Global Organic Farming Market is anticipating a prosperous growth reaching USD 183.8 Billion by 2027
Published | 09 August 2021
A study recently conducted by the strategic consulting and market research firm BlueWeave Consultingrevealed that the global organic farming market accumulated USD 96.1 billion in 2020. The market is anticipated to reach USD 183.8 billion by 2027 and isprojected to grow at a CAGR of 9.8% during 2021-2027 (forecast period). The growth of the global organic farming market is attributable to increasing adulteration levels in synthetically produced foods, growing health concerns, and acceptance rates for organic products in the global market. Another factorcontributing to the growth of the global organic farming market is rising investments in farming schools and farming systems for research & development. Furthermore, the growing emphasis on sustainable living and increasing concerns about climate change are some of the key contributors to the increasing demand for organic farming systems, which is driving the global organic farming market forward.
Rising demand for organic food products favoring the growth of the global organic farming market
According to the Food and Agriculture Organization, the area earmarked for organic cultivation grew from 15 million hectares in 2000 to 71.5 million hectares in the year 2018. This indicates an increase in the consumption of organic goods over the past few years.In 2018, India had 1.1 million farmers focused on organic farming out of the 2.8 million farmers in the world, making up 39% of the global market.Also, it suggests that the demand for organic products overpowers the sales of organic farming, therefore driving the organic farming market to grow.The growing emphasis on environmentally friendly products is also driving the increase in demand for organic products, thereby augmenting the growth of the global organic farming market.
Rising adulteration rates across the developing countries fuellinggrowth in the global organic farming market
The rising demand and reduced food supply germinate another issue of its own, which is food adulteration.In recent years, the prevalence of adulterated food products has increased, deteriorating the quality of food that people consume. Developing countries are more prone to the issue as there are no strict measures in place. Food samples collected by the FSSAI (Food Safety and Standards Authority of India) in 2018-2019 were identified as adulterated in 28% of the samples.It indicates that although food packaging in India has been extremely stringent, a prevailing problem persists despite the adoption of the latest technologies.The increasing number of adulteration cases, especially in the urban areas, is causing people to switch to organic diets and food products, which in turn is driving the growth of the organic farming industry worldwide.
Pure organic farming segment holds the largest share in in global organic farming market
In the global organic farming market, there are two main types of farming: pure organic farming and integrated organic farming.Pure organic farming accounted for the larger share in the market in 2020. Pure organic type farming leverages organic manures and bio pesticides for crop management. The products used for crop management under such farming types are free from any kind of chemicals. A complex supply chain process adds to the cost of organic farming, which makes it an expensive affair. However, the natural way of producing the food while not compromising the quality of the end-product adds to the confidence of the consumers over the product. As a result of which, the rising consumer's preference for organic food products are driving the growth of the global organic farming market.
Weed Management holds the largest share in the technique segment of the global organic farming market
Based on the techniques, the global organic farming market is bifurcated into Crop Diversity, Soil Management, Weed Management, Chemical Management, and others. The weed management sub-segment registered the highest share in the market in 2020. It is expected to maintain its dominance in the upcoming years as well. Weed management refers to the removal and de-growth of the unwanted plants that germinate from organic plants. It involves cutting the unwanted crop away or mulching the surface of the plant to prevent the unwanted crop from growing back. Under the mulching method, the unwanted crop is cut away and a plastic film is slid over the surface to prevent future growth of the crop.
The technique has been witnessing rising adoption rates due to the convenience attached to it. Additionally, this farming technique enables a convenient management process, which is one of the key prevailing issues in organic farming. Since this farming technique offers a pivotal solution in the enhancement of crops production, it is positively contributing to the growth of the global organic farming market.
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Global Organic Farming Market: Regional Insights
Based on region, the global organic farming market has been categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The North American region accounted for the highest share in the market in 2020. However, the Asia-Pacific region is expected to showcase the highest growth rate in the upcoming years. Research Institute for Organic Agriculture reports that the North American region leads the world's retail sales of organic food products, representing an estimated 45.5% of the total global retail sales of organic food products in 2019. It showcases the growing trend of the countries in North America toward the consumption of organic food products.
In addition to this, the report also states that Germany recorded the second-highest organic food retail sales in the world, followed by the United States. It also indicates that the European region is witnessing an inclination toward organic food products as well. Considering that the European region is taking measures to reduce carbon emissions, the upliftment of organic farming will enhance their climate goals.Thus, the adoption of organic food products will be a pivotal shift for the region. This is, therefore, indicative of the easing volume of global organic farming.
Global Organic Farming Market – COVID-19 Impact Analysis
The COVID-19 pandemic has had an overall positive impact on the sales of organic food products globally. Global organic farming had to witness a substantial decline in the initial stages of the lockdown as the supply chain got severely disrupted. Nevertheless, people soon began making healthier choices, which led to a paradigm shift in the consumption of food worldwide and increased the demand for organic food products.The result has been an overall positive impact on the global organic farming market. However, an important factor that needs to be considered is the rise in agriculture costs associated with organic food products.The increasing government initiatives are pushing the demand for organic food products, which is directly impacting the growth of the global organic farming market. As a result, the global organic farming market is experiencing a spike in demand after the initial phases of the pandemic.
As people become aware of the benefits of organic food products, they are shifting away from synthetically produced products.Considering the pandemic, it has become imperative for the countries to take climate change seriously as the next major calamity.Due to climate change, many governments in the developed world are turning their attention to developing organic farming systems. The countries have started thinking of sustainable measures for producing goods that can help the economy grow while reducing the emissions levels. Organic and plant-based farming is anticipated to increase the demand for organic food products, resulting in better growth prospects for the global organic farming market.
The leading players in the global organic farming market are ZUWA Organic Farms Pvt Ltd, Bayer AG, Organic Farmers Co., AkzoNobel N.V., Dow Chemical Company, Indian Organic Farmers Producer Company (IOFPC), BASF SE, Nalco Holding Company, Picks Organic Farm, Solvay SA, Camson Bio Technologies Limited, Amalgamated Plantations Pvt Ltd., Bunge India Pvt. Ltd., Mcleod Russel India Ltd., Aero Farm Systems, Plenty AG, Agrilution Systems GmbH, and other prominent players. The global organic farming market is moderately fragmented in nature, with numerous players operating in both developed and developing nations. The global organic farming market is presently in the growing stage, which is offering rising opportunities for the new entrants, thereby providing them with a chance to establish their presence in the global organic farming market. At the same time,the key players are pouring a lot of money into research and development for enhancing crop production in order to solidify their position in the global organic farming market.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global organic farming market.It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global organic farming marketand industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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