By: Emma Rawley
With the rise of the COVID-19 pandemic, consumers are incredibly conscious of the origins of their food, including how, where, and by whom it is produced; perhaps more now than ever before. Consumers’ diets are changing, as they are unsurprisingly eating at home more due to shelter-in orders and remote working, as well as being more aware of what they are putting into their bodies. Similarly, public interest in climate change and other environmental issues, especially related to agriculture, has shown no decline. Based on these trends and discussions with our investors, we have developed the top five agricultural trends to watch for in 2021.
1) Grass-fed Livestock
Even with the rise of plant-based protein over the past five years, meat consumption remains stable. Health and environmentally-conscious consumers are willing to pay more for meat that is more nutritious, and benefits the environment. Grass-fed livestock are generally lower in calories, contain more healthy omega-3 fats, and are more nutrient-dense than grain-fed livestock. For environmental, social, and health-related reasons, the demand for grass-fed meat is steadily increasing and expected to grow by $14.5 billion by 2024.
2) Controlled Environment Agriculture
Controlled Environment Agriculture (CEA) offers solutions to many of today’s problems related to food production. Greenhouse and indoor farming offer a “more resilient, traceable, and trustworthy supply chain.” With $2 billion already being invested in CEA start-up businesses, by 2025, an estimated 10% of vegetable and herb production will be produced by CEA. By controlling almost all aspects of food production indoors, farmers are able to counter the restrictions of outdoor production, including climate, field loss exposure, and geographic limitations. CEA will also allow for more differentiated products of higher quality, flavor, and nutritional value to a wider range of consumers, lessening nutrition and food access issues. Despite the global pandemic, 95% of CEA growers have an optimistic outlook for the next year.
3) Regenerative Agriculture
As the world searches for a solution to climate change and the growing demand for sustainable agriculture products, many look to regenerative agriculture. While still producing sufficient amounts of nutrient-rich food, regenerative agriculture restores the natural resource base. Regenerative cropping and farming practices aim to rebuild organic soil matter, resulting in a variety of environmental benefits, including improved soil biodiversity and reduced climate change, while still being financially viable and safe for agriculturists and their communities. Regenerative agriculture also improves the sanitation of water by eliminating chemical runoff, offering a solution to restoring ecosystems in an economically and environmentally practical way.
4) Aquaculture
Despite seafood’s growing importance in feeding the growing population, the ocean is quickly being depleted. Though conservation efforts will be crucial to rehabilitate the ocean’s fisheries, fulfilling the world’s need for seafood can be met by aquaculture, also known as aquafarming. Aquaculture is continually expanding in the United States, serving as an essential component of marine ecosystem restoration and in increasing seafood security.
5) Direct to Consumer Farms
With the pandemic keeping people sheltered at home, many farmers are rethinking their business models. Growers are utilizing a direct-to-consumer model more, which increases profit from the food they grow by cutting out the intermediary levels of sales. Consumers are beginning to order products directly from the farmer online and have items, such as frozen meats, honey, fruits & vegetables, shipped straight to their doorstep. The COVID-19 pandemic forced farmers to sell their agricultural products in a virtual space; however, this business model will continue to be popular even after the pandemic subsides due to its efficiency, convenience, and the connection it provides between producer and consumer.