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Soaring Demand Set to Propel Sustainable Agriculture Market to $23.95 Billion by 2029
"Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shiftsWhat Is the Expected CAGR for the Sustainable Agriculture Market Through 2025?
The market size of sustainable agriculture has seen a swift expansion in the recent past. Its growth trajectory is set to continue, escalating from $15.07 billion in 2024 up to $16.75 billion in 2025 with a compound annual growth rate (CAGR) of 11.2%. The historic progression of this market is linked to factors such as heightened environmental consciousness, regulatory assistance, increased consumer appetite for organic commodities, worries about soil health, and the need for water conservation.
What's the Projected Size of the Global Sustainable Agriculture Market by 2029?
The market for sustainable agriculture is anticipated to exhibit substantial growth in the forthcoming years, expanding to a size of $23.95 billion in 2029 with a compound annual growth rate (CAGR) of 9.3%. Factors instigating this growth during the forecasted span include adapting to climate change, addressing worldwide food security issues, adopting circular economy norms, ensuring supply chain sustainability, and promoting education and knowledge exchange. Noteworthy trends during this period comprise advancements in agroecology, inclusion of technology, adoption of precision agriculture, focus on agroecology and crop diversity, as well as the use of blockchain for enhancing supply chain transparency.
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Top Growth Drivers in the Sustainable Agriculture Industry: What's Accelerating the Market?
The escalating demand for goods produced using organic methods is predicted to stimulate the expansion of the sustainable agriculture market in the future. These organic goods are cultivated using farming tactics that do not employ synthetic pesticides, herbicides, genetically engineered organisms or synthetic fertilisers. This agricultural sustainability utilises these practices of pesticides, herbicides, genetically engineered organisms and other synthetic inputs's avoidance to cultivate organic products. A striking rise in sales was reported by the Organic Trade Association in the US organic food market in May 2023, setting a new record of $61.7 billion in 2022, a growth of 4.4% from $59.1 billion in 2021. Furthermore, clocking in at a 4% rise on sales registering $9 billion, organic beverages came second in organic product sales. Therefore, this surge in organic product demand is expected to fuel sustainable agriculture market growth. A second contributing factor is the escalating worry over water scarcity, which is projected to fuel the sustainable agriculture market. This phenomenon is characterised by a lack of sufficient water resources within a geographical or populous area to satisfy the demands for water, leading to a shortage for various needs such as potable water, agriculture, industry and daily routines. To tackle this water shortage, sustainable agricultural practices must be employed, integrating efficient management of water resources, conservation techniques and choosing resilient crops. This will help achieve optimum use of resources, alleviate water-related hazards and promote long-term agronomic productivity in the face of dwindling water resources. For instance, a study published in April 2022 in the journal Earth's Future by the American Geophysical Union (AGU) suggested an impending rise in water scarcity in agriculture in more than 80% of the world's croplands by 2050. Moreover, a report published by the United Nations Convention to Combat Desertification in May 2022 predicted a situation of nearly 4.8-5.7 billion people residing in scarce water regions for at least one month each year by 2050. Consequently, the escalating apprehensions over water scarcity are pushing the growth of sustainable agriculture further.
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What Trends Will Shape the Sustainable Agriculture Market Through 2029 and Beyond?
Leading firms in the sustainable agriculture market are spearheading the creation of novel offerings like sustainable biostimulants. These products boost crop growth and resiliency, decrease the environmental footprint, and retreat from the dependency on synthetic chemicals. They are organic or derived from nature and when applied to plants or crops, spur growth, augment nutrient absorption, and bolster their resistance to stress, all the while protecting the environment. For example, Cascadia Seaweed Corp., a firm situated in Canada that excels in the eco-friendly farming of native seaweed species on minimal impact ocean farms, in collaboration with Refeed Canada Farms Ltd., another Canadian company that specializes in natural liquid plant nourishment, launched sustainable seaweed-based biostimulants in June 2023. This seaweed extract-based liquid plant food is produced from cultivated cold-water kelp and is packed with essential nutrients for plant development. Its use spans several areas of agriculture and its goal is to foster sustainable and weather-resilient food systems.
What Are the Main Segments in 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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Which Top Companies are Driving Growth in the Sustainable Agriculture Market?
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
Which Regions Will Dominate the Sustainable Agriculture Market Through 2029?
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.
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