The 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 2023-2030, 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 embraces techniques such as crop rotation, green manure, compost and biological pest control to maintain soil health and manage pests without synthetic pesticides and fertilizers. Organic farming promotes environmentally, socially, and economically sustainable agriculture through natural methods of soil management and animal husbandry.
Market Dynamics:
One of the key drivers for the organic farming market is the rising consumer awareness about the various health benefits of organically grown food. Consumers are increasingly becoming health conscious and preferring organic food over conventionally grown food due to absence of synthetic chemicals. This is helping to increase the demand for organic food worldwide. Another driver is the willingness of consumers to pay premium prices for organic food which has encouraged more farmers to shift from conventional to organic farming methods. However, maintaining organic certification and standards require more manpower and management which increases the overall production cost. Also, organic farming yields are generally lower than conventional farming in the initial years as it takes time to build the soil quality, which is another challenge restraining the market growth.
(SWOT Analysis)
Strength: Organic farming is considered more environmentally sustainable than conventional farming as it relies on eco-friendly practices that enrich the soil and protect biodiversity. It avoids the use of synthetic pesticides and fertilizers. Moreover, organic produce is perceived to be healthier and more nutritious by many consumers.
Weakness: The initial costs of transitioning from conventional to organic farming can be high. Organic farming also yields can be lower than conventional methods during the 3 year transition period as the soil regains its vitality. Pest and disease management in organic farming relies more on prevention than treatment, requiring more labour.
Opportunity: With the rising health consciousness, demand for chemical-residue free food is increasing globally. The organic food market is growing at a double-digit rate in both developing and developed countries. Online sales and direct-to-consumer sales models provide new opportunities for organic farmers.
Threats: Conventional farmers can easily switch to organic without following the strict certification process, thereby threatening the authenticity of truly organic produce. Unpredictable weather patterns due to climate change can impact yields.
(Key Takeaways)
Organic Farming Market Size Market is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period, due to increasing health awareness among consumers about the ill effects of consuming food grown using chemical pesticides and fertilizers. The market size for organic farming was valued at US$ 187.7 Bn in 2023.
Regional analysis: North America currently dominates the organic farming market, owing to strict regulations regarding agriculture and strong consumer demand for organic products in the US and Canada. Europe is another major market for organic farming driven by factors such as government support through subsidies for organic producers and preference for sustainable agricultural practices. Asia Pacific is poised to be the fastest-growing region in the organic farming industry over the next few years led bycountries like India where the government is promoting organic exports through schemes like PARAMPARAGAT KRISHI VIKAS YOJANA (PKVY).
Key players: 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, Camson Bio Technologies Limited, and ZUWA Organic Farms Pvt. Ltd among others. These companies are focusing on expanding their production facilities and distribution networks in high growth regions to leverage new business opportunities.
Read More:
https://www.dailyprbulletin.com/organic-farming-market-size-share-growth-outlook-2023/
