Regenerative Agriculture Market 2022 – Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Market Size & Forecast 2030

The global regenerative agriculture market is expected to grow at a steady CAGR during the forecast period 2022-2030. Regenerative agriculture is basically a holistic, rehabilitation principles-based approach system to farming that seeks to enhance ecosystems and its counterparts. It aims at alleviating the adverse consequences of farming activities, including depletion, desertification, erosion, salinization, pest invasions, decarbonization, chemical contamination and others. It does so by making use of a variety of agricultural techniques in combination including managed grazing, use of cover crops to minimize soil erosion, crop rotation, composting and no tilling.

The predominant emphasis of regenerative agriculture revolves around renewing and restoring of the topsoil, refining the water quality and availability, enhancing biodiversity, strengthening resilience to climate change, raising nutritional value, optimization of resource management and reducing carbon emissions and current atmospheric CO2 levels.

Regenerative agriculture methods and practices promote reducing the consumption of fertilizer, fuel, and other inputs used in modern agriculture and also take into account abandoned territories beyond farming activities or no longer in use.

REGIONAL INSIGHT

The North America and Europe are the leading regions in the global regenerative agriculture market. The rising implementation of Adaptive Multi-Paddock (AMP) grazing in North American prairies, the tremendously escalating investments worth more than $70 billion on regenerative agricultural practices in the major economies of the region, the high acceptance and adoption of the regenerative agriculture concept by food manufacturers  existing in the regions, the increasing emphasis of vendors on encouraging better soil health practices in the regions, the increasing number of research and development pertaining to the use and incorporation of regenerative agriculture within the existing value chain in the regions, the high market penetration for emerging technology-enabled agriculture across the regions and the augmenting presence of market leaders present in the current regenerative agriculture market and the increasing number of initiatives including pilot programs launched by them contribute to the high market share and the growth of the regenerative agriculture market in the North American and the European region.

MARKET DRIVERS

Though, factors such as the dearth of a verifiable standard making it difficult to credibly evaluate regenerative agricultural practices, the lack of awareness and understanding of the term regenerative agriculture and its potential among a large section of the society, the unwillingness of people to pay more for food products, the high amount of costs associated with regenerative agricultural techniques and the constant criticism from the scientific community restrain the market for regenerative agriculture, there are a host of factors contributing grandly toward its growth.

The primary factors contributing towards the growth of the market include the rapid degradation of nature and extinction of species across different parts of the globe, the burgeoning threats to agriculture and its adverse impact on the ability to help feed a growing population, the growing demand for the production of nutrient-dense food, the increasing awareness among people regarding health, the surging emphasis on animal welfare and worker fairness, the rising adoption of regenerative farming, the growing importance and need for carbon sequestration and augmenting need and demand for environmental sustainability.

Additionally, in the recent years, several approaches have been made to promote, demonstrate, and educate people about regenerative agriculture, its techniques, its implications and how upgrading the health of soil can help enhance the quality of food. Alongside publishing of books on the topic, hosting of events for educating ranchers on methods of holistic land management, launching of projects which inspire and educate decision-makers to support and invest in regenerative agricultural models and also releasing of a number of films and documentaries such as the The Biggest Little Farm have helped the concept propagate considerably on the global level in the last few years.

A number of marquee corporations and organizations on the other hand have been consistently announcing regenerative agriculture initiatives in the last few years mostly in the form of brand activations, land conversions, pilot programs, research and investments etc. Few of them include General Mills’s effort to encourage regenerative agriculture practices in their supply chain and to bring regenerative agriculture practices to 1 million acres of farmland by 2030, PepsiCo’s announcement to work with the farmers in their supply chain to set up regenerative agriculture practices across their approximately 7 million acres by 2030, Unilever’s announcement of an extensive implementation plan to integrate regenerative agriculture throughout their supply chain, VF Corporation’s  announcement of a partnership with Terra Genesis International to establish a supply chain for their rubber that comes from sources using regenerative agriculture, The Rodale Institute’s launching of a Regenerative Organic Certification structure aiming to build the movement off of existing organic standards, the Andhra Pradesh government’s launching of a plan to transition 8 million hectares of land from traditional agriculture methodology to Zero-Budget Natural Farming by 2024, Understanding Ag’s pilot programs to supply farmers with practical tools to implement regenerative agriculture including one-on-one coaching and technical assistance and Danone’s announcement with partners including DSM, Yara, Corteva and start-up Connecterra to coordinate 25 pilot projects across different regions to learn and share best regenerative practices in the dairy industry. All of these initiatives are set to create tremendous opportunities for the up scaling of the global market for regenerative agriculture in the next few years.

Moreover, regenerative agriculture is also being introduced with many novel and innovative state-of-the-art technologies focused on making its adoption and management more convenient than ever. Some notable technologies include the livestock management software, the soil sensors which can measure aeration, the integrated environmental and economic dashboard for farmers to de-risk implementation of regenerative agriculture practices and the satellite crop health imagery software which can assist producers to compare crop health at each growing stage as well as from season to season among others.

Also, there has been massive influx of capital investments worth more than $47.5 billion in the regenerative agriculture industry since the last few years. This is due to the rising interest in regenerative food systems and agricultural practices in the investment community. Some of the recent developments include McCain Foods announcement of an investment of over US$65 million in GoodLeaf Farms, Nestlé’s announcement of a $1.8 billion investment in regenerative agriculture over the next 5 years in an effort to reduce their emissions by 95%, Organic chocolate maker Alter Eco’s plans to invest up to $10 million to convert its total 20,000 acres of farmland into regenerative agriculture and Foodshots Global’s $10 million dedicated to supporting a ‘Soil 3.0’ paradigm etc.

Furthermore, other factors such as the increasing product sourcing of companies from farms that explicitly use regenerative agricultural practices, the growing penetration of regenerative agriculture in online grocery business, the escalating number if innovations in no-till practices such as slashing and mulching,  the surging level of transparency emerging in the food and drink industry in terms of processing techniques, the proliferating use of potential influencers to promote regenerative agriculture by covering topics such as the need for caring for the world and paying more for products made with sustainable practices and the increasing launching of new food products produced via regenerative farming carrying a verification seal are also expected to contribute swiftly towards the growth of the regenerative agriculture market in the upcoming years.

REGENERATIVE AGRICULTURE MARKET SEGMENTATION

By Practice

·        Aquaculture

·        Agroforestry

·        Biochar

·        Holistic Planned Grazing

·        Pasture Cropping

·        Others

By Application

·        Carbon Sequestration

·        Nutrient Cycling

·        Biodiversity

·        Others

By Region

·        North America

·        Europe

·        Asia Pacific

·        Latin America

·        Middle East & Africa

KEY PLAYERS IN REGENERATIVE AGRICULTURE MARKET

·        Indigo Ag

·        General Mills

·        HowGood

·        Annie’s Homegrown

·        Applegate

·        EPIC Provisions LLC

·        Regeneration Canada

·        The New Food Collective

·        Food Should Taste Good

·        White Oak Pastures

·        Terra Genesis International

·        Quantis

·        Danone

·        Aranya Agricultural Alternatives

·        Kiss The Ground

·        Grounded

·        Badger

·        Regen AG

·        Regeneration International

·        Savory Network

·        EcoFarm

·        Other Players

Few of these players from time to time get involved in many different strategic business acquisitions, collaborations and partnerships for the purpose of intensifying their revenue, market share and their geographical footprints across different regions around the globe.

RECENT DEVELOPMENTS

In June 2021, Viñedos Veramonte, one of the top 100% organic and sustainable wineries in Chile announced a partnership with the non-profit organization, Kiss the Ground, to help promote Regenerative Agriculture and inform American consumers on the best practices to have a healthy ecosystem.