Organic Farming Market Synopsis

Organic Farming Market Size Was Valued at USD 171 Billion in 2023 and is Projected to Reach USD 423.44 Billion by 2032, Growing at a CAGR of 10.6% From 2024-2032.

Organic farming is a method of agricultural production that excludes the use of synthetic substances, such as pesticides, synthetic medicines or fertilizers, and genetically modified organisms, and the use of Compost manure, green manure, etc.

• Organic farming is dependent on sustainable approaches to food production. It depends on techniques such as crop rotation, cover cropping, and composting to preserve the fertility and health of the soil, ultimately sustaining the land's productivity for the long term.
• Organic farming helps to protect the environment by reducing the use of synthetic pesticides and fertilizers, which helps prevent pollution of waterways and air, preserves biodiversity, and reduces soil erosion. Organic farms frequently serve as safe spaces for pollinators and other helpful.
• Organic farming focuses on utilizing natural techniques to enhance soil quality and productivity. This involves using organic materials such as compost and manure and methods like no-till or minimal tillage, which can store carbon and improve soil quality.
• Organic farmers use beneficial insects and crop rotation to manage pests and diseases, reducing the reliance on synthetic pesticides in biological pest management. Animal Welfare Organic standards mandate that animals have access to the outdoors, receive clean living conditions, and are fed a mostly organic diet, to improve animal health and well-being.
• Organic food is commonly seen as healthier by consumers because it does not contain synthetic pesticides and fert Research indicates that organic fruits and vegetables could contain more essential nutrients and fewer chemical residues.
• Organic farming can help small-scale farmers economically by providing higher prices for organic products and supporting local markets. Organic methods aid in controlling climate change by sequestering carbon, cutting greenhouse gas emissions in farming, and promoting agroforestry systems. The advancement of innovative methods and technologies is supported by organic farming practices.

Top Key Active Players Involved Are:

“Whole Foods Market (USA), Eosta B.V. (Netherlands), Green Organic Vegetable Inc. (Canada), Hain Celestial Group (USA), General Mills (USA), Cargill, Inc. (USA), Danone SA (France), Organic Valley (USA), United Natural Foods, Inc. (USA), Newman's Own (USA), Amy's Kitchen (USA), Nature's Path Foods (Canada), Organic Farm Foods (UK), Fonterra Co-operative Group (New Zealand), The WhiteWave Foods Company (USA), SunOpta (Canada), Arla Foods (Denmark), Austrianova (Austria), HiPP GmbH & Co. Vertrieb KG (Germany), Aurora Organic Dairy (USA), Yeo Valley (UK), Pinnacle Organic Farm (USA), Pure Harvest Smart Farms (UAE), Bio-Tropic GmbH (Germany), Sekem (Egypt) and Other Active Players.”

Organic Farming Market Trend Analysis

Growth Of Organic Agricultural Practices

• The rise of organic farming methods offers a major change in the organic farming sector by promoting a move towards sustainable and environmentally friendly food production systems. This change is fueled by consumer awareness that emphasizes health, environmental responsibility, and ethical food decisions. Organic farming caters to the rising desire for uncontaminated products by emphasizing natural processes and minimal intervention.
• The utilization of practices such as crop rotation, natural pest control, and the avoidance of synthetic chemicals, organic farming not only improves soil quality but also enhances biodiversity. This method results in an agricultural ecosystem that is more able to withstand climate change, providing advantages for both farmers and the environment in the long run.
• The potential for rural development, as well as support for small-scale farmers and local economies, also contributes to the market opportunity for organic farming. Providing higher prices for organic crops encourages farmers to embrace sustainable methods, potentially resulting in higher earnings and empowerment within the community. The expansion of organic farming also provides opportunities for creativity in organic materials, precision farming techniques, and distribution systems designed for organic goods.
• Organic farming's emphasis on regenerative methods helps in reducing agriculture's carbon footprint, aligning with the worldwide effort to combat climate change. This is with the worldwide effort towards environmental initiatives and sustainable development objectives, consequently drawing investments and policy backing.
• The change in culture towards organic products is also influencing consumer preferences and market trends, as organic food is now seen as a representation of a lifestyle that prioritizes both personal health and the well-being of the planet. This changing attitude drives the expansion of the market, leading to growth. Hence, in this way, the Growth of Organic Agricultural Practices acts as a Driver in the Organic farming market.

Growing Support from Local Governments

• The increasing support from local governments for organic farming presents a crucial opportunity in the organic agriculture industry because of the wide-ranging advantages it provides to communities and the environment. This support goes further than just monetary rewards; it signifies a planned dedication to sustainable growth and rural rejuvenation.
• Government incentives, like financial aid, tax benefits, and simplified certification procedures, effectively reduce the obstacles for farmers, particularly small-scale ones, to engage in organic farming. This promotes expansion into organic methods, resulting in more producers and a thriving organic market. Local governments create supportive structures to help organic farmers succeed, leading to economic growth within the community.
• The local governments aid in the preservation of the environment by supporting organic farming. Organic methods, which prioritize soil health, preservation of biodiversity, and minimal chemical usage, are in line with green efforts and strategies for adapting to climate change.
• The local authorities support organic agriculture by providing infrastructure development and implementing market access strategies. Governments can enhance local food systems by establishing direct-to-consumer channels such as farmers' markets and community-supported agriculture programs, which both reduce the carbon footprint of food distribution and benefit farmers' livelihoods.
• The government-funded educational and training initiatives assist farmers in efficiently implementing organic practices, guaranteeing that the switch is sustainable and based on knowledge in the long term. Hence, in this way Growing Support from Local Governments acts as an opportunity in the Organic Farming Market.

Organic Farming Market Segment Analysis:

Organic Farming Market Segmented based on Farming Type, Source, Method.

By Farming Type, Pure Organic Farming Segment Is Expected to Dominate the Market During the Forecast Period

• Several factors aligned with sustainable agriculture principles and consumer preferences are expected to drive the Pure Organic Farming segment to dominance in the market. Organic farming prioritizes utilizing natural methods for soil fertility, pest control, and crop rotation, as they are observed as more environmentally friendly and refreshing. This strategy resonates with the increasing worldwide awareness regarding the environment and health, appealing to customers who are ready to spend more money on products that promote these principles.
• The segment's control is strengthened by the belief in genuineness and authenticity. Consumers frequently link pure organic products with the absence of synthetic chemicals, GMOs, and artificial fertilizers, reflecting the growing popularity of clean-label products. This dedication to purity encourages customer loyalty and sustains a specialized market that values the essence of organic philosophy.
• The Pure Organic Farming sector frequently gets assistance from governments and certifying organizations, which provide incentives and qualifications to assist farmers in upholding these standards. This infrastructure support helps boost growth in the segment and guarantees that organic products comply with strict international standards, strengthening their market position.
• This sector gains advantages from the increasing research that emphasizes the lasting advantages of organic farming techniques, such as soil health, biodiversity, and possible health benefits linked to organic crops. This scientific confirmation impacts consumer preferences and drives market trends towards pure organic products.
• The increase in the sector can also be attributed to successful advertising and educational campaigns that emphasize the distinct quality variations between pure organic and its products. Hence, in this way By Farming Type, the Pure Organic Farming Segment Is Expected to Dominate the Organic Farming Market.

By Source, Plant-Based Segment Held the Largest Share In 2023

• The Plant-Based market's substantial market influence is due to a combination of factors such as changing dietary trends, increased focus on health, environmental awareness, and improvements in food technology. This section has seen quick expansion, especially in the dairy alternatives and meat substitute sections, because of multiple convincing factors.
• Consumers are turning to plant-based options in pursuit of a healthier lifestyle due to health and wellness concerns. These items are commonly seen as having lower levels of saturated fats and higher levels of beneficial nutrients, which is in line with dietary suggestions for preventing diseases.
• Many people have chosen plant-based alternatives over animal agriculture due to concerns about its environmental impact, such as greenhouse gas emissions and land use, showing a growing environmental awareness. This trend is especially pronounced in younger age groups, who place a high value on environmental sustainability when making purchases.
• The Concerns surrounding animal welfare and the demand for cruelty-free products have also contributed to the expansion of the plant-based market. Novel products that replicate the flavor, consistency, and health benefits of animal-derived products have increased the attractiveness and availability of plant-based diets.
• The marketing initiatives and prominent endorsements have propelled plant-based products into the spotlight, rendering them a more prominent and culturally acceptable option. The wide range of plant-based products appealing to different tastes and cultural cuisines has expanded the market's attractiveness, providing options for all consumers.
• Positive rules and policies supporting healthier and sustainable food choices have also played a role in the segment's expansion, along with the worldwide shift towards plant-based diets supported by research on their health and environmental advantages. By Source, the Plant-Based Segment Held the Largest in the Organic Farming Market.

Organic Farming Market Regional Insights:

• Asia Pacific is expected to lead the alternative protein market due to demographics, economy, culture, and environment. In Asia Pacific, there is a vast array of cultures and dietary habits that are deeply rooted but also changing quickly. With an expanding middle class and evolving consumer preferences, there is a rising willingness to embrace new food trends such as plant-based and alternative protein products.
• Awareness of the environment is strong in the region due to its vulnerability to climate change, leading to a focus on sustainable food options. The impact of overfishing and pollution has been felt in Asia Pacific due to its sizable coastal populations, driving the need for sustainable protein alternatives.
• Rapid urbanization and economic growth have caused an increase in the need for convenient, high-quality food products. Alternative proteins, due to their ability to be produced efficiently and have a lower environmental impact, are in line with the desires of city dwellers looking for healthier, ethically conscious, and sustainable lifestyles.
• Asia is nowadays a leading center for innovation in food technology, with countries such as Singapore leading the way in cellular agriculture and new methods of food production. This advancement creates a favorable setting for the growth and commercialization of alternative proteins, drawing in investments and boosting market expansion.
• The Government in the area is actively endorsing research and production of alternative proteins, acknowledging the opportunity for economic expansion and sustainability. This involves policies that offer support, financial backing for research, and favorable regulatory frameworks.
• Due to increased awareness about health, people are looking towards different protein sources as a way to lower health risks from consuming too much meat. This is especially the case in regions with persistent issues. Hence in this way, Asia Pacific is Expected to Dominate the Organic Farming Market.

Source: APEDA

• The Organic Production of India in Metric Tons by state where Madhya Pradesh has the highest Organic Production of 1462921 Metric Tons, Followed by Maharashtra 702654 Metric Tons, Rajasthan 456741 Metric Tons, Gujarat 312510 Metric Tons, Odisha 185206 Metric Tons, Karnataka 151721 Metric Tons. As of March 31, 2023, India’s APEDA reports organic certification area in India under NPOP is 10.17 million hectares (mha), which includes 5.4 mha of cultivable areas and 4.7 mha wild harvest collection.

Organic Farming Market Active Players

• Whole Foods Market (USA)
• Eosta B.V. (Netherlands)
• Green Organic Vegetable Inc. (Canada)
• Hain Celestial Group (USA)
• General Mills (USA)
• Cargill, Inc. (USA)
• Danone Sa (France)
• Organic Valley (USA)
• United Natural Foods, Inc. (USA)
• Newman's Own (USA)
• Amy's Kitchen (USA)
• Nature's Path Foods (Canada)
• Organic Farm Foods (UK)
• Fonterra Co-Operative Group (New Zealand)
• The WhiteWave Foods Company (USA)
• Sunopta (Canada)
• Arla Foods (Denmark)
• Austrianova (Austria)
• Hipp Gmbh & Co. Vertrieb Kg (Germany)
• Aurora Organic Dairy (USA)
• Yeo Valley (UK)
• Pinnacle Organic Farm (USA)
• Pure Harvest Smart Farms (UAE)
• Bio-Tropic Gmbh (Germany)
• Sekem (Egypt) and Many Other Active Players

Key Industry Developments in the Organic Farming Market:

• In May 2024, The Organic Farming Research Foundation (OFRF) announced its five-year cooperative agreement with the United States Department of Agriculture’s (USDA) National Resource Conservation Service (NRCS) to enhance organic agriculture businesses’ access to vital conservation programs. OFRF will provide expertise in organic research and conservation practices, supporting NRCS in building institutional knowledge of the conservation considerations of organic management at NRCS offices and with regional partners.
• In May 2023, Agriculture Secretary Tom Vilsack announced that the U.S. Department of Agriculture (USDA) is to take additional steps to strengthen the market for domestically grown organic goods and support producers seeking organic certification. The new Organic Market Development Grant (OMDG) Program, USDA’s Agricultural Marketing Service (AMS) will issue up to $75 million in competitive grants. OMDG is intended to increase the consumption of domestic agricultural commodities by aiding in the expansion of markets.