Global Agricultural Commodities Market

Global Agricultural Commodities Market, By Type (Cereal grains, Oilseeds, Meat, Dairy, Other soft commodities, Miscellaneous agricultural commodities), By End-User (B2B, B2C), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: August 2021
  • Report ID: BWC2153
  • Available Format: PDF
  • Page: 190

Report Overview

Agri-products include crops and livestock that are produced and harvested for use as food and fuel. Higher disposable incomes, changing tastes among consumers, and the adoption of modern technologies are some of the factors driving the growth of the global agricultural commodities market.

The global agricultural commodities market is projected to grow at a CAGR of 6.9% in the forecast period. A growing population, increasing disposable income, and a change in consumer tastes and preferences have led to rapid growth in agriculture commodities to feed the population and satisfy consumer tastes. Furthermore, the adoption of advanced technology to increase agricultural production is further expected to boost the agricultural commodities market during the forecast period.

Global Agricultural Commodities Market- Overview

Agri-products include crops and livestock that are produced and harvested for use as food and fuel. The major agricultural commodities include wheat, corn, cattle/calves, chicken eggs, hay, dairy products/milk, broilers, and miscellaneous crops. Not only are these products crucial for consumption but also economic growth.This is because more than half of the population across the globe is dependent on agricultural production as their primary source of income. Furthermore, more than 100 developing countries are dependent on agricultural commodities for their export earnings.

Global Agricultural Commodities Market Forecast and Trends

Growth Drivers

Increasing Population and Changing Consumer Taste and Preferences

According to the Food and Agricultural Organization of the United Nations, more than 60% of the world’s population depends on agriculture for survival. As the global population grows by 1.1% each year, agricultural production will have to be expanded if the entire population is to be fed.Also, consumer tastes and preferences have continuously changed over time, affecting the growth of agricultural commodities.For instance, the adoption of a vegan lifestyle and increasing demand for vegan meat has proliferated the production of certain types of food commodities, such as soy, vegetable, wheat, pea, etc.

High Dependence on Agricultural Production for Economic Growth

Based on the data by World Bank, agriculture-related GDP growth increased expenditures in the three poorest deciles by at least 2.5 times the growth rate. Agriculture is the primary source of livelihood for 75% of the global poor.Agriculture can alleviate poverty for 75 percent of those living in rural areas. Along with providing food, it also offers employment opportunities to a very large percentage. Additionally, a large portion of agricultural production is used as a raw material in manufacturing and production operations, which plays a critical role in boosting the global economy.

Restraints

Use of Outdated Agricultural Methods

The outdated agricultural methods used in farming and a lack of adoption of modern technology have a detrimental effect on agricultural commodities in the global market.For instance, India is one of the largest agricultural traders in the world. In spite of this, farmers still rely heavily on natural rain for irrigation, which directly impacts the quality of their crops.Furthermore, the seeds used for the purpose are not modern, limiting the final yield of the product.

Impact of COVID-19 on Global Agricultural Commodities Market

Due to the lockdown imposed by countries to curb the spread of COVID-19, the global agricultural commodities market has been negatively affected.Lockdown protocols acted as a hindrance to the market growth due to the restrictions on distribution channels. Furthermore, throughout this time, meat consumption dropped significantly.In addition, social distancing protocols, as well as an inadequate pool of labor, caused complete disruptions of production and manufacturing during this time.Nevertheless, the demand for cereal grains, oilseeds, and dairy was still moderate. However, a rebound in economic activity is expected to facilitate the recovery of the global agricultural commodity market in the forecast period.

Global Agricultural Commodities Market - By Type

Based on types, the global agricultural commodities market is segmented into cereal grains, oilseeds, meat, dairy, other soft commodities, miscellaneous agricultural commodities. The cereal grains segment holds the largest market share. This segment can further be classified into wheat, corn, barley, oats, and rough rice. Among these, the demand for corn or maize is the most prominent around the world as it is a staple food in many countries as well as used widely for animal feed and a wide range of industrial applications.

Global Agricultural Commodities Market - By End-User

Based on end-users, the global agricultural commodities market is segmented into B2B and B2C. The B2C segment accounts for the largest market share as a large percentage of agricultural commodities produced are used to feed the population of the country. The rest is supplied to the B2B traders for the production of processed foods. Additionally, since a large percentage of the economy depends on its export earnings, the B2B segment is also growing at a substantial rate.

Global Agricultural Commodities Market - Regional Insights

Geographically, the global agricultural commodities market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Among these regions, the Asia-Pacific dominates the market. Developing countries like China, India, Indonesia, and Japan are highly agricultural. Around 7% of the world's arable land is in China, which feeds around 22% of its population. India too is considered an agricultural powerhouse as it is the world's largest producer of milk, pulses, and spices. This is why the agricultural commodities market is flourishing in the Asia-Pacific region.

Regional Insights

Source: BlueWeave Consulting

Competitive Landscape

The leading market players in the global agricultural commodities market are Tyson Foods, JBS S.A., Cargill, Bunge Limited, ADM, Louis Dreyfus Company, Nestle, Monsanto, Olam International, Barry Callebaut, Ingredion Incorporated, Marfrig, Bayer, Conagra Brands, Syngenta, General Mills, Glencore, Unilever, Smithfield Foods, and other prominent players.

Many players in the industry strive to offer a wide variety of goods and services to suit the needs and preferences of different geographic locations and populations.Furthermore, the adoption of competitive strategies like mergers, acquisitions, partnerships, and collaborations are also very prominent in the global agricultural commodities market. Such strategies are used by market players to expand their product penetration into potential markets and establish their brands as global leaders.

Recent Developments

  • In August 2021, the Government of India announced a National Edible Oil Mission-Oil Palm (NEOM-OP) to boost domestic oilseed production and has invested over USD 147.75 million to build an edible oil ecosystem in India.
  • In August 2021, Kalera AS, a Norway-based vertical farming company, announced to have entered into a share purchase agreement for the acquisition of &ever GmbH, a German company in the same industry to establish itself as the global leader in the vertical farming industry.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Million

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia

Product Service/Segmentation

By Type, By End-User, By Region

Key Players

Tyson Foods, JBS S.A., Cargill, Bunge Limited, ADM, Louis Dreyfus Company, Nestle, Monsanto, Olam International, Barry Callebaut, Ingredion Incorporated, Marfrig, Bayer, Conagra Brands, Syngenta, General Mills, Glencore, Unilever, Smithfield Foods, and other prominent players.

 

By Type

  • Cereal grains
  1. Wheat
  2. Corn
  3. Barley
  4. Oats
  5. Rough Rice
  • Oilseeds
  1. Canola
  2. Cotton
  3. Palm oil
  4. Soybeans
  • Meat
  1. Feeder Cattle
  2. Live Cattle
  3. Lean Hogs
  4. Pork Bellies
  • Dairy
  1. Butter
  2. Milk
  3. Whey
  4. cheese
  • Other soft commodities
  1. Cocoa
  2. Coffee
  3. Frozen concentrated orange juice
  4. Sugar
  • Miscellaneous agricultural commodities
  1. Lumber
  2. Rubber
  3. Wool

By End-User

  1. B2B
  2. B2C

By Region

  1. North America
  2. Europe
  3. Asia-Pacific
  4. Latin America
  5. Middle East & Africa

 

FAQs:

1. What is the current CAGR of the global agricultural commodities market?

Answer: The global agricultural commodities market is growing at a CAGR of 6.9%.

2. What are the major factors driving the growth of the global agricultural commodities market?

Answer: The major factors driving the growth of the global agricultural commodities market are theincreasing population and changing consumer tastes and preferences. Moreover, high dependence on agricultural production for economic growth is also favoring market growth.

3. Who are the key players in the global agricultural commodities market?

Answer: The key players in the global agricultural commodities market are: Tyson Foods, JBS S.A., Cargill, Bunge Limited, ADM, Louis Dreyfus Company, Nestle, Monsanto, Olam International, Barry Callebaut, Ingredion Incorporated, Marfrig, Bayer, Conagra Brands, Syngenta, General Mills, Glencore, Unilever, Smithfield Foods, and other prominent players.

4. Which type segment accounted for the largest share in the global agricultural commodities market?

Answer: The cereal grains segment accounted for the largest share in the global agricultural commodities market.

5. Which region is at the highest growth rate in the global agricultural commodities market?

Answer:The Asia-Pacific region has the largest share in the global agricultural commodities market.