Global Organic Farming Market - 2025-2032

Global Organic Farming Market reached US$ 171.5 billion in 2024 and is expected to reach US$ 287.3 billion by 2032 growing with a CAGR of 6.7% during the forecast period 2025-2032.

The global organic farming sector has continued its upward trajectory, with significant developments in recent years. In 2023, the total area under organic management crossed 96.4 million hectares, marking an increase of over 20 million hectares from 2022. This growth was predominantly driven by substantial expansions in Australia and India. Australia remains the leader with 53 million hectares under organic cultivation, while India has ascended to the second position with 4.7 million hectares.

The number of organic producers worldwide also saw a notable rise, surpassing 4.5 million by the end of 2022. This increase is largely attributed to a significant uptick in India, which now accounts for approximately 2.5 million organic producers. Despite these positive trends, the organic sector faces challenges, including market fluctuations and varying consumer demand across regions. Nevertheless, the sustained growth in both production and market value underscores the increasing global commitment to organic agriculture and its principles.

Dynamics

Rising Consumer Demand for Organic Products

The global organic farming market has experienced remarkable growth in recent years, fueled by increasing consumer demand for organic products. This trend reflects a growing awareness of health benefits, environmental sustainability and the desire for food produced through natural and chemical-free methods.These factors played a critical role in shaping the trajectory of organic farming worldwide, with notable expansions in production, market value and government initiatives.

In 2024, the global organic farming sector continued to grow steadily, with turnover of more than 98 million hectares of land under organic management. This marked a significant increase compared to previous years, driven by heightened consumer preferences for organic products. The organic market globally reached sales of EUR 135 billion in 2022, with US leading as the largest organic market, generating EUR 56.6 billion in sales. This growth was mirrored in other major markets, including Germany, China and Canada, reflecting a broad-based shift in consumer priorities.

Supportive Government Policies and Subsidies

Supportive government policies and subsidies have been pivotal in driving the global organic farming market. The initiatives have provided financial assistance, research funding and market development support, encouraging farmers to adopt organic practices and meet the rising consumer demand for organic products.

In 2024, the U.S. Department of Agriculture (USDA) announced the availability of US$ 58 million through the Organic Dairy Marketing Assistance Program (ODMAP) to support organic dairy producers. This funding aims to expand the market for organic dairy and increase consumption, thereby strengthening the economic viability of organic dairy farming. Additionally, the USDA began issuing over US$ 2.14 billion in payments to agricultural producers and landowners through key conservation and safety-net programs in 2024. The programs are designed to conserve natural resources and support family farms, aligning with the principles of organic agriculture.

In the European Union, the Common Agricultural Policy (CAP) has been a significant driver of organic farming. However, recent reports have highlighted the need for reforms to better align subsidies with environmental goals. A 2024 report by the European Court of Auditors identified gaps between EU farming incentives and the Green Deal objectives, emphasizing the need for more targeted support for sustainable practices, including organic farming.

Furthermore, the USDA's Organic Agriculture Program has recognized the organic industry as the fastest-growing segment of U.S. agriculture, with total sales of food and non-food products reaching US$ 57.5 billion in 2021. This recognition has led to increased support for organic producers, including expanded risk management options and premium subsidies.

Low Yield Compared to Conventional Farming

The global organic farming market has been expanding, driven by increasing consumer demand for sustainably produced food. However, one significant challenge restraining its growth is the lower yield of organic farming compared to conventional methods. This yield gap has implications for food supply, land use and the economic viability of organic agriculture.

Studies have consistently shown that organic farming yields are generally lower than those of conventional farming. A comprehensive meta-analysis published in Nature found that organic yields are typically lower than conventional yields, with differences ranging from 5% to 34% depending on various factors. Under certain conditions, such as with good management practices and specific crop types organic systems can nearly match conventional yields, whereas under others, they cannot.

The lower yields in organic farming are attributed to several factors, including the prohibition of synthetic fertilizers and pesticides, which can lead to increased pest pressures and nutrient deficiencies. Organic farmers rely on natural alternatives and crop rotations to manage soil fertility and pests, practices that can be less effective or slower-acting than conventional methods. Additionally organic farming often requires more diverse crop rotations and fallow periods, which can reduce the amount of marketable produce grown in a given time frame.

Segment Analysis

The global organic farming market is segmented based on on product type, farming type, application and region.

Shifting Consumer Preferences For Pure Organic Farming

The demand for pure organic farming methods has been a key driver of growth in the global organic farming market. This demand reflects an increasing consumer preference for health-conscious and environmentally sustainable products. In 2023, the USDA highlighted that the U.S. organic industry is the fastest-growing segment of agriculture, with organic product sales reaching $57.5 billion in 2021. This growth trend is expected to continue, supported by rising awareness of the benefits of organic products.

The USDA's Agricultural Resource Management Survey (ARMS) provides valuable data on organic practices and their economic impact. In 2023, the ARMS revealed that organic farms, particularly those practicing pure organic methods without synthetic fertilizers or pesticides, are gaining traction despite challenges such as higher production costs and lower yields compared to conventional farming. These farms, however, benefit from premium prices and significant demand in the marketplace.

The National Organic Standards Board (NOSB) plays a key role in maintaining organic standards, ensuring that only products adhering to strict organic guidelines, such as the exclusion of synthetic substances, are certified as organic. This ensures that pure organic farming practices remain the standard for products labeled as organic. In 2024, the NOSB continued its evaluation of various substances to ensure they meet the stringent criteria of organic farming.

Geographical Penetration

Significant Growth in Organic Farming Trends in Asia-Pacific

Asia-Pacific has experienced significant growth in organic farming, driven by increasing consumer demand for organic products and supportive government policies. In 2023, the Food and Agriculture Organization (FAO) reported that Asia accounted for approximately 5% of the global organic agricultural land, with countries like China, India and Japan leading in organic farming area.

In 2024, the OECD-FAO Agricultural Outlook projected that the Asia-Pacific region would continue to experience strong economic growth, with per capita income increasing at an average annual rate of 4.5%. This economic expansion is expected to drive higher demand for organic products, as consumers become more health-conscious and environmentally aware.

Government initiatives have played a crucial role in promoting organic farming in the region. For instance, Australia's Department of Agriculture, Fisheries and Forestry has implemented programs to support organic certification and market access for organic producers. The department's Annual Report 2023-24 highlights efforts to enhance the competitiveness of Australian organic products in both domestic and international markets.

In India, the government has launched the National Programme for Organic Production (NPOP), which provides certification and support to organic farmers. This initiative aims to increase the area under organic cultivation and improve the quality of organic products, thereby boosting consumer confidence and market growth. Overall, the combination of rising consumer demand and supportive government policies is expected to drive the continued growth of the organic farming market in the Asia-Pacific region.

Competitive Landscape

The major global players in the market include Darling Ingredients Inc., Indigo Agriculture Inc., Soli Organic Inc., SalMar ASA, Actagro, Reiter Affiliated Companies, LLC, KORIN AGROPECUARIA LTDA, Jain Farm Fresh Foods Limited, Suminter India Organics and Ambrosia Organic Farm.

By Product Type

• Organic Seeds and Planting Materials
  • Fruits and vegetable seeds
  • Cereal and pulse seeds
  • Oilseed seeds
  • Saplings and seedlings
• Organic Fertilizers
• Organic Pesticides
• Soil Conditioners
• Plant Growth Enhancers
• Animal Feed and Additives
• Others

By Farming Type

• Pure organic farming
• Integrated Organic farming

By Application

• Crop Diversity
• Soil Management
• Weed Management
• Others

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In September 2024 organic Seed Alliance (OSA) and a consortium of research partners announced the launch of a major new research project aimed at advancing organic seed production practices and expanding the availability of high-quality organic seed. The project, titled "OSPREY: Organic Seed Production Research on Economics and Yield," has been awarded funding through the U.S. Department of Agriculture's (USDA) National Institute of Food and Agriculture (NIFA) Organic Research and Extension Initiative (OREI).
• In June 2024, Chandra Shekhar Azad University of Agriculture and Technology (CSAUAT) has initiated a large-scale shift towards organic farming in response to the excessive use of chemical pesticides, which is causing serious harm to human health and soil quality. In collaboration with Hindustan Insecticides Limited, the university is launching an organic farming project across 22 districts in Uttar Pradesh. This project, running from 2024 to 2028, aims to extensively educate farmers about organic farming practices.

Why Purchase the Report?

• To visualize the global organic farming market segmentation based on product type, farming type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the organic farming market with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global organic farming market report would provide approximately 62 tables, 56 figures and 201 pages.

Target Audience 2025

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies