North America Specialty Crops Market Size, Share, and Analysis by 2027

The North America specialty crops market accounted to US$ 124.41 million in 2019 and is projected to account US$ 149.63 million by 2027; it is expected to grow at a CAGR of 2.4% during 2020–2027.

Specialty crops” refer to “fruits and vegetables, tree nuts, dried fruits, horticulture, and nursery crops (including floriculture). It also takes into consideration exotic crops that are specifically cultivated across a region due to climatic and topographical features. With the expanding population growth, coupled with rise in per capita disposable income, a paradigm shift in consumer eating patterns have been observed, which has direct impact on the demand for healthy and tasty food. Further, rapid urbanization along with ethnic composition, health concerns, changes in demographic features are some of the other factors promoting the demand for specialty crops. The widening application scope of specialty crops, supportive government measures and free trade policies are the key factors driving the specialty crops market growth. However, the environmental and trade barriers restrict the profitable growth of the specialty crops market. The trend of consumption of organic food products is attaining traction across North America attributed to its health benefits. Vegan and organic products have seized the taste of customers despite its expensive nature. The trend of organic food products is expanding especially in the regions of North America. The organic specialty crops are cultivated without the incorporation of artificial fertilizers or harmful chemicals. The farmers use organic growth stimulators in crop cultivation to minimize the amount of chemical residue limit in crops. The use of chemicals and fertilizers in conventional farming mostly affects the health aspect and nutrients level. Rising inclination of people toward organic products has encouraged the food manufacturers to invest heavily in products produced with organic constituents. This is further projected to bolsters the growth of the specialty crops market.   

The COVID-19 pandemic first began in Wuhan (China) in December 2019, and since then, it has spread at a fast pace across the globe. As of February 2021, USA, Mexico and Canada are among the worst-affected countries in terms confirmed cases and reported deaths. The pandemic has been affecting economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. Shutdowns of food and beverages industry and disruptions in supply chains due to lockdown of countries has created a strain on the supplies of the various products offered by this industry. In North America, US is the worst-hit country by the COVID–19 outbreak. Owing to this pandemic, the North American food and beverages has witnessed an abrupt downturn in several major countries. The food and beverages industry in North America suffered its one of the biggest drops in activities after the restaurants and food centers were closed, and the supply of food products and workers were disrupted due to the pandemic. The drop in the demand for various food products in the region has directly affected the sales of the specialty crops products in North America.  

North America Specialty Crops Market

Market Insights

Supportive Government Measures and Free Trade Policies

The growth of specialty crop is strongly supported by positive government initiatives, which includes sales and marketing activities, plant pest and disease prevention, and research & development. For instance, the farm bill passes in the year 2018 (Agriculture Improvement Act of 2018) which aimed at reauthorizing and extending current programs to promote the growth of several specialty crops such as fruits and vegetables, tree nuts, nursery products and others. The farm bill was implemented to offer support to specialty crop producers, through Specialty Crop Block Grant Program and the Specialty Crops market News. Through such programs, USDA focuses over to improve competitiveness and providing support in marketing, pest management, research, and food safety. The bill also acknowledges several trade issues revolving around specialty crops and offers technical as well as export assistance. Apart from this, a research institute has been formed named as Specialty Crop Research Initiative (SCRI) with an intension to encourage collaboration, open communication, the exchange of information and other purposes. In addition, government offered food assistance program for the upliftment of specialty crop producers impacted by the COVID-19 pandemic. Such assistance was offered to promote the growth of specialty crop including horticulture, tree nuts, fruits and vegetables, indigo and others. The association USDA is reinforcing Coronavirus Food Assistance Program 2 for the producers suffering market disruptions and fluctuations in prices. Further, in India, government has decided to offer 50% subsidies to poly or green house to promote the growth of nursery crops. Apart from government programs, free trade policies have also been implemented which has significantly integrated supply chain processes resulted in effective trade activities with increased trade volumes and access to better quality, lower-priced goods.

Category Based Insights

The specialty crops market based on category has been segmented into organic and conventional. In 2019, the conventional specialty crops segment accounted for a larger share of the North America specialty crops market, and the organic segment expected to grow at a higher CAGR during the forecast period. Conventional farming is one of the most practiced farming methods that involve the use of synthetic fertilizers, pesticides, and other chemical compounds. Conventional farming technique is widely adopted among small and marginal farmers to obtain higher yield at a lower production cost. The technique runs in favor of the producers and cultivators as the yields are high in comparison to cost. Moreover, lack of knowledge among farmers regarding the health and environmental benefits associated with organic farming is promoting the growth of the segment. However, there are several disadvantages related to this method. Crops cultivated using conventional method contains chemical residues, due to the use of synthetic agrochemicals, and may be hazardous if consumed by animals and humans.                                                                  

North America Specialty Crops Market, by Category – 2019 and 2027

Crop Type Based Insights

Based on crop type, the specialty crops market is segmented into fruits and vegetables, tree nuts, herbs and spices and others. In 2019, the fruits and vegetables segment dominated the North America specialty crops market whereas, the herbs and spices segment is expected to grow at the fastest rate during 2020–2027. Fruits and vegetables constitute a significant part of agricultural production and are extensively cultivated round the year, for both commercial and household purposes. The North America demand for fruits and vegetables is high owing to their high nutritional profile. Apart from direct domestic consumption, these crops find their application in diversified end use industries. The USDA has defined and categorized different fruits in specialty crops which include apple, avocado, banana, blackberry, blueberry, breadfruit, cacao, cherimoya, cherry, chokeberry, citrus, coconut, coffee, cranberry, currant, date, feijoa fruit, fig, gooseberry, grape (incl. raisin), guava, kiwi, litchi, macadamia, mango, nectarine, olive, and many others. It has also categorized different vegetables as specialty crops which include artichoke, asparagus, beet, broccoli, carrot, cauliflower, celeriac, celery, chickpeas, chive, collards, cucumber, edamame, eggplant, endive, pea (garden, dry, edible), garlic, horseradish, kohlrabi, leek, lentils, lettuce, and others. Rising consumer awareness regarding the health benefits associated with organic produce, the demand for specialty fruits and vegetables grown organically is also increasing. Additionally, rapid urbanization and shift in consumer preference towards healthy lifestyle have encouraged the adoption of fruits and vegetables in their diet, thereby, promoting the growth of the segment.    

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North America Specialty Crops Market: Strategic Insights

North America Specialty Crops Market

• Market Size 2019
  US$ 124.41 Million
• Market Size 2027
  US$ 149.63 Million

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• North America

Market Segmentation

Category

• Organic and Conventional

Crop Type

• Fruits and Vegetables
• Tree Nuts
• Herbs and Spices

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North America Specialty Crops MarketReport Scope

North America Specialty Crops Market Report Scope