In the past few decades, the health effects of consuming chemical-heavy crops have led to several public health and environmental complications. Traditional large-scale production of crops and animal production is being scrutinised due to the increasing usage of pesticides, artificial fertilizers, antibiotics, and genetically modified organisms. As a healthier and more sustainable alternative, organic farming is being promoted by several governments and environmental bodies across the globe.
Organic farming does use any chemicals and is said to be healthy for soil and groundwater. Increasing healthcare awareness and propensity for adopting sustainable dietary habits is contributing to robust growth in demand for organically produced food products. Furthermore, many leading economies are promoting farmers to adopt organic farmers via financial incentives. These developments are expected to aid the long-term expansion of the global organic farming market during the forecast period.
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Government Policies to Promote Organic Farming to Bode Well for Market Growth
One of the key drivers of the global organic farming market are the supportive government regulations being passed across the globe. Considering the clear health and environmental benefits of organically farmed products, governments are supporting this organic farming through various subsidies and other financial incentives. These efforts also help tackle the increasing scrutiny of the environmental impact of agriculture. The cumulative effect of these government policies is making organic farming more profitable for farmers across the globe. As a result, the production and consumption of organic vegetables and fruits are projected to increase at a considerable pace during the forecast period.
Increasing Demand for Organic Food Products to Prolong Growth Trajectory
In the recent past, the demand for organic foods has grown drastically. The clear health benefits, and changing consumption habits of consumers across the globe are some of the leading contributors to this trend. The organic cultivation land acres have also expanded significantly in several economies and regions. The increasing cultivation of organic fruits and vegetables, coupled with soaring demand for organically farmed food products is leading the global organic farming market to sound maturity. Besides, there is an increasing focus on changing consumption habits to align with environmental well-being. This is further augmenting the demand for organic farming on a global scale.
North America to Hold Lion’s Share in Organic Farming Market Owing to Supportive Policymaking
Increasing focus on environmental awareness and changing dietary habits are propelling North America to a leading position in the organic farming market. Several North American government bodies and environmental agencies are supporting trends. The organic cultivation area in leading regional economies such as the USA is increasing at a promising pace. Besides, the demand for organic and vegan products is expanding rapidly. Elsewhere, Asia Pacific is emerging as the fastest-growing region with a considerable market share. This is mainly due to supportive policymaking in economies such as India.
Key Market Players
The most active players currently operating in the global organic farming market include Aero Farm Systems, Bayer AG, ZUWA Organic Farms Pvt Ltd, AkzoNobel N.V., Organic Farmers Co., Amalgamated Plantations Pvt Ltd., BASF SE, Indian Organic Farmers Producer Company (IOFPC), Nalco Holding Company, Picks Organic Farm, Solvay SA, Camson Bio Technologies Limited, Dow Chemical Company, Mcleod Russel India Ltd., Bunge India Pvt. Ltd., Plenty AG, and Agrilution Systems GmbH.
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