July 15, 2024

Rapid Adoption of Organic Produce to Drive Growth of the 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 refers to agricultural methods that avoid the use of synthetic fertilizers, pesticides, growth regulators, livestock feed additives and genetically modified organisms. Organic produce is grown without these chemicals under strict regulatory standards. Organic farming promotes long term soil health and ecological balance by maintaining biodiversity. There is a growing demand for organic food products globally due to rising health consciousness among consumers about the ill effects of chemicals in food. Organic products are considered nutritious and environment friendly.

Market key trends:

One of the major trends driving growth in the organic farming market is rising awareness about health benefits of organic food. Consumers are increasingly preferring organic foods as they contain higher nutrients and are free from chemicals. Several studies have linked consumption of chemical based conventional foods to increased risk of cancer, neurological diseases and infertility. The COVID-19 pandemic further boosted demand for organic and chemical free foods as consumers focused on immunity and wellness. Rapid adoption of organic produce by food processors and retailers is also fueling market expansion. Many supermarket chains dedicated specific shelves for organic products catering to the surge in demand.

Porter’s Analysis

Threat of new entrants: Low barriers to entry with organic certification however high capital requirement for organic farming practices and established distribution channels limit new players.

Bargaining power of buyers: Large retailers consolidate purchasing power however increasing demand of organic products strengthens buyers bargaining power.

Bargaining power of suppliers: Limited suppliers due to organic certification processes increase suppliers bargaining power.

Threat of new substitutes: Alternatives like conventional farming, GMO crops pose threat however health and sustainability benefits sustain organic farming.

Competitive rivalry: Intense competition due to low product differentiation leads farmers to rely on marketing and branding.

Key Takeaways

Organic Farming Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing health awareness and demand for chemical-residue free food. The market size for 2023 is US$ 187.7 Bn.

Regional analysis: North America dominates the market due to stringent regulations regarding organic food. However, Asia Pacific is the fastest growing market owing to rising disposable income, health consciousness.

Key players: Key players operating in the organic farming 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. Picks Organic Farm is a leading player with wide distribution network in North America.

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