Specialty Crops Market Size, Trends and Growth Analysis by 2027

The global specialty crops market was valued at approximately US$ 982.17 million in 2019 and is anticipated to grow to US$ 1,203.81 million by 2027, reflecting a compound annual growth rate (CAGR) of 2.6% from 2020 to 2027.

Specialty crops encompass a variety of products including fruits, vegetables, tree nuts, dried fruits, horticultural products, and nursery crops, which also cover floriculture. Additionally, they include exotic crops that are cultivated in specific regions due to favorable climatic and topographical conditions. The increasing global population, along with rising disposable incomes, has led to a significant shift in consumer dietary preferences, directly influencing the demand for nutritious and flavorful food options. Other contributing factors to the growing demand for specialty crops include rapid urbanization, diverse ethnic backgrounds, health awareness, and demographic changes. The expanding applications of specialty crops, along with supportive government initiatives and free trade policies, are pivotal in driving market growth. However, environmental challenges and trade restrictions pose obstacles to the expansion of the specialty crops sector.

The global specialty crops market is categorized into organic and conventional segments. In 2019, the conventional segment dominated the market. Conventional farming, which is widely practiced, involves the use of synthetic fertilizers, pesticides, and other chemical agents. This method is particularly favored by small and marginal farmers seeking to maximize yields at lower production costs. The advantages of conventional farming, such as higher yields relative to costs, make it appealing to producers. Furthermore, a lack of awareness among farmers regarding the health and environmental benefits of organic farming contributes to the growth of the conventional segment. Nonetheless, this method has its drawbacks, as crops produced conventionally may contain chemical residues from synthetic agrochemicals, posing potential risks to both human and animal health.

Geographically, the specialty crops market is divided into regions including North America, Europe, Asia Pacific, South America, and the Middle East & Africa. In 2019, the Asia Pacific region held the largest market share. This region includes several emerging economies, and the increasing disposable income of its population is rapidly transforming consumer lifestyles. The influence of Western culture and swift urbanization are driving the demand for convenience foods in this area. Consumers are increasingly drawn to plant-based food products, further fueling the growth of the specialty crops market. To capture a larger market share, companies in this region are adopting various technologies. For example, in China, businesses are utilizing accelerated ripening storage techniques to meet market demands. This method ensures that fruits achieve the same color, aroma, and flavor as those that have ripened naturally. Many companies are recognizing the importance of accelerated ripening and are establishing dedicated warehouses for this purpose.

The COVID-19 pandemic, which originated in Wuhan, China in December 2019, has had a profound impact globally. By February 2021, countries such as the US, India, Brazil, Russia, UK, France, Spain, Italy, Turkey, Germany, Colombia, and Argentina were among the hardest hit in terms of confirmed cases and fatalities. According to the latest data from the WHO, there were approximately 102,584,351 confirmed cases and around 2,222,647 deaths worldwide. The pandemic has disrupted economies and industries due to lockdowns, travel restrictions, and business closures, with the agriculture sector being significantly affected. The industry has faced serious challenges, including supply chain disruptions, cancellations of technology events, and shutdowns of offices and facilities across North America, Europe, Asia Pacific, South America, and the Middle East & Africa, which have adversely impacted the global supply chain and the manufacturing, delivery, and sales of various products.

Despite the consistent growth of the specialty crops market over the past decade, the COVID-19 pandemic has introduced unprecedented challenges that threaten its ongoing expansion. In response, various governments are providing support to specialty crop farmers to help them regain market stability. For instance, the US Department of Agriculture (USDA) is offering crucial financial assistance to agricultural producers who have experienced a price decline of 5% or more or have incurred losses due to market supply chain disruptions caused by COVID-19. Such supportive measures are expected to aid specialty crop market participants in navigating these challenging times.

Key players in the global specialty crops market include DIAMOND FRUIT CO., Harbor Spice Co., Inc., Olam International, Oregon Spice Company, The Specialty Crop Company, BanaBay Limited, Rice Fruit Company, Fisher Nut Company, Simped Foods Pty Ltd., and SVZ Industrial Fruit & Vegetable Ingredients.

The overall size of the global specialty crops market has been determined through a combination of primary and secondary research methods. The research process begins with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the specialty crops market. Additionally, numerous primary interviews are conducted with industry stakeholders and experts to validate and analyze the collected data. Participants in this research include industry professionals such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders specializing in the specialty crops market.