Cream of the crop: Increasing health consciousness has helped drive industry revenue

The Organic Crop Farming industry has benefited significantly from increasing consumer demand for organic food over the past five years. Once considered an alternative food eaten only by a minority of the population, organic produce 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 genetically modified organisms in their production. This 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 24.0% over the five years through 2018-19, to $965.2 million...read more.

Industry Statistics & Market Size
Revenue
$965m
Annual Growth 14-19
24.0%
Forecast Growth 19-24
Profit
Employment
5,475
Businesses
1,842
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 industry demand
  • Growing consumer demand has supported strong downstream demand from retailers
  • Price competition is forecast to increase over the next five years, limiting industry revenue growth
  • Industry Report - Industry Key Buyers Chapter

    The Organic Crop Farming industry displays low market share concentration, partly due to the labour-intensive nature of organic crop farming. The reliance on labour creates an absence of sizeable economies of scale in organic crop production, which discourages larger players from entering the industry. Consequently, no single player holds a commanding share of the industry. Low industry concentration is the prevailing trend across the broader agriculture sector, given the prevalence of family-owned and operated enterprises. While some larger farms are included in the industry, their organic operations only account for a small share of industry revenue.While market share concentration is low, it has increased over the past five years. As ...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
  • 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 concerns 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
  • Grains
  • Pome fruit
  • Other fruit
  • Root vegetables
  • Cucurbit vegetables
  • Other vegetables
  • 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
  • Internal competition
  • External 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
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (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.
  • Feedstock
  • Grain feed that is 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?

    The Organic Crop 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 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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