Agriculture Market Research
The Agricultural Industry accounts for one of the key revenue-generating markets globally. The value chain of this sector has been expanding due to the growth in population density and the buyer’s purchasing power. Industrial segments like Food and Beverages have been on a rise in the past decade owing to the rapid expansion in demand associated with consumables amongst FMCG products. Agriculture market research states that the rapid market penetration rate of the value-added products is expected to contribute to a marginal segment of the industry. The Food and agricultural market cumulatively accounts for a USD 5 Trillion global market. Roughly 1/3rd of the global market obtains its livelihood from the agricultural domain.
Regions like Asia and Africa account for a large share in terms of employment within the agricultural domain. Millions of small-scale and subsistent farmers, pastoralists, fisherman, and indigenous people produce crops that are exported on a global scale. The industrial agricultural segment accounts for 6 major regions including Asia, Sub-Saharan Africa, Europe, Central America and Caribbean, South America as well as North America. On making a calculable comparison, it is seen that in terms of average farm sizes (in hectares), North America is expected to account for the largest segment.
Agriculture market research also indicates that there are roughly 570 Million farms globally. Roughly 90% of farms are run by families or small-scale farm landowners. Farming as a familial practice accounts for roughly 80% of the world crop production globally.
Agribusiness market research suggests that as per the current global trends of this market, the caloric demand for this sector would increase by 70% by the year 2050. Additionally, the crop demand for human as well as animal feed consumption would increase by a value of 100% during the same period. Although, agriculture market research analysts state that the current food system accounts for 70% of water usage. This in turn generates unsustainable levels of pollution and wastage. Moreover, according to the current global trends, it is seen that 40% of the water demand globally is unlikely to be met. Additionally, Agriculture market research statistics state that roughly 20% of arable has been degraded already owing to the increasing water shortage.
The food and agribusiness sector has grown three folds in the last decade. According to agricultural market research, the global investments in this sector attained a value of USD 100 Billion in the year 2013. The food and agribusiness verticals have demonstrated higher returns to shareholders as compared to other sectors. Strategic and financial investors are racing to capture value from technological innovations within this market. Moreover, they are trying to bridge the gap between the expanding supply and demand associated with this vertical. Discontinuities in the food and agricultural supply chain owing to the rise in consumption are one of the key challenges faced by this market. Agricultural market research states that manufacturers have been trying to develop optimal solutions to generate high volume and high-quality crops with low cost of manufacturing.
Agricultural market research trendlines state that 2.7 Billion tons of crops were harvested on a global scale in 2019. On performing a strategic analysis it was noticed that only 43% of this production value was used to feed people. The remainder of agricultural crop harvest was used across the value chain for applications like feeding livestock or filling patrol tanks (i.e. the crops were used to make fuel substitutes like ethanol). Optimal cold-chain practices and logistical mapping for this sector is another domain that is focused upon by the global agricultural producers. According to the Industrial treadmill’s trend lines, segments like supply chain integration and optimal distribution channels are being heavily invested into.
Sustainable crop production practices are another segment that has observed rapid growth in the past 10 years. This is predominantly because the agricultural sector is one of the most significant contributors to climate change and loss of biodiversity. Agriculture market research states that the sector also adds to preventable diseases and water shortage. Crop producers on a global scale have been trying to devise methods through which the overall arable land can be optimized to generate favorable yields.
Vertical farming market research states that it is also of the upcoming farm practices apart from contract farming and precision farming techniques. The inclusion of biotechnology and ICT in crop cultivation and the development of agriculture equipment respectively has also boosted the growth dynamics. Agriculturalbiotechnology has given rise to fields like plant tissue culture that has enabled the development of agricultural subsidies indoors. The controlled temperature and pressure conditions are hereafter employed in order to optimize the growth of the subject
The agriculture industry and its market insights on a regional basis have been portrayed in the following section. The business services and tactical insights associated with this sector can be understood via agriculture market research services. The clients would be given an overall description of the expanding customer base for this industry. The research expertise covered by market intelligence platforms, performs an overall analysis based on the history data for the site under study. Marketplace consulting servicescover the total strategic and regional competitiveness for this economically viable market segment. Moreover, the inclusion of critical projects like the development of health care technologies through agricultural downstream subsidies is also expected to register growth. Management consultants have been making an effort to correlate data points for this market with the existing dynamics and the upcoming forecast values for the agriculture industry. Market research firms have also been focused on developing strategies that can increase the number of customers for the agricultural investing segment. Marketing tactics are also being explored by the key players of this vertical to attract increased investment opportunities.
North America Agribusiness
Agricultural policy monitoring evaluation stated that in the year 2018, the mean farm size in the United States accounted for 178.4 hectares. The presence of agriculturally active sub-regions like Canada and the US are expected to drive the growth margins for the North American Agricultural domain. Most farmers within this region rely on mono-culture as a means of crop production. They have expanded to very large acreages to take advantage of economies of scale. According to agricultural market research, the US and Canadian farming practices are heavily mechanized and automized because of which the production capacity is not a hindrance within this region. Although sub-regions like Mexico practice traditional farming. The farm equipment market has also witnessed marginal growth in the past decade owing to the increased utilization of IoT-based technologies and automation within the agriculture industry. Project mapping associated with the regional development of arable land and agricultural clusters has been taking place continuously.
The total arable land within the US accounts for a maximum share of the farmland presence within North America. According to the total crop recipients increased by a value of 1% between the years 2019 and 2020 for the US. In the year 2017, the total farm output accounted for a value of USD 132.8 Billion for this sub-region. This value contributed to 1% of the GDP and 11% direct employment generation amongst the population respectively. Additionally, firms state that roughly 12-14% of the household income is dedicated to the purchase of food-based consumables within the US and Canada. The rise in purchasing power and growth in regulatory norms is expected to drive regional competitiveness.
Additionally, the EU agricultural outlook also states that the consumption patterns for protein-based crops are expected to increase by 30% between the years 2020-2030. The EU sugar area and the production of cereals are anticipated to stabilize within the same time frame.
Middle East Agribusiness
The agricultural sector accounts for 3-4% of the overall Middle Eastern economy. High-value cash crops are produced within this region through large-scale irrigation coupled with mechanization. According to agribusiness market research reports, Saudi Arabia is accounted for as one of the major contributors to the Middle Eastern agricultural domain. Some of the key value-added crops include fruits, vegetables, cereals, and sugar. The agriculture equipment market is also one of the key segments of the industrial vertical. The growth in the integration of automation and IoT-based systems within the agricultural infrastructure of this region is expected to be one of the key drivers for this sector.
Date Palm is one of the major agricultural produces within arid regions like the Middle East. These trees produce huge agricultural wastes in the form of dry leaves, stems, pits, seeds, etc. states that Saudi Arabia produces 200,000 tons of date palm biomass each year.
Rest Of The World Agribusiness
The annual agricultural spending for China is accounted for USD 300 Billion owing to the rampant growth in population within this region. The country is the largest consumer of meat globally. Roughly 2/3rd of this market value is due to the rise in consumption of pork amongst the population. The increased demand from the rising middle class within this country is anticipated to be one of the main drivers for this market. Therefore, protein consumption is expected to grow by 3-4% each year due to the same.
LAMEA is also one of the key agricultural crop producers on a global scale. Sub-regions like North Africa account for one of the main agricultural markets globally. Within this region, agricultural output accounts for a major segment within the Tunisian Economy. Tunisia is the world’s largest producer of olive oil on a global scale. Agriculture market research states that the country exports dates and citrus fruits to the northern parts of the nation. The large agricultural wastes are underutilized within this region. Therefore, technology innovators have been trying to bridge the gap and optimize energy generation through biomass in order to increase the utilization of agricultural waste.