Market Introduction

The global sustainable Agri-transit market was valued at USD 90 billion in 2023 and grew at a CAGR of 10% from 2024 to 2033. The market is expected to reach USD 233.43 billion by 2033. The growing emphasis on sustainability in agriculture given the rising concerns about climate change will drive the growth of the global sustainable Agri-transit market.

The sustainable Agri-transit can be defined as the management and utilisation of practices and strategies in transit of agricultural products in sustainable ways. The main objective of sustainable Agri-transit is to focus on the transport needs of agricultural produce and reduce the environmental costs incurred during transport. This includes emission control, energy management, low fuel usage and environmentally friendly means of transport. Another especially significant component of sustainable Agri-transit is the growing sustainable in the transport sector through the use of electric or hybrid vehicles and the combined use of biofuels or hydrogen. These technologies contribute to the minimization of fossil fuel utilization and the carbon emissions that are associated with these fossil-fuel based vehicles. Moreover, it involves optimizing delivery routes and improving payload factors, as well as using advanced technologies to provide more effective route maps to minimize fuel consumption and, as a result, the total amount of emissions. Another factor includes proper packaging facilitates to reduce wastage of the products. Sophisticated technologies such as Cold Chain Logistics are integrated to maintain quality of fresh and perishable agricultural produce such as fruits, vegetables and meat, without using excessive energy. Sustainable Agri-transit also corresponds to the concept of sustainable agriculture which implies decrease in the carbon foot print, enhancing the quality of soil and encouraging sustainable and eco-friendly form of farming. These practices can equate to more sustainable, more effective, and more environmentally friendly agriculture transit system accessible to the farmers, transporters, distributors, among other stakeholders.

Get an overview of this study by requesting a free sample

Recent Development

• About 25% of the food produced worldwide is produced in the US and Brazil.   They have a history of innovation in sustainability, a pillar for our future, and collectively contribute to ensuring global food security. Going forward, using bio-inputs in place of chemical pesticides and fertilizers is a viable area of collaboration between Brazil and the US. Increased soil organic matter, biodiversity preservation, carbon sequestration, and effective water management are among the advantages. Both nations are already making efforts to switch from nitrogen fertilizers. Brazilian crops including maize, sugarcane, and coffee, as well as US crops like corn and cotton, are frequently fertilized with these fertilizers. Nitrogen fertilizer use, transportation, and production are responsible for around 2.5 percent of greenhouse gas emissions worldwide.

Market Dynamics

Drivers

Government support and incentives – Ministries and authorities in various countries are gradually adopting progressive measures to reduce the unfavourable effects of transportation on the environment, such as greenhouse emissions, air pollution as well as the overall consumption of resources. These measures have forced the agriculture sector to shift to alternatives such as electric or hybrid transport vehicles. It also encourages organizations to integrate low carbon technologies and increase the efficiency of their supply chain. Moreover, the use of carbon credits or government grants for the implementation of sustainable technologies in logistics like sustainable Agri-transit also contributes to the market’s growth. The European Green Deal launched recently is a good example of a policy framework that enshrines emission cuts in all sectors of the economy, including transport by 2050 at the latest. In addition, specific rules related to sustainable packaging and reduced waste generation in supply chains as well as worldwide environmental protocols such as the Paris Accord are also leading to the adoption of sustainable Agri-transit frameworks. The increasing stringency of regulations and challenging targets force companies to adopt sustainability measures as not only legal requirements but also to gain market advantage.

Restraints

High costs of sustainable Agri-transit – High fixed costs are one of the main challenges that limit the adoption of sustainable Agri-transit, especially in the case of small and medium actors of the agricultural industry. Converting to environmentally sustainable transport systems sometimes entails a large amount of capital costs. For example, electrified or plug-in hybrid vehicles that form the basis of decreasing carbon emission entails more initial cost than conventional diesel vehicles. Likewise, the incorporation of cold chain logistics systems usually entails substantial costs. In addition to vehicles and storage, other costs include the subscription service cost for smart logistics solutions that employ artificial intelligence and machine learning, as well as the cost of training employees on when and how to effectively use the tools they purchase. Therefore, high initial cost remains a major drawback, meaning that despite efficiency, cost and flexibility benefits in the long run, sustainable Agri-transit systems do not develop quickly.

Opportunities

Technological advancements and innovations – A radically important innovation is the adoption of electrical/electrified automobiles significantly cutting down greenhouse gases compared to diesel trucks. These vehicles not only reduce the carbon emissions of agricultural transit, but can also reduce the long-term fuel costs. Also, new generations of battery have made electric vehicles to more efficient. Increasing access to sustainable packaging and logistics is transforming agricultural transit by promoting sustainable practices. Recyclable packaging materials such as plant fibre and bio-polymers used in the packaging do not pollute the environment and also are biodegradable as opposed to regular plastic. Furthermore, intelligent management logistics software which involve the use of IoT telemetry and AI based routing adds to sustainability efforts. Combined, these advancements help agricultural producers and distributors contribute to a decrease in emissions and increase sustainability compliance and the expansion of sustainable Agri-transit.

Segment Analysis

Regional segmentation analysis

The regions analysed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe emerged as the most significant global sustainable Agri-transit market, with a 39% market revenue share in 2023.

Europe is projected to lead the sustainable Agri-transit market because of its relatively developed infrastructure and environment friendly policies. The European Union (EU) has been one of the global pioneers of green logistics. Regulatory policies are supported by subsidies and funding schemes for electric vehicles (EVs), bio fuels and energy efficient cold chain systems. Europe has a good infrastructure base in terms of road network, railways and ports; and the infrastructure is in a good condition for multimodal transport system. Moreover, the accessibility to EV charging stations and renewable energy-powered cold rooms contribute to the popularization of green logistics technologies. Another reason is a particularly high focus on R&D in Europe, which adds to the continent’s leadership in the sustainable Agri-transit market. Europe is enjoying almost 50% of the global intermodal rail share for transit because of the increased consumer force demanding goods that are sustainably sourced and transported. All these factors taken together make it possible for Europe to continue foraging new ways of practicing sustainable agricultural logistics.

Check the geographical analysis of this market by requesting a free sample

• Two agreements that would guarantee a collaboration on the construction of vital infrastructure and the long-term sustainability of agriculture and food security were signed in Paris, France, by President Bola Tinubu and his French counterpart, Emmanuel Macron. The United Bank for Africa (UBA) Group Chairman Tony Elumelu and Mr. Antoine Armand, the French Minister of Economy, Finance, and Industry, signed the agreement for the bank to start operations in Paris in front of Tinubu and Macron. During the visit, Zenith Bank also launched its services in the nation.

Mode of transportation Segment Analysis

The mode of transportation segment is divided into road, rail, sea and air. The road segment dominated the market, with a market share of around 39% in 2023. Sustainable Agri-transit market by road is the dominant mode of transportation because this mode of transport offers flexibility, accessibility and reach which is very essential for transportation of agricultural goods. The last-mile delivery capacity offered by road is rather valuable for the agriculture industry, as time-sensitive products, including fruits and vegetables, dairy products, and meat, require proper in-time transportation. Road transport’s dominance is supported by improvements in vehicle technologies that allow for more environmentally-friendly transport, including electric and hybrid trucks. These vehicles substantially decrease greenhouse emissions, enable compliance to worldwide environmental standards and legislations. Additional technologies such as route planning and route tracking tools continue to improve efficiency by significantly cutting the amount of fuel consumed and, therefore, the number of emissions released. The flexibility and the ongoing investments in infrastructure of the road transport system will contribute to its continued dominance in the market.

• Saudi Arabia's dedication to sustainability has gained traction through the identification and assistance of leading pioneers in climate-smart agriculture technologies. The Kingdom started the program, which is called the Smarter Climate Farmers Challenge, in collaboration with Uplink, the World Economic Forum's open innovation platform. The challenge was declared by Saudi Economy and Planning Minister Faisal Al-Ibrahim at the 14th annual meeting of the New Champions of the World Economic Forum in Tianjin, China. "Smart agriculture solutions to boost farmers' resilience, increase food production, and encourage zero-emission practices," Al-Ibrahim stated. The minister urged urgent action to solve food security issues during his speech, particularly given Saudi Arabia's desert environment. According to him, this includes growing food, preventing protracted drought, reducing desertification, and adjusting to erratic rainfall patterns.

Vehicle type Segment Analysis

The vehicle type segment is divided into electric vehicles (EVs), hybrid vehicles and conventional vehicles with biofuels. The electric vehicles (EVs) segment dominated the market, with a market share of around 42% in 2023. EVs have become the leading segment in sustainable Agri-transit because they reduce greenhouse emissions, cut costs and the dependence on fossil fuels. EVs are viable and cost-efficient in the long-term. They are the most efficient way to achieve sustainability in Agri-transit. Another strength that has emerged in favour of EV supply is the increasing diffusion of subsidies and incentives provided by governments all over the world to encourage green mobility. They range from tax incentives and reduced registration costs, subsidies for the purchase of EVs. EVs are most suitable in short and medium commute, which is often needed in the agricultural industry to transport products to shops, and storage centres. Increasing infrastructure for electric vehicles, continued investment in charging technologies and product innovations in EVs will contribute to the segment’s dominance in the market.

Application Segment Analysis

The application segment is divided into perishable goods transport and non-perishable goods transport. The perishable goods transport segment dominated the market, with a market share of around 56% in 2023. Perishable goods include fruits, vegetables, dairy products, meat and seafood. These are products that easily get spoilt in the course of transportation. Consumers always prefer fresh and quality products and there is always concern on safety of products especially perishable goods which require proper handling through the system. Trade in perishable products especially for the regions with different climate conditions also increases the dominance of this segment. International horticulture marketing online and offline also continues to rely on fresh produce transit solutions to satisfy the increased consumer demand for products from other countries, as well as products that are out of season.

Technology Segment Analysis

The technology segment is divided into cold chain logistics, smart route optimization tools, and energy-efficient warehousing. The cold chain logistics segment dominated the market, with a market share of around 41% in 2023. Cold chain logistics account for a significant share of the sustainable Agri-transit market because of the sensitivity of Perishable Agricultural Commodity (PAC), which requires effective chain distribution and handling systems. These products are very temperature sensitive and cold chain systems help to maintain temperature limits required to contain the nutritional and shelf-life characteristics, and to minimize waste. Proliferation of cold chain logistics is possible due to the development of efficient methods of refrigeration and energy efficient refrigeration mechanisms to transport the temperature sensitive products efficiently. Technological improvements across areas like solar-powered refrigeration units and environmentally friendly refrigerants lowers the impact of these systems on the environment whilst enhancing the integrity of storage climates. Moreover, the integration of IoT and real-time monitoring has improved cold chain by meeting the required temperature conditions, and monitoring within the chain process. The necessity of cold chain logistics has therefore risen in tandem with the customer demand for fresh and organic food produce. This makes it possible for agricultural products to be produced and transported to regions they are demanded without a negative impact on quality of these products. In addition, growing consciousness of the authorities towards a sense of food safety and quality regarding meals along with the desire to minimize heedless food wastage has also incrementally augmented the significance of cold chain systems.

End user Segment Analysis

the end user segment is divided into farmers and producers, distributors and retailers and exporters. The distributors and retailers segment dominated the market, with a market share of around 44% in 2023. Since sustainable Agri-transit involves transport of agricultural products, distributors and retailers are found to be the main key players in this market due to their strategic position in the supply chain. This is so because they adapt and drive sustainable solutions at an industrial level, addressing the supply chain constraint as consumers demand green products. These entities frequently own and/ or operate the transport chains that integrate farms to processing centres, warehouses, and distribution channels making them strategic to sustainable transportation in agriculture. Distributors and retailers have a wide variety of agricultural produce and therefore have enough needs to integrate new technologies. They not only help to minimize the environmental effects of the movement of goods but also help distributors and retailers to operate at lowered expenses in view of environmental requirements for sustainability. The continuing global trend towards the sourcing and transportation of products in an environmentally friendly fashion has pushed distributors and retailers to adopt strategies aligned with the same goals.

Some of the Key Market Players

• AcreTrader
• Apollo Agriculture
• Aruna
• Bushel
• CIBO Technologies
• DeHaat
• Farmer’s Business Network
• Gro Intelligence
• Indigo Agriculture
• ProducePay
• Regrow
• Stable

Report Description

• Market Introduction
• Market Dynamics
• Segment Analysis
• Some of the Key Market Players