February 21, 2024
Organic Farming Market

Organic Farming Market Is Projected To Grow Exponentially Owing To Rising Health Concerns

The organic farming market involves growing crops and raising livestock in a natural and sustainable way, without the use of synthetic fertilizers, pesticides or genetically modified organisms. Organically produced foods adhere to specific production standards that maintain and replenish soil fertility without destroying the ecosystem. Organic food production relies on crop rotation, green manure, composted animal waste and biological pest control to maintain soil productivity and control pests, weeds and diseases respectively. The global demand for organic food in recent years have encouraged more farmers to adopt organic practices.

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 key opportunities in the market include rising disposable income, increasing preference for chemical-free food, growing health concerns, and government support through subsidies and regulations.

Organic farming is expanding globally due to favorable agricultural practices in regions such as Asia Pacific and South America. Countries across the world are converting conventional farmlands into organic ones to meet the escalating demand for organic food.

Market drivers

The organic farming market is witnessing high growth due to rising health consciousness among consumers regarding the ill-effects of pesticide residues and genetically modified food. People are increasingly aware about the nutritional and environmental benefits of organic products. Consumers are willing to pay premium prices for organic food due to perceieved higher quality, environmental sustainability and animal welfare. Moreover, organic farming helps improve soil fertility without deteriorating the soil structure through natural practices.

PEST Analysis

Political: Organic farming faces regulations regarding the use of pesticides and other chemicals. Government policies and initiatives promote sustainable farming practices.

Economic: Consumers are willing to pay higher prices for organic products due to rising health consciousness. However, costs of production are higher without the use of pesticides and fertilizers.

Social: Growing popularity of healthy, chemical-free food drives demand for organic produce. Customers prefer transparency in sourcing and production processes of food brands.

Technological: Advances in seed varieties, natural fertilizers and farming techniques help organic farms improve yields without comprising on sustainability. Digital tools aid traceability and certification.

Geographical regions with high market concentration

North America dominates the Organic Farming Market Size due to stringent regulations and awareness among consumers about product sourcing. The US accounts for the largest share within the region. Europe is another major market led by countries like Germany, France and Italy where organically cultivated land is significantly high.

Fastest growing region

Asia Pacific is poised to grow at the fastest rate during the forecast period on the back of supportive government policies and initiatives in countries like India and China. Rapid urbanization and rising disposable incomes are increasing health-consciousness among the large population base, driving the adoption of organic foods in the region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it