Global E-Commerce Of Agricultural Products Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global E-Commerce Of Agricultural Products Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

E-commerce of agricultural products refers to the business activities of various agricultural products transactions and material distribution payments that use various information network technologies. Agricultural e-commerce has changed the way agricultural products are sold and how farms interact with each other and customers through communication channels. Agricultural e-commerce transforms the way people buy agricultural products and services in the real world into buying and selling in the virtual world. The GMV appearing in this research report is about the turnover of each region and the turnover of enterprises.

Market Overview:

The latest research study on the global E-Commerce Of Agricultural Products market finds that the global E-Commerce Of Agricultural Products market reached a value of USD 337717.0 million in 2022. It’s expected that the market will achieve USD 1172480.17 million by 2028, exhibiting a CAGR of 23.05% during the forecast period.

The shift from business-to-business (B2B) to business-to-consumer (B2C) models

In low- and middle-income countries around the world, B2B demand has fallen sharply due to the closure of restaurants and hotels. However, although businesses were closed during the lockdown, agricultural e-commerce services have experienced a surge in home delivery (business to consumers or B2C). For example, Farm to Home, an agricultural e-commerce company in Pakistan, lost 90% of its institutional customers when the pandemic hit. However, compared with pre-pandemic levels, they found that the number of home deliveries has increased eightfold. Waruwa, a B2B platform that provides fruits and vegetables to restaurants and retailers in Latin America, said that due to restaurant closures, sales fell by 80% overnight. Unable to reach its normal customer base, Waruwa completely changed its business model, from B2B to B2C, mainly for consumers who stay at home. Through this effort, Waruwa Colombia supported their smallholder network, distributing 15 tons of agricultural products with one hand every day.

Increasing use of digital payments

The COVID-19 pandemic has accelerated the global transition to a digital future. Companies must adapt quickly and implement solutions to adapt to the new normal. Many companies around the world are investing in digital tools to meet the challenges and changes in their industries. For example, restrictions on meetings and social distancing measures have accelerated the opening of smallholders to digital payments and consumers' use of online payments. In Kenya, for example, the central bank announced the use of mobile money as a measure to curb the spread of COVID-19. This will be implemented on March 16, 2020. The notice requires mobile money providers to waive up to $10 in transaction fees, of which about 80% of Kenyans conduct transactions. The regulator also waived bank-to-wallet and wallet-to-bank transaction fees, and increased the maximum limit of mobile wallets from $1,000 to $3,000. As of June 2020, regulators have observed an increase in the use of mobile money in terms of transaction value and transaction volume, and therefore extended these measures. Eliminating the costs of these transactions helps the most vulnerable people take full advantage of peer-to-peer transfers and digitize their household and business-related expenses during these difficult times. From March 2020 to June 2020, more than 1.6 million new customers used mobile money in Kenya.

Weakness

The development of digital agriculture and rural areas is still improving
The development of spatial digital agriculture and rural areas still faces many challenges. First, compared with industry and service industries, the digital development of agriculture and rural areas is relatively lagging; the grassroots do not have a good understanding of the construction of digital agriculture and rural areas, and they do not pay enough attention to the informatization of rural residents. The degree is not high; informatization hardware facilities are still weak, the development and utilization of agricultural information service resources are lagging behind, and various information resources for rural areas are scarce; artificial intelligence, Internet of Things, big data, cloud computing, blockchain, 5G and other new technologies are still It has not been widely used, the utilization rate of agricultural production data is low, and the awareness of data mining is not strong. The digital transformation of traditional agriculture and rural areas is still in its infancy, and the role of information technology in the modernization of agriculture and rural development has become increasingly prominent.

E-commerce development faces a shortage of talents

There is still a large gap in e-commerce talents. Due to the low level of industrialization in rural areas, the logistics and warehousing, network operations, art photography, education and training, entrepreneurial incubation and other service formats related to the e-commerce industry chain have not yet formed, and they cannot continue to attract e-commerce talents. Return home to start a business and find employment. Restricted by the backward economic conditions and cultural environment in rural areas, and limited development space, e-commerce talents are more inclined to stay in cities for development, and the brain drain is relatively serious.

High-quality development still faces difficulties

The production of online agricultural products is organized and standardized, with low technological content and weak quality control capabilities. Most domestic agricultural cooperatives have weak organizations and imperfect systems. Most agricultural products are still provided by small-scale growers. The cooperation between agricultural product e-commerce and planting bases is only for targeted procurement, and lacks a long-term stable relationship with upstream and downstream strategic coordination.

Opportunities

Support continued and the policy system became more complete
In recent years, various countries and regions around the world have continued to encourage policy support for agricultural product e-commerce. Among them, take the Chinese market as an example. In 2019, the Several Opinions on Prioritizing the Development of Agriculture and Rural Areas and Doing a Good Job in Agriculture, Rural Areas and Farmers proposed Implement the digital rural strategy, continue to carry out comprehensive demonstration of e-commerce in the countryside, and implement the Internet + agricultural product out of the village into the city project, And promote the county and rural logistics network and cold chain logistics system as an important part of the village infrastructure construction. In addition, China has introduced various measures in recent years to use e-commerce of agricultural products as a means of stimulating rural economic development. Therefore, these government incentives will largely promote the continuous development of the industry.

Urban youth will drive the development of agricultural products e-commerce

With the advancement of the country’s urbanization process, the increase in per capita consumption, the increase in Internet coverage, and the gradual improvement of e-commerce infrastructure, the consumption power of young people in small towns is showing a rapid growth trend. Live e-commerce and social e-commerce have gradually changed the consumption concepts of urban and rural residents through the drive of internet celebrities and opinion leaders. Applications such as Taobao specials and Juhuasuan have lowered the threshold for young people in small towns to try. Consumers in the sinking market have listed the quality and quality of their products as their most important indicators, and branded high-quality products are becoming more and more popular.

Region Overview:

In 2022, the share of the E-Commerce Of Agricultural Products market in Asia Pacific stood at 67.45%.

Company Overview:

Alibaba Group is one of the major players operating in the E-Commerce Of Agricultural Products market, holding a share of 24.8% in 2023.

Alibaba Group

Alibaba is China's largest e-commerce platform. Agriculture has always been a strong attraction for Ali. Now Alibaba can use online and offline channels such as Tmall, Hema, RT-Mart, Retail Link, Tmall Youpin, etc., to achieve omni-channel sales of agricultural products. The rise of new models such as Taobao live broadcast has also played a good role in agricultural product sales. The promotion effect.

Wal-Mart Stores

Walmart Inc. is an American multinational retail company headquartered in Bentonville, Arkansas. Wal-Mart’s business is divided into four departments: Wal-Mart U.S. Department, Wal-Mart International Department, Sam's Club and Global E-commerce Department. In 2018, Walmart is strengthening its grocery business. The company announced that it will expand its grocery delivery business to more than 800 stores, covering 40% of American households.

Segmentation Overview:

Among different product types, Snack foods segment is anticipated to contribute the largest market share in 2028.

Application Overview:

The market's largest segment by Transaction Mode is the segment B2C, with a market share of 64.44% in 2022.

B2B

B2B refers to the process in which both supply and demand parties of e-commerce transactions are merchants (or enterprises, companies), who use Internet technology or various business network platforms to complete business transactions.

B2C

B2C refers to a model of e-commerce, as well as a commercial retail model that sells products and services directly to consumers.

Key Companies in the global E-Commerce Of Agricultural Products market covered in Chapter 3:

Cdiscount
Womai
Ebay
Alibaba Group
benlai
Agrellus
Sfbest
US Foods
JD
Coupang
Wal-Mart Stores
Amazon

In Chapter 4 and Chapter 14.2, on the basis of types, the E-Commerce Of Agricultural Products market from 2018 to 2029 is primarily split into:

Snack foods
Grain and oil
Fruits and vegetables
Meat and aquatic products
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the E-Commerce Of Agricultural Products market from 2018 to 2029 covers:

B2B
B2C
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)