The agriculture market comprises of sales of agriculture and related services by organisations, sole proprietors, and partnerships that offer agriculture and related services such the cultivation of crops and animals, among other things.
Agriculture is the practise of growing plants, raising animals and birds for food, clothing, textiles, biofuel, medicines, and other goods that support and improve human life. Aquaculture and horticulture are also a part of this economy. This market does not include revenue from captive (internal) consumption of agricultural and forestry products for additional processing.
Animal products, crop production, and rural pursuits are the three main categories of agriculture. The technique of cultivating crops for both domestic and commercial usage is known as crop production. On a large scale, crops like wheat, maize, rice, jute, and others are farmed. The nature of agricultural products might be organic and conventional that are distributed through supermarkets/hypermarkets, convenience stores, e-commerce, and other channels.
At a compound annual growth rate (CAGR) of 11.1 per cent, the size of the worldwide agricultural market is anticipated to increase from $11,287.56 billion in 2021 to $12,541.15 billion in 2022. At a CAGR of 10.7%, the size of the worldwide agricultural market is anticipated to increase to $18,814.21 billion in 2026.
By 2050, the population of the globe is projected to increase to 10 billion. Population growth raises the demand for food. Global cereal production was predicted to rise by 13% by 2027, according to the Organization for Economic Co-operation and Development (OECD) and FAO (Food and Agriculture Organization) publication The Agricultural Outlook. To support the growing population, crop production, farming endeavours, and trade volumes will need to rise. In order to enhance agricultural production, agriculture businesses will increase their purchases of arable land. In order to meet the rising demand for farming activities and accelerate their expansion, agriculture enterprises are anticipated to expand their presence and activities.
The COVID-19 outbreak has had a significant impact on the agriculture sector in 2020 as supply chains were disrupted by trade restrictions and consumption fell as a result of lockdowns implemented by governments around the world. A viral illness called COVID-19 causes flu-like symptoms like fever, coughing, and breathing difficulties. The virus was discovered for the first time in Wuhan, in the People’s Republic of China’s Hubei region, in 2019. Since then, it has spread throughout Western Europe, North America, and Asia. Farmers had a difficult time gathering and marketing their goods as governments implemented lockdowns. Additionally, exports of agricultural goods dramatically decreased as a result of trade restrictions put in place by other nations. Businesses are anticipated to suffer from the outbreak well into 2021. Although it is expected that the agriculture market will recover from the shock across the forecast period as it is a “”black swan”” event and not related to ongoing or fundamental weaknesses in the market or the global economy.
The desire for agriculture robots, or agribots, is being driven by a lack of workers and a rise in the demand for high-tech agricultural instruments in many nations. In agricultural areas, ag robots are used for weeding, trimming, and spraying insecticides and herbicides. For spraying water, seeds, pesticides, nutrients, and harvesting, they are attached to tractors. An example is the Energid Citrus Picking Robot System, which increases productivity and reduces the need for agricultural labour by picking an orange from a tree every two seconds. Small Robot Company, Naio Technologies, EarthSense, HETO Agrotechnics, Harvest Automation, PrecisionHawk, BoniRob, and more businesses offer ag robots for productive and effective farming.
Major companies in the agriculture market include Cargill Incorporated, Dairy Farmers of America, Bayer AG, WH Group Limited, Bunge Limited, Wens Foodstuff Group Co. Ltd, Charoen Pokphand Foods PCL, Corteva Inc, Olam International, and Land O’Lakes Inc.
In 2021, the agriculture market’s largest region was Asia-Pacific. The second-largest region in terms of the global agriculture market was North America. The geographies included in the global agricultural market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
However, larger adoption could result from the deployment of remote sensing and farm management software technologies in the post-COVID-19 timeframe. Businesses have already started putting more emphasis on wireless platforms to enable real-time decision-making for crop health monitoring, yield monitoring, irrigation scheduling, field mapping, and harvesting management.