ORGANIC FARMING MARKET ANALYSIS

Global organic farming market was valued at US$ 170.00 Billion in 2022 in terms of revenue, and is expected to exhibit a CAGR of 10.41 % and expected to reach at 375.50 Billion during the forecast period (2023 to 2030).

Driver:

Growth of organic agricultural practices:

Favorable growth of organic agricultural practices all over the world coupled with regional government initiatives to promote organic farming is boosting growth of the global organic farming market. For instance, in August 2022, Agriculture Secretary Tom Vilsack announced details of the U.S. Department of Agriculture’s (USDA) US$ 300 million investment, including the American Rescue Plan funds in a new Organic Transition Initiative that will help build new and better markets and streams of income for farmers and producers. Organic production allows producers to hold a unique position in the marketplace, and thus take home a greater share of the food dollar.

Restraint:

High cost of organic food:

Organic food is more expensive because farmers do not get as much out of their land as conventional farmers do. Production costs are higher because farmers need more workers. Marketing and distribution is not efficient because organic food is produced in smaller amounts. For instance, according to the Times of India article, in 2021, high cost of organic food products in India is the key reason behind its purchase being restricted to affluent class of consumers as the switch to organic food is likely to cost an additional 14.60-18.25 US $ per month for a family.

Global Organic Farming Market- Impact of Coronavirus (Covid-19) Pandemic

COVID-19 had a profound impact on all industry, highlighting the need to understand what is happening in the agriculture sector in order to mitigate the negative impacts of the crisis and reduce the vulnerability of supply chains. For the organic sector, 2021 was a special year, as consumer demand for organic foods continued to increase substantially during the pandemic. Evidence shows that retail sales have risen again in double digits in many countries. So, the demand for organic food has increased after COVID-19 also.

Segmentation Analysis:

The global organic farming market is segmented by farming type and by method type. By farming type it is segmented into pure organic farming and integrated organic farming. By method type it is segmented into crop diversity, soil management, weed management, controlling other organisms. By region the global organic farming market analysis conducted across North America, Latin America, Asia Pacific, Europe, Middle East, and Africa.

Figure 1. Global Organic Farming Market Share, By Region, 2022

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Asia Pacific was the fastest growing region and held the highest market share in 2022, owing to increasing government initiative in promoting organic farming by providing subsidies on organic fertilizers. North America held a significant market share in the global organic farming market in 2022, owing to increasing demand for organic food in the region. Europe has a significant market growth and accounted for 25% share of the global organic farming market in 2022, owing to stringent rules and regulations on chemical or conventional fertilizers and GMO (Genetically Modified Organism) products in this region.

Figure 2. Global Organic Farming Market Share, By Method, 2022

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Changing dietary patterns towards organic food products are pushing demand for organic fertilizers in organic farming.

Recent Development:

On Feb 7 2023, Bayer a pharmaceutical and biotechnology company published an article on how biologicals add a new dimension to integrated crop management and it explains the future of agriculture is about striking a delicate balance. “A balance between finding ways to grow enough and decreasing its footprint. A balance between short-term and long-term”.

On March 14 2023, Bayer announced the evolution of its collaboration with Microsoft, Microsoft Corporation is an American multinational technology corporation headquartered in Redmond, Washington. With the preview launch of the Microsoft Azure Data Manager for Agriculture platform and the release of Bayer AgPowered Services.

On March 14 2023, Corteva Agriscience a agriculture chemical company, Bunge a leading edible oil company and Chevron Announce Collaboration to Produce Winter Canola to Meet Growing Demand for Lower Carbon Renewable Fuels.

On March 9 2023, Corteva Agriscience and Bunge Announce Collaboration to Develop Amino Acid-Enhanced Soybeans

Major Players:

Major players operating in the global 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.

Market Definition:

Organic farming is an agricultural system that uses biological fertilizers derived from plant and animal wastes. Organic farming enhances agro-ecosystem health, which includes soil biological activity, biodiversity, and biological cycle. It excludes the use of chemical or synthetic pesticides, fertilizers, and growth regulators.