Regenerative Agriculture Market Size, Share & Trends Analysis Report By Agriculture Type (Agroforestry, Biochar), By End-user (Farmers, Service Organization), By Component (Solutions, Services), By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The global regenerative agriculture market size was estimated at USD 924.0 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 15.7% from 2023 to 2030. The rise in support from governments, organizations, and farmer welfare associations drives market growth. Regenerative agriculture is an approach to farming that focuses on enhancing and improving soil health, biodiversity, ecosystem services, and community well-being. It is gaining popularity worldwide as a sustainable alternative to conventional farming practices that often rely on synthetic inputs and heavy tillage. Governments worldwide recognize the importance of this market in mitigating climate change, enhancing soil health, and improving food security. They provide incentives, subsidies, and support programs encouraging farmers to adopt regenerative farming practices. For example, in the U.S., the Department of Agriculture has launched several initiatives to promote this market, such as the Environmental Quality Incentives Program, the Conservation Stewardship Program, and the Regional Conservation Partnership Program. In recent years, regenerative agriculture has gained traction among farmers as they recognize its benefits.

Farmers can reduce their input costs, improve soil health, and increase yields over time by implementing regenerative practices. In addition, it can help mitigate the impacts of climate change by sequestering carbon in the soil. Governments are also providing incentives to farmers that adopt such practices. In the U.S., for example, the Natural Resources Conservation Service (NRCS) provides financial assistance to farmers who implement conservation practices on their land, including regenerative agriculture practices. Similarly, the European Union’s Common Agricultural Policy (CAP) includes provisions for supporting farmers who adopt agroecological and regenerative practices.

Furthermore, the benefits of these practices are not limited to the farm level. Healthy soil and diverse ecosystems can help improve water quality, reduce erosion, and support wildlife habitats. Therefore, governments and other stakeholders recognize regenerative agriculture’s potential to contribute to broader sustainability goals beyond just farming. There has been a growing awareness among consumers about the importance of regenerative practices. This has led to a shift in consumer preferences towards food products produced using these practices. Consumers are looking for food that is not only healthy and nutritious but also produced in a way that is environmentally sustainable and supports local communities.

As a result, many food companies are now marketing their products as being produced using regenerative practices. In November 2022, Microsoft teamed up with the International Finance Corporation (IFC) to facilitate the digital transformation of Africa's agriculture industry. This endeavor offers a range of digital tools designed to enhance productivity, promote climate-friendly farming practices, and impart knowledge on "farming as a business." The partnership is equipping smallholder farmers with access to extension and advisory services by utilizing Microsoft's AgBot agritech chatbot, which communicates through SMS, WhatsApp, and Telegram on feature phones and smartphones. These solutions aim to improve the supply chain's efficiency and capacity for African agribusinesses.

COVID-19 Impact on the Regenerative Agriculture Market

The COVID-19 pandemic has significantly impacted various industries, including the regenerative agriculture market. While the pandemic has negatively impacted some aspects of this market, other areas have seen growth. One of the significant impacts of COVID-19 on this market has been disruptions in supply chains. The pandemic caused significant transportation and logistics disruptions, making getting products to market more difficult. In addition, many farmers faced labor shortages, as workers were unable or unwilling to travel due to restrictions and health concerns. On the other hand, the increased consumer interest in sustainable and locally sourced food has increased the demand for regenerative agriculture.

As people have become more aware of the impact of their food choices on the environment and their health, they have become increasingly interested in regenerative farming practices. This increased awareness and interest in sustainable and locally sourced food has increased the demand for regenerative products, particularly in local and direct-to-consumer markets. Consumers are now more willing to pay a premium for food that is produced in a way that supports the environment, animal welfare, and the health of farmers and communities. In addition, the pandemic had disrupted global supply chains, making locally sourced food more attractive as it is perceived to be more resilient and reliable.

Component Insights

In terms of components, the market is classified into solutions and services. The solutions segment dominated the overall industry and accounted for a revenue share of 63.56% in 2022. The segment is estimated to witness a CAGR of 15.4% during the forecast period. The solutions component of the market refers to the various products and services available to support these practices. These solutions range from soil amendments and fertilizers to precision agriculture technologies and sustainable farming practices. Some examples of solutions that support the market include:

• Cover crops: Cover crops are grown specifically to improve soil health and fertility. They can help reduce soil erosion, suppress weeds, and enhance soil structure and nutrient cycling

• Biological inputs: Biological inputs, such as beneficial microbes, fungi, and other organisms, can be used to improve soil health and plant growth. These inputs can help enhance nutrient uptake, reduce disease pressure, and promote soil biodiversity

The services segment is anticipated to observe the fastest growth rate of 16.1% over the forecast period. The services component refers to the various support services required to implement and maintain sustainable agriculture practices. The components include various activities, such as soil testing, crop planning, pest & disease management, water management, and wildlife habitat restoration. These services are typically provided by agricultural consultants, soil scientists, ecologists, and other experts in the field. One of the key services in the market is soil testing. This involves analyzing the chemical and physical properties of the soil to determine its health and fertility. Soil testing helps farmers understand their crops’ specific nutrient requirements and allows them to apply fertilizers and other soil amendments more effectively.

Agriculture Type Insights

In terms of agriculture type, the market is classified into agroforestry, silvopasture, aquaculture/ocean farming, no-till & pasture cropping, holistically managed grazing, biochar, and others. The agroforestry segment dominated the market in 2022 with a revenue share of 19.55% and is projected to witness a CAGR of 16.0% during the forecast period. Agroforestry is an important practice in this market that integrates trees, crops, and livestock into a single farming system. This approach has gained popularity in recent years as a way to improve soil health, increase biodiversity, and enhance the overall sustainability of agricultural production.

In regenerative agriculture, agroforestry is seen as a key strategy for promoting sustainable and profitable farming practices. Farmers can provide additional benefits, such as shade, windbreaks, and erosion control by integrating trees into the farming system. In addition, tree roots help improve soil structure and increase water infiltration, leading to better soil health and increased productivity. The aquaculture/ocean farming segment is anticipated to grow at a considerable CAGR of 16.6% during the forecast period. Aquaculture, or ocean farming, can play a significant role in the market.

Aquaculture involves farming fish, shellfish, and other aquatic organisms in controlled environments, such as ponds, tanks, and cages. When done correctly, aquaculture can help reduce overfishing in wild fisheries, provide a reliable source of protein, and reduce the environmental impact of traditional fishing practices. In regenerative agriculture, aquaculture can help improve soil health and nutrient cycling by providing a source of organic fertilizer. Fish waste can be used as a natural fertilizer for crops, improving soil health and reducing the need for synthetic fertilizers.

End-User Insights

In terms of end-user, the market is classified into farmers, service organizations, financial institutions, advisory bodies, and consumer packaged goods manufacturers. The service organization segment dominated the overall market with a revenue share of 25.66% in 2022 and is estimated to witness a CAGR of 15.2% during the forecast period. In the service organization end-user segment of the regenerative agriculture market, there are various types of companies that provide services to farmers and landowners who want to transition to regenerative agriculture practices. These service organizations may include:

• Consulting firms: Consulting firms provide advice and expertise on regenerative agriculture practices, including soil health, crop rotations, and livestock management

• Education and training providers: These organizations offer training and educational programs for farmers and landowners to learn about regenerative agriculture practices and how to implement them

• Certification and verification organizations: These organizations provide third-party verification and certification services to ensure that farmers are following regenerative agriculture practices

• Agtech companies: These companies provide technology solutions that can help farmers monitor soil health, crop growth, and other aspects of their farming operations to optimize their regenerative agriculture practices

The farmer segment is anticipated to witness the fastest CAGR of 16.8% over the forecast period. Farmers are the primary end-users of regenerative agriculture practices, as they are the ones responsible for implementing the techniques and managing their farms. They play a critical role in the success of regenerative agriculture because they are the ones who must adapt their practices to ensure that they are regenerative. Adopting such practices requires a shift in mindset and a willingness to experiment with new techniques.

It involves changing traditional practices and embracing new methods that prioritize soil health, biodiversity, and ecosystem services. Farmers who adopt these practices may need to make changes to their crop rotations, cover cropping, grazing practices, and use of inputs like fertilizers and pesticides.

Regional Insights

North America led the overall market in 2022 with a revenue share of 36.31%. Regenerative agriculture is a growing movement in North America, aimed at improving soil health, biodiversity, and overall sustainability of agricultural practices. One indicator of the growth of regenerative agriculture in North America is the increase in certification programs and labels that indicate adherence to regenerative principles. Another sign of the growth of regenerative agriculture is the increasing number of companies and investors focusing on regenerative practices. Major food companies, such as General Mills and Danone, have made commitments to regenerative agriculture, and there are a growing number of investment funds dedicated to supporting regenerative agriculture practices.

In May 2022, the collaboration of Axa, Tikehau Capital, and Unilever resulted in the introduction of a new fund for regenerative agriculture. This move demonstrates a growing focus on a sector that has the potential to effectively address both land degradation and climate change issues. Europe is anticipated to witness the fastest growth CAGR of 16.3% over the forecast period. Regenerative agriculture is gaining momentum in Europe as a sustainable approach to farming that prioritizes soil health, biodiversity, and ecosystem services.

According to a report by the European Commission, the market in Europe is expected to grow significantly in the coming years, with a focus on reducing chemical inputs, increasing carbon sequestration, and promoting the use of cover crops, crop rotations, and agroforestry. Several European countries, including France, Germany, and Spain, have already launched initiatives to promote regenerative agriculture practices, such as offering financial incentives and technical support for farmers to transition to more sustainable practices. The European Union’s CAP has also recently undergone reform to prioritize environmental sustainability, including support for agroecology and organic farming.

Key Companies & Market Share Insights

The market is fragmented and is anticipated to witness competition due to the strong presence of several players. Major service providers are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. Key players focus on partnerships, product upgrades, and collaborations to gain a competitive edge over their peers and capture a significant market share. In April 2023, Nestlé and Cargill joined forces with the National Fish and Wildlife Foundation (NFWF) to promote conservation. They have pledged a total of USD 15 million, which will be matched by federal funding, resulting in a total grant funding of USD 30 million for farmers. The collaborative effort aims to promote the adoption of conservation practices voluntarily. The trio is looking for private landowners and conservation groups who can aid in improving land and water management while restoring wildlife habitats. Some of the key players in the global regenerative agriculture market are:

• Vayda

• Terramera Inc.

• Agreed.Earth

• Biotrex

• Ecorobotix SA

• Ruumi

• Continuum Ag

• Aker Technologies, Inc.

• Indigo Ag, Inc.

• Tortuga Agricultural Technologies, Inc.

• Astanor Ventures

• SATELLIGENCE

Regenerative Agriculture Market Report Scope

Global Regenerative Agriculture Market Segmentation

This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this report, Grand View Research has segmented the the global regenerative agriculture market based on component, agriculture type, end-user, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Solutions

  • Services

• Agriculture Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Agroforestry

  • Silvopasture

  • Aquaculture/Ocean Farming

  • No-Till and Pasture Cropping

  • Holistically Managed Grazing

  • Biochar

  • Others

• End-User Outlook (Revenue, USD Million, 2017 - 2030)

  • Farmers

  • Service Organization

  • Financial Institutions

  • Advisory Bodies

  • Consumer Packaged Goods Manufacturers

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • K.S.A

    • U.A.E.

    • South Africa