A report from management consulting firm MarketsandMarkets projects the global regenerative ag market will reach $16.8 billion by 2027 and will grow at a compound annual growth rate of 14%. The market valuation in 2022 was $8.7 billion, according to the firm.
MarketsandMarkets said the growth is due to increasing awareness and interest in regenerative agriculture practices. The firm also identified the use of biological products that help improve soil health and boost carbon sequestration as a growing area of development within regenerative agriculture.
In the future, MarketsandMarkets said it anticipates soil and crop management will dominate regenerative agriculture, including nitrogen fixation, nutrient cycling and water retention.
North America will capture a large share of the global regenerative agriculture market and will benefit from a growing awareness of the benefits of regenerative agriculture practices among farmers and consumers, according to the firm.
MarketsandMarkets identified several factors fueling growth, these include:
- Consumer demand for sustainable food — Consumer awareness of the environmental impact of food production fuels the demand for sustainably sourced food.
- Corporate investment — Companies support carbon credit programs and partner with organizations to promote sustainable farming methods.
- Government policies and incentives — Growers can access more government incentives adopt regenerative practices, making it financially viable for many to transition to these more sustainable methods.
- Technological advancements — Innovations in technology, particularly in soil and crop management, support the growth of regenerative agriculture. Advances in microbial-based solutions for carbon sequestration and soil health enhance the adoption of regenerative techniques.
- Collaboration and knowledge-sharing — Collaboration among stakeholders, including growers, researchers and technology providers, fosters the rapid spread of regenerative agriculture practices.
