Regenerative Agriculture Market

• Increasing consumer demand for sustainable agriculture practices and rising demand for organic and natural food products are driving the market growth

The market CAGR for Regenerative Agriculture is driven by the increasing consumer demand for sustainable agriculture practices and rising demand for organic and natural food products. As consumer awareness about environmental issues grows, there is a growing demand for sustainable and ethical food production methods. This increasing demand has fueled the adoption of regenerative agriculture, which is seen as a more sustainable and environmentally friendly farming approach. In India, crop rotation is the most widely adopted sustainable agriculture practice, covering approximately 30 million hectares (Mha) of land and involving around 15 million farmers.

Agroforestry, primarily favored by large-scale cultivators and rainwater harvesting, has substantial coverage, with 25 Mha and 20-27 Mha, respectively. Natural farming is emerging as the fastest-growing sustainable agricultural practice in India, with around 800,000 farmers adopting it. Integrated Pest Management (IPM) has also gained significant coverage, reaching 5 Mha after years of consistent promotion. Consumers are increasingly willing to pay a premium for products produced using regenerative practices, leading to a rise in the number of farmers embracing these methods. Moreover, many companies are now investing in regenerative agriculture to meet consumer demands and enhance their sustainability credentials.

There is a rising consumer preference for food products that are organic, natural and sustainably produced, leading to an increased demand for products cultivated using regenerative agriculture methods. These practices are perceived as healthier, more environmentally friendly and of higher quality. According to a 2022 survey conducted in 187 countries practicing organic agriculture by the Research Institute of Organic Agriculture (FiBL) and the International Federation of Organic Agriculture Movements (IFOAM), India ranks fifth globally in organic food cultivation, covering 2.6 million hectares.

The survey also indicates that India's organic farming land constitutes 1.5% of the total agricultural land, with a remarkable 145.1% increase in the past decade. The Economic Survey 2022-2023 reports that India boasts the highest number of organic farmers globally, totaling 4.43 million. Consequently, many food producers and retailers are now sourcing ingredients from regenerative agriculture farms and investing in regenerative agriculture practices to meet this growing demand.

As a result, it is anticipated that throughout the projection period, demand for the Regenerative Agriculture Market will increase due to the Increasing Consumer Demand for Sustainable Agriculture Practices and Rising demand for organic and natural food products. Thus, driving the Regenerative Agriculture Market revenue.

The Global Regenerative Agriculture Market Industry is poised for substantial growth, with projections indicating a market value of 10.1 USD Billion in 2024 and an impressive increase to 44.2 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 14.36% from 2025 to 2035. Such figures highlight the increasing recognition of regenerative agriculture as a viable solution to contemporary agricultural challenges. The market's expansion is likely to be driven by various factors, including consumer demand, government support, and technological advancements, all contributing to a more sustainable agricultural future.

Government support plays a pivotal role in the expansion of the Global Regenerative Agriculture Market Industry. Various nations are implementing policies that promote regenerative practices, recognizing their potential to enhance soil health and reduce carbon emissions. For instance, subsidies and grants are being offered to farmers who adopt regenerative techniques. This support not only incentivizes farmers but also aligns with global sustainability goals. The increasing governmental focus on regenerative agriculture is expected to catalyze market growth, contributing to the projected market size of 44.2 USD Billion by 2035, thereby indicating a favorable regulatory environment.

Technological innovations are transforming the Global Regenerative Agriculture Market Industry by enhancing the efficiency and effectiveness of regenerative practices. Precision agriculture tools, such as drones and soil sensors, enable farmers to monitor and manage their land more effectively. These technologies facilitate better decision-making, leading to improved crop yields and soil health. As the industry embraces these advancements, the potential for growth becomes evident, with a projected compound annual growth rate (CAGR) of 14.36% from 2025 to 2035. This technological evolution is likely to attract investment and drive the adoption of regenerative practices on a global scale.

The Global Regenerative Agriculture Market Industry is increasingly influenced by the rising awareness of climate change and its impacts on agriculture. As extreme weather events become more frequent, farmers are seeking resilient practices that can mitigate these effects. Regenerative agriculture offers solutions that enhance soil health and biodiversity, making agricultural systems more resilient. This awareness is driving demand for regenerative practices, as stakeholders recognize their potential to combat climate change. The market's growth trajectory, with an anticipated value of 10.1 USD Billion in 2024, underscores the urgency of adopting sustainable practices in response to climate challenges.

Investment in sustainable agriculture is a key driver of the Global Regenerative Agriculture Market Industry. Financial institutions and investors are increasingly recognizing the long-term benefits of regenerative practices, leading to a rise in funding for projects that promote sustainability. This influx of capital supports research, development, and implementation of regenerative techniques, fostering innovation within the sector. As the market evolves, the anticipated growth to 44.2 USD Billion by 2035 reflects the increasing confidence in the profitability of sustainable agriculture. This trend indicates a shift in investment strategies, aligning financial interests with environmental stewardship.

The Global Regenerative Agriculture Market Industry is witnessing a surge in consumer demand for sustainable agricultural practices. As awareness of environmental issues grows, consumers are increasingly seeking products that are produced through regenerative methods. This shift is reflected in the market's projected growth, with an estimated value of 10.1 USD Billion in 2024, indicating a robust interest in sustainable food sources. Companies adopting regenerative practices are likely to benefit from enhanced brand loyalty and market share, as consumers prioritize eco-friendly products. This trend suggests a significant opportunity for growth within the Global Regenerative Agriculture Market Industry.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The anticipated expansion of the Regenerative Agriculture market in North America can be attributed to several key factors. In December 2022, the Rockefeller Foundation revealed an $11 million grant allocated to organizations supporting Indigenous and regenerative agriculture initiatives. Numerous factors fueling the growth of the regenerative agriculture market include corporate backing for regenerative farming methods, increasing consumer demand for sustainable and nutritious food, technological advancements and governmental incentives and policies.

Additionally, in March 2023, PepsiCo disclosed a $216 million investment in long-term strategic partnerships with three prominent farmer-focused organizations: Soil and Water Outcomes Fund (SWOF), Practical Farmers of Iowa (PFI) and the IL Corn Growers Association (ICGA). These partnerships aim to drive the adoption of regenerative agriculture practices throughout the United States.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea and Brazil.

Figure 2: REGENERATIVE AGRICULTURE MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Regenerative Agriculture Market accounts for the second-largest market share as The European Agroforestry Federation (EURAF) advocates for the integration of trees into agricultural landscapes and various forms of silvopastoral systems across diverse environmental regions in Europe. With over 500 members spanning 20 European countries, EURAF's presence contributes to the expansion of the agroforestry market in the region. Organic farming practices, which involve reduced pesticide usage and enhanced carbon sequestration in the soil, are gaining popularity.

In 2022, the total organic farmland area in the EU increased to 10.1 million hectares, with the number of organic producers rising by 10.8% to 419,112 compared to 2021. Experts suggest that transitioning to regenerative farming methods can help decrease climate emissions in the UK. In November 2021, General Mills launched its first regenerative agriculture project in Europe to support dairy farmers supplying milk for Häagen-Dazs ice cream. Further, the German Regenerative Agriculture Market held the largest market share and the UK Regenerative Agriculture Market was the fastest-growing market in the European region.

The Asia-Pacific Regenerative Agriculture Market is expected to grow at the fastest CAGR from 2024 to 2032. The market's growth in this region is driven by factors like heightened consumer awareness regarding the advantages of sustainable agricultural practices and the growing demand for organic and sustainable food items. According to APEDA, India produced 2.9 MMT of certified edible organic products for MY 2022/23. As of March 31, 2023, India's APEDA reports that the organic certification area in India under NPOP is 10.17 million hectares (MHA), encompassing 5.4 mha of cultivable areas and 4.7 mha of wild harvest collection.

According to the Research Institute of Organic Agriculture, India had the highest number of organic producers globally and ranked 6th in the world for organic agricultural land in 2021. Furthermore, the region's growing population has led to increased food demand, driving the adoption of sustainable agriculture practices. Additionally, the Chinese government has rolled out various initiatives to promote sustainable agriculture practices, such as the Soil Ten Plan, aimed at reducing pollution and enhancing soil health. Moreover, China’s Regenerative Agriculture Market held the largest market share and the Indian Regenerative Agriculture Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Regenerative Agriculture market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Regenerative Agriculture industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Regenerative Agriculture industry to benefit clients and increase the market sector. In recent years, the Regenerative Agriculture industry has offered some of the most significant advantages to the environment, farmers and society as a whole.

Major players in the Regenerative Agriculture Market, including Nestle SA (Switzerland), Danone SA (France), General Mills, Inc (US), Cargill Incorporated (US), Unilever PLC (United Kingdom), Grounded (South Africa), Soil Capital Belgium SPRL (Belgium), Indigo Ag, Inc (US) and Serenity Kids (US) are attempting to increase market demand by investing in research and development operations.

Nestle SA, a prominent food and beverage manufacturer, offers a wide range of products, including baby food, bottled water, cereals, chocolates, coffee and culinary items, among others. The company also caters to plant-based foods, dairy products, ice cream and pet care. Nestle's diverse product portfolio includes popular brands such as Nescafe, Nespresso, Maggi, Kit Kat and Purina, among others. Operating globally, Nestle has a significant presence across Asia, Oceania, the Americas, Europe, the Middle East and Africa, with its headquarters in Vevey, Waadt, Switzerland.

In July 2023, Nestlé initiated a project aimed at assisting wheat farms in adopting regenerative agriculture practices within the supply chain for its DiGiorno pizza brand. This initiative aims to enhance biodiversity, reduce water and energy consumption, minimize fertilizer usage and enhance soil health and fertility while addressing the impacts of climate change.

General Mills Inc. is a leading manufacturer and marketer of branded consumer foods, offering a diverse range of products, including grains, fruits, savories, nutrition bars, frozen snacks, cereals, pet food, dough products, baking mixes, yogurt and premium ice cream. The company's product lineup also includes convenient meal options like meal kits, ethnic meals, pizza, soup and breakfast items. General Mills markets its products under various well-known brand names such as Cheerios, Chex, Cocoa Puffs, Fiber One, Go-Gurt, Gold Medal and many others.

Operating across Asia, the Middle East, Africa, Europe, North America and Latin America, General Mills is headquartered in Minneapolis, Minnesota, USA. In June 2022, General Mills partnered with Regrow Agriculture to monitor agricultural practices and their environmental impacts across 175 million acres of farmland in North America, Latin America and Europe.