Agri Economy - An Industry Overview

Global Agriculture

Food and agribusiness form a $5 trillion global industry that is only getting bigger. As per McKinsey, if current trends continue, by 2050, caloric demand will increase by 70% and crop demand for human consumption and animal feed will increase by at least 100%.


Source: McKinsey report

The following observations are based on data available from Euromonitor in 2018:

The world is shifting toward higher protein consumption -

  • Quinoa production up 265%
  • Fish catch up 45.8%
  • Meat and Poultry production up 23.9%

Water intensity increases –

  • Agriculture accounts for 70.7% of global water withdrawal – the highest of all sectors
  • Renewable water resources cu m per capita down 11.2%, but water withdrawal in agriculture up 1 percentage point at a time when other sectors recorded a decrease

Farming land shrinking –

  • Agricultural land down 1.3%
  • More pressure on agricultural land expected as urban population continues to grow

Greater drive for productivity –

  • Global fertiliser consumption up 11.8%
  • Crop yield in developed countries growing despite shrinking land due to innovative technologies
  • Farming consolidation for scale and more expensive technology is on the rise
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