The global regenerative agriculture market size is estimated to reach $16.8 billion by 2027, growing at a 14.0% compound annual growth rate (CAGR). The global market size was valued at $8.7 billion in 2022.The regenerative agriculture industry has been steadily growing in recent years as consumers and farmers alike have become more aware of its benefits. Regenerative agriculture focuses on improving soil health, increasing biodiversity, and enhancing ecosystem services while also producing food and fiber. This approach emphasizes practices such as minimal tillage, cover cropping, crop rotation, and integrated livestock management.
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The market for regenerative agriculture encompasses various sectors, including:
· Farm Inputs: This includes products such as organic fertilizers, compost, biochar, and microbial inoculants that are used to enhance soil health and fertility in regenerative farming systems.
· Seeds and Crop Varieties: There’s a growing demand for seeds and crop varieties that are well-suited for regenerative agriculture practices, such as cover crops, legumes, and perennial crops.
· Livestock Management: Regenerative livestock management involves rotational grazing, silvopasture, and other practices that improve soil health and biodiversity while also raising healthy animals.
· Technology and Innovation: As the regenerative agriculture movement gains momentum, there’s an increasing focus on developing and adopting technology solutions that support regenerative practices, such as precision agriculture tools, soil monitoring sensors, and blockchain-based supply chain platforms.
· Certification and Standards: With the rise in consumer demand for regeneratively grown products, certification programs and standards for regenerative agriculture are also emerging, providing opportunities for certification bodies and auditors.
Growing research and development around the use of biologicals for carbon sequestration creates opportunities for manufacturers in regenerative farming
There are growing research activities around the use of biologicals containing microbes, which, when used as a seed coating, can help to increase carbon sequestration. For instance, according to Soil Carbon Co., one of the most significant scientific endeavors of the twenty-first century is microbial carbon sequestration. It promises a simple answer for two of our biggest problems: climate change brought on by rising CO2 levels in the atmosphere, as well as declining soil fertility and resilience worldwide. Microbial activities are by far the most effective method of capturing carbon when compared to other carbon sequestration techniques. For the sequestration process, no additional tools, space, or energy are needed.
Soil and crop management are anticipated to emerge as the frontrunners, claiming the largest regenerative agriculture market share
Soil and crop management is additionally broken down into nitrogen fixation, nutrient recycling, and water conservation. Regenerative agriculture utilizes diverse approaches to gradually enhance the productivity and biodiversity of managed land, adopting a comprehensive and holistic viewpoint. Nitrogen often represents the primary nutrient constraint in agroecosystems. However, regenerative agriculture addresses this limitation by integrating external organic nitrogen inputs like animal waste, crop remnants, compost, and biological nitrogen-fixing organisms (microbes that convert atmospheric nitrogen into forms accessible to plants and microorganisms in the soil).
North America’s Significant Share in Regenerative Framing
During the forecast period, North America is anticipated to lead the global regenerative agriculture market. This dominance stems from the region’s array of influential players actively crafting strategies to encourage the uptake of regenerative farming practices. The increasing awareness among farmers about the advantages of regenerative agriculture, combined with the proactive backing of various stakeholders through initiatives like carbon credit programs, is poised to propel market growth in the region. Additionally, consumer willingness to pay premium prices for sustainably sourced food products in North America serves as an additional catalyst, further fueling market expansion. Some of the major players headquartered in the region are General Mills, Inc (US), Cargill (US), Indigo Ag, Inc (US), Danone North America (US), and Pivot Bio (US).
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How does Nestle SA plan to reduce greenhouse gas emissions through its Nescafe Plan 2030 initiative and promote regenerative agriculture?
Nestle SA is one of the world’s leading food and beverage companies. The company has adopted an approach that will always seek to put farmers at the center by supporting solutions that are right for their regions and crops. It is a holistic model that considers soil as a nexus to protect and restore the land. In September 2021, Nestle SA announced to plan to invest approximately USD 1.3 billion over the next five years to help its farmers and suppliers transition use of regenerative agriculture practices. Nestle will use its network of R&D personnel and agronomists to develop environmentally friendly crops and production practices. The company has 500+ sourcing specialists, and more than 4,500 support staff are assisting with the transition.