Asia Pacific Specialty Crops Market to Grow at a CAGR of 2.5% to reach US$ 574.34 million from 2020 to 2027

The Asia Pacific specialty crops market accounted to US$ 470.92 million in 2019 and is projected to account US$ 574.34 million by 2027; it is expected to grow at a CAGR of 2.5% during 2020–2027.

Specialty crops” refer to “fruits and vegetables, tree nuts, dried fruits, horticulture, and nursery crops (including floriculture). It also takes into consideration exotic crops that are specifically cultivated across a region due to climatic and topographical features. With the expanding population growth, coupled with rise in per capita disposable income, a paradigm shift in consumer eating patterns have been observed, which has direct impact on the demand for healthy and tasty food. Further, rapid urbanization along with ethnic composition, health concerns, changes in demographic features are some of the other factors promoting the demand for specialty crops. The widening application scope of specialty crops, supportive government measures and free trade policies are the key factors driving the specialty crops market growth. However, the environmental and trade barriers restrict the profitable growth of the specialty crops market. The trend of consumption of organic food products is attaining traction across Asia Pacific attributed to its health benefits. Vegan and organic products have seized the taste of customers despite its expensive nature. The trend of organic food products is expanding especially in the regions of Asia Pacific. The organic specialty crops are cultivated without the incorporation of artificial fertilizers or harmful chemicals. The farmers use organic growth stimulators in crop cultivation to minimize the amount of chemical residue limit in crops. The use of chemicals and fertilizers in conventional farming mostly affects the health aspect and nutrients level. Rising inclination of people toward organic products has encouraged the food manufacturers to invest heavily in products produced with organic constituents. This is further projected to bolsters the growth of the specialty crops market.   

The COVID-19 pandemic first began in Wuhan (China) in December 2019, and since then, it has spread at a fast pace across the globe. As of February 2021, India, Japan, Australia and China are among the worst-affected countries in terms confirmed cases and reported deaths. The pandemic has been affecting economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. Shutdowns of food and beverages industry and disruptions in supply chains due to lockdown of countries has created a strain on the supplies of the various products offered by this industry. In Asia Pacific, India is the worst-hit country by the COVID–19 outbreak. Owing to this pandemic, the Asia Pacific food and beverages has witnessed an abrupt downturn in several major countries. The food and beverages industry in Asia Pacific suffered its one of the biggest drops in activities after the restaurants and food centers were closed, and the supply of food products and workers were disrupted due to the pandemic. The drop in the demand for various food products in the region has directly affected the sales of the specialty crops products in Asia Pacific.  

Asia Pacific Specialty Crops Market

Market Insights

Supportive Government Measures and Free Trade Policies

The growth of specialty crop is strongly supported by positive government initiatives, which includes sales and marketing activities, plant pest and disease prevention, and research & development. For instance, the farm bill passes in the year 2018 (Agriculture Improvement Act of 2018) which aimed at reauthorizing and extending current programs to promote the growth of several specialty crops such as fruits and vegetables, tree nuts, nursery products and others. The farm bill was implemented to offer support to specialty crop producers, through Specialty Crop Block Grant Program and the Specialty Crops market News. The bill also acknowledges several trade issues revolving around specialty crops and offers technical as well as export assistance. Apart from this, a research institute has been formed named as Specialty Crop Research Initiative (SCRI) with an intension to encourage collaboration, open communication, the exchange of information and other purposes. In addition, government offered food assistance program for the upliftment of specialty crop producers impacted by the COVID-19 pandemic. Such assistance was offered to promote the growth of specialty crop including horticulture, tree nuts, fruits and vegetables, indigo and others. Further, in India, government has decided to offer 50% subsidies to poly or green house to promote the growth of nursery crops. Apart from government programs, free trade policies have also been implemented which has significantly integrated supply chain processes resulted in effective trade activities with increased trade volumes and access to better quality, lower-priced goods.

Category Based Insights

The specialty crops market based on category has been segmented into organic and conventional. In 2019, the conventional specialty crops segment accounted for a larger share of the Asia Pacific specialty crops market, and is also expected to grow at a higher CAGR during the forecast period. Conventional farming is one of the most practiced farming methods that involve the use of synthetic fertilizers, pesticides, and other chemical compounds. Conventional farming technique is widely adopted among small and marginal farmers to obtain higher yield at a lower production cost. The technique runs in favor of the producers and cultivators as the yields are high in comparison to cost. Moreover, lack of knowledge among farmers regarding the health and environmental benefits associated with organic farming is promoting the growth of the segment. However, there are several disadvantages related to this method. Crops cultivated using conventional method contains chemical residues, due to the use of synthetic agrochemicals, and may be hazardous if consumed by animals and humans.                                                                    

Asia Pacific Specialty Crops Market, by Category – 2019 and 2027

Crop Type Based Insights

Based on crop type, the specialty crops market is segmented into fruits and vegetables, tree nuts, herbs and spices and others. In 2019, the fruits and vegetables segment dominated the Asia Pacific specialty crops market whereas, the herbs and spices segment is expected to grow at the fastest rate during 2020–2027. Fruits and vegetables constitute a significant part of agricultural production and are extensively cultivated round the year, for both commercial and household purposes. The Asia Pacific demand for fruits and vegetables is high owing to their high nutritional profile. Apart from direct domestic consumption, these crops find their application in diversified end use industries. Different vegetables have been categorized as specialty crops which include artichoke, asparagus, beet, broccoli, carrot, cauliflower, celeriac, celery, chickpeas, chive, collards, cucumber, edamame, eggplant, endive, pea (garden, dry, edible), garlic, horseradish, kohlrabi, leek, lentils, lettuce, and others. Rising consumer awareness regarding the health benefits associated with organic produce, the demand for specialty fruits and vegetables grown organically is also increasing. Additionally, rapid urbanization and shift in consumer preference towards healthy lifestyle have encouraged the adoption of fruits and vegetables in their diet, thereby, promoting the growth of the segment.    

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Asia Pacific Specialty Crops Market: Strategic Insights

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Product development, merger and acquisition, and business planning are the commonly adopted strategies by companies to expand their product portfolio. Olam International; BanaBay Limited; Simped Foods Pty. Ltd., and the Herbs N Spices Company are amongst the market players implementing this strategy to enlarge the customer base and gain significant market share in Asia Pacific, which in turn permits them maintain their brand name in the Asia Pacific specialty crops market.

Report Spotlights

• Progressive industry trends in the Asia Pacific specialty crops market that help players develop effective long-term strategies
• Business growth strategies adopted by developed and developing markets
• Quantitative analysis of the Asia Pacific specialty crops market from 2017 to 2027
• Estimation of Asia Pacific specialty crops demand across various industries
• PEST analysis to illustrate the efficacy of buyers and suppliers operating in the industry to predict market growth
• Recent developments to understand the market competition in Asia Pacific
• Market trends and outlook, coupled with factors driving and restraining the growth of the Asia Pacific specialty crops market
• Decision-making process by understanding strategies that underpin commercial interest with regard to the Asia Pacific specialty crops market growth

• Asia Pacific specialty crops market size at various nodes of market
• Detailed overview and segmentation of the Asia Pacific specialty crops market, as well as its dynamics in the industry
• Asia Pacific specialty crops market size in various regions with promising growth opportunities

asia Pacific Specialty Crops Market, by Category

• Organic
• Conventional

Asia Pacific Specialty Crops Market, by Crop Type

• Fruits & Vegetables
• Tree Nuts
• Herbs & Spices
• Others

Company Profiles

• Olam International
• BanaBay Limited
• Simped Foods Pty. Ltd.
• The Herbs N Spices Company  

Report Scope

Asia Pacific Specialty Crops Market Regional Insights

The regional trends and factors influencing the Asia Pacific Specialty Crops Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Asia Pacific Specialty Crops Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Asia Pacific Specialty Crops Market Report Scope

Asia Pacific Specialty Crops Market Players Density: Understanding Its Impact on Business Dynamics

The Asia Pacific Specialty Crops Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Asia Pacific Specialty Crops Market are:

1. Olam International
2. BanaBay Limited
3. Simped Foods Pty. Ltd.
4. The Herbs N Spices Company

Disclaimer: The companies listed above are not ranked in any particular order.