Global Agricultural Supply Chain Service Market Size By Application (Food Processing Companies, Wholesalers and Retailers, Farm Trade Company, Individual Farmers, and Others), Type (Online and Offline), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

Market Perspective

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 global agricultural supply chain service market encompasses a complex network of services and processes involved in the movement of agricultural products from producers to consumers. It involves various key components such as production, processing, packaging, transportation, marketing, and distribution. This industry has seen significant technological advancements, with key drivers including the adoption of precision agriculture, smart logistics, blockchain, and data analytics. Precision agriculture leverages technologies like remote sensing and GPS to monitor and optimize crop and soil conditions, ultimately improving efficiency and yields.

Blockchain technology enhances supply chain transparency, ensuring secure and decentralized transactions while also providing traceability for product safety and origin. Data analytics is being used to offer data-driven insights for decision-making, pricing optimization, and waste reduction, all contributing to the market's growth. These technologies are pivotal in creating an efficient, sustainable, and transparent supply chain for the agricultural industry, meeting increasing demands and consumer expectations.

Key Insights

• Based on application, the food processing companies segment is expected to be the fastest-growing segment through the forecast period with a CAGR of 11.06%
• Based on type, the online segment acquired the largest market share of 64.11% in 2022
• based on region, North America accounted for the largest market share of 38.64% in 2022

Adoption of Precision Agriculture Driving Market Growth

One of the major drivers propelling the growth of the global agricultural supply chain service market is the increasing adoption of precision agriculture. Precision agriculture involves the use of advanced technologies such as remote sensing, GPS, and data analytics to monitor and optimize various aspects of farming, including crop health, soil conditions, and weather. This approach allows farmers to make data-driven decisions, resulting in improved crop yields and resource efficiency. The precise application of resources like fertilizers and pesticides not only enhances productivity but also contributes to sustainability. As the agricultural industry continues to face challenges related to resource scarcity and climate change, precision agriculture plays a pivotal role in addressing these issues, which, in turn, fuels the growth of the supply chain service market.

High Implementation Costs Hindering Market Growth

The high implementation costs associated with supply chain management (SCM) solutions are one of the key restraints affecting the market. Implementing and maintaining SCM solutions in the agriculture sector requires significant investments by end-users, which can be a barrier for smaller and medium-sized organizations. The lengthy installation process can also disrupt operations, which is a major concern for organizations that cannot afford any downtime. Additionally, the high costs related to support, maintenance, and customization add to the overall price of SCM software, further inhibiting its adoption. Furthermore, the agriculture sector often lacks internal IT expertise, necessitating training, and increasing ownership costs. These cost-related challenges pose a significant obstacle to the growth of the agricultural supply chain service market.

Recent Developments

November 2021: Eka Software Solutions joined the United Nations Global Compact (UNGC), the world's largest corporate sustainability initiative, as an official signatory. Eka is committed to incorporating the principles of the UNGC into its day-to-day business activities, aiming to foster sustainability across all aspects of its operations for the benefit of its employees, customers, partners, and vendors.

Segmentation Analysis

Based on product, the market is segmented into food processing companies, wholesalers and retailers, farm trade companies, individual farmers, others. The food processing companies segment held the largest market share of 42.98% in 2022. This dominance can be attributed to their crucial position within the supply chain. Food processing companies are responsible for transforming raw agricultural products into processed goods ready for distribution and consumption. They play a central role in ensuring that agricultural products are prepared, packaged, and delivered to meet consumer demands. Their involvement in the supply chain is extensive, and they often have a direct influence on the efficiency and quality of the supply chain process. Consequently, their dominance in the market is reflective of their importance in shaping the dynamics of the agricultural supply chain service industry.

Based on type, the market is classified into online and offline. The online segment within the global agricultural supply chain service market is poised to experience rapid growth with an anticipated CAGR of 10.69%. This growth is primarily driven by the increasing influence of e-commerce and digitalization. Online platforms and e-commerce solutions have gained prominence within the agricultural supply chain industry as they bring automation and efficiency to traditionally manual supply chain procedures. These platforms enable agricultural producers to streamline their supply chain management, improve transparency, and maintain real-time oversight of their supply chains and suppliers. Additionally, they facilitate direct-to-consumer sales, enhancing transparency in the supply chain. Furthermore, digital platforms enable data sharing and collaboration among various stakeholders in the supply chain, leading to better coordination and data-driven decision-making. The convenience, efficiency, and transparency offered by online solutions are crucial drivers of the segment's expected rapid growth.

North America Held the Largest Market Share in 2022 Owing to Adoption of Advanced Technologies and Government Initiatives

North America asserted its dominance in the global agricultural supply chain service market in 2022, boasting the highest market valuation of USD 334.5 million. This leadership position can be attributed to several factors, including the region's substantial adoption of advanced technologies, such as precision agriculture, smart logistics, and data analytics. These technologies have been widely integrated into the agricultural supply chain, enhancing efficiency and sustainability. Additionally, North America benefited from government initiatives aimed at strengthening the food and agricultural supply chain, such as the USDA's Farm Service Agency's grant program. These initiatives aimed to enhance the resiliency of the food supply chain in the United States, contributing to North America's dominance in the market.

Asia Pacific to be the Fastest-Growing Region Through The Forecast Period Owing to Increasing Demand for Agricultural Products and Technological Advancements

Asia-Pacific is the fastest-growing region in the market and is likely to record the highest CAGR of 12.19% over the assessment period. The region is experiencing a growing demand for agricultural products due to its large population and increasing urbanization. The need to ensure a sustainable and efficient supply chain to meet this demand has driven the adoption of advanced technologies and supply chain services. Furthermore, Asia-Pacific has seen significant technological advancements in the agriculture sector, including precision agriculture, smart logistics, and digital marketplaces. These innovations have enhanced the efficiency and effectiveness of the agricultural supply chain, contributing to the region's rapid growth in this market.

Competitive Landscape

The global agricultural supply chain service market is fragmented with key players such as IBM Corporation, Trellis LTD, AgriDigital, Bext Holdings Inc., GrainChain, Inc., ChainPoint, LexisNexis Risk Solutions (Proagrica), Agri Value Chain, Geora Ltd., Eka, FCE Group AG, SAP SE, and Intellync, among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business presence globally and enhance their competitive position.

The global Agricultural Supply Chain Service Market is segmented as follows:

By Application

• Food Processing Companies
• Wholesalers and Retailers
• Farm Trade Company
• Individual Farmers
• Others

By Type

• Online
• Offline

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • South Africa
  • North America
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America