REPORT HIGHLIGHT

By 2027, the worldwide organic farming market accounted for 141.59 million hectares of agricultural acreage, and it is anticipated to increase at an annual pace of 8.4% through 2027.

Organic farming is a type of agriculture that relies on chemical-free fertilizers made from plant and animal waste. Agri-ecosystem health, which includes soil biological activity, biodiversity, and the biological cycle, is improved by natural practices. Pesticides, fertilizers, and chemical and synthetic growth regulators are not allowed in natural agriculture practices.

MARKET DYNAMICS

The global market is growing due to the good expansion of sustainable agriculture techniques worldwide and regional government initiatives to encourage environment-friendly agricultural practices. Demand for natural fertilizers is being pushed by changing dietary habits toward chemical-free & healthy food items.

Compared to conventional agriculture, natural chemical-free farming offers numerous environmental benefits, including improved soil fertility, less soil erosion, and lower greenhouse gas emissions. Additive-free foods, as opposed to conventional foods, assist in reducing dietary pesticide hazards to human health. In comparison to traditional farms, organic farms provide foods rich in vitamins, enzymes, minerals, and other micronutrients. Organically grown foods have a more natural flavor. Zero budget natural farming is also one of the preferable concepts for biological agriculture practices. In this method, animal waste and agriculture bio-waste are used as natural fertilizers and weed management practices for producing natural pest-resistant crops. Practices like crop diversity provide alternative farm income during the gestation period during the initial stage of conversion from conventional methods. Many companies are working to develop these solutions for large-scale agricultural adoption. Technological innovations such as soil condition monitoring and water table management by satellite data analysis also improve traditional farming practices and helping the promotion of sustainable and natural farming adoption. These developments are expected to boost the market growth during the forecast period.  

The organic agricultural market is likely to be hampered by lower produce output. According to USDA research, natural farms produce considerably less output than conventional farming during the initial years of practice adoption. As a result, it is not favored over conventional farming for large-scale production to maintain food security because conventional agriculture is projected to result in shortages owing to lower yields. Apart from this, sustainable farming practices are costlier compared to traditional techniques due to high initial investment and limited farming yield during an initial period. These factors are obstructing the market growth. 

MARKET SEGMENTATION

The global market is divided into two categories: pure and integrated organic by type, as well as crop diversity, soil management, weed management, and organism control by methods.

Type Takeaways

Integrated organic farming practices are occupying the major share of the global market. Integrated farming is done in the same farm field alongside conventional agriculture. It helps to improve productivity and produce in large quantities market competitive products. Pure organic is done on a comparatively smaller scale. It also gives high control over the production practice as well as product quality. Due to this, product prices are higher, and the market is a niche for these products. Currently, major companies in the agricultural space are experimenting with both practices for large-scale product developments. New start-ups in the sustainable agriculture sector are experimenting with integrated farming to enter the market with price-competitive products.   

Methods takeaways

Crop diversity and Soil management are two major practices in the organic agriculture space. Crop diversity helps soil to nurture nutrition and other microbes to improve fertility and increase yields. Soil management practices include strategic farm input application and water management practices to improve soil health in the long run. Effective seed bad preparation and weed management help reduce cultivation costs and improve farm yields. Crop diversity practices are highly applicable with integrated organic farming.  

REGIONAL TAKEAWAYS

The global market can be segmented into North America, Europe, Asia Pacific, Oceania, and Latin America. Oceania (22.8 million hectares, or about 45 percent of the world's natural agricultural land) and Europe had the most organic farming practices by agriculture acreage in 2015. (12.7 million hectares, 25 percent). Australia (22.7 million hectares), Argentina (3.1 million hectares), and the United States are the three countries with the greatest organic agricultural area (2 million hectares). Due to the rising demand for natural and chemical-free food in the region, North America held a substantial market share in the global market in 2017. According to the National Agricultural Statistics Service (NASS) of the United States Department of Agriculture (USDA), farmers in the United States produced and sold U 7.6 billion in certified organic goods in 2016. Due to increased government initiatives encouraging sustainable agriculture by offering subsidies on natural Agri input products, Asia Pacific was the fastest-growing region and held the largest market share in 2017. For example, the Indian government encouraged organic fruit, vegetable, and agricultural production in 2013 through different initiatives such as the Horticulture Mission for North East and Himalayan States (HMNEH) and the National Horticulture Mission. In April 2018, the European Union stated that commonly used pesticides (neonicotinoids) would be banned in all fields to preserve honeybees and other food-producing soil agents. The government outlawed the sale of ammonium nitrate fertilizers with more than 16 percent nitrogen content in 2010. These elements are contributing to the region's natural agricultural market's growth.

COVID-19 IMPACT

COIVD-19 pandemic affected almost all sections of the global economy due to disrupted supply chains and lukewarm demand for a prolonged period. Agriculture was one of the few exceptions during the pandemic period. Due to its priority sector status and robust rural eco-system, demand for food products was relatively unaffected during this period. With people adopting a healthier lifestyle during the homestay, demand for organic products increased drastically. Many new companies ventured into this segment after observing demand surges and growing consumer preference for various natural food products. Governments across the regions implemented business-friendly policies for companies in the agriculture and food industry. To improve food quality and increase farming income for the rural communities, companies and governmental bodies are working together to develop sustainable farming solutions. These developments helped the organic agriculture sector to stay unscathed during the pandemic period. Market growth is expected to remain at par with prediction during the forecast period. 

KEY PLAYERS

Prominent players working in the field of the organic agriculture market are ZUWA Farms, Camson Bio Technologies Ltd., Bayer AG, Organic Farmers Co., Picks Organic Farm, Nalco Holding Company, Dow Chemical Company, BASF SE, Solvay SA, Eden Foods, Vero-Bio, Monsanto, Amalgamated Plantations, Blue Yonder, and Bunge.

Companies across the territories collaborate for technological innovations for large-scale adoption of natural agriculture practices with high farming yields. Young Living Essentials, a world-leading essential oil firm located in North America, announced a new relationship with Golden Einkorn Farm in December 2019. Golden Einkorn Farm offers its ancient einkorn grain to Young Essentials as part of this collaboration and supports its drive toward sustainability and, therefore, being ecologically responsible. Golden Einkorn Farm is a 600-acre family farm in France that grows einkorn grain and uses rainwater for irrigation, natural matter as manure instead of chemical fertilizers, solar electricity, and other environmentally friendly ways with the goal of zero farming waste.

The market size and forecast for each segment and sub-segments has been considered as below:

• Historical Year – 2016 to 2018
• Base Year – 2019
• Estimated Year – 2020
• Projected Year – 2021 to 2027

TARGET AUDIENCE

• Manufacturers
• Raw Material Suppliers
• Distributors
• Agri Input Manufacturers
• Consulting Firms
• Government and Regional Agencies

SCOPE OF THE REPORT

The scope of this report covers the market by its major segments, which include as follows:

GLOBAL ORGANIC FARMING MARKET KEY PLAYERS

• ZUWA Farms
• Camson Bio Technologies Ltd.
• Bayer AG
• Organic Farmers Co.
• Picks Organic Farm
• Nalco Holding Company
• Dow Chemical Company
• BASF SE
• Solvay SA
• Eden Foods
• Vero-Bio
• Monsanto
• Amalgamated Plantations
• Blue Yonder
• Bunge

GLOBAL ORGANIC FARMING MARKET, BY TYPE

• Pure Organic
• Integrated organic

GLOBAL ORGANIC FARMING MARKET, BY METHOD

• Crop diversity
• Soil management
• Weed management
• Organism control

GLOBAL ORGANIC FARMING MARKET, BY REGIONS

• North America
  • The U.S.
  • Canada
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • United Kingdom
  • Rest of Europe
• Asia Pacific
  • India
  • China
  • South Korea
  • Japan
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • United Arab Emirates
  • Rest of MEA