Organic farming is a sustainable agricultural method that avoids or minimizes the use of synthetic additives. This approach emphasizes the health of ecosystems and the quality of produce through natural processes.
– Pure Organic Farming
– Integrated Organic Farming
– Crop Diversity
– Soil Management
– Weed Management
– Controlling Other Organisms
– Fruits and Vegetables
– Cereals and Grains
– Oilseeds and Pulses
– Other Crop Types
The organic farming sector has experienced significant expansion. The market size grew from $187.84 billion in 2023 to $208.66 billion in 2024, representing a compound annual growth rate (CAGR) of 11.1%. This growth is driven by increased consumer awareness, health trends, governmental support, and retailer demand.
Looking ahead, the market is projected to reach $321.79 billion by 2028, with a CAGR of 11.4%. Factors contributing to this growth include concerns over climate change, shifting consumer preferences, advancements in supply chain logistics, and innovations in technology. Key trends include a rise in research and development, technological advancements, increased organic acreage, and the growth of urban agriculture and vertical farming.
Organic farming offers substantial environmental and health advantages. It eschews chemical fertilizers and pesticides, reducing soil and groundwater contamination. It also minimizes reliance on non-renewable resources and supports soil biodiversity. Research from Columbia Climate School highlighted that organic farming can foster 30% more biodiversity, use 45% less energy, and emit 40% less carbon compared to conventional farming. Additionally, organic farming reduces exposure to harmful chemicals, benefiting growers and consumers alike.
The increasing adoption of organic agricultural practices, such as crop rotations and minimum tillage, is fueling market growth. These practices improve soil fertility, structure, and biodiversity, and reduce erosion. The Organic Trade Association reported that in 2021, organic sales in the U.S. reached over $63 billion, with a notable increase in consumer preference for organic products.
Government schemes globally support organic farming due to its health and environmental benefits. For example, India’s Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for the North Eastern Region (MOVCDNER) promote organic practices. Similar initiatives worldwide are expected to further drive market growth.
Innovative products like Mooala Simple, an organic plant-based milk line, are setting new market standards. Despite these advances, challenges such as lower yields compared to conventional farming remain. According to USDA studies, organic farming yields are typically lower, posing potential issues for food security.
In August 2022, the Organic Trade Association collaborated with Sustainable Food Lab to increase the domestic supply of organic grain in the U.S., enhancing market resilience.
Regionally, the Asia-Pacific region was the largest market in 2023, followed by Western Europe. The market spans across various regions including North America, South America, and the Middle East.
The organic farming market encompasses revenues from producing crops and livestock through organic methods, excluding synthetic additives. This includes organic grain, oilseed, fruit, nut, and vegetable farming. The market value reflects revenues from sales and services, excluding resales within the supply chain.
The organic farming market is poised for substantial growth, driven by environmental benefits, consumer demand, and innovative practices. While challenges such as lower yields persist, government support and market innovations continue to shape the future of organic agriculture.
