Global Regenerative Agriculture Market By Practice (Aquaculture, Holistic Planned Grazing, and Others), By Application, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Regenerative Agriculture Market was valued at USD 8.8 billion and will be predicted to reach USD 31.6 billion by 2032. Between 2023 and 2032, this market is estimated to register a CAGR of 14%.

Regenerative agriculture is an emerging trend in the agriculture industry, focused on improving soil health also increasing biodiversity. As consumers become more interested in sustainable and eco-friendly practices, this method of farming is becoming more commonplace.

Regenerative agricultural products, such as fruits, vegetables, grains, and livestock are seeing a growing market. Consumers are willing to pay more for products grown using sustainable practices, such as reduced tillage, increasing cover crops, rotating crops as well using natural fertilizers and pesticides.

In addition to the consumer market, there is also an increasing interest in regenerative agriculture practices among food companies, restaurants, and other businesses.

Many of these firms are committed to sourcing their ingredients from sustainable farms and are willing to pay a premium for these items. The regenerative agriculture market is expected to experience steady growth as more consumers and businesses demonstrate an interest in sustainable practices. This presents a lucrative opportunity for farmers and producers who wish to adopt this practice.

Driving Factors

Growing awareness of the environmental damage caused by conventional farming practices such as soil degradation, water pollution, and greenhouse gas emissions, there has been an uptick in demand for sustainable agricultural methods.

Regenerative agriculture addresses these concerns by improving soil health, biodiversity, and carbon sequestration. There is an increasing demand for organic and sustainably produced food, which has spurred farmers to adopt regenerative agricultural practices.

Governments around the world are increasingly supporting regenerative agriculture through policy measures such as subsidies, tax breaks, and research funding. Regenerative agriculture practices can boost farmers’ profitability by cutting input costs, improving soil health and fertility, as well as increasing yields over time.

Regenerative agriculture has the potential to make a significant contribution towards mitigating changes in climate by sequestering carbon in the soil, decreasing greenhouse gas emissions from farming practices, and strengthening agricultural systems’ resilience to extreme weather events.

Restraining Factors

One major obstacle to adopting regenerative agriculture practices is a lack of awareness regarding its advantages and techniques. Many farmers lack insight into what these techniques entail or how best to apply them effectively. Adopting regenerative agriculture practices typically necessitates an initial investment in new equipment, infrastructure, and training. It may take several years before farmers start to realize the advantages of these techniques as soil health and biodiversity are gradually restored.

Regenerative agriculture relies on natural inputs like compost, cover crops, and animal manure instead of synthetic fertilizers and pesticides. Unfortunately, these natural inputs may not be readily accessible or cost-effective for all farmers – especially in regions with limited access to organic inputs. While consumer interest in regenerative-grown products is increasing, there remains limited supply, particularly in commodity markets.

Furthermore, price premiums for such goods may not yet be sufficient to incentivize the widespread adoption of these farming practices. Current regulations and policies may not encourage or support the adoption of regenerative agriculture practices, particularly where conventional farming practices are heavily subsidized. Furthermore, certain regenerative agriculture techniques like rotational grazing may face regulatory obstacles in some regions.

Practice Analysis

The Agroforestry Segment Holds a Significant Share in the Regenerative Agriculture Market

Based on practices, the market for regenerative agriculture is segmented into Aquaculture, Holistic Planned Grazing, Agroecology, Agroforestry, Biochar, Pasture Cropping, and Silvopasture. Agroforestry is dominating the market with a 22% market share.

Regenerative agroforestry is an innovative farming technique that has the potential to contribute towards solving climate change by restoring environments, mitigating emissions, protecting biodiversity, and creating commercially viable outputs. Not only does this novel approach increase food security for growing populations around the world but it is also environmentally friendly and can be implemented anywhere.

With the integration of trees on farms and in the agricultural landscape, agroforestry is a dynamic, ecologically based natural resource management system that diversifies and maintains production for greater social, economic, and environmental advantages for land users at all levels.

Regeneration agroforestry can help restore degraded land and sequester significantly more carbon than industrial agriculture. UN scientists estimate that recovering 900 million hectares might stabilize world GHG emissions for the following 15 to 20 years. Degraded land can become carbon sinks for food production thanks to agroforestry.

Application Analysis

The Carbon Sequestration Segment Accounted for the Largest Revenue Share in the Application Segment of The Regenerative Agriculture Market

By application, the market is further divided into Carbon Sequestration, Nutrient Cycling, Biodiversity, and Other Applications. The Carbon Sequestration segment dominates the regenerative agriculture market with  39% of the market share. Carbon sequestration is a method of capturing and storing greenhouse gases in the atmosphere to combat climate change, restore damaged lands, rehabilitate them, and boost output.

Additionally, growing concerns to combat environmental disruptions and the widespread adoption of no-till agriculture, crop rotation, animal rotations, and recycling methods are expected to drive market growth over the coming years.

Furthermore, these approaches combine with sustainable farming principles in order to create healthful eating, nutritious soil, clean air, and freshwater from local resources at the lowest costs. In turn, this long-term method improves soil quality by delivering nutrients as well as increasing resistance against pests and diseases – further fuelling market expansion.

Key Market Segments

Based on Practice

• Aquaculture
• Holistic Planned Grazing
• Agroecology
• Agroforestry
• Biochar
• Pasture Cropping
• Silvopasture

Based on Application

• Carbon Sequestration
• Nutrient Cycling
• Biodiversity
• Other Application

Opportunity

Regenerative agriculture is closely tied to organic farming, which emphasizes using natural inputs and avoiding synthetic fertilizers and pesticides. Organic farming practices are in high demand, offering farmers who adopt them the chance for premium prices for their products.

Regenerative agriculture practices can help absorb carbon from the atmosphere and store it in soil. Farmers who adopt these practices may generate carbon credits, providing them with a new revenue stream. Regenerative agriculture practices can enhance biodiversity on farmland, creating habitat for pollinators, birds, and other wildlife. This could be a selling point for products marketed as being environmentally friendly.

Regenerative agriculture practices can promote soil health, leading to increased yields, reduced erosion, and better water quality. Farmers who adopt these practices enjoy higher productivity and reduced input costs. Regenerative agriculture may even involve the integration of trees on farmland for multiple benefits like carbon sequestration, soil health improvement, and additional income from timber or fruit production.

Trending Factors

Customers are increasingly seeking food items produced using sustainable agriculture practices. This has given rise to the emergence of regenerative food labels and certifications, such as Regenerative Organic Certification and Savory Institute’s Land to Market program.

Investment in Regenerative Agriculture: Investors are realizing the potential of regenerative agriculture as a sustainable and profitable business model. There has been an uptick in investment in startups and initiatives that promote soil health also biodiversity.

Regenerative agriculture requires collaboration among farmers, scientists, policymakers, and consumers. Recently there has been an uptick in this level of cooperation to promote regenerative farming practices and foster the development of regenerative supply chains.

Technology is being employed to promote regenerative agriculture practices, such as precision agriculture tools that help farmers monitor soil health and manage crop yields more effectively. Regenerative agriculture holds the potential to mitigate climate change by sequestering carbon in the soil.

Regional Analysis

North America has dominated the market with 45% of the market share owing to the high adoption rate of awareness and advantages of regenerative agriculture

Throughout the forecast period, North America is expected to dominate the global market for regenerative agriculture. This is credited to several important stakeholders who are active in the area and are creating plans to encourage the use of regenerative farming techniques.

The region’s market is predicted to be driven by farmer awareness of the advantages of regenerative agriculture and active assistance from key players through the provision of a carbon credit scheme. Also, the willingness of consumers in the area to pay extra for food products with sustainable sourcing is fueling the market’s expansion.

Due to the rising demand for organic and sustainable foods, Asia Pacific is a market for regenerative agriculture that is expanding rapidly. To resolve the environmental and social issues the agriculture sector is facing, nations like China, India, as well Australia have been encouraging regenerative agriculture approaches. Government initiatives, market demand, and the desire to enhance soil health have all fueled the adoption of regenerative agriculture approaches.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

These market leaders are continuously investing in research & development and using both organic and inorganic marketing tactics such as product launches, up-gradation, partnerships & collaborations, and mergers & acquisitions to expand their client base and geographical reach.

Market Key Players

• Kiss the Ground
• Alter Eco Americas, Inc
• Bluebird Grain Farms
• Cargill, Inc
• CIBO Technologies
• Continuum Ag
• EcoFarm
• Grounded South Africa
• Nestle S.A
• New Life Tree Syrups
• White Oak Pastures
• La Delia Verde Farm
• Rodale Institute
• ReNature
• Savory Network
• Regen AG

Recent Developments

• In June 2022 – In order to track agricultural practices as well their effects on the environment across 175 million acres of farmland in North America, Latin America, also Europe, General Mills (US) and Regrow Agriculture (Australia) have teamed up. Apart from this, this partnership has strengthened General Mills’ commitment to implementing regenerative agriculture on 1 million acres by 2030.
• In February 2022 – Recently, Indigo AG, Inc. (US) established a partnership with Landus Cooperative to introduce market merchandise, The cutting-edge grain marketing system. The company will be capable of further solidifying its position in the market thanks to this relationship.

Report Scope