by The 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 from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Organic farming involves the cultivation of crops and rearing of animals using natural and organic methods, excluding the use of synthetic fertilizers, pesticides, and genetically modified organisms (GMOs). Consumers are increasingly demanding organic food products due to their health and environmental benefits. Organic farming practices help maintain soil fertility, reduce pollution, and promote biodiversity. Market drivers for organic farming include rising awareness about the harmful effects of chemical-based farming, growing consumer preference for organic products, and favorable government initiatives promoting sustainable agriculture.
Market Dynamics:
The organic farming market is driven by two key factors. Firstly, the increasing health consciousness among consumers is propelling the demand for organic food, as it is perceived to be healthier and free from chemical residues. Secondly, the adoption of sustainable farming practices to protect the environment and enhance soil quality is driving the growth of the organic farming market. These factors are expected to fuel market growth during the forecast period.
Segment Analysis:
The organic farming market can be segmented based on farming type and region. In terms of farming type, the dominating subsegment is crop production. This is because organic crop production is the most common and easily accessible form of organic farming. It involves the cultivation of various crops without the use of synthetic fertilizers, pesticides, or genetically modified organisms (GMOs). Crop production accounts for a significant portion of the organic farming market due to the rising demand for organic fruits, vegetables, grains, and oilseeds. Additionally, the increasing awareness about the harmful effects of chemical-based farming practices has led to a shift towards organic crop production.
PEST Analysis:
Political: The political landscape plays a crucial role in shaping the organic farming market. Governments across the globe are implementing subsidies, grants, and policies to promote and support organic farming practices. This includes providing financial incentives to farmers or offering certification programs for organic produce.
Economic: The organic farming market is driven by various economic factors. Consumers are willing to pay a premium for organic products, which has led to increased profitability for organic farmers. Furthermore, the market provides employment opportunities, especially in rural areas, where organic farming has a significant impact on local economies.
Social: There is a growing social awareness and concern about health and environmental issues, which has contributed to the increasing demand for organic products. Consumers are becoming more conscious of the impact of their food choices on their well-being and the environment, leading to a shift towards organic farming.
Technological: Technological advancements have improved the efficiency and productivity of organic farming. With the adoption of innovative techniques and equipment, organic farmers can optimize resource utilization, reduce waste, and improve crop yields. This includes the use of precision farming technologies, biological pest control methods, and sustainable irrigation systems.
Key Takeaways:
The global organic farming market is expected to witness high growth, exhibiting a CAGR of 10.41% over the forecast period (2023-2030). This growth can be attributed to increasing consumer awareness about the benefits of organic products, rising concerns about food safety and environmental sustainability, and government support for organic farming practices.
Regionally, North America is expected to be the fastest-growing and dominating region in the organic farming market. This can be attributed to the high consumer demand for organic products, stringent regulations on chemical-based farming practices, and the presence of key players in the region.
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. These players have a strong market presence and are actively involved in research and development activities to improve organic farming practices.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
