Agricultural Supply Chain Service Market is Expected to Reach USD 1,822.4 Million by 2030
As per the report published by Kings Research, the global Agricultural Supply Chain Service Market was valued at USD 865.6 million in 2022 and is projected to reach USD 1,822.4 million by 2030, growing at a CAGR of 10.02% from 2023 to 2030.
The adoption of emerging technologies such as blockchain is expected to resolve obstacles in agricultural supply chain management, leading to a boost in efficiency. Moreover, digital advancements are facilitating the optimization of the agricultural supply chain. AI algorithms can efficiently explore all potential planning and scheduling variables, resulting in improved productivity. Using digital technologies has enabled the agriculture industry to accumulate and process more data, including weather patterns, soil quality, logistics, and price fluctuations, thanks to increased data storage capacity, reduced storage costs, and improved processing power. As a result, the global agricultural supply chain service market is poised for advancement in line with changing market demands.
Effective agriculture supply chain management enables supply chain managers to monitor their operation’s performance and quickly identify and address any issues to ensure the efficient production, packaging, transportation, and distribution of agricultural products to meet consumer demands in terms of quality, quantity, and price. For instance, in June 2021, AgriDigital partnered with Genesis Feed Technologies and joined the Seed to Feed supply chain and traceability project, leveraging real-time data management to achieve greater visibility and insights across the supply chain. This is driving demand for real-time data management software, facilitating improved supply chain visibility, and fueling growth in the agriculture supply chain management market.
- Based on the application, the food processing companies segment held the largest revenue of 372 million in 2022
- Based on type, the online segment accounted for the largest market share at 10.69% in 2022
- On the basis of region, the Asia Pacific segment is anticipated to emerge as the fastest-growing CAGR of 12.19% over the forecast period
Increasing Demand for Agricultural Products to Drive Market Growth
The demand for agricultural products has increased globally due to factors such as population growth, changing diets, and increasing urbanization leading to the rise of agricultural supply chains. This increase in demand has led to a greater need for efficient and effective agricultural supply chain services. To address this need, there has been an increase in the adoption of cloud-based supply chain management (SCM) software in agriculture, as it offers benefits such as improved supply chain visibility, inventory management, transportation planning, and warehouse operations.
Additionally, the use of technology such as blockchain has improved the efficiency and transparency of supply chains, enabling better traceability of food products from the farm to the table. Donors, governments, and other organizations often provide support and funding to enhance and improve agricultural supply chains, as they are critical to ensuring a safe, efficient, and sustainable food supply for consumers worldwide. Therefore, the use of cloud-based SCM software and other technology applications in agriculture is expected to continue to increase to meet the growing demand for agricultural products while maintaining the overall efficiency and sustainability of the food supply chain.
Asia Pacific is Anticipated to Emerge as the Fastest-Growing Region with a Revenue of 202.4 million over the Forecast Period from 2023 to 2030
The economy is experiencing robust growth, fueled by the emergence of new businesses and investments in the agricultural sector. With a surge in demand for advanced technology and equipment, productivity is anticipated to escalate swiftly.
One possible company to look into is CropIn, which provides agricultural technology and supply chain solutions in the region. Another company to explore is iFarm, which offers a platform for vertical farming and supply chain optimization in the region. Additionally, the major agribusiness companies like Cargill, Bunge, and Olam Internationalare are operational which is propeling the market growth.
Market Players Concentrating on Innovative Product Launches to Drive Market Development
The global agricultural supply chain service market is consolidated/fragmented with key players such as Trellis LTD, AgriDigital, Bext Holdings Inc., GrainChain, Inc., ChainPoint, LexisNexis Risk Solutions (Proagrica), Agri Value Chain, Geora Ltd., Eka, FCE Group AG, SAP SE, Intellync. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.