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Leading Growth Driver in the Sustainable Agriculture Market in 2025: Driving Growth In The Sustainable Agriculture Market As Demand For Organic Products Soars Driver's Influence
Sustainable Agriculture Market
The escalating consumer demand for organic products is likely to stimulate the growth of the sustainable agriculture market. These products are defined as those manufactured using farming methods that abstain from utilizing synthetic pesticides, herbicides, genetically modified organisms (GMOs), and synthetic fertilizers. Such sustainable farming techniques are employed in the creation of organic goods, with no recourse to synthetic fertilizers, pesticides, herbicides, genetically modified organisms (GMOs), or any other type of synthetic additives. For example, the Organic Trade Association, a non-profit business organization based in the U.S., reported that in May 2023, there was an extraordinary increase in sales in the U.S. organic food market, which reached an all-time high of $61.7 billion in 2022, marking an increase of 4.4% from $59.1 billion in 2021. Moreover, organic beverages were the second most sold category of organic products, registering sales of $9 billion, demonstrating a 4% growth. As a result, the escalating demand for organic products is expected to stimulate the expansion of the sustainable agriculture market. Increased concerns regarding water scarcity are expected to boost the sustainable agriculture market's future growth. This term refers to instances where the volume of water resources available in a particular area or for a certain population cannot meet the water demand, causing shortages of water for various applications including drinking, farming, industrial use, and other everyday necessities. The adoption of sustainable agricultural practices, incorporating water management, conservation measures, and resilient crop selection, becomes imperative in conditions of water scarcity, to guarantee optimal resource use, manage water-related risks, and sustain agricultural productivity despite depleting water resources. An example is a study by the American Geophysical Union (AGU), a non-profit organization based in the U.S., published in April 2022 in the journal Earth's Future, which projected an increase in agricultural water scarcity in over 80% of the world's croplands by 2050. Further, a report released by the United Nations Convention to Combat Desertification (UNCCD), a Germany-based environmental convention, in May 2022, estimated that between 4.8-5.7 billion people are expected to inhabit water-scarce regions for a minimum of one month each year by 2050. Hence, the increased concerns over water scarcity are catalyzing the growth of the sustainable agriculture market.
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What Is the projected market size and growth rate for the sustainable agriculture market?
The market size for sustainable agriculture has seen a swift increase in the past few years. Expected to rise from $15.07 billion in 2024 to $16.75 billion in 2025, this represents a compound annual growth rate (CAGR) of 11.2%. This growth during the historic period is linked to factors such as environmental consciousness, legislative backing, the consumer's preference for organic goods, concerns about soil health, and water preservation.
The market size of sustainable agriculture is poised to witness robust expansion in the upcoming years, reaching a value of $23.95 billion by 2029 with a Compound Annual Growth Rate (CAGR) of 9.3%. This projected surge during the forecast period is rooted in factors like adaptation to climate change, global apprehensions about food security, circular economy methodologies, the sustainability of the supply chain, coupled with education and knowledge dissemination. Key trends earmarked for the forecast period encompass agroecological innovations, integration of technology, the embrace of precision farming, a focus on agroecology and crop diversification, as well as the utilization of blockchain for enhancing transparency in the supply chain.
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What new trends are reshaping the sustainable agriculture market and its opportunities?
Leading businesses in the sustainable agriculture sector are inventing unique products like sustainable biostimulants to boost crop resilience and growth, reduce environmental harm, and cut down on synthetic chemicals. Sustainable biostimulants, which are organic or naturally sourced substances applied to plants or crops, encourage growth, bolster nutrient absorption, and fortify resistance to stress, all while causing minimal damage to the environment. For example, in June 2023, Cascadia Seaweed Corp., a Canadian enterprise specializing in sustainably cultivating native seaweed species in low-impact ocean farms in collaboration with Refeed Canada Farms Ltd (also Canadian), which is dedicated to natural liquid plant food, unveiled a sustainable seaweed-based biostimulant - a liquid plant food derived from seaweed extract. It is made from harvested cold-water kelp and is packed with essential nutrients for plant development. Engineered for assorted agricultural uses, it seeks to foster sustainable and climate-resilient food systems.
What major market segments define the scope and growth of the sustainable agriculture market?
The sustainable agriculture market covered in this report is segmented -
1) By Product Type: Seeds And Traits, Biopesticides, Biostimulants, Other Products
2) By Crop Type: Cereals And Grains, Oilseeds And Pulses, Fruits And Vegetables, Other Crop Types
3) By Farming System: Organic Farming, Conservation Agriculture, Integrated Pest Management (IPM), Precision Agriculture
4) By Formulation: Liquid, Dry
5) By Application: Seed Treatment, Soil Treatment, Foliar Spray, Other Applications
Subsegments:
1) By Seeds and Traits: Genetically Modified Seeds, Hybrid Seeds, Organic Seeds
2) By Biopesticides: Microbial Pesticides, Biochemical Pesticides, Plant-Incorporated Protectants
3) By Biostimulants: Plant Growth Regulators, Soil Conditioners, Nutrient Enhancers
4) By Other Products: Organic Fertilizers, Cover Crops, Mulching Materials
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North America was the largest region in the sustainable agriculture market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the sustainable agriculture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Which key market leaders are driving the sustainable agriculture industry growth?
Major companies operating in the sustainable agriculture market report are Cargill Inc., Archer Daniels Midland Co., BASF SE, Deere And Company, Yara International, China National Chemical Corporation, KUBOTA Corporation, Corteva Agriscience LLC, Monsanto Company, AGCO Corporation, Pioneer Hi-Bred International Inc., UPL Limited, Thai Union Group PCL, Trimble Inc., Groupe Limagrain, KWS SAAT SE, Netafim Ltd., Agricool, Irritec USA Inc., Gakon Horticultural Projects, Vertical Future Limited, BrightFarms Inc., Dream Greens Inc., Godrej Agrovet, Eden Green Technologies, Jones Food Company, FarmBox Foods
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What Is Covered In The Sustainable Agriculture Global Market Report?
•Market Size Forecast: Examine the sustainable agriculture market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the sustainable agriculture market for a structured understanding.
•Key Players Overview: Analyze major players in the sustainable agriculture market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the sustainable agriculture market.
•Segment Contributions: Evaluate how different segments drive overall growth in the sustainable agriculture market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the sustainable agriculture market.
•Industry Challenges: Identify potential risks and obstacles affecting the sustainable agriculture market.
•Competitive Landscape: Review strategic developments in the sustainable agriculture market, including expansions, agreements, and new product launches.
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