Organic Farming Market Size, Share, Trends, Growth 2030

Organic Farming Industry Prospective:

The global organic farming market size was worth around USD 170.89 billion in 2022 and is predicted to grow to around USD 375.80 billion by 2030 with a compound annual growth rate (CAGR) of roughly 10.35% between 2023 and 2030.

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Organic Farming Market: Overview

Organic farming is an old-age agricultural practice or technique that aims to use chemical-free products to maintain the overall integrity of the crops. It is also known as biological farming or ecological farming. Most contemporary agricultural practices use chemically induced fertilizers and pesticides for crop cultivation. While this may have certain benefits, the use of chemical pesticides also has specific drawbacks. Organic farming, on the other hand, mostly deals with organic compost, green manure, or bone meal for improving crop yield. Other main traits of organic farming include a strong emphasis on companion planting and crop rotation.

In the last decade, the demand and popularity of organic farming have surged at a rapid rate driven by an urgent need to develop long-lasting and sustainable farming techniques. However, it is also crucial to note that organic farming is heavily regulated by international and regional enforcement bodies. When done correctly, studies showcase that organic farming can deliver a better yield rate as compared to inorganic farming. During the forecast period, investments in the organic farming industry are expected to rise at an unprecedented rate.

Key Insights:

• As per the analysis shared by our research analyst, the global organic farming market is estimated to grow annually at a CAGR of around 10.35% over the forecast period (2023-2030)
• In terms of revenue, the global organic farming market size was valued at around USD 170.89 billion in 2022 and is projected to reach USD 375.80 billion, by 2030.
• The organic farming market is projected to grow at a significant rate due to the increasing demand for organic food products
• Based on method segmentation, soil management was predicted to show maximum market share in the year 2022
• Based on farming type segmentation, integrated organic farming was the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Organic Farming Market: Growth Drivers

Increasing demand for organic food products to drive market growth

The global organic farming market is expected to grow owing to the increasing demand and consumption of organic food products. These edible items are grown without the aid of artificially prepared chemicals. They also do not contain genetically modified organisms (GMOs). As per the Organic Trade Organization, products free of synthetic chemicals are essential for reducing public health risks as exposure to toxic content is greatly reduced.

Another key aspect is that apart from consumers of organic food products, the benefits are extended to producers or farm workers since they are less likely to come in contact with harmful chemicals. Studies also showcase that organic food products may be more nutritious and fuller of rich antioxidants. A study posted in 2003 concluded that organic berries have 58% more antioxidants as well as 52% more Vitamin C as compared to inorganic products. As consumer awareness around the benefits of organic food products is growing, more players are expected to enter the organic farming segment.

Growing number of new product offerings in the commercial world to generate higher revenue

The global organic farming industry is projected to thrive as companies are increasingly investing resources in launching new products in the market thus driving consumer interest. Companies and producers of organic products are strategically leveraging the growing footfall in local farmer’s markets as well as the larger supermarket chains. This is allowing the producers to improve consumer visibility which in turn will encourage organic farming practices in the agriculture industry.

A 2016 report found that almost 12.1% of adults in the US prefer buying groceries from farmer’s markets. This helps in reducing the middlemen cost thus providing more profits to the producers.

Organic Farming Market: Restraints

High cost of organic farming as compared to traditional farming may restrict market growth

The global organic farming market is projected to be impacted by the high cost of organic farming as compared to contemporary agricultural practices. Organic farming is more expensive since it deals with the use of sparingly available raw materials.

In addition to this, chemical fertilizers and pesticides are considered more efficient in terms of dealing with weed formation and infestation. It is a characteristic that organic fertilizers currently lack, hence becoming more demanding in terms of careful planning required from the end of farmers and cultivators. Crop cultivation in itself is a tedious role and added resistibility of preventing crop deterioration using organic manure makes it more difficult as well as cost-intensive.

Organic Farming Market: Opportunities

Growing support from local governments and international regulatory bodies to create growth opportunities

The global organic farming market players will gain new growth opportunities as the regional governments continue to increase their assistance toward promoting organic farming practices. This trend is observed globally and is primarily a result of rising soil pollution levels caused by chemical fertilizers and pesticides. In September 2023, the Rajasthan state government of India announced new subsidies for farmers opting for organic crop cultivation. As a part of the encouragement program, the government is expected to spend INR 100 crore in setting up marts for selling organic products in 2 regions.

In the coming fiscal year, the Rajasthan government will provide an input subsidy of Rs 5,000 per farmer for over 50,000 farmers. In September 2023, amidst the ongoing war with Russia, it was reported that Ukraine funded nearly 115 organic farms with each unit receiving up to 1,000 euros. The total funding cost came up to 83,000 euros.

Integration of organic farming with advanced technology to deliver high-value expansion possibilities

The industry for organic farming will benefit as research on the integration of organic farming with advanced technologies such as the Internet of Things (IoT) and sensory tools is on the rise. These tools help in collecting crop-related information in real-time and making informed decisions such as changes required by pest control techniques or the right time for crop harvesting. Furthermore, their tools will be helpful in smart management of water which is an essential aspect of sustainable agricultural practices.

Organic Farming Market: Challenges

Limited awareness among farmers about the best organic farming practices acts as a key challenge

Most modern-day farmers are acquainted with chemical pesticides and fertilizers due to the use of these products in abundance. Organic farming requires a stringent understanding of agricultural techniques since managing crop quality with organic fertilizers is complicated. Limited awareness among farmers could lead to market challenges. Furthermore, organic farming is a highly regulated market and requires adherence to standard protocols laid down by regulatory bodies.

Organic Farming Market: Segmentation

The global organic farming market is segmented based on method, farming type, and region.

Based on method, the global market is segmented into soil management, crop diversity, controlling other organisms, and weed management. One of the fundamental aspects of organic farming deals with managing soil conditions. Chemical fertilizers are extremely harsh and they eventually lead to deterioration in the quality of soil. Excessive use of chemical fertilizers can lead to the formation of soil crust and soil acidification. As per a 2018 report, nearly 80,000 sites in Australia are considered to be suffering from soil contamination. Prevention of soil degradation is a crucial characteristic of organic farming.

Based on farming type, the global market is segmented into integrated organic farming and pure organic farming. The demand for integrated organic farming is higher as it deals with zero waste generation. In this method, waste created by one process is used as raw material in other processes. Since integrated organic farming is more holistic in terms of sustainable agriculture practice, this method is more widely accepted. Every year, agricultural waste amounts to more than 997 million tonnes. Pure organic farming deals with zero use of chemical components and is practiced in some parts of the world. However, the difficulty in achieving appropriate crop yield with pure organic farming limits the adoption process.

Organic Farming Market: Report Scope

Organic Farming Market: Regional Analysis

Asia-Pacific is projected to generate the highest growth rate

The global organic farming market is expected to witness the highest growth rate in Asia-Pacific. The region is home to some of the first few countries that either continue to use organic farming processes or have increasingly adopted the sustainable method in recent times. For instance, Australia is the leading nation in terms of organic agricultural land. In 2021, the total organic farming area in the country was reported to stand at over 35 million hectares. In addition to this, India has been contributing significantly to Asia-Pacific’s growth in terms of organic farming.

In September 2023, the Punjab state of India announced the launch of residual-free farming in a bid to promote organic farming in the state. This method will include either zero or minimal use of chemicals. In October 2023, the President of India urged farmers in the state of Bihar, a leading region that is witnessing a surge in demand for organic products, to continue investing in organic farming as the country's agriculture sector seeks ways to manage changing climate conditions. In November 2023, the union home minister and Minister of Cooperation in India inaugurated the website, logo, and brochure of National Cooperative Organics Limited (NCOL). It is a platform dedicated to farmers in the country practicing natural farming.

Organic Farming Market: Competitive Analysis

The global organic farming market is led by players like:

• Organic Valley
• General Mills
• Nature's Path
• Nature's Best
• Clif Bar & Company
• Hain Celestial Group
• WhiteWave Foods
• United Natural Foods Inc. (UNFI)

The global organic farming market is segmented as follows:

By Method

• Soil Management
• Crop Diversity
• Controlling Other Organisms
• Weed Management

By Farming Type

• Integrated Organic Farming
• Pure Organic Farming

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa