The market for organic products is becoming important in countries like China, Korea, India, Thailand. Tropical fruits, nuts and organic spices account for a large proportion. In particular, these agricultural products are advantageous export products of Vietnam.
According to the Department of Agricultural Processing and Market Development (Ministry of Agriculture and Rural Development), the export turnover of Vietnam’s organic agricultural products has reached about US$335 million/ year, exported to 180 markets. This is small compared to the current global organic market size, but it also shows the great potential of Vietnamese organic products for export.
Biologics revenue is expected to grow sharply, reaching $437.36 billion by 2026 at a compound annual growth rate (CAGR) of 14%.
In fact, over the past 10 years (2011-2020), all countries have promoted organic agricultural production. The area of organic agricultural land increased by 214.5% in Australia, 66.7% in Asia, 95% in Africa, 62.1% in Europe, 42% in Latin America and 24% in North America during this period.
In 2020, the area of organic agricultural land worldwide reached 74.9 million hectares. Australia had the largest area of organic land in the world at 35.9 million hectares, followed by Europe at 17.1 million hectares; Latin America 9.9 million hectares; Asia 6.1 million hectares; North America with 3.7 million hectares and Africa 2.1 million hectares.
Countries should invest more in organic farming, especially in Europe. In May 2020, the European Union announced a target to achieve 25% organic agricultural land by 2030.
However, the plant-based food market is growing exponentially. Research by Boston Consulting Group and Blue Horizon Corporation shows that the market for meat, egg, dairy and seafood substitutes will reach $290 billion by 2035.
Consumer demand for plant-based food products stems from the same factors as organic food, i.e. health, environmental and ethical concerns. This will reduce the demand for organic foods of animal origin. The vegan lifestyle also reduces the need for organic foods of animal origin.
Consumer demand for organic products is growing strongly and outstripping supply. Lack of supply of organic products will lead to scarcity and high prices. It could also lead to cases of fraud where conventional foods are labeled as organic.
The door to organic agricultural products opens wide
Consumers are gradually realizing the importance of organic products for the environment, human health and a sustainable ecosystem. Studies show that the consumption of organic products is a trend that will continue and grow strongly in the years to come.
This is an opportunity for Vietnam to promote organic agricultural production, capturing market share for the growing demand for organic products.
According to statistics, in 2021, Vietnam’s organic agricultural land area was over 174,000 hectares (up 47% from 2016), ranking 9th among the 10 countries with the largest agricultural land area. organic in Asia. Of which, the area of organic farming land was more than 63,000 hectares, the area of organic aquaculture was more than 100,000 hectares, the area of natural harvesting of organic farming was more than 12,000 hectares. The number of organic agricultural producers was more than 17,000 units, 555 processors, 60 exporters…
The organic agriculture development project is strongly implemented, gradually transforming Vietnam into a country with organic agricultural production on par with advanced countries in the world. Vietnam’s target by 2030 is to increase the area of agricultural land for organic production to about 2.5-3% of the total area of agricultural land, the product value per hectare of organic land is 1, 5 to 1.8 times higher than that of non-organic production.
According to experts, the current orientations, guidelines and policies for the development of organic agriculture are very comprehensive and open, the problem is how to organize and implement them.
With many years of experience in the production and export of organic agricultural products, Mr. Bui Hong Quan, Vice Chairman of Vinamit’s Board of Directors, said that in order to develop organic agriculture, it is important that the companies ensure their prestige, respect the commitments of quality and design.
Mr. Nguyen Quoc Toan, Director of Agricultural Commodity Processing and Market Development Department (MARD), organic agricultural products have a specific segment in terms of market demand, value and brand positioning. Moreover, organic products carry the value of regenerating the environment, the responsibility of protecting people and the shared responsibility of green growth of the agricultural industry.
He also recognized the challenges that organic farming has to overcome, such as: building consumer confidence in organic products; limited large-scale production conditions; cooperation between companies in the same sector to go further.
Therefore, it is necessary to be aware of the production, consumption and sharing of information. The key is traceability, transparency, digitization of organic products, he said.