The Urgency of the Organic Industry in 2025: Opportunities and Challenges

The year 2025 marks a significant turning point for the global organic industry. With stricter regulations, growing consumer awareness, and rapid market expansion, this sector not only presents promising economic opportunities but also reinforces its role in environmental sustainability. In this article, we will explore the key factors shaping the organic industry landscape in 2025 and how industry players, particularly in Indonesia, can adapt and capitalize on these developments.

Strengthening Organic Regulations in the European Union

The European Union (EU) has implemented a new organic regulation, Regulation (EU) 2018/848, which will take effect on January 1, 2025. This regulation aims to strengthen the integrity of organic production by setting stricter standards and more rigorous control measures. One of the most significant changes is the requirement to separate organic and non-organic production units, ensuring better traceability within the supply chain. Any organic products exported to the EU, including those from Indonesia, must comply with these new regulations. This means that Indonesian producers must adapt quickly to maintain access to this lucrative market.

The Global Rise of Organic Products

The demand for organic products is surging globally. The global organic food market is projected to reach USD 546.97 million by 2032, growing at a compound annual growth rate (CAGR) of 11.6% from 2023 to 2032. This remarkable growth is fueled by consumers' increasing awareness of health and environmental sustainability. People are more conscious than ever about what they consume, leading to a significant shift towards organic food. As consumers demand transparency and sustainability, organic certifications and supply chain accountability become more crucial than ever.

Indonesia’s Potential in the Organic Export Market

Indonesia has demonstrated its potential in the global organic market by securing transactions worth USD 6.02 million at the Biofach Exhibition in Germany, one of the world's largest organic trade fairs. This achievement indicates that Indonesian organic products have a strong appeal to international buyers. However, maintaining and expanding this success requires ongoing efforts to meet stringent global standards, particularly in markets like the EU, where regulatory compliance is becoming more demanding. With the right strategies, Indonesia could position itself as a key player in the organic sector.

OrgaTrop 2025: A Platform for Advancing Tropical Organic Agriculture

To further strengthen organic agricultural practices, Indonesia will host the 3rd International Conference on Organic Agriculture in Tropical Regions (OrgaTrop 2025) from September 1-4, 2025, in Yogyakarta. This event will serve as a critical platform for scientists, practitioners, and policymakers to discuss organic farming systems, regulatory frameworks, and technological advancements. The conference will highlight how organic agriculture plays a vital role in achieving Sustainable Development Goals (SDGs), emphasizing the intersection of food security, environmental conservation, and economic development.

The Expansion of Global Organic Farmland

The organic farming sector is expanding worldwide. In 2023, the total area of organic farmland increased by 2.5 million hectares, reaching nearly 99 million hectares globally. Additionally, global organic food sales reached almost 136 billion euros. These figures, presented at BIOFACH on February 11, 2025, highlight the significant progress in the organic industry. The increasing adoption of organic farming practices suggests a growing recognition of its benefits, including soil health preservation, biodiversity enhancement, and reduced reliance on synthetic fertilizers and pesticides.

Future Growth of the Organic Food Market

A study published on February 13, 2025, forecasts that the global organic food market will grow from USD 228.84 billion in 2024 to USD 593.98 billion by 2033, with a CAGR of 11.18% during this period. This robust growth underscores the persistent shift toward organic consumption. Companies, retailers, and farmers must align with this trend by improving supply chain transparency, adopting sustainable farming practices, and meeting evolving consumer expectations for ethical and eco-friendly food production.

The Growing Demand for Organic Seeds

The organic seed market is also experiencing significant growth, with an estimated value of USD 5.20 billion in 2025. It is projected to grow at a CAGR of 9.2% from 2025 to 2035, reaching USD 12.50 billion by the end of the forecast period. This demand is driven by the rising popularity of organic food and the increasing adoption of sustainable agricultural practices. Organic seeds are a crucial component of a truly organic food system, ensuring that crops are grown without synthetic chemicals from the very start.

Global Organic Produce Expo 2025

The importance of organic products will also be emphasized at the Global Organic Produce Expo 2025, which took place on January 13-14, 2025, at the JW Marriott Miami Turnberry Resort in Aventura, Florida. This event will bring together industry leaders across the fresh produce supply chain to discuss market trends and strategies to meet the needs of environmentally conscious consumers. The expo serves as a vital opportunity for businesses to explore emerging trends and innovations in organic agriculture.

Organic Week 2025: Strengthening Industry Collaboration

From September 15-17, 2025, the Organic Trade Association (OTA) will host Organic Week 2025 at Park Hyatt. This event will provide an essential platform for organic industry stakeholders to engage in discussions and collaborations aimed at advancing the organic sector. It will address policy developments, sustainability challenges, and market opportunities, reinforcing the commitment to a more sustainable and transparent organic industry.

How Peterson Solutions Can Support the Organic Sector

As the organic industry continues to grow and evolve, businesses must navigate complex regulations, ensure supply chain transparency, and adopt sustainable practices to remain competitive. Peterson Solutions Indonesia provides expert consulting services to help businesses meet stringent organic certification requirements, develop sustainability strategies, and enhance supply chain integrity. With extensive experience in sustainability reporting, environmental impact assessments, and compliance with international standards, Peterson Solutions is well-equipped to assist companies in achieving their organic industry goals. By leveraging our expertise, businesses can strengthen their market presence, align with regulatory expectations, and contribute to a more sustainable future.

The organic sector in 2025 presents both significant opportunities and challenges. With the right strategies, industry players can capitalize on this growing movement while ensuring compliance with evolving global standards. Peterson Solutions stands ready to support businesses in navigating these complexities, fostering a resilient and thriving organic industry for years to come.