Agricultural products comprise of foods, fibers, fuels, and raw materials. Agriculture includes cultivation of crops, bee-keeping, animal husbandry, fish farming, and poultry. These products are either directly consumed or further processed and sold, and even exported at a large scale.Disposable income, population, consumer taste, and preferences and substitutes of other products drive the growth of the agricultural products market. In addition, surge in population increases the intake of food, which boosts the market growth. Moreover, technological innovations fuel the productivity, which increases the availability of these products in the market, in turn fostering the growth of the market. Decline in the share of agricultural products in total production is observed as a challenge across different regions.
COVID-19 Scenario Analysis:
Overview: Although the food supply has been adequate as of now, the food systems will be tested at all levels in the coming months. Due to disruptions in the value chains, less production of the high value commodities such as fruits &vegetables is rarely noticeable, but the cereal stock of wheat and other major staple crops stands positive.
Impacts on Industry Avenue:The pandemic is affecting the global food systems, disrupting regional agricultural value chains, and creating risks of household food security. Not just this, but the virus outbreak has augmented awareness of food safety for producers, businesses, governments, and consumers.
Production shutdown scenario:The lockdown has severely disrupted the agricultural sector, depriving it of buyers and migrant laborers as the restrictions and regulatory hurdles halt people’s movements.
Top Impacting Factors: Market Scenario Analysis, Trends, Drivers,and Impact Analysis
The use of innovative technologies in farming has opened up new doors for investment opportunities. This over indulgence of high input farming using high technology has caused a negative implication such as deforestation. There is an increase in the emission of greenhouse gases from machineries, which surges the level of pollution and degrades the productivity levels, hence hampering growth.The demand for agricultural products is expected to increaseowing to growing population, and hence the major players are spending and investing in strategies for extracting the most out of the minimum.
The global agricultural productmarket trends are as follows:
Use of robotics in farming
The emergence of robotics and its involvement in farming and agricultural products has shown considerable productivity and efficiency. Deere & Company spent $305 million in 2018 to acquire Blue River technology. This is a startup that enables the identification of unwanted plants. The technology sprays high-precision herbicide that eventually reduces input costs and increases efficiency.
Use of robotics have been in the harvesting activities, but this innovation is anticipatedto empower the production performance and generate better output.
Using the sun to generate freshwater
One of the major modern trends in agriculture is increase in water efficiency in farming and food production. Fearing the global population and climatic changes, there arises a need for irrigation solutions that can improve the cultivation performance.
An innovative idea of utilizing the saline sea water and converting it into freshwater with the help of solar energy was brought into picture by Sundrop Farms.
This technology is expected to replace the requirement of freshwater for irrigation, posing potential of becoming a game-changer in the industry.
Sustainable agricultural production
The increase in consumer awareness and the decline in natural resources, is making it mandatory for the producers to work on such techniques and solutions that enable the utmost productivity, utilizing the existing resources, and maintaining a healthy level of mineral deposit for further activity in the field.
Key Benefits of the Report:
This study presents the analytical depiction of the global agricultural product industry along with the current trends and future estimations to determine the imminent investment pockets.
The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global agricultural product market share.
The current market is quantitatively analyzed to highlight the global agricultural product market growth scenario.
Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
The report provides a detailed global agricultural product market analysis based on competitive intensity and how the competition will take shape in the coming years.
Questions Answered in the Agricultural Product Market Research Report:
What are the leading market players active in the agricultural product market?
What the current trends will influence the market in the next few years?
What are the driving factors, restraints, and opportunities in the market?
What future projections would help in taking further strategic steps?
Agricultural Product Market Report Highlights
By Industry Vertical
Key Market Players
Cargill, BASF- Agriculture, Monsanto Company, Archer Daniels Midland Company, Sundrop Farms, Agrium Inc., Syngenta, Adecagro SA, Fresh Del Monte Produce Inc., Yara International, Deere&Company