Overview

Greener pastures: The expanding use of biofuel will present a growing opportunity for the industry

The Agribusiness industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$3tr
Annual Growth
12-17
-1.9%
Annual Growth
17-22
Profit
Employment
6,836,128
Business
2,944,887

Industry Threats & Opportunities

  • The industry will benefit from increasing corporate involvement supplying more resources to farmers and producers
  • Food manufacturers and processors have tried to shelter themselves from input price fluctuation
  • Higher-yielding crops and greater efficiency in the food supply chain will assist industry growth
  • Industry Analysis & Industry Trends

    Over the past five years, revenue for the Agribusiness industry is expected to decline due to a falling agricultural price index. Declining agricultural prices have a carry-through effect as they flow through the supply chain, slowing industry revenue growth. However, rising consumer preferences for premium-priced organic and natural products have prevented greater declines in industry revenue. Moving forward, the industry is expected to experience a steady rebound as improved economic factors enable downstream buyers to demand more agricultural products and services. Sustained demand for food from developing countries and continued support for biofuel production are anticipated to continue bolstering demand for industry products over the next five years.

    Industry Report - Industry Key Buyers Chapter

    The eight largest companies in the Agribusiness industry account for less than 10.0% of industry revenue. As a result, IBISWorld considers this industry to have a particularly low level of concentration. Agriculture is a naturally fragmented industry because farms are never big enough to control any market in which they participate.

    Although the industry is fragmented, agribusiness in the United States is rapidly increasing its concentration. The corporatization of farms and businesses supplying to and buying from farms has been a major feature of the industry in the past 10 years. In fact, major operators Cargill Inc. and

    Additional Insights for the Agribusiness Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Agribusiness Industry are

  • Access to the latest available and most efficient technology and techniques
  • Economies of scale
  • Ability to take advantage of government subsidies and other grants
  • IBISWorld analysts also discuss how external factors such as Agricultural price index and Natural disaster index in the Agribusiness industry impact industry performance..

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    Industry Products

    What is the Agribusiness Industry?

    The Agribusiness industry includes businesses that directly engage in or directly benefit from agricultural activities. Businesses in this industry may produce agricultural commodities, buy agricultural produce or supply goods and services to farms and the agriculture industry. This industry focuses on the food-supply chain up to, but not including, the point of retail sale.

    Industry Products
    Crop and livestock farming
    Food manufacturing
    Agribusiness services
    Equipment and other manufacturing
    Food and supplies wholesaling
    Industry Activities
    Soybean and corn farming
    Frozen foods
    Beef cattle production, dairy cattle farming and meat processing
    Margarine and cooking oil processing
    Corn, soybean and wheat wholesaling
    Dairy product and milk production
    Farm supplies and farm equipment wholesaling
    Fruit and vegetable wholesaling
    Tractors and agricultural machinery retailing
    Fertilizer and pesticide

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Agricultural price index
  • Natural disaster index
  • Trade-weighted index
  • Population

  • Current Performance
  • Industry structure and price volatility
  • Corporate agribusiness boosts profit and drives research and development
  • Exchange rates hamper exports despite free trade agreements
  • Chart: Revenue Growth

  • Industry Outlook
  • Fields of green on the horizon
  • Biofuel
  • Worldwide demand
  • Table: Agribusiness Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Agribusiness Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Meat Markets
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Caterers

  • Key Selling Industries
  • Commercial Banking
  • Loan Brokers
  • Long-Distance Freight Trucking
  • Machinery Maintenance & Heavy Equipment Repair Services
  • Rail Transportation

  • Products & Services
  • Food and supplies wholesaling
  • Food manufacturing
  • Crop and livestock farming
  • Agribusiness services
  • Equipment and other manufacturing
  • Chart: Agribusiness Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Internal agribusiness segments (excluding farmers)
  • Supermarkets, convenience stores and grocery stores
  • Food service industries (e.g. restaurants and cafes)
  • Farms and direct farming activities
  • Export markets
  • Chart: Major Market Segmentation for the Agribusiness Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Agribusiness

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Agribusiness Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Agribusiness Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Agribusiness Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Agricultural price index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Biofuel
  • It is also called agrifuel or biodiesel. It is a fuel consisting of or derived from dead biological material, usually plants.
  • Genetic Modification (Gm)
  • A technique in which specific changes are introduced into a plant or animal's DNA through genetic engineering techniques.
  • North American Free Trade Agreement (Nafta)
  • An agreement signed by the governments of Canada, Mexico and the United States to create a trilateral trade bloc in North America.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Agribusiness:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Agribusiness market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Agribusiness, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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