Organic Grain Farming Market Forecasts to 2028 – Global Analysis By Farming Type (Integrated Organic, Pure Organic Farming), Type (Organic Wheat, Organic Corn), End User (Commercial, Household) and By Geography
According to Stratistics MRC, the Global Organic Grain Farming Market is accounted for $43.64 billion in 2022 and is expected to reach $84.76 billion by 2028 growing at a CAGR of 11.7% during the forecast period. The term ""organic farming,"" also referred to as ""ecological farming"" or ""biological farming,"" refers to an agricultural system that emphasises methods like crop rotation and companion planting and uses organic fertilisers like compost manure, green manure, and bone meal.
According to the research institute of organic agriculture (FiBL) 2020, globally, there are more than 70 million hectares of organic farmland. According to the Organic Trade Association 2019 report, if every U.S. farmer switched to organic farming, annually nearly 500 million pounds of residual and toxic pesticides can removed from getting into the atmosphere.
Market Dynamics:
Driver:
Increasing preference of consumers for organic food
The market for organic grain farming is expanding as a result of customers' growing desire for organic food items. In the past five years, the expansion of organic products has been boosted by improved performance and higher product quality. Additionally, the increased demand has encouraged producers to expand the availability of organic food in mainstream stores.
Restraint:
High cost
One major problem impeding the expansion of the organic grain farming market is the risks related to the high cost of transition and uncertain market guarantee at the conclusion of the transition phase. The farmer pays all the expenses associated with producing organically during the transition time, but they are sold to standard markets because organic sales are not permitted. As a result, it is anticipated that the risks connected to the high cost of transition and uncertain market guarantee at the conclusion of the transition phase will impede the market's expansion for organic grain growing.
Opportunity:
Environmental benefits
The market for organic farming is anticipated to be driven by environmental benefits. Since organic farming doesn't use any chemical pesticides or fertilisers that can contaminate the soil and groundwater, it is very good for the environment. Additionally, less non-renewable resources are used in the production of such artificial fertilisers. The biodiversity of the soil is maintained via organic farming.
Threat:
Low productivity
The organic agricultural market is predicted to suffer from lower organic food yield. When compared to conventional farming, organic farming yields considerably less. Therefore, the latter is chosen over organic farming to maintain food security because the former is anticipated to result in a shortage due to lower yield. It does not satisfy population growth's needs, and as a result, does not meet the FAO's (Food and Agriculture Organization) definition of food security. Therefore, it is anticipated that organic farming's lower production will affect its market.
Covid-19 Impact
People now choose organic food above all else, which has had a significant impact on the organic industry. Never before has the idea of healthy living been more prominent, and people are now more interested than ever in making natural food choices. Fitness programmes, health supplements, and organic food are become more popular due to this trend. Although conventionally produced foods still account for the majority of sales, this trend is gradually shifting to include more organic goods. The pandemic has increased modern consumers' awareness of what they consume. People are becoming more aware of the importance of eating chemical-free and organic food to strengthen their immune systems and improve their overall wellbeing.
The Pure organic farming segment is expected to be the largest during the forecast period
The Pure organic farming segment is estimated to have a lucrative growth, due to high productivity. All synthetic chemicals must be avoided in pure organic farming. All of the fertilisers and herbicides used in this agricultural procedure are derived from natural sources, such as bone meal or blood meal. When farming strictly organically, manures and biological insecticides are used; all synthetic chemicals and pesticides are completely avoided. One of the more uncommon varieties of organic farming is pure organic farming. It's because the production of crops in pure organic farming mostly relies on organic manure, fertilisers, and pesticides.
The Organic Corn segment is expected to have the highest CAGR during the forecast period
The Organic Corn segment is anticipated to witness the fastest CAGR growth during the forecast period, due to utilized in dietary consumption. A natural warm-season vegetable crop is organic corn. For optimum growth, it also needs a sufficient amount of heat, bright sunlight, and water. The best conditions for growing organic corn are warm climates with the right pH and temperature ranges. Moreover, deep, rich garden soil is the finest environment for growing organic corn. With very few exceptions, post-cultivation mechanical harvesting of organic corn is the norm.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period owing to growing concerns about the environment and the health benefits connected with organic foods. Additionally, rising chronic diseases, rising average annual household food spending, easier access to these products through small- to medium-sized retailers, changing lifestyles, the implementation of initiatives to encourage farmers to switch to organic farming, an increase in the population of working women, and an increase in the number of organic food manufacturers who also adhere to international standards and label their products are all factors driving the market.
Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period. Organic farming is becoming a prominent type of agriculture as a result of the rising demand for organic goods. Experts have backed this emphasis on organic farming since they think it is more environmentally friendly than conventional farming. Along with a general trend toward better eating, the demand for organic food items has been increasing in North America over the past few years. Many customers in North America believe organic foods to be healthier than ones cultivated conventionally.
Key players in the market
Some of the key players profiled in the Organic Grain Farming Market include International Sugars, Cargill, St. Charles Trading, Tate and Lyle, Marroquin Organic International, Roquette America, Briess Malt and Ingredients Co., Ingredion Incorporated, Organic Partners International, Royal Ingredients Group, Hassad Food Company, BASF SE, Dow Chemical Company, Solvay SA and Bayer AG.
Key Developments:
In July 2019, Hassad Food Company, a food company acquired Sunshine Foods International for an undisclosed amount. Through this acquisition, Hassad Food Company made an agreement with Sunshine Foods owner to provide the Qatari market with organic food grains to meet the demand and to strengthen the country’s food security.
Farming Types Covered:
• Integrated Organic
• Pure Organic Farming
• Other Farming Types
Types Covered:
• Organic Wheat
• Organic Corn
• Other Types
End Users Covered:
• Commercial
• Household
• Other End Users
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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