by The global organic farming market is estimated to be valued at US$170.00 billion in 2022 and is expected to exhibit a CAGR of 10.41% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Organic farming refers to a method of agricultural production that utilizes natural substances and processes, avoiding the use of chemical fertilizers and pesticides. The market for organic farming is driven by the increasing consumer demand for organic and sustainable food products. Organic farming offers several advantages such as enhanced soil fertility, reduced environmental pollution, and improved biodiversity. The need for products associated with the organic farming market includes organic fertilizers, biopesticides, and organic seeds.
Market Key Trends:
One key trend in the organic farming market is the adoption of precision farming techniques. Precision farming involves the use of advanced technologies such as GPS, GIS, and remote sensing to optimize agriculture practices. This enables farmers to monitor and control various parameters such as soil moisture, nutrient levels, and pest infestations, leading to improved crop yield and reduced environmental impact. The integration of precision farming techniques with organic farming practices is expected to further enhance the efficiency and sustainability of organic agriculture.
Porter’s Analysis:
Threat of New Entrants: The organic farming market faces a moderate level of threat from new entrants. While the market is growing steadily and presents opportunities for new players, the barriers to entry are relatively high. These barriers include the need for significant investment in infrastructure, knowledge of organic farming techniques, and the time required to establish a strong brand presence in the market.
Bargaining Power of Buyers: Buyers in the organic farming market have a moderate level of bargaining power. While demand for organic products is on the rise, there are still a limited number of suppliers in the market. This gives buyers some leverage in negotiating prices and quality standards, especially for large-scale buyers such as supermarkets and restaurants.\
Bargaining Power of Suppliers: Suppliers in the organic farming market have relatively high bargaining power. As the demand for organic products increases, suppliers have the ability to dictate prices and terms to a certain extent. Additionally, suppliers of specific organic inputs and farming equipment may hold significant market power, further increasing their bargaining power.
Threat of New Substitutes: The threat of new substitutes in the organic farming market is relatively low. Organic farming is perceived as a sustainable and environmentally friendly alternative to conventional farming practices. The growing consumer awareness and demand for organic products further mitigate the threat of substitutes.
Competitive Rivalry: The competitive rivalry in the organic farming market is intense. There are numerous players, both large and small, competing for market share. The market is characterized by constant innovation and the need for differentiation to attract customers. This intense competition puts pressure on players to continually improve their products and services.
Key Takeaways:
The global organic farming market is expected to witness high growth, exhibiting a CAGR of 10.41% over the forecast period from 2023 to 2030. This growth is attributed to increasing consumer awareness and demand for organic products driven by factors such as health and environmental concerns. The market is projected to reach a size of US$ 170.00 billion by 2022.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the organic farming market. This is mainly due to the strong consumer demand for organic products in the region, favorable government policies supporting organic farming, and the presence of major players.
Key players operating in the organic farming market include 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 product innovation, expanding their distribution networks, and strategic partnerships to gain a competitive edge in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
