March 1, 2024
Organic Farming Market

Rising Global Sustainability Demand To Boost The Growth Of Organic Farming Market

The global Organic Farming Market is estimated to be valued at US$ 187.7 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Organic farming is a method of crop and livestock production that involves much more than choosing not to use pesticides, fertilizers, genetically modified organisms, antibiotics and growth hormones. Organic farming employs ecologically based pest management and biological fertilizers like compost and manure to maintain soil health and balance natural systems on the farm. Organic foods are produced without artificial chemicals and hormones. Organic farming helps cultivate nutritional and flavorful food while conserving natural resources and respecting animal welfare.

Market key trends:

Organic farming is gaining prominence globally owing to rising awareness regarding advantages of organic products. Consumption of organic and chemical-free foods is rapidly increasing among health conscious consumers across the world. Also, implementation of stringent regulations on the use of chemicals in conventional farming is positively impacting adoption of organic farming practices. Further, availability of government subsidies and certification programs in developed nations is encouraging transition towards organic farming. Growing demand for traceable and sustainably produced foods offer lucrative opportunities for organic farmers.

Porter’s Analysis

Threat of new entrants: New players need significant capital investments for organic farm infrastructure including land. There are also high regulatory compliance costs in organic farming. This poses barriers for new players.
Bargaining power of buyers: Large buyers like retailers have significant influence over suppliers and negotiate for lower prices. This gives them higher bargaining power.
Bargaining power of suppliers: Fewer suppliers of organic inputs and certification services gives them bargaining power over buyers in terms of pricing and supply.
Threat of new substitutes: Non-organic farming is a major substitute with no compliance costs. However, rising preference for organic foods limits impact of substitutes.
Competitive rivalry: Compliances make it difficult for players to differentiate, limiting competitive advantages. However, increasing demand allows players to compete on productivity, quality and better offerings.

Key Takeaways

The Global Organic Farming Market Size is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing health consciousness among consumers. The market size for 2023 is US$ 187.7 Bn.

Regional analysis: North America dominates the market currently due to stringent government regulations regarding organic farming in the US and Canada. However, Asia Pacific is witnessing fastest growth supported by measures promoting organic farming in India and China.

Key players operating in the Organic Farming market are Picks Organic Farm, Organic Farmers Co., The Indian Organic Farmers Producer Company Limited (IOFPCL), Bayer AG, and Camson Bio Technologies Limited among others. Players are focusing on adopting advanced technologies to enhance organic crop productivity. They are also expanding to regional markets through strategic partnerships.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it