by The global Organic Farming market has emerged as a lucrative space in recent years. Organic farming refers to agricultural practices that involves growing and raising food using natural methods that do not involve synthetic pesticides and fertilizers. Organic food products are deemed healthier since they are grown without the use of harmful chemicals. The increasing health consciousness among consumers and growing preference for chemicals-free food has contributed majorly to the growth of organic agriculture worldwide.
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 players operating in the Organic Farming 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. Organic Farming Market Growth including fruits, vegetables, meat and dairy items are gaining widespread popularity among health-conscious consumers seeking environment and animal-friendly options. Strict regulatory norms especially in developed economies like North America and Europe pertaining to the usage of agricultural chemicals is further driving the demand for organic foodstuffs.
Key Takeaways
Key players: Key players operating in the Organic Farming 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. These companies are investing heavily in R&D and new product developments to tap into the growing organic food market.
Growing demand: The uptake of organic farming is being fueled by rising health awareness and changing dietary patterns. Consumers are increasingly demanding chemical-residue free foods produced in a sustainable manner. This growing demand especially from developed regions is encouraging more farmers to shift to organic agricultural practices.
Global expansion: Major organic food producers are exploring opportunities beyond domestic markets and expanding their global footprint. North America and Europe currently hold the leading shares but developing regions like Asia Pacific and Latin America are emerging as lucrative markets. Countries are introducing new policies and certification programs to promote organic farming and exports
Market key trends
Sustainable intensification of organic production is one of the key trends being witnessed. Farmers are adopting newer technologies and precision farming techniques to boost organic yields in a eco-friendly manner. Digitization of the agriculture sector is enabling improved monitoring of soil health, optimized water and crop management. The use of drones, IoT sensors and automated processes are helping significantly improve the efficiency and productivity of organic lands. Furthermore, organic packaging materials made from renewable resources are gaining favorability. The market players are innovating novel bio-degradable and eco-packaging solutions to meet the growing sustainability criteria of brand owners and regulators.
Porter’s Analysis
Threat of new entrants: Low barriers to entry however existing organic farms have established advantages in terms of brand, distribution and access to resources.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes however demand for organic products is increasing.
Bargaining power of suppliers: Suppliers have moderate to high bargaining power due to advantages of scale enjoyed by bigger players and importance of traceability in organic produce supply chain.
Threat of new substitutes: Threat of substitutes is moderate as there is growing consumer preference for organic and natural food however price of organic produce is relatively higher.
Competitive rivalry: Intense as the organic farming industry is fragmented with presence of small and medium size organic farms however few bigger players are consolidating.
Geographical regions hold maximum market share in terms of value include North America and Europe due to well established organic regulations, growing urban population and health awareness. Asia Pacific region is projected to be the fastest growing market owing to rising disposable incomes, growing health consciousness and supportive government policies and initiatives towards organic farming in countries like India and China. The consumers in Asia Pacific prefer fresh and chemical free agricultural produce.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
