Agrofood Product Market Trends and Forecast
According to a market report by Lucintel, the future of the global agrofood product market looks promising with opportunities in the direct consumption, food processing, animal feed, and industrial markets. The global agrofood product market is expected to reach an estimated $18.2 billion by 2030 with a CAGR of 3.5% from 2024 to 2030. The major drivers for this market are growing demand for diverse & nutritious agrofood products, increasing demand for organic & natural agrofood items, and rise in demand for convenient, processed, & packaged agrofood products.
Most agrofood products are made from grains (wheat, corn, rice), fruits, vegetables and legumes which are agricultural raw materials. Other principal components comprise milk products, meat and oils acquired from either seeds or nuts. Moreover preservatives, flavorings and colorings are used as additives to improve product quality as well as prolong shelf life.
Agrofood products’ prices significantly vary depending on the cost of raw materials, production processes and regional aspects. Generally speaking, organic and niche agrofood products attract a higher price compared to conventional ones because of expensive input costs plus luxury ingredients that are used. In addition to charging a premium for their products in comparison with their rivals; firms that offer eco-friendly or innovative forms of agro foods may also enjoy the advantage of a rise in demand by consumers for these goods.
• Lucintel forecasts that grain, mill, cereal, & oil will remain the largest segment over the forecast period.
• Within this market, direct consumption is expected to witness the highest growth.
Country Wise Outlook for the Agrofood Product Market
The agrofood product market is witnessing substantial growth globally, driven by growing demand for diverse & nutritious agrofood products. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major agrofood product producers in key regions: the USA, China, India, and Germany.
Emerging Trends in the Agrofood Product Market
Emerging trends in the agrofood product market shaping its future applications and market dynamics:
• Digital and Automated Agriculture: Introduction of smart farming technologies, such as precision farming and automation helps in improving food production efficiency and crop yield.
• Personalized Nutrition: Progress in nutritional science and technology has led to customized dietary solutions designed for individual health needs or preferences.
• Food Traceability: Improved food safety and transparency are leading to traceability systems that follow the path of origin and travel, from farm to table; behind agro-food products.
• Organic Farming: Increased concentration on environmental sustainability and wellbeing encourages organic cultivation methods and green packaging answers.
• Functional Foods: Increased interest in physical well-being causes functional foods with enhanced health benefits through the fortification of vitamins, minerals, and pro-biotics to become more popular.
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Recent Development in the Agrofood Product Market
Ongoing innovations and advancements in various sectors of the agrofood product market which have been highlighted by recent developments:
• Nestle: To achieve the fast-growing consumers’ request for healthier and more ecological food options, Nestle introduces its range of plant-based products which include dairy substitutes and meat imitations.
• Tyson Foods: It is anticipated that Tyson foods will focus on a new generation of plant-based protein, which goes beyond the traditional meat products that are available in the market today with an eye on vegetarianism and vegan movements.
• Bunge Limited: The company has told investors of its plan to invest heavily in improving its soy processing capabilities in South America, so as to increase supplies of high-quality soy proteins for global markets.
• Cargill: Cargill USA has announced its plans to introduce a new line of sustainable packaging solutions for agrofood products. These changes will be aimed at reducing the world’s carbon footprint through development of eco-friendly materials used to pack agro-foods.
• ADM (Archer Daniels Midland): In response to increasing customers’ interest in health and wellness via enhanced nutritional products, Archer Daniels Midland (ADM) has put into play a line of functional food with enriched vitamins and minerals.
Strategic Growth Opportunities for Agrofood Product Market
Some key strategic growth opportunities for this market include:
Expansion of Plant-Based and Organic Products:
The growth in interest by consumers about health and sustainability provides opportunities to widen plant-based product lines as well as organic products; these will enable the companies to take advantage of increase in demand for healthier options and eco-friendly alternatives.
Growth in E-Commerce and Online Sales:
Reducing distribution channels using e-commerce platforms by agrofood firms opens a wider market coverage, leading to increased sales through online channels.
Sustainable and Eco-Friendly Packaging Solutions:
Developing sustainable packaging techniques that are environmentally friendly helps meet regulatory requirements as well as target environmentally conscious consumers who value their environment, thus giving these companies a competitive edge.
Emerging Markets Expansion:
Such growth prospects are great especially for diversifying companies with increasing food consumption due to rising middle income populations entering emerging markets.
Investment in Research and Development:
This means focusing on R&D activities that drive innovativeness in product formulation including functional foods with additional health benefits so that they meet the changing tastes of customers.
Expanding plant-based and organic offerings, leveraging technological advancements, and exploring emerging markets are some of the strategic growth opportunities in the agro-food product market. An enhanced competitive position is created by sustainable packaging and e-commerce growth.
Agrofood Product Market Driver and Challenges
The upward trend in the population of health-conscious individuals, technological breakthroughs and environmental saverism are the main drivers of agrofood product market. The sector is full of such problems as supply chain shortcomings, restrictions connected with legislation as well as high expenses on their production.
The factors responsible for driving the agrofood product market include:
Increasing Consumer Demand for Healthier Options: Growing awareness of health and wellness is driving demand for organic, natural, and plant-based food products.
Technological Advancements in Food Processing: Innovations in food technology improve production efficiency, product quality, and shelf life, supporting market growth.
Rising Urbanization and Disposable Incomes: Urbanization and increasing disposable incomes boost the demand for diverse and convenient food products.
Sustainability Trends and Eco-Friendly Packaging: Consumer and regulatory pressure for sustainable practices encourage the adoption of eco-friendly packaging and sustainable sourcing.
Challenges in the agrofood product market are:
Supply Chain Disruptions: Issues, such as climate change, geopolitical tensions, and trade restrictions can disrupt supply chains and affect raw material availability.
High Production Costs: The cost of raw materials, energy, and labor can impact profitability, especially for companies transitioning to more sustainable practices.
The agrofood product market will be boosted by health trends and technological leaps, but it has to surmount obstacles like disturbance in supply chains, legal intricacy and expensive production costs so as to flourish.
Agrofood Product Suppliers and Their Market Shares
In this globally competitive market, several key players, such as Wilimar International, Ingredion, Inner Mongolia Yili, PepsiCo, etc. dominate the market and contribute to industry’s growth and innovation. These players capture maximum market share. To know the current market share of each of major players contact us.
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies agrofood product companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the agrofood product companies profiled in this report include-
• Wilimar International
• Ingredion
• Inner Mongolia Yili
• PepsiCo
These companies have established themselves as leaders in the agrofood product industry, with extensive product portfolios, global presence, and strong research and development capabilities. They continually strive to enhance their market positions through strategic partnerships, mergers and acquisitions, and product innovations.
The market share dynamics within the agrofood product market are evolving, with the entry of new players and the emergence of innovative agrofood product technologies. Additionally, collaborations between material suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
Agrofood Product Market by Segment
Direct consumption and food processing are the quickest expanding segments in the agro-food product market. In direct consumption, this has been facilitated by an increase in the need for convenience foods and healthy options that are responsive to customer demand while food processing has been brought about by technological breakthroughs and innovations geared towards enhancing quality as well as efficiency of products manufactured. On another note, animal feed also increases slowly owing to increased livestock production. Likewise, growth rates for industrial applications have become moderate due to a rising demand from various industries relying on agro –based raw materials.
Agrofood Product Market by Type [Value from 2018 to 2030]:
• Grains, Mills, Cereals, & Oils
• Sugar
• Fruits & Vegetables
• Others
Agrofood Product Market by Application [Value from 2018 to 2030]:
• Direct Consumption
• Food Processing
• Animal Feed
• Industrial
• Others
Agrofood Product Market by Region [Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Features of the Global Agrofood Product Market
Market Size Estimates: Agrofood product market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Agrofood product market size by type, application, and region in terms of value ($B).
Regional Analysis: Agrofood product market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the agrofood product market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the agrofood product market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the agrofood product market size?
Answer: The global agrofood product market is expected to reach an estimated $18.2 billion by 2030.
Q2. What is the growth forecast for agrofood product market?
Answer: The global agrofood product market is expected to grow with a CAGR of 3.5% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the agrofood product market?
Answer: The major drivers for this market are growing demand for diverse & nutritious agrofood products, increasing demand for organic & natural agrofood items, and rise in demand for convenient, processed, & packaged agrofood products.
Q4. What are the major segments for agrofood product market?
Answer: The future of the agrofood product market looks promising with opportunities in the direct consumption, food processing, animal feed, and industrial markets.
Q5. Who are the key agrofood product market companies?
Answer: Some of the key agrofood product companies are as follows:
• Wilimar International
• Ingredion
• Inner Mongolia Yili
• PepsiCo
Q6. Which agrofood product market segment will be the largest in future?
Answer: Lucintel forecasts that grain, mill, cereal, & oil will remain the largest segment over the forecast period.
Q7. In agrofood product market, which region is expected to be the largest in next 5 years?
Answer: APAC will remain the largest region over the forecast period.
Q8. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the agrofood product market by type (grains, mills, cereals, & oils, sugar, fruits & vegetables, and others), application (direct consumption, food processing, animal feed, industrial, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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