Cropping up: Growth in health consciousness and disposable incomes increased revenue

The Organic Crop Farming industry has strongly benefited from increasing consumer demand for organic food over the past five years. Organic produce, once considered an alternative food eaten only by a minority of the population, has become increasingly common in consumer diets and retail stores. Organic fruits and vegetables are often perceived as healthier than their conventionally farmed counterparts, due to the absence of chemicals and GMOs in their production. This factor has driven demand for organic fruits, vegetables, grains, nuts and herbs over the past five years. Industry revenue is expected to increase by an annualised 18.4% over the five years through 2019-20, to $1.1 billion.Rising disposable incomes have supported the industry over the past five more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The perceived health benefits of organic produce have driven strong demand for industry goods
  • Growing consumer demand has supported strong downstream demand from retailers
  • Price competition is forecast to increase over the next five years, limiting revenue growth
  • Industry Report - Starting a New Business Chapter

    The industry exhibits moderate barriers to entry, largely due to the lengthy certification process and conversion costs to shift away from conventional crop growing. Organic growers need accreditation to be labelled organic. Full organic certification requires a farm to produce organic crops in accordance with organic standards and takes at least three years. The conversion period typically translates to a drop in farm income, as the certification period often entails increased operating costs but no offsetting increase in the price received for produce. Converting from conventional to organic farming can also involve additional costs related to modifying existing farm equipment and structures, such as specialised sowing and weed equipment...purchase to read more.

    Additional Insights for the Organic Crop Farming Industry

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

  • Appropriate physical growing conditions
  • Output is sold under contract - incorporate long-term sales contracts
  • Access to high quality inputs
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Health consciousness in the Organic Crop Farming industry impact industry performance..

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    What's in this report

    What is the Organic Crop Farming Industry?

    Farmers in the industry grow organic crops such as fruits, vegetables, grains, nuts and oilseeds. Organic crops must be grown without manufactured fertilisers, pesticides, growth regulators or any other plant modifications.

    Industry Products
  • Pome fruit
  • Other fruit
  • Root vegetables
  • Cucurbit vegetables
  • Other vegetables
  • Grains
  • Other products
  • Nuts
  • Industry Activities
  • Organic fruit growing
  • Organic vegetable growing
  • Organic grain growing
  • Organic oilseed growing
  • Organic nut growing
  • Table of Contents

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

  • Current Performance
  • Consumer demand
  • Organic production
  • Lengthy conversion process
  • Chart: Revenue Growth

  • Industry Outlook
  • Growing demand
  • New entrants
  • Benefiting from beef
  • Table: Organic Crop Farming Industry Revenue Outlook

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

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

  • Key Selling Industries
  • Livestock and Other Agricultural Supplies Wholesaling
  • Shearing, Cropping and Agricultural Support Services
  • Water Supply

  • Products & Services
  • Root vegetables
  • Cucurbit vegetables
  • Other vegetables
  • Nuts
  • Pome fruit
  • Grains
  • Other fruit
  • Other products
  • Chart: Organic Crop Farming Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Wholesalers
  • Fresh food markets
  • Processors
  • Other markets
  • Chart: Major Market Segmentation for the Organic Crop Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Organic Crop Farming

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Organic Crop 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 Crop 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 Crop Farming Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • 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.
  • Feedstock
  • Grain feed used by farmers to supplement pasture feed for livestock.
  • Food Mile
  • Distance food is transported from production to its end-consumer.
  • Herbicides
  • Manufactured chemicals used by conventional farmers to control weeds and other unwanted plant products near crops.
  • Pesticides
  • Chemicals that are used to kill pests, including insects, rodents, fungi and unwanted plants.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Organic Crop Farming market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

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    This report on Organic Crop 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 Crop 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 Crop Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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