According to the World Bank, the food and agriculture industry is around 10% of the global GDP of $78 trillion. The world’s natural and organic food and retail industry is estimated in 2015 to stand at $92 billion (deduced from Statista projection figures). The US is the major market for organic products, with a market of $55 billion. Other market intelligence agencies have estimated the global organic food market to be over $100 billion. Anyway, we may look at this; the organic food industry still constitutes a small percentage of the global food industry.
The largest area under organic food production in the world is in Australia. It has 22.49 million hectares under organic agriculture. Argentina is the distant second with 3.07 million hectares, followed by the USA (2.03 million hectares). Two of the world’s most populous countries, China and India, have 1.61 and 1.18 million hectares under organic agriculture. (FiBL Survey, 2017)
According to the 2015 report of FiBL-IFOAM, 170 countries are reporting organic farming activities. Data factsheets from data compiled up to the end of 2013 have been compiled and reported in the 2015 report. These findings are backed up and validated by observations and studies conducted by scholars spread in different countries of the world.
Organic food market size is said to constitute 5% of the total food market. Some estimate a CAGR growth of 12% for North America. Global sale of organic food has risen by 170% in under a decade from 2002 onwards.
Growth is concentrated in countries where consumers have high purchasing power like North America, Europe, Japan, South Korea, Australia, etc.
Demand for fresh organic produce overall outstrips supply in most developed country markets. Pricing of organic commodities is affected by usual market influencers like currency, weather, logistics, and other risks. The demand-supply gap is largely in favor of organic producers. This market exhibits substantial price volatility.
The above facts indicate that, as of now, the future of the organic food industry is bright.
References:
Nutrition Facts- a guide to good health