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The agriculture industry is quite underrated across the globe. It is among those sectors that still have so much room to invest. Agro products are seeing shortages due to the Coronavirus pandemic and farmers are not painting an excellent picture for the upcoming months. However, in the long run, there are bright chances that companies operating in the agriculture industry will see significant growth in their bottom line.
Agricultural products majorly comprise fibers, fuels, and foods. Agriculture does not involve the cultivation of crops, but it also involves animal husbandry, bee-keeping, fish farming, and poultry. These products are consumed directly and further processed and sold. These are even exported on a massive scale.
Population, disposable income, consumer taste, and substitutes & preferences of other products drive agricultural products’ growth. Also, an increase in population increases the intake of food that boosts overall agricultural growth.
Agriculture, along with technological innovations, is fueling productivity. It is also increasing the availability of these products in the market, and businesses are receiving the benefits in the shape of market growth.
The global market for vegetables always sees an upward trend. The global vegetables and fruits market stood at USD million in 2019. However, as per the latest estimate, the market size will see growth at a CAGR of 5% during 2018-2025 and is likely to cross $38,000 million.
Feed for animals is crucial to garnering a productive crop as there are still some countries that are using the traditional way of cultivation. The animal feed includes mineral mixture, pellet binder, aqua probiotics, feed additives, and more. As per the estimate, the projection of the animal feed market is to grow at a CAGR of 5% and would hit US$460.322 billion by 2026.
This has become like a gold commodity over the past few years because people are going more towards the consumption of organic food. Palm oil is serving big time as it is used in place of normal cooking oil. As per research, palm oil is projected to grow at a CAGR of 5% and would reach the global market size of US$57 Billion by 2026.
Plants and flowers are a significant part and cannot be ignored while talking about the agriculture industry. Since technology is increasing rapidly, agriculture was bound to take a hit of it. Ornamental or artificial plants are also a glimpse of technological innovation. As per the estimate, this agricultural sector will grow at a CAGR of 6% with $29 billion in absolute terms.
The food & agriculture technology and products market is projected to grow from $494.9 billion in 2018 to $729.5 billion by 2023, at a CAGR of 8.1% during the forecast period.
All the above projections and estimates have been made with a conservative approach due to the entrenched impact of COVID-19. Due to continual lockdowns, countries are unsure about their share of production. However, one thing is for sure that companies offering agricultural products would see a sharp increase in their revenue once the world goes back to normal.