PUBLISHER: Orion Market Research | PRODUCT CODE: 1351025
PUBLISHER: Orion Market Research | PRODUCT CODE: 1351025
Title: Global Regenerative Agriculture Market Size, Share & Trends Analysis Report Market by Practice Type (Agroforestry, Aquaculture/Ocean Farming, Silvopasture, No-Till & Pasture Cropping, Biochar, Holistically Managed Grazing, and Others), by End-User (Farmers, Service Organization, Advisory Bodies, and Others), and by Component (Solution and Services),Forecast Period (2023-2030).
The global regenerative agriculture market is anticipated to grow at a considerable CAGR of 14.3% during the forecast period. The growing need to adopt sustainable farming practices to meet global food demand without compromising the mother Earth is a key factor driving the growth of the global regenerative agriculture market. Climate-smart and regenerative agriculture measures are designed to put farmers at the center to improve crop yields and turn farmland and pastures into carbon sinks, reverse forest loss, optimize the use of nitrogen-based fertilizers and rethink global and local supply chains to be more sustainable, reducing waste.
According to the United Nations Framework Convention on Climate Change, the adoption of these food systems can lead the race to achieve net zero, nature positive results by 2030. In the EU, a new Forum report on farmer-first climate strategies found that greenhouse gas (GHG) emissions could be lowered immediately by 6.0% a year if just one-fifth of EU farmers were supported to transition to net zero, boosting soil health and incomes by $2.2 - 9.8 billion. The growing adoption of regenerative agriculture by farmers in near future is likely to create huge opportunities to the growth of the global market. Countries, companies and farmers are taking big bet strategies to unleash the potential of regenerative agriculture market. However, lack of awareness among end-users regarding the benefits of regenerative agriculture coupled with a lack of skilled labor and expertise for operating machines and tools are restraining the global market growth.
The global regenerative agriculture market is segmented based on practice type, end-user, and component. Based on practice type, the market is segmented into agroforestry, aquaculture/ocean farming, silvopasture, no-till & pasture cropping, biochar, holistically managed grazing, other. Based on component, the market is segmented into solution and services. Based on end-user, the market is sub-segmented into farmers, service organization, advisory bodies, and others.
Silvopasture practice segment is projected to hold major market share during the forecast period. The climate mitigation, Wildlife habitat, and forest restoration, along with improving human health through diverse diets are major contributor to the high share of this market segment. Silvopasture can reduce cattle methane output and sequesters substantially higher carbon in forest tissues and the soil ecosystem than in grasslands systems, resulting in better grounds. Such factors are further contributing to the growth of this market segment.
The global regenerative agriculture market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Asia-Pacific is anticipated to exhibit fastest CAGR in the regenerative agriculture market during the forecast period. The ongoing R&D on the regenerative farming practices, growing funding in advancement of these technologies along with the presence of vast agricultural land are some of the major factors driving the growth of the regional market. For instance, in April 2023, the University Malaysia Sabah (UMS) has signed a research agreement on regenerative agriculture and biodiversity with a local fertilizer company to strengthen its educational platform of eco-farm agriculture. The collaboration with Yun Fung Sang Group will encourage the involvement of local parties in agriculture and create space for research activities in oil palm and other agricultural fields.
North America held significant share in the global regenerative agriculture market. The high investments in regenerative agriculture projects, high awareness regarding this agriculture practice, along with first mover advantage in advanced farming technologies is a major factor contributing to the high share of the regional market. For instance, in March 2023, PepsiCo has unveiled plans to pump $216 million into regenerative agriculture projects spanning 3 million acres of farmland in the US. The plan involves multi-year partnerships with Practical Farmers of Iowa (PFI), Soil and Water Outcomes Fund (SWOF), and the IL Corn Growers Association (ICGA). The initiative aims to deliver three million metric tons of greenhouse gas (GHG) emission reductions and removals by 2030. Such huge funding from key market players is creating huge scope for the growth of the regional market.
The major companies serving the global regenerative agriculture market include: Nestle S.A., Danone S.A., Cargill, Inc., General Mills, Inc., and Unilever Plc among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, and new product launches, to stay competitive in the market. For instance, in July 2023, PepsiCo and Walmart announced a 7-year collaboration to track $120 million worth of investments focused on supporting US and Canadian farmers to improve soil health and water quality. By establishing and scaling financial, agronomic and social programs, it aims to enable and accelerate the adoption of regenerative agriculture practices on more than 2 million acres of farmland and deliver approximately 4 million metric tons of greenhouse gas (GHG) emission reductions and removals by 2030.