Agricultural Commodities Market to grow with a CAGR of 4.75% through 2029
Population growth and changing dietary patterns and Increasing biofuel production is expected to drive the Global Agricultural Commodities Market growth in the forecast period, 2025-2029
According to TechSci Research report, “Agricultural
Commodities Market – Global Industry Size, Share, Trends, Competition
Forecast & Opportunities, 2029”, the Global Agricultural Commodities
Market stood at USD 224.50 billion in 2023 and is anticipated to grow with a
CAGR of 4.75% in the forecast period, 2025-2029. The Population growth and
changing dietary patterns has led to favorable market conditions for the global
agricultural commodities market. Several factors contribute to the growth of various
agricultural commodities products.
Urbanization is a widespread trend globally,
characterized by increasing migration from rural regions to cities. This
demographic shift brings about shifts in lifestyle and dietary choices. Urban
residents often favor processed and convenient foods, which heavily rely on
agricultural commodities for manufacturing. Additionally, urban expansion
diminishes arable land, presenting challenges to agricultural output. To
address the rising demand from urban consumers, the agricultural sector must
improve productivity and efficiency, thereby propelling growth in the Global
Agricultural Commodities Market.
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Climate change and natural resource scarcity present
substantial hurdles to agricultural productivity. Unpredictable weather, water
shortages, and soil depletion adversely impact crop yields and livestock
output. As a result, the Global Agricultural Commodities Market sees expansion
as agricultural stakeholders strive to adjust to and alleviate the impacts of
climate change. Investments in drought-resistant crops, precision agriculture
technologies, and sustainable farming methods become imperative, fueling the
need for agricultural commodities, which will further fuel market growth.
According to a new feature, scenario analysis predicts
that a 1% increase in fertilizer prices would lead to a 0.2% increase in
agricultural commodity prices. Global food consumption, the primary use of
agricultural commodities, is forecasted to grow by 1.3% annually over the next
decade. This growth rate is slower than the previous decade, attributed to
anticipated declines in population and per capita income growth. This year's
Outlook also offers enhanced estimates for food consumption by integrating calculation
methods to assess food loss and waste for the first time. The report is a
collaborative effort between the Organisation for Economic Co-operation and
Development (OECD) and the Food and Agricultural Organization (FAO) of the
United Nations, developed with contributions from Member countries and
international commodity organizations.
A rising consumer inclination towards sustainably
sourced and organic agricultural commodities is evident. This shift is
propelled by increasing concerns regarding environmental sustainability, food
safety, and health awareness. Consumers seek products devoid of synthetic
pesticides, genetically modified organisms (GMOs), and other chemical inputs.
Consequently, farmers and agricultural producers are adopting sustainable and
organic farming methods. This transition presents opportunities for growth within
the Global Agricultural Commodities Market, particularly in the niche segment
catering to sustainable and organic products.
The agricultural sector's access to extensive data has
underscored the significance of data analytics and digital platforms. Farmers
and agricultural enterprises increasingly rely on data-driven insights to guide
decisions on crop selection, planting strategies, pest control, and market
dynamics. Digital platforms and mobile applications offer up-to-date market
insights, streamline supply chain management, and facilitate direct connections
between farmers and buyers, bypassing intermediaries. The integration of data
analytics and digital platforms is poised to propel future growth in the Global
Agricultural Commodities Market by enhancing operational efficiency,
transparency, and market accessibility.
The Global Agricultural Commodities Market encounters
significant hurdles, including climate change and extreme weather occurrences,
resource scarcity, environmental deterioration, market instability, trade
barriers, regulatory intricacies, and socioeconomic and demographic influences.
Addressing these challenges necessitates proactive measures integrating
sustainable practices, risk mitigation, innovation, and adaptable strategies.
This approach ensures the enduring growth and resilience of the Global Agricultural
Commodities Market.
The future expansion of the Global Agricultural
Commodities Market hinges on several key factors, including growing demand for
sustainable and organic produce, advancements in agricultural technology, the
rising significance of data analytics and digital platforms, heightened focus
on food security, shifting trade dynamics and geopolitical influences, and
challenges related to climate change and sustainability. Businesses within this
market should diligently track these trends and tailor their strategies to
capitalize on emerging opportunities while effectively navigating the
associated challenges.
The Global Agricultural Commodities Market is
segmented into type, trading type, product type, regional distribution, and
company.
Based on its trading type, the online segment has emerged as the
predominant market leader, Online trading, facilitated through digital
platforms and electronic marketplaces, is gaining prominence due to its
convenience and accessibility. Online platforms provide real-time market
information, enable transparent transactions, and offer ease of access for
buyers and sellers worldwide. Additionally, online trading allows for efficient
supply chain management and direct connections between producers and consumers,
bypassing intermediaries. The scalability and flexibility of online platforms attracts
a wide range of participants, from small-scale farmers to large agricultural
corporations, driving significant transaction volumes in the Global
Agricultural Commodities Market.
The Asia Pacific region is experiencing rapid market
growth. Asia Pacific's rapidly growing population, particularly in countries
like China and India, presents a significant demand for agricultural
commodities. As incomes rise and dietary preferences evolve, there is a growing
appetite for diverse and high-quality food products, including grains, meat,
dairy, and horticultural products. This surge in demand creates lucrative
opportunities for agricultural producers and exporters in the region. Asia
Pacific benefits from its vast agricultural potential and diverse agro-climatic
conditions. The region encompasses a wide range of ecosystems, from tropical
rainforests to temperate plains, allowing for the cultivation of a diverse
array of crops. Additionally, advancements in agricultural technology and
practices, such as precision farming, irrigation management, and biotechnology,
further enhance productivity and efficiency in the agricultural sector, driving
growth in agricultural commodity production.
Asia Pacific's strategic geographical location and
growing connectivity facilitate trade and market access for agricultural
commodities. The region serves as a hub for global trade routes, with key ports
and transportation networks linking Asia Pacific countries to major markets
worldwide. This connectivity enables agricultural producers in the region to
capitalize on international trade opportunities and meet the demand for
agricultural commodities in both domestic and export markets. Supportive government
policies and initiatives aimed at promoting agricultural development and
enhancing food security contribute to the growth of the agricultural
commodities market in Asia Pacific. Governments across the region implement
measures such as subsidies, incentives for agricultural investment,
infrastructure development, and research and development funding to support the
agricultural sector and ensure a stable food supply for growing populations.
Major companies operating in Global Agricultural
Commodities Market are:
- Archer Daniels
Midland Company
- AGROPECUARIA MAGGI LTDA
- Bunge Global SA
- Cargill, Incorporated
- Golden Agri-Resources Ltd
- JBS USA Food Company Holdings
- Louis Dreyfus Company B.V.
- Olam Group Limited
- Wilmar International Limited
- Marfrig Global Foods SA
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“The Global Agricultural Commodities Market is driven by several key
trends that shape its growth trajectory. Population growth, changing dietary
patterns, and urbanization drive the demand for agricultural commodities, while
increasing biofuel production and technological advancements in agriculture
create new opportunities. However, the market also faces significant
challenges. Climate change, resource scarcity, and environmental degradation
pose risks to production, while market volatility, trade barriers, and
regulatory complexities introduce uncertainties. Overcoming these challenges
requires sustainable practices, risk management strategies, and adaptability to
ensure the long-term growth and resilience of the Global Agricultural
Commodities Market. Businesses operating in this sector must carefully navigate
the evolving landscape, leveraging the driver trends and addressing the
challenges to capitalize on opportunities and succeed in this dynamic market,”
said Mr. Karan Chechi, Research Director with TechSci Research, a
research-based management consulting firm.
“Agricultural Commodities Market - Global
Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type
(Hard, Soft), By Trading Type (Online, Offline), By Product Type (Soybeans,
Corn, Wheat, Rice, Cocoa, Coffee, Cotton, Spices, Oil Seed, Sugar, Meat, Dairy
Products, Others), By Region and Competition, 2019-2029F”, has evaluated the future growth potential of Global
Agricultural Commodities Market and provides statistics & information on
market size, structure and future market growth. The report intends to provide
cutting-edge market intelligence and help decision makers take sound investment
decisions. Besides, the report also identifies and analyzes the emerging trends
along with essential drivers, challenges, and opportunities in Global Agricultural
Commodities Market.
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