Global Sustainable Agriculture Market - 2025-2032

Global Sustainable Agriculture Market reached US$ 14.31 billion in 2024 and is expected to reach US$ 31.56 billion by 2032, growing with a CAGR of 10.39% during the forecast period 2025-2032.

The sustainable agriculture market in India has seen substantial growth in 2023, driven by a combination of government initiatives, technological advancements and increasing consumer demand for eco-friendly products. The Government of India continues to prioritize sustainable agricultural practices through programs such as the National Mission for Sustainable Agriculture (NMSA), which focuses on enhancing climate resilience and promoting organic farming, water management and soil health.

Notably, schemes like the Soil Health Card and the Paramparagat Krishi Vikas Yojana (PKVY) have significantly contributed to the adoption of organic farming practices. The organic farming market has witnessed a strong upward trajectory, driven by increasing demand for natural and eco-friendly products. Government initiatives, such as PKVY, are supporting farmers by providing financial assistance and facilitating organic certification, thus helping to meet the rising demand for organic produce.

Technological advancements, such as the Digital Agriculture Mission and the e-National Agriculture Market (e-NAM), are transforming traditional farming practices by improving market access and enhancing price discovery mechanisms. The integration of precision farming tools, AI and digital platforms is further empowering farmers and making agriculture more sustainable and efficient.

Dynamics

Advancements in Agri-tech and Precision Farming

Advancements in agricultural technology (agri-tech) and precision farming are pivotal in driving sustainable agriculture. In India, the integration of artificial intelligence (AI) and drones in precision farming is revolutionizing crop management and resource utilization. AI-powered tools analyze data from drones to provide farmers with actionable insights, enabling informed decisions that enhance productivity and sustainability. The Indian government has recognized the transformative potential of AI in agriculture.

The Ministry of Agriculture and Farmers Welfare has initiated programs to promote digital transformation in farming, focusing on the adoption of AI and other technologies to improve agricultural practices. In Telangana, the state government has established the Telangana State Innovation Cell (TSIC) to foster innovation in various sectors, including agriculture. The TSIC has developed a compendium of agri-tech start-ups, highlighting regional initiatives in precision agriculture and protected farming.

The efforts aim to optimize the agri-value chain and reduce production losses, contributing to sustainable agricultural practices. The Indian Council of Agricultural Research (ICAR) has emphasized the importance of digital transformation in farming. ICAR's initiatives focus on integrating new technologies to enhance the precision and sustainability of farming techniques, aiming to create more efficient and environmentally friendly agricultural practices. The government initiatives across India are actively promoting the adoption of agri-tech and precision farming technologies. These efforts are crucial in advancing sustainable agriculture, improving productivity and ensuring environmental sustainability.

Rising Consumer Demand for Organic and Eco-friendly Products

The rising consumer demand for organic and eco-friendly products continues to significantly influence the sustainable agriculture market. According to the U.S. Department of Agriculture's Economic Research Service (ERS), certified organic U.S. farmland expanded from 1.8 million acres in 2000 to 4.9 million acres in 2021. Organic sales in 2023 accounted for about 5% of U.S. farm receipts.

The U.S. Environmental Protection Agency (EPA) has observed a growing number of American consumers seeking environmentally friendly, "green" products, ranging from recycled paper to biodegradable trash bags. This shift in consumer preferences has prompted companies to respond with "green" marketing, highlighting the environmental benefits of their products.

Internationally, the Food and Agriculture Organization (FAO) of the United Nations has noted that consumer demand for organically produced foods has driven an expansion in organic production. In the past decade, U.S. organic retail sales increased by an average of 8% per year, reaching more than $52 billion in 2021, which is about 5.5% of all retail food sales. Imports have also played a role in meeting this growing consumer demand.

Limited Infrastructure and Market Access

Limited infrastructure and market access significantly constrain the advancement of sustainable agriculture. Efficient transportation, communication and financial infrastructures are essential for farmers to access markets for both inputs and outputs. Without these, farmers may struggle to obtain necessary resources and sell their produce effectively. Small-scale farmers in low- and middle-income countries often face challenges in accessing markets, which can hinder their ability to invest in their farms and achieve higher yields.

Improving market access can lead to increased productivity and income, thereby promoting sustainable agricultural practices. Recognizing these challenges, the U.S. Department of Agriculture (USDA) has initiated programs to enhance market access for underserved farmers. For instance, the Increasing Land, Capital and Market Access Program supports projects aimed at improving access to land, capital and markets for farmers, ranchers and forest landowners, thereby promoting sustainable agriculture.

Segment Analysis

The global sustainable agriculture market is segmented based on product type, application, farming method, end-user and region.

Rising Demand for Biopesticides in the Market

The increasing demand for biopesticides in sustainable agriculture is driven by the need to reduce reliance on synthetic chemical pesticides, which have been associated with environmental degradation and health concerns. Biopesticides, derived from natural materials such as animals, plants, bacteria and certain minerals, offer a more environmentally friendly alternative. They are integral to Integrated Pest Management (IPM) strategies, which combine different crop protection practices with careful monitoring of pests and their natural enemies. The European Union's 2009 Sustainable Use Directive on pesticides places IPM centrally, promoting the use of biopesticides as part of sustainable agriculture practices.

In US, the Environmental Protection Agency (EPA) defines biopesticides as including naturally occurring substances that control pests (biochemical pesticides), microorganisms that control pests (microbial pesticides) and pesticidal substances produced by plants containing added genetic material (plant-incorporated protectants). The EPA emphasizes that biopesticides are generally less toxic than conventional pesticides, target specific pests (reducing harm to beneficial insects and non-target organisms) and decompose quickly, resulting in lower exposures and largely avoiding the pollution problems caused by conventional pesticides.

In September 2023, Croda has launched the new product Atlox BS-50, a delivery system which specifically meets the needs of the growing biopesticide market. With the shift in agriculture towards more sustainable products, biopesticides derived from natural materials are being widely explored as a credible option.

Geographical Penetration

Government Initiatives Driving Sustainable Agriculture in Asia-Pacific

Asia-Pacific is experiencing a growing demand for sustainable agriculture, driven by the need to enhance food security, mitigate environmental degradation and adapt to climate change. According to the Asian Development Bank (ADB), the institution has announced plans to provide at least $14 billion over 2022-2025 in a comprehensive program of support to ease a worsening food crisis in Asia and the Pacific and improve long-term food security by strengthening food systems against the impacts of climate change and biodiversity loss.

In India, the government is actively promoting sustainable farming practices to address climate challenges and ensure food security. The Council on Energy, Environment and Water (CEEW), in collaboration with the Food and Land Use Coalition (FOLU), has provided an overview of the current state of sustainable agriculture practices and systems (SAPSs) in India. The country aims to scale up SAPs through policymakers, administrators, philanthropists and others, representing a vital alternative to conventional, input-intensive agriculture.

Efforts identify 16 SAPSs, including agroforestry, crop rotation, rainwater harvesting organic farming and natural farming, using agroecology as an investigative lens. However, it is realized that sustainable agriculture is far from mainstream in India and further proposals for several measures for promoting SAPSs, including restructured government support and rigorous evidence generation for benefits and implementation of sustainable farming, are ongoing progress in Indian agriculture.

Competitive Landscape

The major global players in the market include Bayer AG, Corteva Agriscience, Syngenta Group, BASF SE, Yara International, Nutrien Ltd., General Mills Inc., Indigo Ag, Olam International and Deere & Company.

Sustainable Analysis

The sustainable agriculture sector has seen significant developments in recent years, reflecting a global commitment to environmentally friendly farming practices. According to the Food and Agriculture Organization's (FAO) 2024 Statistical Yearbook, global agricultural production has increased, but this growth has been accompanied by challenges such as rising temperatures, ongoing food insecurity and environmental pressures on agricultural systems. The report emphasizes the need for sustainable practices to address these issues.

In US, the Department of Agriculture (USDA) has been proactive in promoting sustainable agriculture. In 2023, the USDA enrolled nearly 5,300 additional producers in the Natural Resources Conservation Service (NRCS) conservation programs across all 50 states, aiming to enhance conservation efforts and sustainable farming practices nationwide.

Government data indicates a growing recognition of the need for sustainable agriculture practices to address environmental challenges and ensure food security. Ongoing initiatives and programs at both national and international levels aim to promote sustainability in agriculture, reflecting a commitment to transforming agrifood systems for the better.

Key Developments

• In November 2024, India's Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch of the National Mission on Natural Farming (NMNF) programme to promote organic farming across the country. This is reported by ANI, a partner of TV BRICS. Natural farming involves minimising the use of chemical fertilisers. The initiative is expected to reduce farmers' input costs, improve soil ecosystem and increase resilience to climate change.
• In March 2024, The Joint Institute for Strategic Energy Analysis (JISEA) has launched a new catalyzer-and it is changing the way you think about your food. Catalyzers are two- to three-year seed research projects that develop research capabilities and collaborative networks centered around emerging clean energy challenges. The newest catalyzer, the Sustainable Agriculture Catalyzer, is diving into the agriculture industry and the effects decarbonization strategies can have on socioeconomics, resilience and the environment.
• In December 2023, Olam Agri has joined two new global initiatives to make agriculture more sustainable. The initiatives bring together major value chain partners, financial institutions and governments to decarbonise supply chains and promote the adoption of regenerative agriculture, aligned with Olam Agri's purpose to transform agriculture for a more sustainable future.

By Product Type

• Organic Fertilizers
• Biopesticides
• Biostimulants
• Sustainable Seeds
• Smart Irrigation Systems
• Others

By Farming Method

• Organic Farming
• Regenerative Agriculture
• Agroecology
• Permaculture
• Hydroponics & Aquaponics
• Others

By Application

• Crop Production
• Livestock Farming
• Agroforestry
• Soil & Water Conservation
• Others

By End-User

• Farmers & Growers
• Agri-Tech Companies
• Others

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Why Purchase the Report?

• To visualize the global sustainable agriculture market segmentation based on product type, application, farming method, end-user and region.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points at the sustainable agriculture market level for all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global sustainable agriculture market report would provide approximately 70 tables, 67 figures and 203 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies