E-COMMERCE OF AGRICULTURAL PRODUCTS MARKET ANALYSIS

E-commerce of Agricultural Products MarketSize and Trends

Market Dynamics

• Easy accessibility of raw materials and, inputs and advanced technology for to grow crops are the key factor driving growth of the global e-commerce of agricultural products market. E-commerce platform offers advantages for agricultural products such as availability of different types of seeds & tools, comparison of quality and prices, and descriptive analysis of products. The person doesn’t have to be physically present to gather the information like in traditional practices. Farmers can sell their products on these websites without having any interference of middlemen. To decrease the input or any other cost farmers and consumers prefer to directly purchase from these e-commerce websites. According to United States Department of Agriculture (USDA) in a report on Indian Mobile and E-commerce Grocery Retail, internet users in tier 2 and tier 3 cities has grown from 4.7% in 2013, to 7% in 2014.
• Rollout of new schemes and applications by governments may increase the demand for e-commerce platforms for agricultural products, which is expected to fuel growth of the global e-commerce of agricultural products market. Government of India has launched many apps and schemes to support the farmers such as kisan suvidha, IFFCO kisan agriculture, Pusa krishi, etc.

Market Outlook

• Among the product type, manure and fertilizer segment accounted for the highest market share in the e-commerce of agricultural products market in 2017, owing to its high adoption among farmers and agricultural companies due to low adulteration in manure, which it helps in growth of the crops and home delivery of product.
• Among applications, harvesting segment dominated in the market in 2017. Harvesting is the period when crops are ready to cut from the agricultural land. Mostly farmers use light and heavy weight machinery to harvest the entire crop, as it saves time, energy, and money. Ploughing, irrigation, and sowing does not require heavy use of machinery and these activities can be performed with light weight machinery or manually. The segment is projected to have dominant position in the market over the forecast period.
• North America held highest market share in the global commerce of agricultural products market in 2017. The region is projected to maintain its dominance over the forecast period, owing use of modern tools in agriculture, high literacy rate, advanced e-commerce platforms, and capital intensive harvesting. According to the US Department of Agriculture, farmers in United States use technology robots, temperature and moisture sensors, aerial images, and GPS technology, which provide precise information about the weather and environment.
• Asia Pacific is projected to be the fastest growing region in the market over the forecast period, owing to key factors such as increased acceptance of technology by farmers, decreasing input costs, and prevalence of capital intensive agriculture. Indian government has taken out various digital and technological applications and services to help the Indian farmers. Government is also providing subsidiaries for purchasing various agricultural machinery such as Tractor, sprinkler, plant protection equipment.