Force of nature: Rising demand for organic produce supports industry revenue growth

The Organic Farming industry produces a variety of products, including beef, fruit, vegetables and poultry. Organic products are free from artificial chemicals, pesticides and fertilisers, and genetically modified organisms. Global demand for organic produce is rising substantially due to increasing health concerns about food. Industry revenue is expected to increase at an annualised 25.6% over the five years through 2018-19, to $2.2 billion. This includes anticipated growth of 18.2% in the current year.Australia has the largest area of organic farmland in the world, covering more than 35 million hectares. Most of this land is large rangelands for organic cattle more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Retailers and restaurants are selling an increasing number of organic products
  • Most industry operators benefit from higher profit margins than conventional farmers
  • Domestic demand for organic food and produce is projected to continue growing strongly
  • Industry Report - Industry Analysis Chapter

    The Organic Farming industry has benefited from a shift in consumer preferences towards organic produce over the past five years. Demand for organic products in Australia and abroad has risen over the period as consumers have increasingly considered the health benefits and environmental effects of their food choices. Improved presentation and product quality, particularly of fresh produce, have further driven demand for organic products over the past five years. Overall, industry revenue is expected to increase at an annualised 25.6% over the five years through 2018-19, to $2.2 billion. This includes anticipated growth of 18.2% in the current year...purchase to read more.

    Additional Insights for the Organic Farming Industry

    IBISWorld has determined the most important Key Success Factors for the Organic Farming are:

  • Access to high quality inputs
  • Prompt delivery to market
  • Appropriate physical growing conditions
  • IBISWorld analysts also discuss how external factors such as Demand from food product manufacturing and Health consciousness in the Organic Farming industry impact industry performance..

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    What's in this report

    What is the Organic Farming Industry?

    Industry farms primarily produce organic fruits, vegetables, grains, other crops or livestock. Organic farming is free of synthetic chemicals, pesticides, fertilisers, or genetically modified organisms. This report focuses on producers that are certified organic by any of the organic certification organisations.

    Industry Products
  • Fruits, vegetables and herbs
  • Meats (excluding poultry meat)
  • Milk
  • Eggs and poultry meat
  • Grains
  • Other products
  • Industry Activities
  • Fruit and vegetable growing
  • Livestock farming
  • Grain and oilseed production
  • Honey production
  • Nut production
  • Other crop production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from food product manufacturing
  • Health consciousness
  • Real household disposable income
  • Level of annual rainfall
  • Public concern over environmental issues

  • Current Performance
  • Organic goes mainstream
  • Produce prices
  • Farm trends
  • Alliances and integration
  • Chart: Revenue Growth

  • Industry Outlook
  • Supply boost
  • Downstream markets
  • Prices and structure
  • Table: Organic Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Organic Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Meat Processing
  • Poultry Processing
  • Milk and Cream Processing
  • Fruit and Vegetable Processing
  • Cereal Grain Wholesaling
  • Fruit and Vegetable Wholesaling
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Agricultural Machinery Manufacturing
  • Livestock and Other Agricultural Supplies Wholesaling
  • Organic Farming

  • Products & Services
  • Fruits, vegetables and herbs
  • Meats (excluding poultry meat)
  • Eggs and poultry meat
  • Milk
  • Grains
  • Other products
  • Chart: Organic Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Price
  • Consumers

  • Major Markets
  • Processors
  • Retailers
  • Export markets
  • Farmers' markets
  • Wholesalers
  • Other markets
  • Chart: Major Market Segmentation for the Organic Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation
  • Repairs and maintenance
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Organic Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Organic Farming Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Organic Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Organic Farming Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Certified Organic
  • A third-party certification that guarantees a business is producing organic food. Operators require this certification to participate in the industry.
  • Farmgate
  • The price a farmer receives for their produce, which represents farm revenue.
  • Genetically Modified
  • Plants and animals that have had their genome modified through genetic engineering techniques.
  • What Our Customers Say

    Why buy this report?

    The Organic Farming market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Organic Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Organic Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Organic Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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