The North America specialty crops market accounted US$ 124.41 million in 2019, and is expected to reach US$ 149.63 million by 2027, it is estimated to grow at a CAGR of 2.4% 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 North America. 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 government are driving the growth of the North America specialty crops market. However, environmental and trade barriers restrict the profitable growth of the specialty crops market.
Based on category, the North America 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 North America is segmented into the US, Canada, and Mexico. Market players are continuously improving the overall business processes to meet the demand from customers for superior quality products and services in the best possible way. Several domestic and multinational companies already have a strong foothold in North American countries, such as the US and Canada. Specialty crops include fruits, tree nuts, vegetables, dried fruits, horticulture, and nursery. However, in practice, the term specialty crops are usually referred to as crops except for those commodities that receive direct income support under Title I of the Agricultural Improvement Act of 2018. Specialty crops have been attaining immense traction across the agricultural spectrum after the increased number of provisions, which addresses specialty crop issues in the Food Conservation and Energy Act and Agricultural Act of 2014. The 2018 Farm Bill also increased the provisions concerning specialty crops and made research for specialty crops a cornerstone. In North America, specialty crops produced for fresh markets and those produced for processing have different characteristics. Due to the consumer demand, specialty crops sold in fresh markets have an aesthetic appeal. Therefore, the majority of the producers harvest specialty crops by hand to reduce bruising. The products sold in the fresh market are required to be transported quickly from field to consumer before they perish or lose visual appeal. Hence, majority of specialty crops sold as fresh produce are sold in spot markets in North America.
Diamond Fruit Co.; Harbor Spice Co., Inc.; Olam International; Oregon Spice Company; The Specialty Crop Company; Banana Limited; Rice Fruit Company; Fisher Nut Company, and SVZ Industrial Fruit & Vegetable Ingredients are among the major players operating in the North America specialty crops market.
The COVID-19 outbreak was first reported in Wuhan, China, in December 2019. As of February 2021, the US, Mexico, and Canada are among the worst-affected countries in North America 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. The US has the highest number of confirmed cases across North America. The shutdown of many food processing plants during lockdown is restraining the growth of the specialty crops market in North America.
The overall North America 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 North America specialty crops market.