Agricultural Products Industry: Market Research Reports, Statistics and Analysis

Key Market Segments

• The world seeds market is expected to reach $47 billion by 2015, according to Global Industry Analysts. The market is driven by demand for pest-resistant seeds, hybrid seeds and biotech crops. Factors facilitating production include biotechnology and innovative farming practices.

• The world’s need for fertilizers will likely grow 3% yearly through 2014 to reach 380 million metric tons, reports Freedonia. Rising demand for food, and high-protein products in particular, continues to encourage farmers to improve soil quality in the hopes of yielding bigger crops, boosting demand for fertilizers.

• The cereal crops industry consists of rice, wheat and coarse grains like oats and barley. MarketLine estimates the worth of the world cereal crops industry was just over $417 billion in 2010. This represents almost 8% yearly growth for the four preceding years. In the same period, cereal crop production grew at almost 3.5% yearly, settling to just under 1,875 million tons in 2010. Production rates are estimated to fall almost 3% to under 5% yearly between 2010 and 2015, bringing the industry to over $530 billion.

• The world forest products industry was worth over $1.2 trillion in 2010, growing over 16% in the year, according to MarketLine. The industry is expected to reach a value in excess of $1.5 trillion in 2015, up over 26% in the five-year period. This highly fragmented market grew more than 1.5% in 2010 to a volume of over 2.9 billion cubic meters. In terms of volume, the global forest products industry is predicted to grow to over 3 billion cubic meters, a 5% increase compared with 2010. Wood fuel represents the largest sub segment of the market at over 31% of its overall value. Asia-Pacific represents almost 55% of the global forest products market in terms of value.

• The world gardening market expanded almost 2% in 2009 to reach almost $163 billion, according to MarketLine. Market growth has been affected by the global recession, which saw consumers less willing to part with disposable income for leisure expenses, such as outdoor living and gardening products. As the market rebounds, it is predicted to expand 12% to reach almost $183 billion in 2014. Shrubs, growing media and plants account for almost 58% of the overall market, representing the biggest sub segment. Americas hold 40% of the market.

Market Outlook

The main agricultural products market segments in the US have seen huge fluctuation over the past decade. Grain prices have risen due to government pressure to boost biofuel. This is likely to continue moving forward. While animal stock breeding saw minimal price changes over the past decade, this is like to change due to climbing demand.

Rising disposable income will see increased demand for protein-based foods, especially in non-OECD countries. A stronger economic environment in the US and elsewhere will likely see leisure spending increase, driving demand in the gardening and outdoor living market.

Leading Industry Associations

• National Cottonseed Products Association www.cottonseed.com
• National Institute of Oilseed Products www.niop.org
• National Corn Growers Association www.ncga.com
• American Farmers Association www.americanfarmersassociation.com
• European Association of Agricultural Economists www.eaae.org