Global Agroforestry Market Insights Forecasts to 2033

• The Global Agroforestry Market Size was Valued at USD 99.5 Billion in 2023
• The Market Size is Growing at a CAGR of 6.93% from 2023 to 2033
• The Worldwide Agroforestry Market Size is Expected to Reach USD 194.5 Billion by 2033
• Middle East & Africa is Expected to Grow the fastest during the forecast period.

The Global Agroforestry Market Size is Anticipated to Exceed USD 194.5 Billion by 2033, Growing at a CAGR of 6.93% from 2023 to 2033.

Market Overview

Agroforestry is a viable solution to address the increasing demand for agricultural and forestry products. It plays an essential role in biodiversity conservation and enhancement of ecosystem services, having multifunctional roles in enhancing agronomic productivity, co-production of diversity of food and non-food products, and provision of ecosystem services. The versatility of agroforestry systems positions them as a viable solution to address the increasing demand for agricultural and forestry products. Additionally, agroforestry is a promising approach for reducing global warming and promoting environmental sustainability owing to carbon sequestration. Agroforestry offers several environmental benefits including soil fertility, protection of crops and livestock from wind, restore degraded lands, water conservation, limited utilization of pests, and prevention of soil erosion. The growing awareness about sustainable agricultural practices owing to the rising demand for green farming methods fuels the expansion of the agroforestry market. The initiatives taken by government organizations about the conservation of natural resources and mitigation of climate change ultimately promote environmental sustainability and economic viability for farmers. The emerging trends favoring integrated land management practices are reshaping the global agroforestry landscape.

Report Coverage

This research report categorizes the market for the global agroforestry market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global agroforestry market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global agroforestry market.

Driving Factors

The growing environmental concerns associated with conventional farming methods lead to the increasing demand for sustainable methods. The initiatives taken by government organizations about the conservation of natural resources and mitigation of climate change encourage the adoption of agroforestry practices which is significantly contributing to market growth for agroforestry. For instance, The government of India is providing financial support for the development of nurseries and the raising of saplings through the Rashtriya Krishi Vikas Yojana (RKVY), with up to Rs. 50 lakhs for high-tech nurseries and Rs. 5 lakhs per nursery for sapling raising. The increasing need for food, timber, fruits, nuts, and fodder is enhancing the market demand. Agroforestry systems are a desirable alternative for farmers looking to mitigate the effects of climate change on their livelihoods as they are more adaptable to variations in temperature and precipitation. The agroforestry system is the sustainable solution for ensuring agricultural productivity in a changing climate.

Restraining Factors

Financial challenges due to the lengthy waiting period for return on investment are impeding the adoption of agroforestry, especially those farmers with limited resources. The absence of efficient value chains owing to the lack of established value chains limits the market access for agroforestry products, restraining the potential economic benefits to the farmers.  

Market Segmentation

The global agroforestry market share is classified into system and product.

• The agrisilvicultural systems segment is dominating the global agroforestry market with a significant revenue share during the forecast period.

Based on the system, the global agroforestry market is categorized into agrisilvicultural, silvopastoral systems, agrosilvopastoral systems, and others. Among these, the agrisilvicultural systems segment is dominating the global agroforestry market with a significant revenue share during the forecast period. The agrisilvicultural system involves the use of land for the concurrent production of crops including tree crops, thereby enhancing biodiversity. The rising need for food security and for enhancing productivity upsurges the market demand in the agrisilvicultural segment.

• The timber & lumber and fiber crops segment dominates the market with a significant market share over the forecast period.

Based on the product, the global agroforestry market is categorized into timber & lumber and fiber crops, fruits and nuts, vegetables and herbs, medicinal plants, and others. Among these, the timber & lumber and fiber crops segment dominates the market with a significant market share over the forecast period. The wood from agroforestry systems is good for use as solid wood (timber), industrial raw materials, firewood, and other wood products. The growing demand for food, timber, and other products as well as the promotion of sustainable and land management practices are driving the market.

Regional Segment Analysis of the Global Agroforestry Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia-Pacific is anticipated to hold the largest share of the global agroforestry market over the predicted timeframe.

Asia-Pacific is projected to hold the largest share of the global agroforestry market over the forecast period. Favorable climatic conditions, a large agricultural workforce, and the rising emphasis on sustainable farming practices are contributing to regional market growth. The presence of vast agricultural lands and the need for diversified farming systems in countries like India, China, and Indonesia are significantly contributing to market growth in the region. In addition, the financial and technical support from several government organizations for agroforestry practices not only contributes to environmental sustainability but also enhances economic viability for farmers. Thus, the initiative taken by the government to promote agroforestry is driving the market in the region.

Middle East & Africa is expected to grow at the fastest CAGR growth of the global agroforestry market during the forecast period. The increasing awareness about the potential of agroforestry in combating desertification and soil erosion is fueling the market. The rising demand for timber, food, and fodder with the growing population in the region is driving the market demand. The promotion of sustainable agriculture in countries like Kenya, Ethiopia, and Nigeria is also responsible for driving the market. Further, the food security challenges in the region augment the market demand for agroforestry.  

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global agroforestry market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Agroforestry Systems Inc.
• Center for Agroforestry (University of Missouri)
• Center for International Forestry Research and World Agroforestry (CIFOR-ICRAF)
• Weyerhaeuser
• Green Resources
• EcoPlanet Bamboo
• Rainforest Alliance
• TerraCarbon LLC
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In January 2019, GRET launched a new suburban agroforestry project in Haut-Katange (APHK), in the Democratic Republic of Congo (DRC), funded by the European Union, to support the Kipushi agroforestry perimeter associations syndicate (Capak).

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global agroforestry market based on the below-mentioned segments: 

Global Agroforestry Market, By System

• Agrisilvicultural
• Silvopastoral Systems
• Agrosilvopastoral Systems
• Others

Global Agroforestry Market, By Product

• Timber & Lumber and Fiber Crops
• Fruits and Nuts
• Vegetables and Herbs
• Medicinal Plants
• Others

Global Agroforestry Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa