Published: January 12, 2018 |

Updated: February 5, 2026 |

Reading Time: 4mins |

By: Sean Sullivan

5 Trends That Will Affect the Future of Agribusiness

The agribusiness industry is undergoing important changes which will modify it significantly in years to come.

These changes are coming from all sectors — from emerging technologies to increased urbanization — which means that operators that want a competitive advantage must strive harder to be steps ahead. As agribusiness continues its evolution from serving local to regional to global communities, companies must adopt to the following trends:

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1. More mouths to feed

As the global population is set to grow 18 percent by 2050, global food consumption will follow but by a greater rate: 35 percent. According to PricewaterhouseCoopers (PwC), agricultural production will need to increase by 70 percent to feed every mouth on the planet. This creates big opportunities for agribusiness operators intending to grow their business globally over the next few decades.2. More countries to feed. Not only will be there be more mouths to feed, but agribusiness operators now have more opportunities past their borders. PwC estimates that the world economy will triple by 2050. However, today’s major economies in North America, Western Europe, and Japan will slow as countries like China — projected to overtake the U.S. by 2028 — will play larger roles. For example, India is positioned to become the second largest economy by 2050. Other projected fast-growing economies are Mexico, Indonesia, Turkey, Nigeria, Vietnam, Colombia, Poland, and Malaysia.

3. Increased tech development

Advanced technologies are changing how agribusiness operates, which means production will look much different years from now compared to today. The rise and scope of technologies like precision farming, genetic modification, food processing, and automation will drive competition to improve yields, which will make them more affordable consumers, not to mention fresh.

4. Increased safety oversight

The emergence of consumer activism has led to great strides in food labeling, sustainability practices, and otherwise responsible food production. As new markets open up around the world, agribusiness operators will face heightened expectations for food safety. Companies will need to strengthen the quality of their supply chain and make sure their end products meet international standards. Increased regulation intended to protect both consumers and the environment may lead to mergers in an effort to cut costs and fight competition.

5. Increased urbanization

According to Forbes, for the first time in history we are living in a time when more than 50 percent of the world’s population lives in cities. In fact, the 3.7 billion people who currently live in cities will double by 2050. Almost all of the looming urbanization will take place in the developing world. For the agribusiness industry, that means the inevitable increase in city farming plus improvements in food distribution models, especially in parts of the world that have not yet experienced agricultural production within city centers.

What do you see impacting the future of the agribusiness industry? Give us your insights in the comments below.

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Frequently Asked Questions

How can small agribusiness companies compete with larger corporations in these changing markets?

Small agribusiness companies can compete by focusing on niche markets, adopting cost-effective precision farming technologies, and forming strategic partnerships or cooperatives. They should leverage their agility to quickly adapt to local market needs and consumer preferences. Specializing in organic, sustainable, or locally-sourced products can also provide competitive advantages against larger, less flexible corporations.

What specific technologies should agribusiness operators prioritize for investment?

Agribusiness operators should prioritize precision farming tools like GPS-guided equipment and soil sensors, automation systems for harvesting and processing, and data analytics platforms for yield optimization. Genetic modification technologies and IoT devices for supply chain tracking are also crucial. The choice depends on company size, current operations, and target markets, but data-driven technologies typically offer the best ROI.

How will increased food safety regulations affect operational costs?

Increased food safety regulations will likely raise operational costs through mandatory testing, certification processes, upgraded equipment, and additional staff training. However, these investments often lead to long-term savings through reduced waste, fewer recalls, and access to premium markets. Companies may need to budget 10-15% more for compliance, but this enables expansion into regulated international markets.

Which emerging markets offer the best opportunities for agribusiness expansion?

India, China, and Southeast Asian countries like Vietnam and Indonesia offer excellent opportunities due to their growing middle classes and increasing food demand. African nations like Nigeria present untapped potential, while Mexico and Colombia provide strategic access to Latin American markets. Success depends on understanding local regulations, consumer preferences, and establishing reliable distribution networks in each region.

How can agribusiness companies prepare for urban farming integration?

Companies can prepare by researching vertical farming technologies, hydroponic systems, and controlled environment agriculture. They should explore partnerships with urban developers and city planners, invest in compact growing systems, and develop supply chains optimized for city distribution. Understanding local zoning laws and building relationships with municipal governments early will provide competitive advantages as urban farming expands.

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