Soybeans were identified as the most favored oilseed, with a 54% share of the total oilseed market.
LONDON, ENGLAND — The global agribusiness market is expected to increase at a compound annual growth rate (CAGR) of 2.6% until 2020, according to a new study from Technavio, a London, England-based global technology research and advisory company.

While the global agribusiness market currently is growing at a slower pace, Technavio in its “Global Agribusiness Market 2016-2020” report said the pace should speed up over the forecast period.

“Urbanization, particularly in developing countries, has caused a rise in the number of people reliant on other people like farmers to produce food for them,” said Mantri Charan Kumar, lead analyst at Technavio for research on retail goods and services. “The demand for food is expected to rise globally by 2% per annum during the forecast period, where developing economies will be the dominant contributors.”

The Technavio study identified grains as the most used segment of the global agribusiness market. Wheat and rice were earmarked as the most important grains with regard to human nutrition and caloric intake.

“The production of grain crops has been increasing since the beginning of the agricultural revolution, and is the key to feeding the growing human population,” Technavio said. “Different regions like Africa and Europe are growing in this market and making massive efforts to increase the grain production by bringing irrigation to arid lands. The grain market is expected to post a CAGR of 1.01%.”

Technavio’s study also showed steady growth for oilseed production, growing at an annual rate of 1.5% since 2014. Soybeans were identified as the most favored oilseed, with a 54% share of the total oilseed market. The global oilseed market is projected to grow at a CAGR of 1.42% until 2020, Technavio said.

“The U.S. is the leading producer of oilseed globally with a share of 33.75%, followed by Brazil with 31.15%,” Technavio said. “China and the E.U. together are expected to account for 72% of world oilseeds imports by 2024. The export of oilseeds is concentrated in the Americas, with the U.S. and Brazil expected to each account for about a one-third share of world exports by 2024.”