Give an updated status of organic market structure at national and international levels. Discuss limitations of domestic organic marketing system.

 Organic Market Structure at National and International Levels:

The global organic food and beverage market has been growing steadily over the past few years. According to a report by Grand View Research, the global organic food and beverage market size was valued at $91.5 billion in 2020, and it is expected to grow at a compound annual growth rate (CAGR) of 11.6% from 2021 to 2028. The growth is mainly driven by an increasing awareness among consumers about the health benefits of organic food products and a growing concern about food safety and environmental issues.

At the national level, the organic market structure varies from country to country. In the United States, the organic food market is the largest in the world, with sales reaching $56.4 billion in 2020, according to the Organic Trade Association. The European Union is also a significant player in the organic market, with sales reaching €45 billion in 2019, according to the European Commission. Other countries such as Canada, Japan, Australia, and China also have growing organic markets.

Limitations of Domestic Organic Marketing System:

Despite the growth of the organic market, there are limitations to the domestic organic marketing system, including:

1. Limited Supply: One of the major limitations of the domestic organic marketing system is the limited supply of organic products. Organic farming requires more time, labor, and resources than conventional farming, and as a result, the supply of organic products is often limited, which can lead to higher prices.
2. Distribution Challenges: Another limitation is the distribution challenges. Organic products often require specialized storage and transportation, which can be costly and challenging for smaller producers.
3. Certification Process: The certification process for organic products can be expensive and time-consuming, which can be a barrier for smaller producers who may not have the resources to go through the certification process.
4. Lack of Consumer Awareness: Despite growing awareness about organic products, many consumers still do not understand the benefits of organic food and are unwilling to pay higher prices for organic products. This can limit the demand for organic products and make it difficult for smaller producers to compete with larger, conventional producers.
5. Competition from Imports: Many countries rely on imports of organic products to meet demand, which can create competition for domestic producers. Imports may be cheaper due to lower labor costs and lower certification requirements in other countries, which can make it difficult for domestic producers to compete on price.

Overall, while the organic market has been growing, there are still limitations to the domestic organic marketing system, which can make it difficult for smaller producers to compete.

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