Noida, India, Aug. 31, 2021 (GLOBE NEWSWIRE) -- A study recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global agricultural commodities market is estimated to grow at a CAGR of 6.9% during the forecast period. The growth of the market is attributable to several factors including the growing per capita income, shift toward a healthier lifestyle, and rising adoption rates of digital technology to enhance the quality of agricultural products. Additionally, the rising fertility rates across the developing nations of Sub-Saharan Africa are also anticipated to enhance the demand for agricultural commodities in the coming years, thereby contributing to the growth of the global agricultural commodities market.
A steady increase in fertility rates across developing countries is contributing to the growth of the global agricultural commodities market
Population Reference Bureau data reveal that low-income nations are the main contributors to rising fertility rates. Though fertility rates are decreasing, although there is little to no evidence of a decreases in child bearing. According to one study, every 1000 adolescents between the ages of 15 and 19 give birth to 94 children in low-income countries. In contrast, high- and middle-income countries register 14 and 36 births, respectively. These statistics indicate that the population is growing in low-income countries. Thus, it contributes to the growing demand for agricultural produce in these regions as opposed to middle- and high-income countries. Agricultural production continues to be the primary economic activity in Sub-Saharan Africa, further underlying the increase in demand for agricultural produce and thus contributing to the growth of the global agricultural commodities market. This factor amplifies the demand for agricultural produce, contributing to growth in the global agricultural commodities market.
Growing acceptance of digital technologies in agriculture is favoring the growth of the global agricultural commodities market
Across all three sectors of the economy, the agricultural sector is the least digitally ready. However, the trend has been witnessing a shift as the farmers have started leveraging digital technologies in the agricultural processes, which is improving production besides enhancing the quality of the produce. The digital factor may be a boon for the developed economies. However, the implementation of such technologies has been at a primitive level for many of the developing nations. According to the Food and Agriculture Organization, precision agriculture is the new norm that has been emerging in the agricultural domain, wherein agricultural inputs are optimized with the help of remote sensing technologies enabled with satellites that provide positioning systems and IoT technology to fully optimize the labor and chemicals involved in the production of agricultural commodities. With the advent of such technologies, the global agricultural commodities market is projected to achieve substantial growth in the coming years.
The cereal grains segment occupied the largest market share in the type category of the global agricultural commodities market
Based on types, the global agricultural commodities market is bifurcated into cereal grains, oilseeds, meat, dairy, other soft commodities, miscellaneous agricultural commodities. The cereal grains segment accounted for the largest share in the global agricultural commodities market in 2020. The growth of the segment is attributable to the rising shift towards the consumption of cereal and grains like wheat and rice as against the consumption of meat. Cereal grains, such as corn or maize, have traditionally dominated global markets since it is considered a staple food in many nations, and widely used as animal feed. According to the Food and Agriculture Organization, cereals and grains are predominantly consumed across lower-income and upper-middle-income countries, where the population rates are higher as well. It also indicates that the rising population levels across these countries are anticipated to enhance the demand for agricultural products in these regions, thereby positively impacting the growth of the global agricultural commodities market.
B2B organizations held the biggest share across the application segment of the global agricultural commodities market
Based on end-users, the global agricultural commodities market is grouped into B2B and B2C. The B2C segment held the larger share in the global agricultural commodities market in 2020. Most agricultural commodities are supplied directly to consumers' markets for consumption. The rest is supplied to the B2B suppliers, who are responsible for the processing and further production of other foods. The digital revolution in the agriculture sector is bringing about a change in the way a consumer perceives a product. Because the raw materials used in food processing are of higher quality, B2B companies can take advantage of this opportunity to market their products. They can implement quality assurance measures thereby helping to increase the demand for high-quality agricultural products.B2B organizations are, therefore, anticipated to contribute to the growth of the global agricultural commodities market in the coming years.
Global Agricultural Commodities Market: Regional Insights
Based on regions, the global agricultural commodities market is divided into North America, Europe, the Asia-Pacific, Latin America, and the Middle-East & Africa. Among these regions, the Asia-Pacific happens to dominate the global agricultural commodities market. The region comprises some of the biggest yet developing economies like China, India, Indonesia, and Thailand, which are the core producers of agricultural products in their respective markets and usually export most of the abundant produce. According to the Indian Brand Equity Foundation, India produced 296.63 million tons of food grains in FY 2020, which marks an addition of 11.21 million tons as compared to the previous year. The agricultural produce of the other developing countries is also registering a rise, which is indicative of the fact that the global agricultural commodities market is anticipated to register higher potential in the coming years.
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Global Agricultural Commodities Market - COVID-19 Impact Analysis
As a result of the COVID-19 pandemic, food consumption slumped in the global agricultural commodities market. In the initial days of the nationwide lockdowns imposed by different countries, the biggest impact was felt by developing nations such as China and India due to the disruption in their supply chains. However, agricultural commodities being one of the essential commodities for consumption helped in lifting supply chain problems across the nations. However, with the rise of the delta variant accompanied by negligible actions by the governments of developing nations, the sector may witness another slump in the coming months. It is accompanied by the reducing trends in consumption of meat, as doctors are recommending a healthier lifestyle to boost the immune system's ability to fight the COVID-19 virus. Consumption of processed meat degrades one’s diet, making it impossible to maintain a healthy lifestyle. It has started shifting the focus toward the rising consumption of agricultural commodities, which in turn is contributing to the growth of the global agricultural commodities market.
Additionally, food production companies have started leveraging digital technologies like the IoT for streamlining the production of food grain, oilseeds and other agricultural products for enhancing the quality of agricultural produce. It, in turn, is expected to reduce the workload of the labor force employed in managing the crops. The digitization of the agriculture industry will help farmers reap the best products possible out of their agricultural production. It is thus anticipated to bolster the growth of the global agricultural commodities market in the forecast years.
The leading players in the global agricultural commodities market are Tyson Foods Inc., JBS S.A., Cargill Inc., Bunge Limited, ADM, Louis Dreyfus Company, Nestle S.A., Monsanto Company, Olam International, Barry Callebaut Group, Ingredion Inc., Anand Milk Union Limited (Amul), Marfrig, Bayer AG, Conagra Brands Inc., Syngenta Group, General Mills Inc., Glencore plc, Unilever plc, Smithfield Foods Inc., COFCO GROWMARK LLC, and other prominent players. Global agricultural commodities market players are using modern technology to develop a wide range of commodities to support the growth of the global agricultural commodities market. Consumers are expected to consume more agricultural products than ever before as a result of the shift in consumption of certain foods. Therefore, new entrants in the market will have more opportunities to gain a competitive edge.As a result, many players are expected to enhance their share in the global agricultural commodities market in the foreseeable future.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global agricultural commodities market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global agricultural commodities market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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