Market Trends of asia-pacific biostimulants Industry
Growing Government support for organic cultivation in countries like China, India, Indonesia, and Australia, increased land for organic farming
- In 2021, the area of organic agricultural land in the Asia-Pacific region exceeded 3.7 million hectares, representing 26.4% of the global organic area, according to FiBL statistics. The organic area under cultivation grew by 19.3% during the historical period of 2017-2022. As of 2020, the region had about 1.83 million organic producers, with India leading the way with 1.3 million organic producers.
- China, India, Indonesia, and Australia are the major countries with large organic cultivation areas in the region. Government authorities in countries such as China and India are continuously promoting organic agriculture with the aim of reducing reliance on chemical inputs for crop cultivation. India, for instance, has implemented schemes like Paramparagat Krishi Vikas Yojana and the All India Network Programme on Organic Farming (AI-NPOF).
- In 2021, China accounted for the largest share at 66.1% with 2.5 million hectares, followed by India, Indonesia, and Australia with shares of 19.3%, 1.5%, and 1.4%, respectively. The total organic land is divided into three crop types: row crops, horticultural crops, and cash crops. Row crops occupy the largest share of organic agricultural land in the region, accounting for 67.5% with 2.5 million hectares in 2021. Major row crops grown in the region include paddy, wheat, pulses, soybeans, and millets.
- Cash crops held the second largest share, with 0.7 million hectares in 2021, accounting for an 18.5% share of organic cropland. The demand for organic cash crops, such as sugar and organic tea, is increasing globally. China and India are the largest producers of organic green tea and organic black tea, respectively, globally. The growing international demand is expected to increase the organic acreages in the region.
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Per capita spending on organic product predominant in Australia and China’s organic food market growing significantly
- The per capita spending on organic products in the Asia-Pacific region was recorded at USD 85.1 in 2021. Australia witnessed a higher per capita spending on organic products, with USD 58.3 in 2021, which was attributed to the higher demand due to consumers' perception of organic food as healthy. According to Global Organics Trade, the organic packed food and beverage market in Australia stood at USD 885.2 million in 2021.
- China's organic food market grew by 13.3% in 2021, and the positive growth pattern is expected to continue with an estimated CAGR of 7.1% during the forecast period, as per Global Organics Trade. With an increasing emphasis on the importance of organic products among the younger generation and a rise in demand for organic baby food due to the growing number of working mothers and the increasing adoption of the health and wellness trend, organic products are expected to reach a value of USD 6.4 billion by 2025.
- Organic products in India represent far less than 1.0% of global demand, with a per capita expenditure of just USD 0.08 in 2021. However, India represents a promising market over the coming years, reaching a value of USD 153.3 million by 2025. Currently, the market for organic goods in the region is very fragmented, with just a few supermarkets and specialty stores selling them, as only people from higher-income families are potential customers.
- Growing consumer knowledge and buying motivations will lead to a better understanding of the sustainability qualities of organic food in the region. Increasing per capita income, along with increased consumer awareness of the importance of organic food intake, has the potential to raise per capita expenditure on organic food items in the Asia-Pacific region.
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