Cultivating the Future: Insights and Statistics on Organic Agriculture Worldwide

The organic farming sector is experiencing significant growth globally, driven by increasing consumer demand for healthier, more sustainable food options. Recent data and reports from various authoritative sources provide a comprehensive overview of this burgeoning industry. Here’s a detailed look at the current state of organic farming around the world, supported by the latest statistics and trends.

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Global Overview

As of 2023, organic farming is practiced in 191 countries, covering over 76 million hectares of agricultural land managed by approximately 3.7 million farmers. This sector has seen global sales of organic food and drink reach almost 125 billion euros in 2021, with a notable growth of 4 billion euros from the previous year. In 2022, global sales surged to nearly 135 billion euros, illustrating the sector's resilience and continued expansion.

Regional Insights

Europe

Europe remains a pivotal player in the organic market. The Netherlands, for instance, has experienced a decline in its EU ranking, highlighting the challenges and competitive nature of the market. However, the overall trend in Europe is positive, with significant growth in organic farmland and retail sales. Germany and France lead in market size, with retail sales amounting to 15.9 billion and 12.7 billion euros respectively. Switzerland and Denmark stand out with the highest per capita consumption and market share of organic food, at 425 euros and 13% respectively.

In the Netherlands, 4% of agricultural activities are organic, making it one of the laggards in Eurostat's rankings. The area used for organic agricultural production in the?EU?continues to increase, and in 2022 reached 16.9 million hectares (ha), up from 15.9 million ha in 2021 and 14.7 million ha in 2020. In 2022, the area used for organic farming was equivalent to 10.5% of the total?utilized agricultural area (UAA)?in the EU.

Between 2012 and 2022, the area used for organic farming increased in almost all EU countries. The sharpest rates of expansion in this period were in Croatia (+306%), Portugal (278%) and Bulgaria (182%).

The highest shares of organic farming areas within the total UAA were in Austria (27%), Estonia (23%) and Sweden (20%). ?By contrast, the share of organic farming was below 5% in 5 EU countries in 2022, with the lowest shares in Malta (under 1%), Bulgaria and Ireland (both 2%).

Asia

Asia is rapidly catching up, with India leading the number of organic producers at 1.6 million. The region has seen substantial growth in organic farmland, particularly in countries like China and India, driven by both domestic demand and export opportunities.

?9% of the total global certified organic land, which is 6.1 million hectares in 2017 with a yearly growth rate of 24.9 % in Asia. About 0.4 % of the agricultural land is organic certified, but the number is steadily growing. Almost half of the organic farmland is used for arable crops, such as wheat and rice. 13 % is used for permanent crops, including coconuts, tea, coffee, and tropical fruits and 18 % is reported as grassland. For 24 % of the organic agricultural land.

Most organic cereals were grown in China and Kazakhstan, while oilseeds mostly were produced in China and India. The Philippines grows most organic coconuts with 70 % of the total organic coconut production of the region. Indonesia and Timor-Leste make 95 % of the organic coffee in Asia. China and Myanmar are leading in organic tea production

Oceania:

Australia boasts the largest area of organic agricultural land globally, with 35.7 million hectares. This region's significant contribution underscores the vast potential for organic farming in less densely populated areas.

Nearly 36 million hectares of farmland were organic in Oceania in 2021 – Australia had the largest area worldwide In Oceania, nearly 36 million hectares of farmland were managed organically in 2021. Over 47 % of the world's organic farmland was in Oceania. With almost 35’688’000 hectares, the country that had the largest area of farmland under organic management in 2021 was Australia, followed by Papua New Guinea (over 88’000 hectares), Samoa (over 82’000 hectares) and New Zealand (over 79’000 hectares). More than 99 percent of Oceania's organic farmland was in Australia.

Samoa is the country with the highest organic area share in Oceania Organic farmland in Oceania constituted 9.7 % of the total agricultural land of the continent, which was below the global share (1.6 %) in 2021. The country with the highest organic area share was Samoa (29.1 %), which was followed by Australia (9.9 %) and Papua New Guinea (7.4 %).

Oceania's organic farmland increased by almost 77’000 hectares Oceania's organic farmland increased by almost 77’000 hectares, or about 0.2 %, from 2020 to 2021. From 2012 to 2021, Oceania's organic farmland grew by 217 % and thus at a much faster rate than global organic farmland, mainly due to major increases in Australia

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North America:

North America had nearly 3.5 million hectares of organic farmland in 2021, In North America, more than 3.5 million hectares were managed organically in 2021, Over 4.6 % of the world's organic farmland was in North America, With only two countries reporting organic farmland in North America, the US had the largest farmland area under organic management, followed by Canada (almost 1’216’000 hectares).

In North America, organic farmland decreased by more than 200’000 hectares, Organic land decreased by 202,023 hectares in North America from 2020 to 2021, representing a decrease of 5.4 %. This was mainly due to a decrease in organic farmland in Canada reported in 2021. 2021 data was not available for the US. From 2012 to 2021, organic farmland grew by 17.6 %.

North America: Organic farmland share is at almost 1 %Organic farmland in North America constituted 0.8 percent of the continent’s total agricultural land and was thus below the global organic area share of 1.6 percent in 2021, The US reported a share of 0.6 %, followed by Canada with a 2.1 % share.?

Latin America and the Caribbean

Nearly 9.9 million hectares of farmland in Latin America and the Caribbean were organic in 2021 – Argentina had the largest area In Latin America and the Caribbean, nearly 9.9 million hectares were managed organically in 2021. Almost 13 % of the world’s organic farmland was in Latin America and the Caribbean.

With almost 4’075’000 hectares, Argentina had the largest farmland area under organic management, followed by Uruguay (almost 2’742’000 hectares), Brazil (over 1’482’000 hectares) and Peru (almost 375’000 hectares). Almost 88 % of Latin America and the Caribbean’s organic farmland was in these four countries.

Uruguay is the country with the highest organic area share in Latin America and the Caribbean Organic farmland in Latin America and the Caribbean constituted 1.4 % of the total agricultural land of the continent and was thus below the global organic area share of 1.6 % in 2021.

The country with the highest organic area share was Uruguay, with a share of 19.6 percent, followed by French Guyana (11.9 %) and Dominica (11.6 %). In Latin America and the Caribbean, organic farmland decreased by more than 67’000 hectares Organic land decreased by more than 67’000 hectares (-0.7 %) in Latin America and the Caribbean, mainly due to a major decrease of organic farmland in Argentina in 2021. In the decade 2012 to 2021, organic farmland grew by 30 % and thus at a much slower rate than global organic farmland.

Market Dynamics and Trends

The organic farming market is expected to grow from $169.04 billion in 2022 to $187.84 billion in 2023, at a compound annual growth rate (CAGR) of 11.1%. This growth is projected to continue, reaching $287.83 billion by 2027 at a CAGR of 11.3%. The market's expansion is fueled by increasing consumer awareness of health and environmental benefits, governmental support through various schemes, and the adoption of sustainable farming practices.

However, the sector faces challenges such as lower productivity compared to conventional farming, which can impact food security and market prices. The organic farming industry must address these issues to maintain its growth trajectory and meet the rising global demand.

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Key Players and Innovations

Major players in the organic farming market include Dow Chemical Company, BASF SE, Solvay SA, AkzoNobel N.V, Nalco Holding Company, and Bayer AG. These companies are investing in research and development to enhance organic farming techniques and products, ensuring the sector's sustainability and profitability.

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Conclusion

The organic farming sector is at a pivotal point, with significant growth opportunities and challenges. As consumers continue to prioritize health and sustainability, the organic market is poised for further expansion. However, addressing productivity issues and enhancing support mechanisms will be crucial for the sector's long-term success. The global organic movement is not just a trend but a transformative approach to agriculture that promises a healthier future for both people and the planet.

Best Regards

Mostafa Adel

[email protected]

+201142717700