2025. The regions covered in the carbon neutral food market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the carbon neutral food market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The carbon neutral food market consists of sales of sustainably produced food, plant-based products, and carbon-offset food items. 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.

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