Organic Farming Market Size, Share, and Industry Analysis, By Farming Type (Pure Organic Farming and Integrated Organic Farming), By Application (Agriculture Companies and Organic Farms), and Regional Forecast 2025-2032

The increasing demand for organic food products is a key driver behind the growth of the global organic farming market. Consumers are becoming increasingly health-conscious and willing to pay premium prices for organic products. According to the Research Institute of Organic Agriculture, global sales of organic food and drink reached more than USD 131.09 billion in 2020. Organic farming is beneficial to the environment as it does not utilize chemical fertilizers or pesticides, which can cause soil and groundwater contamination. This approach also conserves biodiversity and reduces the utilization of non-renewable resources required for artificial fertilizers.

Governments are launching initiatives to promote organic farming methods and incentivize farmers to adopt these practices. This support enhances soil health, preserves biodiversity, and reduces environmental impact while ensuring food safety and security. Governments around the world are also providing financial incentives and subsidies to encourage farmers to adopt organic farming practices. For example:

• In 2023, the Rajasthan state government in India announced new subsidies for farmers opting for organic crop cultivation, including an input subsidy of USD 59.85 per farmer for over 50,000 farmers.
• Between 2021-2022, government officials in Ghana encouraged farmers to adopt organic manure, such as poultry manure, to enrich soil fertility and improve production economics.

The integration of organic farming with advanced technology is another driver of growth in the organic farming market. This integration offers high-value expansion possibilities by enhancing efficiency, productivity, and sustainability in organic farming practices. AI and ML algorithms can be integrated into organic farming systems to predict crop yields, detect pests and diseases, and optimize irrigation and fertilization schedules. This integration enhances the efficiency and sustainability of organic farming practices. For instance, in March 2023, Ecochoice Naturals, a Bengaluru-based agricultural startup, launched a mobile application for Sustainable development to connect organic farmers with institutional buyers. The new app, machine learning (ML), and artificial intelligence (AI) generate reports within 30 seconds.

Key Insights

The report covers the following key insights:

• Overview of the Organic Farming Market
• Supply Chain and Regulatory Analysis
• Drivers, Restraints, and Opportunities
• Impact of COVID-19 on the Global Organic Farming Market
• Key Developments

Segmentation

Analysis by Farming Type

By farming type, the market is divided into pure organic farming and integrated organic farming.

The integrated organic farming segment is expected to hold a significant share of the global organic farming market due to its ability to combine modern technological practices with traditional organic farming methods. This approach focuses on improving soil health, increasing crop yields, and managing pests while considering the entire agroecosystem. Integrated organic farming aims to strike a balance between environmental protection and economic efficiency, making it an attractive option for farmers and consumers alike. The most common methods used in integrated organic farming include crop rotation, cover cropping, crop-livestock integration, and others.

The pure organic farming segment is expected to grow significantly in the forecast period. Pure organic farming is seen as a more sustainable approach to agriculture, as it promotes soil health, biodiversity, and efficient use of resources. This emphasis on sustainability is driving the growth of the pure organic farming segment. Consumers are becoming more aware of the health and environmental impacts of conventional farming practices. This awareness is driving the demand for organic products, including those produced through pure organic farming methods.

Analysis by Application

By application, the market is divided into agriculture companies and organic farms.

The organic farms segment is anticipated to hold a major share of the global market. Organic farming practices are primarily implemented on farms that produce organic food. This makes the organic farms segment directly connected to the core purpose of organic farming. Organic farming is more prevalent on organic farms, as these farms are committed to sustainable practices and prioritize environmental and social responsibility. Organic farms are also more likely to be certified by organizations such as the U.S. Department of Agriculture (USDA) or EU-approved certification agencies, which ensures that they adhere to strict guidelines and standards for organic production. The rising cropland area under organic agriculture further fuels the market growth. According to the U.S. Department of Agriculture (USDA) National Agricultural Statistics Service surveys, certified organic cropland acres increased by 79% for the period 2011-2021.

The agriculture companies segment is projected to grow at a high CAGR in the forecast period. Agriculture companies play a significant role in supplying organic fertilizers, pesticides, seeds, and other inputs certified for organic farming. Growth in the organic farming market could lead to increased demand for these organic-compliant products from agriculture companies. 

Regional Analysis

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The global market is geographically segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. North America is expected to account for the largest proportion of the global organic farming market. In recent years, the demand for organic products has grown rapidly in North America, owing to rising health consciousness and environmental awareness among consumers. According to a survey conducted by the Organic Trade Association, sales of organic food accounted for USD 60 billion in the U.S. Government organizations in North America are providing support and incentives, such as subsidies on organic fertilizers and other inputs. For instance, in August 2022, the U.S. Department of Agriculture (USDA) invested USD 300 million, including American Rescue Plan funds, in a new Organic Transition Initiative. The investment would help build new markets and income streams for farmers and producers of organic farms.

Asia Pacific is expected to grow significantly in the forecast period. Consumers in Asia Pacific are increasingly seeking organic food options due to health concerns and food safety issues. Organic food is becoming widely available to Asian consumers as many supermarkets and hypermarkets actively market organic products in countries such as South Korea, Singapore, and Hong Kong. The introduction of national standards for organic production and labeling schemes in Asia Pacific countries is further supporting the growth of the organic farming market.

Key Players Covered

The report includes the profiles of key players, such as A & A Organic Farms, Fasal, BASF SE, Korin, Monsanto Company, DuPont de Nemours, Inc., Blue Yonder Group, Inc., Amalgamated Plantations, Eden Foods, and Vero-Bio B.V.

Key Industry Developments

• In May 2024, the U.S. Department of Agriculture (USDA) partnered with the Oregon Tilth and Organic Farming Research Foundation (OFRF) to strengthen organic expertise for conservation programs and expand relationships among producers wanting to switch to organic.
• In November 2023, The Kerala Government formed an Organic Farming Mission to encourage climate-smart farming and adoption of sustainable organic practices in the state.