Market Introduction

The global organic farming market was valued at USD 11 billion in 2024 and grew at a CAGR of 8% from 2025 to 2034. The market is expected to reach USD 23.74 billion by 2034. The increasing need for sustainability in agriculture will drive the growth of the global organic farming market.

Organic farming is a branch of agriculture that focuses on using natural phenomena, biodiversity and the ecological balance to farm sustainably and in an environmentally safe manner. Organic farming does not use or at best restricts the use of synthetic chemicals, fertilizers, genetically modified organisms (GMOs), and intensive farming practices as in the case or ordinary farming. Rather, it encourages the application of organic soil fertilisers such as compost, green manure and bone meal, and the application of crop-rotation, intercropping, biological pest-control and cover-cropping in order to keep soil nutritious and prevent pests and diseases. The main objective of organic farmers is to achieve a sustainable agriculture system, through the development of an integrated agriculture, which would increase the soil fertility, conserve the water, reduce the pollution, and biodiversity. In organic farming, soil is deemed as a living system and, to absorb its fertility, it should be nourished with natural amendments and diminished with erosion and degradation processes. Interest in organic food among consumers has risen dramatically over the past years as more and more people become conscious of health, environmental and ethical concerns. Also, organic farming serves to moderate climate change because it lowers production of greenhouse gases and enhances sequestration of carbon in soils.

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Recent Development

• 17 Compressed Bio-Gas (CBG) producers have been given permission by the Central Government to sell liquid fermented organic manure (LFOM) and fermented organic manure (FOM) in large quantities to farmers directly. The approval, which was given in accordance with the 1985 Fertiliser (Inorganic, Organic, or Mixed) Control Order, is good for three years. The Center's attempts to approve organic byproducts from CBG plants as fertilisers include this action. These 17 producers are now able to commercially offer FOM and LFOM, which are nutrient-rich and act as organic carbon boosters, thanks to a notification issued by the Ministry of Agriculture on July 8, 2025.

Market Dynamics

Drivers

The growing emphasis on agricultural sustainability – The aspect of sustainability of soil and crop management lies among the most important drivers of the market. Organic farming practices, which include crop rotation, green manure and composting, increase soil fertility, structure and diversity, all of which lead to more resilience of agricultural systems in the long run. The sustainable practice would also reduce the input of synthetic inputs, favouring natural cycles of nutrition and cycling of pests. It is further noted that though the cost of conversion of early organic farming may be high, the long-term input costs which can be minimal can offset overall cost effectiveness. Organic farming has also developed due to technological changes. Organic methods have been improved by innovations in organic pest management, biofertilizer, and methods of composting and precision agriculture to be more efficient and reliable. In addition, a more advanced supply chain infrastructure enables producers to gain easier access to organic markets, and to stay in line with the organic standards. These internal factors have sustained the feasibility of organic farming on their own, but more effectively demonstrated the strength of organic farming as a profitable and sustainable option in the contemporary agricultural set up.

Restraints

High costs of production and premium retail prices – Organic farming is less productive per-acre because it does not have the use of synthetic fertilizers and chemical pesticides and thus production on a large scale is unfit for organic farming. This yield gap emerges to be a large limit, more so in the event that food demand across the globe is on the rise. Furthermore, organic farmers experience an increased cost of production. Use of organic seeds, organic manure, organic pesticides and the above practices lead to high operation costs and these costs may make it difficult to encourage small and medium-scale farmers to shift to organic farming. The other constraining internal factor is the complexity of the process of getting organic certification. The documentation, periodic inspections and designated transition period of several years of conventional to organic practices is mandatory in obtaining and retaining certification. These burdens ensure that it is time consuming and demands a lot of resources, especially where the farmers are left unsponsored either financially or institutionally. In addition, lack of technical knowledge and expertise in organic techniques is also an impediment to proper application of the same. Several farmers have no experience in organic pest control, crop rotation or even soil health control meaning that they are not efficient and do not have consistent crop performance. Finally, the post-harvest management problems which include the absence of the specialized processing facilities, transport system, and organic processing plants may undermine the quality of goods and tend to make them less marketable.

Opportunities

Changing consumer behaviour and greater market support – Consumer behaviour, environmental concern issues, policy support, and accessibility in the market are the major forces that influence the growth of global organic farming market. The increasing health-consciousness of consumers being one of the greatest drivers as the consumers are more inclined towards food which is perceived to be devoid of any synthetic chemicals, GMOs, and harmful additives. This change in consumer tendency has evoked a high demand of organically cultivated fruits, milk, as well as meat. Concern for health and increased interest in environmental sustainability has also emerged as driving forces behind consumer goods as consumers and other stakeholders have come to understand the benefits of organic agriculture in providing soil protection, cleaning up water, and limiting damaging greenhouse gases. Being environmentally friendly complements this value further to making organic agriculture attractive. The other great external factor is the favourable regulatory climate. In most of the areas, especially the ones in Europe and Asia, governments are adopting favourable measures by subsidies, technical support, and easy certification procedures to promote organic farming practices. The initiatives reduce the barriers of entry of farmers but make organic products in the market more credible and traceable. It is also being caused by the proliferation of organized retailing and e-commerce. Organic products are becoming more widely available and seen by people as more supermarkets, health stores and online suppliers introduce them.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe emerged as the most significant global organic farming market, with a 37% market revenue share in 2024.

Europe can be considered a leader of the global organic farming market owing to the conglomeration of high consumer activities, favourable government regulations, and well-developed certification apparatus. The area ranks first in the volumes of land that is under organic cultivation, presence of organic producers and volume of consumption of organic products. European consumers are the most conscious and environmentally aware in the world and this makes a long-term popularity of organic food and beverages. Such a realization is evident in the fact that Europe has spent a lot of their per capita money on organic foods and as such is considered the biggest organic market in the world. Extensive policies and regulatory frameworks have been established by the European Union (EU) to encourage organic agriculture noted to include subsidies under Common Agricultural Policy (CAP), funds to research and product-labelling standards being strict on the organic labels. Moreover, much of the sophisticated supply chain and retail distribution networks that exist in Europe give way to high levels of accessibility of organic products through most supermarkets, specialty outlets, and farmer markets, which are convenient and accessible to consumers. Countries such as Germany, France, Italy, and Spain are major contributors, and together, they make a significant portion of European organic production and consumption.

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• IFOAM Organics Europe is pleased that organic farming was given good attention during the vote on the European Parliament's own-initiative report on the future of agriculture and the common agricultural policy after 2027. In fact, the Committee for Agriculture's report emphasises that organic farming is a cutting-edge farming method that ought to be encouraged in the upcoming CAP since it not only increases agricultural autonomy and food security but also drastically lowers the need for inputs and outside dependencies.

Crop type Segment Analysis

The crop type segment is divided into fruits & vegetables, cereals & grains, oilseeds & pulses and others. The fruits and vegetables segment dominated the market, with a market share of around 40% in 2024. The most common type of crop in the global organic farming market is fruits and vegetables due to the high demand by consumers of fruit and vegetable crops as well as their market value and increased health awareness and nutrition. This segment has emerged as the leader mostly because it is consumed directly and frequently by the health-conscious consumers, who tend to pay more attention to organic produce as they consider them more safe, fresh, and free of any chemical residues. All the other varieties of organic foods when compared have the highest turnover in both the retail stores such as supermarket and farmers markets, therefore, fruits and vegetables are the most visible and accessible point of entry to consumers who wish to change their lives towards organic lives. The superiority of such a segment can also be demonstrated by faster cycles of many fruits and vegetables, which enable the organic farmers to have more than one harvest per year. This attracts faster returns than investment in other long-cycle crops such as grains. Moreover, the numerous governments and certification organizations have been focusing on fruit and vegetables in their policies and marketing of organic farming as they are the key to healthy people and diets. Trends among consumers like eating plant-based foods, clean-label, and fresh food home delivery services have also contributed to the increase in demand of organically grown fruits and vegetables. The high perishability and freshness necessities of this segment also make it suitable to a local organic farming, bolstering local supply chains.

Method Segment Analysis

The method segment is divided into organic cultivation, organic aquaculture, organic apiculture, organic livestock farming and others. The organic cultivation segment dominated the market, with a market share of around 45% in 2024. Organic farming plays a central role in developing crops that are free of any chemicals, and which are environmentally friendly. This sector mainly includes cultivation which is free of synthetic fertilizers, pesticides and genetically engineered seeds and crops, and which uses natural inputs like compost, green manure, and biological control of the pest. Organic farming is the pillar of the organic market since it responds directly to the rising issues of food safety, environmental destruction and soil quality and therefore the producers and consumers prefer organic farming. The versatile application of organic growing to a variety of crops, fruits and vegetables as well as cereals and pulses also augments the segment’s growth. Moreover, it has positive effects on biodiversity and tends to maintain an adequate balance in the ecosystem as it encourages crop rotation, and intercropping. Regulatory frameworks and certification systems that present credibility and assurance of organic labels also contribute to the growing adoption of organic cultivation practices. In general, organic farming has become the leader of the organic farming sector due to its capacity to provide scale-able and green food production to meet the trends of healthy food consumption and environmental sustainability, which is accepted worldwide.

Input type Segment Analysis

The input type segment is divided into organic seeds, organic fertilizers, organic pesticides and others. The organic fertilizers segment dominated the market, with a market share of around 43% in 2024. Organic fertilizers commands a large share of the global market given their vital need in ensuring the fertility of a the soil and healthy growth of crops. Also, unlike the typical fertilisers, the organic ones are of natural origins in the form of compost, manure, bone meal, green manure, and other materials of animal or vegetable origin. Not only do they supply such important nutrients as nitrogen, phosphorus and potassium, but also enhance the soil structures, moisture sedimentation and microbial life which are highly crucial in long term soil health and their productivity. The current leader in the case of organic fertilizers is due to the rising awareness by both farmers and consumers about the need to sustain or rather create ecological balance and avoid environment pollution caused by synthetic additions. Organic fertilizers will allow more chemical pollution to be taken off water bodies, allow greenhouse gases emissions to be reduced, and bring more kinds of organisms into agriculture ecosystems. Much diversity and availability of organic sources of nutrients is another reason that will contribute to the domination of the organic fertilizers. The sources can be adapted to the different soils and different crops. Development of better biofertilizers through new technology and use of organic fertilizers have made up the loss in fertility and value of organic fertilizers to some extent and made it more viable in the eyes of farmers. In a nutshell, organic fertilizers form the pinnacle of organic input systems, which are nutritious as well as ecologically sound.

Some of the Key Market Players

• Organic Valley
• Nature’s Path Foods
• Eosta
• AUGA Group
• Suminter India Organics
• Patagonia Provisions
• Akshayakalpa Organic
• Riverford Organic Farmers
• Mary’s Gone Crackers
• Navitas Organics
• Dr. Bronner’s
• Lotus Foods

Report Description