Global E-commerce of Agricultural Products Market By Product Type (Crop Produce, Seeds & Fertilizers, Agricultural Tools, Livestock & Poultry Products), By Business Model (B2B (Business-to-Business), B2C (Business-to-Consumer), C2C (Consumer-to-Consumer)), By Region and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
- Published date: March 2024
- Report ID: 21454
- Number of Pages: 280
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Report Overview
The Global E-commerce of Agricultural Products Market size is expected to be worth around USD 90.1 Billion by 2033, from USD 40.2 Billion in 2023, growing at a CAGR of 8.4% during the forecast period from 2024 to 2033.
E-commerce of agricultural products refers to the buying and selling of agricultural goods and related services through online platforms. It encompasses a wide range of activities, including the online sale of fresh produce, processed food products, agricultural inputs (such as seeds, fertilizers, and machinery), livestock and poultry, and agricultural services like consulting and advisory services.
The E-commerce of Agricultural Products Market has witnessed significant growth in recent years, driven by the ever-evolving digital landscape and the increasing demand for convenient access to agricultural goods. This market segment encompasses a wide range of products, including fresh produce, grains, livestock, and agricultural equipment, all of which are bought and sold through online platforms.
Investments
- Benlai (China): With a substantial ~$400 million Series D funding, Benlai is poised to enhance its cold chain infrastructure significantly. Additionally, the investment is allocated towards integrating AI in farm management and pursuing market expansion strategies.
- AgroFresh (US): The company’s ~$125 million fund-raising initiative is directed towards developing innovative technologies for preserving the freshness of fruits and vegetables, aligning with the market’s demand for quality produce.
- Ninjacart (India): Receiving ~$100 million in new funding, Ninjacart plans to expand its farmer network and enhance its online grocery platform, indicating a strategic move towards strengthening its supply chain and market reach.
Analyst Viewpoint
The U.S. Department of Agriculture has projected that by 2024, more than 60% of farms across the United States are expected to engage in selling at least a part of their produce through online channels. This significant shift towards digital platforms underscores the growing relevance of e-commerce in the agricultural sector.
Furthermore, according to the National Farmers Union, there is an anticipated increase in the adoption of e-commerce platforms among small-scale farmers by 35% from 2022 to 2024. This surge reflects the expanding interest and capabilities of small-scale farmers to leverage online markets for selling their products, thereby reaching a wider audience.
The Food Industry Association has highlighted consumer trends, noting that approximately 45% of consumers are planning to purchase more fresh produce online by the end of 2024. This trend is largely driven by the convenience and accessibility that online shopping offers, making it an increasingly popular choice among consumers for acquiring fresh goods.
Additionally, the National Grocers Association has forecasted that by 2024, over 70% of major grocery retailers are expected to provide online ordering and delivery services for locally-sourced agricultural products. This prediction indicates a significant move towards integrating local farm produce into the digital retail space, benefiting both consumers and local farmers by offering greater access to fresh, locally-grown products.
Key Takeaways
- The E-commerce of Agricultural Products Market is projected to reach USD 90.1 billion by 2033, with a CAGR of 8.4% from 2024 to 2033.
- In 2023, Crop Produce emerged as the dominant product segment, capturing over 47.1% of the market share. This is due to the rising global demand for fresh and high-quality food products.
- Business-to-Business (B2B) emerged as the dominant business model in 2023, capturing over 52.5% of the market share. B2B platforms offer benefits like bulk ordering and customized pricing, catering to businesses’ unique needs.
- North America held a dominant position in 2023, with over 38.7% market share. This is attributed to its developed digital infrastructure, adoption of technology, and a growing trend of direct-to-consumer sales.
- Key players in the E-commerce of Agricultural Products Market include Amazon.com, Alibaba Group, JD.com, and Walmart Inc., among others. These players significantly shape the industry landscape.
Product Type
In 2023, the Crop Produce segment emerged as the dominant player in the e-commerce of agricultural products market, capturing over 47.1% of the market share. This segment’s remarkable performance can be attributed to several key factors. Firstly, crop produce comprises a wide range of agricultural products, including grains, fruits, vegetables, and other edible crops.
The global demand for fresh and high-quality food products is consistently on the rise, driven by factors such as population growth, changing dietary preferences, and increasing health consciousness among consumers. As a result, farmers and agricultural suppliers have been focusing on enhancing crop yields and quality to meet this growing demand.
The online platform offers a convenient and efficient avenue for farmers to showcase and sell their crop produce directly to consumers and businesses. By eliminating intermediaries and traditional distribution channels, e-commerce platforms enable farmers to achieve better profit margins and gain direct access to a wider customer base. Additionally, e-commerce platforms provide consumers with a broader selection of crop produce, including specialty and organic products, which might not be readily available in local markets.
Moreover, technological advancements in logistics and supply chain management have enabled efficient transportation and delivery of crop produce, ensuring its freshness and quality. Cold chain infrastructure, such as refrigerated vehicles and storage facilities, has played a crucial role in preserving the nutritional value of perishable agricultural products during transit.
Business Model
In 2023, the B2B (Business-to-Business) segment emerged as the dominant player in the e-commerce of agricultural products market, capturing over 52.5% of the market share. This segment’s strong position can be attributed to several key factors. Firstly, the B2B model caters to the needs of businesses involved in the agricultural supply chain, including farmers, distributors, wholesalers, and retailers. These entities often require a consistent and reliable supply of agricultural products in large volumes to meet their operational and commercial requirements.
The B2B e-commerce platforms offer a range of benefits for businesses. They provide a centralized marketplace where agricultural suppliers can showcase their products and connect with potential buyers on a large scale. The digital platform enables streamlined communication and transactions between buyers and sellers, facilitating efficient and transparent business operations. Additionally, B2B platforms often incorporate features such as bulk ordering, negotiation tools, and customized pricing, catering to the unique needs of businesses.
Furthermore, the B2B model allows for greater efficiency and cost savings in the agricultural supply chain. By connecting directly with suppliers through online platforms, businesses can bypass intermediaries and reduce procurement costs. The streamlined processes and automated systems offered by B2B platforms enhance operational efficiency, enabling businesses to optimize their inventory management, reduce wastage, and improve overall productivity.
Moreover, the B2B e-commerce model benefits from the increasing digitization and globalization of the agriculture industry. As businesses expand their operations across geographical boundaries, the B2B platforms provide a convenient and accessible platform for international trade. These platforms facilitate global sourcing, allowing businesses to access a diverse range of agricultural products from different regions, expanding their product offerings and catering to the demands of a diverse customer base.
Key Market Segments
Product Type
- Crop Produce
- Seeds & Fertilizers
- Agricultural Tools
- Livestock & Poultry Products
Business Model
- B2B (Business-to-Business)
- B2C (Business-to-Consumer)
- C2C (Consumer-to-Consumer)
Driver
Technological Advancements in Logistics and Supply Chain Management
Technological advancements in logistics and supply chain management have emerged as a significant driver for the e-commerce of agricultural products market. These advancements have revolutionized the way agricultural products are transported, stored, and delivered, leading to improved efficiency and cost-effectiveness.
One of the key technological advancements is the development of robust tracking and tracing systems. With the help of technologies like RFID (Radio Frequency Identification) and IoT (Internet of Things), agricultural products can be monitored throughout the supply chain, ensuring better visibility and transparency. This enables stakeholders to track the movement of products, monitor temperature and humidity levels, and identify any potential issues or delays. Such real-time tracking not only enhances the overall efficiency of the supply chain but also helps in maintaining the quality and freshness of perishable agricultural products.
Another significant advancement is the implementation of cold chain infrastructure. Cold chain facilities, including refrigerated storage units, vehicles, and packaging solutions, play a crucial role in preserving the quality and nutritional value of agricultural products. These technologies help maintain the required temperature and humidity levels during transportation and storage, ensuring that the products reach the end consumers in optimal condition.
The technological advancements in logistics and supply chain management have not only improved efficiency but also expanded market reach. E-commerce platforms have enabled global sourcing of agricultural products, connecting buyers and sellers from different regions. This has opened up opportunities for farmers and suppliers to access larger markets and establish international trade networks.
Restraint
Decomposable and Quality Concerns
One of the key restraints faced by the e-commerce of agricultural products market is the concern over the decomposability and quality of the products. Agricultural products, especially fresh produce, are perishable in nature and require specific handling and storage conditions to maintain their quality. When these products are sold through e-commerce platforms, there is a risk of deterioration during transportation and delivery, leading to customer dissatisfaction and financial losses for both sellers and buyers.
Maintaining the freshness and quality of agricultural products during the e-commerce process is a complex challenge. Factors such as temperature control, handling practices, and packaging play a crucial role in preserving the products. However, not all e-commerce platforms have robust systems in place to ensure proper handling and delivery. In cases where products are not adequately protected or delivered within the specified time frame, the quality can deteriorate significantly, leading to customer complaints and potential health risks.
Furthermore, the decomposability of certain agricultural products poses a challenge for e-commerce. Fresh fruits, vegetables, and other perishable items have limited shelf lives, and their quality can degrade rapidly if not handled properly. This poses a challenge for e-commerce platforms to ensure timely delivery and maintain product freshness. Additionally, customers may have concerns about the authenticity and safety of the products they receive, especially when it comes to organic or locally sourced produce.
To address these concerns, e-commerce platforms and agricultural suppliers need to invest in robust cold chain infrastructure and packaging solutions. Ensuring proper temperature control and implementing efficient logistics processes can help mitigate the risk of product deterioration. Moreover, clear communication about product handling and storage guidelines, as well as transparent return and refund policies, can help build trust and assure customers of the quality of the products they purchase online.
Opportunity
Rising Consumer Demand for Organic and Locally Sourced Produce
The e-commerce of agricultural products market presents a significant opportunity driven by the rising consumer demand for organic and locally sourced produce. Over the past years, there has been a growing awareness and preference among consumers for healthier and sustainable food options. This has led to an increased demand for organic products, which are free from synthetic pesticides and genetically modified organisms.
E-commerce platforms provide a convenient avenue for consumers to access a wide range of organic and locally sourced agricultural products. These platforms can connect consumers directly with farmers and local suppliers who specialize in organic farming practices. By eliminating the need for intermediaries, e-commerce allows for a more transparent and traceable supply chain, enabling consumers to make informed choices about the products they purchase.
Moreover, e-commerce platforms offer a broader selection of organic and locally sourced produce compared to traditional brick-and-mortar stores. Consumers can explore a variety of options, including seasonal and niche products, and have them delivered directly to their doorsteps. This convenience factor has contributed to the growth of the e-commerce market for organic agricultural products.
Challenge
Regulatory Compliance and Market Fragmentation
One of the challenges faced by the e-commerce of agricultural products market is regulatory compliance and market fragmentation. The agricultural industry is subject to various regulations and standards that vary across different regions and countries. Compliance with these regulations, such as food safety standards, labeling requirements, and certification processes, can be complex and time-consuming for e-commerce platforms and agricultural suppliers operating on a global scale.
Ensuring compliance with diverse regulatory frameworks poses a challenge for e-commerce platforms, as they need to navigate through different legal requirements and adapt their operations accordingly. Failure to meet these regulations can lead to legal consequences, damage to reputation, and loss of consumer trust. Therefore, e-commerce platforms need to invest in robust systems and processes to manage regulatory compliance effectively.
Moreover, the e-commerce of agricultural products market is fragmented, with numerous platforms and suppliers operating in different geographical regions. This fragmentation can result in inconsistencies in product quality, pricing, and customer experience across various platforms. For consumers, this can create confusion and make it difficult to compare and choose the best options available.
To overcome these challenges, collaboration and standardization efforts among e-commerce platforms, regulatory bodies, and agricultural associations are essential. Establishing industry-wide guidelines and best practices can help streamline regulatory compliance and ensure a consistent level of quality across the market. Additionally, e-commerce platforms can enhance transparency and trust by implementing customer review systems, quality assurance programs, and verification processes for suppliers.
Regional Analysis
In 2023, North America held a dominant position in the e-commerce market for agricultural products, capturing more than a 38.7% share. This prominence can be attributed to several key factors. Firstly, the region benefits from a highly developed digital infrastructure, which facilitates efficient online transactions and logistics. This is complemented by a widespread adoption of technology among consumers and agricultural businesses alike, making online platforms a preferred channel for buying and selling agricultural goods.
Additionally, the presence of major e-commerce players in North America, who have invested significantly in optimizing supply chain and distribution networks, contributes to the region’s leading position. These companies leverage advanced data analytics to understand consumer preferences and supply dynamics, enabling them to offer a wide range of products with efficient delivery options.
The growth of the market in this region is also bolstered by supportive government policies aimed at promoting digitalization in agriculture. These policies include initiatives to increase internet penetration in rural areas and to provide subsidies or incentives for adopting e-commerce solutions in agriculture.
Furthermore, the increasing trend of direct-to-consumer sales, where farmers and producers sell their products directly to consumers through online platforms, has gained significant traction in North America. This model not only ensures freshness and quality but also enhances profit margins for producers by eliminating intermediaries.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- New Zealand
- Singapore
- Thailand
- Vietnam
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Key Players Analysis
The e-commerce market for agricultural products is characterized by the presence of several key players that have significantly shaped the industry landscape. These entities range from established e-commerce giants to emerging startups focusing on niche segments. A detailed analysis of these key players is essential for understanding market dynamics, competition, and future trends.
Top E-commerce of Agricultural Products Market Key Players
- Amazon.com, Inc.
- Alibaba Group Holding Limited
- JD.com, Inc.
- Walmart Inc.
- ULink AgriTech Pvt. Ltd.
- IndiaMART InterMESH Ltd.
- Rakuten Group, Inc.
- Etsy, Inc.
- Farmers Business Network, Inc.
- Tractor Supply Company
- Other Key Players
Recent Developments
- In June 2023, Amazon, a big online shopping company, joined hands with the Indian Council of Agricultural Research (ICAR) to help farmers in India who are part of the Kisan store. They want to make things better for farmers and set up a way for goods to go directly from the farmers to the buyers.
- In 2023, Alibaba, Launched “Farm to Home” program using blockchain technology to track food provenance and ensure quality, building consumer trust in online produce purchases.
Report Scope
Report Features Description Market Value (2023) USD 40.2 Bn Forecast Revenue (2033) USD 90.1 bn CAGR (2024-2033) 8.4% Base Year for Estimation 2023 Historic Period 2018-2022 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Product Type (Crop Produce, Seeds & Fertilizers, Agricultural Tools, Livestock & Poultry Products), By Business Model (B2B (Business-to-Business), B2C (Business-to-Consumer), C2C (Consumer-to-Consumer)) Regional Analysis North America – The US & Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, and Rest of Europe; APAC- China, Japan, South Korea, India, Australia, New Zealand, Singapore, Thailand, Vietnam, and Rest of APAC; Latin America- Brazil, Mexico & Rest of Latin America; Middle East & Africa- South Africa, Saudi Arabia, UAE & Rest of MEA Competitive Landscape Amazon.com Inc., Alibaba Group Holding Limited, JD.com Inc., Walmart Inc., ULink AgriTech Pvt. Ltd., IndiaMART InterMESH Ltd., Rakuten Group, Inc., Etsy Inc., Farmers Business Network, Inc., Tractor Supply Company, Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the E-commerce of Agricultural Products Market?The E-commerce of Agricultural Products Market refers to the online buying and selling of agricultural goods, providing a digital platform for farmers, distributors, and consumers to connect.
How does E-commerce benefit farmers in the agricultural sector?E-commerce platforms empower farmers by providing them with a wider market reach, enabling direct sales, and often offering better prices for their products.
How big is E-commerce of Agricultural Products Market?The Global E-commerce of Agricultural Products Market size is expected to be worth around USD 90.1 Billion by 2033, from USD 40.2 Billion in 2023, growing at a CAGR of 8.4% during the forecast period from 2024 to 2033.
Who are the key players in E-commerce of Agricultural Products Market?Amazon.com Inc., Alibaba Group Holding Limited, JD.com Inc., Walmart Inc., ULink AgriTech Pvt. Ltd., IndiaMART InterMESH Ltd., Rakuten Group, Inc., Etsy Inc., Farmers Business Network, Inc., Tractor Supply Company, Other Key Players
What trends are shaping the future of E-commerce in the agricultural sector?Emerging trends include the integration of IoT (Internet of Things) for smart farming, blockchain for traceability, and the expansion of online platforms to include value-added services such as agricultural education and advisory.
E-commerce of Agricultural Products MarketPublished date: March 2024add_shopping_cartBuy Now get_appDownload Sample - Amazon.com, Inc. Company Profile
- Alibaba Group Holding Limited
- JD.com, Inc.
- Walmart Inc.
- ULink AgriTech Pvt. Ltd.
- IndiaMART InterMESH Ltd.
- Rakuten Group, Inc.
- Etsy, Inc.
- Farmers Business Network, Inc.
- Tractor Supply Company
- Other Key Players
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