The Asia Pacific specialty crops market accounted US$ 470.92 million in 2019, and is expected to reach US$ 574.34 million by 2027, it is estimated 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 particular region due to climatic and topographical features. A paradigm shift in consumer eating patterns due to population growth and rise in per capita disposable income is propelling the demand for healthy and tasty food across Asia Pacific. Further, rapid urbanization along with ethnic composition, health concerns, and demographic changes are among the other factors promoting the demand for specialty crops. The growing scope of specialty crops, and supporting measures and free trade policies set by regional government are driving the growth of the Asia Pacific specialty crops market. However, environmental and trade barriers restrict the profitable growth of the specialty crops market.
Based on category, the Asia Pacific specialty crops market is bifurcated into organic and conventional. In 2019, the conventional segment accounted for a larger share of the market. However, the organic segment is expected to register 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. The 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, the lack of knowledge among farmers regarding the health and environmental benefits associated with organic farming is promoting the market growth for the conventional 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 its consumption may be hazardous for animals and humans.
The specialty crops market in Asia Pacific is segmented into the China, India, Japan, South Korea, Australia, and rest of Asia Pacific. These emerging countries are witnessing an upsurge in the middle-class population and urbanization growth, which offers lucrative opportunities for the key market players. The specialty crops industry in the countries of Asia Pacific has experienced a huge shift over the years. A few countries such as India, China, Indonesia, Philippines, Vietnam, and Thailand have a significantly growing agriculture sector. Therefore, the consumer base for specialty crops producing companies is growing considerably in the region. The major factors fueling the Asia Pacific specialty crops market are rising technological innovations in the specialty crops market and increasing demand for food. The rapidly increasing population in Asia Pacific is stimulating food demand, which is offering lucrative opportunities for the specialty crops market players. According to Food and Agriculture Organization (FAO), 479 billion people are undernourished in Asia Pacific, while overweight and obesity are rising among children and adults in the region. Food systems in the region are evolving rapidly in both the supply and demand dimensions owing to economic growth, emerging technologies, structural transformation, and urbanization, which, in turn, is favoring the growth of Asia Pacific specialty crops market.
Olam International, BanaBay Limited, Simped Foods Pty. Ltd., and the Herbs N Spices Company are among the major players operating in the Asia Pacific specialty crops market.
The COVID-19 outbreak was first reported in Wuhan, China, in December 2019. As of February 2021, India, Japan, Australia, and China are among the worst-affected countries in Asia Pacific in terms of COVID-19 confirmed cases and reported deaths. The pandemic is hindering economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. Shutdowns in the food & beverages industry and disruptions in supply chain are limiting the supplies of various products. India has the highest number of confirmed cases across Asia Pacific. The shutdown of many food processing plants during lockdown is restraining the growth of the specialty crops market in Asia Pacific.
The overall Asia Pacific specialty crops market size has been derived in accordance to both primary and secondary source. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants and commentators to validate data, as well as to gain more analytical insights into the topic. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Asia Pacific specialty crops market.