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 farming...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
25.6%
Forecast Growth 19-24
Profit
Employment
5,644
Businesses
2,148
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 Locations Chapter

    While there are organic farms in almost every state, there are substantially more industry enterprises in New South Wales, Victoria and Queensland. The spread of the industry largely reflects population shares among the states and the location of conventional vegetable farming, fruit growing and to a certain extent, beef cattle farming (Queensland has the greatest share for beef cattle farming).The industry's prominence in Queensland is due to the large beef cattle pastures in the state. The majority of organic farmland is used for beef cattle production, followed by other grazing industries, with small areas used for grains, dairy cattle, horticulture and other segments. The...purchase to read more.

    Additional Insights for the Organic Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Organic Farming Industry 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 concerns 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
    Includes:
  • 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?

    IBISWorld’s Organic Farming market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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