Market Trends of europe biostimulants Industry
European Green Deal is majorly contributing for increasing organic cultivation, Italy majorly holding largest area under organic
- European countries are increasingly promoting organic farming, and the amount of land under organic farming has significantly increased over the last ten years. In March 2021, the European Commission launched an organic action plan to achieve the European Green Deal target of reaching 25% of agricultural land under organic farming by 2030. Austria, Italy, Spain, and Germany are among the leading countries in the European region. As of 2022, Italy has 15.0% of the agriculture area under organic farming, which is higher than the average of the European Union (7.5%).
- In 2021, there were 14.7 million ha of organic land in the European Union (EU). The agricultural production area is divided into three main types of use: arable land crops (mainly cereals, root crops, and fresh vegetables), permanent grassland, and permanent crops (fruit trees and berries, olive groves, and vineyards). The area of organic arable land was 6.5 million ha in 2021, 46% of the EU's total organic agricultural area.
- The organic areas of cereals, oilseeds, protein crops, and pulses in the EU increased by 32.6% between 2017 and 2021, amounting to more than 1.6 million ha. With 1.3 million ha in production, perennial crops accounted for 15% of the organic land in 2020. Olives, grapes, almonds, and citrus fruits are a few examples of crops in this group. As of 2022, Spain, Italy, and Greece are major growers of organic olive trees, with 197,000, 179,000, and 47,000 ha in production, respectively.
- Both olives and grapes are crucial for Europe's agricultural industry because they can be turned into specialty products that are in demand locally and internationally. The increasing trend in organic acreage in the region is expected to strengthen the organic sector in Europe further.
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Growing demand for organic food, rising the per capita spending, Germany being the largest organic food market in the region
- Consumers in Europe are purchasing more goods that are made using natural materials and methods. Even though organic food only makes up a small fraction of the EU's agricultural production, it is no longer a niche sector. The European Union represents the second-largest single market for organic goods internationally, with an average per capita spending of USD 74.8 annually. Europe's per capita spending on organic food doubled in the last decade. In 2020, Swiss and Danish consumers spent the most on organic food (USD 494.09 and USD 453.90 per capita, respectively).
- Germany is the largest organic food market in the European region and the second-largest market in the world after the United States, accounting for a market size of USD 6.3 billion in 2021, with a per capita consumption of USD 75.6. The country accounted for 10.0% of the global organic food demand and is further estimated to register a CAGR of 2.7% between 2021 and 2026.
- The organic food market in France witnessed strong growth, with a 12.6% rise in retail sales in 2021. According to Global Organic Trade, the country's per capita spending on organic food was USD 88.8 in 2021. In 2018, as recorded by the Agence BIO/Spirit Insight Barometer, 88% of French people consumed organic products. The preservation of health, environment, and animal welfare are the primary justifications for consuming organic foods in France.
- The organic market has begun to grow in several other nations, including Spain, the Netherlands, and Sweden, with the opening of organic stores. The growth in organic sales was triggered post-COVID-19 pandemic, with consumers paying more attention to health issues and knowing the negative effects of conventionally grown food.
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