by The organic farming market involves growing crops and rearing livestock without the use of synthetic pesticides, fertilizers, or GMOs. Organic agriculture promotes biodiversity, biological cycles, and soil biological activity. Organic farming restricts the use of fertilizers, pesticides, growth regulators and livestock feed additives.
The Global Organic Farming Market is estimated to be valued at US$ 216.24 Mn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the organic farming market are Heroux-Devtek Inc., Honeywell International Inc., Liebherr-International Deutschland GmbH, Raytheon Technologies Corporation, Nook Industries Inc., Parker Hannifin Corp., Electromech Technologies, Eaton Corporation PLC, Arkwin Industries Inc., Moog Inc., Woodward Inc., Safran SA, and Triumph Group. The rising demand for chemical-free and high-nutrition food products offers lucrative growth opportunities for players in the organic farming market. Recent advancements in technologies such as IoT, AI and blockchain provide traceability, transparency and supply chain management benefits for organic products.
Market Drivers
The global Organic Farming Market Growth is primarily driven by the growing health concerns related to the consumption of synthetic pesticides and fertilizers. The availability of subsidies and favorable regulations in major markets promotes the adoption of organic techniques. Furthermore, organic products fetch higher market prices which encourage farmers to switch from conventional to organic methods. Growing application of renewable energy and mechanization also supports organic cultivation practices.
Current challenges in Organic Farming Market
Organic farming market is facing multiple challenges currently which restrict its growth. The major challenges include establishing standards and regulations for organic products, lack of supportive infrastructure and supply chain facilities, high initial investments associated with organic farming practices, storage and transportation difficulties of organic products, lack of technical knowledge and expertise among farmers. There is a need for clear standards and certification process with strong compliance norms to boost consumers’ trust in organic labels. Effective policy support is also required for developing infrastructure, supply chain and marketing avenues of organic farming products.
SWOT Analysis
Strength: Organic farming is environment friendly and promotes sustainability. It improves soil health and biodiversity. There is growing health consciousness and demand for chemical-free products.
Weakness: Higher production costs and lower per acre crop yields than conventional farming. Organic farming is more labour intensive. Require extensive land areas for organic manure and inputs.
Opportunity: Growing consumer preference for chemical-free food offers huge market potential. Scope for organic exports and premium prices for organic foods. Government initiatives are encouraging adoption of organic practices.
Threats: Threat from pests and diseases without chemical pesticides. Climate change impacts and extreme weather events pose production risks. Conventional farmers may switch to organic without proper certification.
Geographical Regions
North America region currently holds the major share of around 40% in the global organic farming market in terms of value led by the US. Europe is another prominent region with over 30% market share. Developing nations like India and China are emerging as fast growing markets in Asia Pacific region due to strong government support and awareness campaigns.
Fastest Growing Region
Asia Pacific region is expected to showcase the fastest growth during the forecast period in the organic farming market. Factors like growing health concerns, favorable policies, technical training programs for farmers and rising export opportunities are driving rapid adoption of organic farming practices in Asia Pacific countries. Countries like India and China with their huge agricultural bases are expected to lead the growth and offer lucrative business potential for organic products in the coming years.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
