- 08/22/2025
- Future of food
Organic boom with obstacles: how the global organic market manages the balancing act between growth and change
The international organic market is growing – both in terms of area and revenue. But with the boom come rising challenges: from high prices to complex certification processes.
Written by Manuela Jagdhuber
In 2025, the international market for ecological farming finds itself at a major turning point. As organically farmed acreage grows worldwide and sales of organic food reach new record highs, there has also been an increase in the structural challenges affecting the sector. The latest industry report, The World of Organic Agriculture1, which was presented at BIOFACH 2025 by FiBL and IFOAM, provides a comprehensive overview of the situation.
"The amount of organic farmland is growing worldwide – over half of it is in Australia, which is clearly in the lead."
At the end of 2023, almost 99 million hectares of land were being farmed organically, equivalent to around 2.1% of total agricultural land worldwide. Compared with the previous year, the organically farmed acreage had grown by 2.6%, primarily due to increases in Latin America (+10.8%) and Africa (+24%). Australia is the frontrunner by far when it comes to organic farming, accounting for 53 million hectares – more than half of all organic farmland worldwide. It is followed by India, which boasts 4.5 million hectares, and Argentina with 4.3 million hectares.
"More than 92% of organic producers in Asia, Africa and Europe."
Although there has been a slight decrease, the number of organic producers worldwide remains high: in 2023, 4.3 million organic businesses were recorded, around 4% less than in the previous record-breaking year. More than 92% of the producers are in Asia, Africa and Europe. The country with the most organic producers is India, with 2.36 million, followed by Uganda with around 400,000 and Ethiopia with 120,000. Vietnam, Sri Lanka, and Burkina Faso enjoyed particularly high growth rates.
"Organic is booming: in 2023, organic food worth over €136 billion was sold worldwide."
Organic food is still a growth market
The organic sector is also stable from an economic perspective: worldwide sales of organic food totalled around €136.4 billion in 2023. The biggest market is the USA with around €59 billion, followed by Germany (€16.1 bn) and China (€12.6 bn). Particularly noteworthy is the world’s highest per capita consumption in Switzerland, peaking at around €468 annually. At about 12%, Denmark reported the largest percentage of organic foodstuffs measured against the total national food market. Estonia enjoyed the strongest growth in organic revenue at 13%, while the Netherlands recorded 12.5%.
Future of the global organic sector
The future of the worldwide organic sector will be defined by robust growth, driven by increasing consumer demand and a growing awareness about sustainability. Although ecological agriculture doesn’t yet cover most farmland, there is a clear trend towards expansion, especially when it comes to the area under cultivation.
"Growth, sustainability and innovation are driving the organic sector worldwide – especially in emerging markets such as Asia and Latin America."
Emerging markets like Asia and Latin America represent a key growth area for the future as they offer significant ecological potential combined with social development opportunities. At the same time, the organic sector is being driven by technological innovations like digital traceability, blockchain, precision farming, or aquaponics. These technologies promise higher efficiencies, better transparency along the supply chain, and new business models – especially for urban or regional organic initiatives.
"High prices, low yields and expensive certifications are slowing down the growth of the international organic market – especially in price-sensitive regions and for small farmers."
Challenges: price, area, certification
Despite the positive overall development, the international organic market is still facing various structural obstacles. A key problem is the high prices for organic products, which limit demand, especially in price-sensitive markets like China or India. In many regions, organic food prices are many times higher than those of conventional products. Moreover, yields in organic farming are often lower, resulting in a need for additional land that presents a challenge in times of scarce land resources and increasing climate impact. Complex and expensive certification processes, which are barely affordable for smallholders in emerging economies, represent another obstacle.
Local strengths, global perspectives
In 2025, the organic market is robust, diversified, and capable of growth, but reflects distinct regional differences. Whereas established markets like Europe and North America generate stable revenues, new development pathways are emerging in countries of the Global South. In this context, organic farming is not just helping with food security and climate stabilisation but is also contributing to the social and economic development of rural areas.
The growing demand for healthy, sustainable products and an increasing environmental consciousness are encouraging the acceptance of organic food worldwide. To do justice to this dynamic, it will be crucial to continue to develop infrastructure, certification, and technologies so that the increasing demand can be met efficiently, reliably, and sustainably.
"The future will be about combining regional strengths with global standards and harnessing the momentum for nutrition, climate and social development worldwide."
For the future, it will also be important to combine regional approaches with global standards and embed organic issues more firmly into strategies for society as a whole – for example, in education, public procurement, or climate policy.
The international organic market is thus facing a two-pronged task: it must continue to grow – economically, ecologically, and socially – without compromising its core principles of sustainability, fairness, and transparency.
Footnote:
1FiBL & IFOAM – Organics International (publishers): The World of Organic Agriculture. Statistics and Emerging Trends 2025. Frick und Bonn, 2025.
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