Agriculture Market Analysis Algeria - Size and Forecast 2024-2028

Algeria Agriculture Market Size 2024-2028

The Algeria agriculture market size is forecast to increase by USD 474.5  million at a CAGR of 2.15% between 2023 and 2028.  The market's expansion hinges on various factors, notably the growing support from the government towards agriculture, offering incentives and policies conducive to sector development. Additionally, the availability of financing options plays a pivotal role, enabling farmers to invest in modern equipment, technology, and infrastructure. Furthermore, the increasing demand for agricultural products among the population propels market growth, driven by factors such as population growth, dietary changes, and export opportunities. These dynamics create a favourable environment for agricultural stakeholders, fostering innovation, productivity, and sustainability in the sector. As a result, the agricultural market is poised for continuous advancement, supported by governmental backing, accessible financing, and heightened consumer demand.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

In the market, digitization plays a significant role in resource utilization through data collection and analysis. Irrigation schedules, crop health data, and machinery performance are monitored using advanced technologies such as IoT, AI, and ML. The fertilizer application is optimized based on data-driven decision-making, ensuring efficient use of resources. Technological literacy and skills gap are addressed through training programs and educational resources. Livestock farming benefits from technological developments like livestock biometrics, RFID, and GPS. Data privacy and security concerns are addressed through robust systems. Precision agriculture techniques, including LED grow lights, are gaining popularity. Equipment performance and fuel consumption are closely monitored for operational efficiency. Agronomists leverage visualization, reporting, and graphical representation tools to make informed decisions. Technology advancements continue to shape the agriculture sector in Algeria, with a focus on improving productivity, reducing waste, and enhancing animal health. The integration of technology in agriculture is transforming traditional farming practices, making it more sustainable and profitable. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The growing support from the government is the key factor driving the market. The agriculture sector experiences ongoing advancements, driven by the government's commitment to stabilizing production and promoting sustainable growth. Policies focus on land reform, labor, and taxation. Key areas of development include planting and plowing, irrigated agriculture, and partnerships. Regulatory scrutiny ensures conventional farming practices evolve, with precision farming, smart greenhouses, fish farming, horticulture, and precision livestock monitoring gaining traction.

In addition, the software and hardware segments support automation & control systems, HVAC systems, RFID tags & readers, sensing devices, milking robots, guidance systems, and driverless tractors. Drones, yield monitoring, crop scouting, field mapping, weather forecasting & tracking, inventory management, and farm labor management are essential tools. Amidst water scarcity, environmental consciousness drives the adoption of precision irrigation and HVAC management. These factors are expected to drive market growth during the forecast period.

Significant Market Trends

Increased fruit production to dominate the market is the primary trend in the market. In Algeria, the agricultural sector has seen significant growth with the most commonly cultivated fruits being watermelons, oranges, dates, grapes, and apples. The government encourages partnerships and collaborations with foreign investors and local farmers through tax incentives, agricultural concessions, and long-term farmland leases. Traditional farming practices such as ploughing and irrigation are being modernized with the adoption of precision farming, smart greenhouses, fish farming, horticulture, and vertical farming. Regulatory scrutiny ensures the implementation of sustainable farming methods, including precision livestock monitoring, dairy farms, and smart greenhouses.

Moreover, the agricultural technology sector is revolutionized through the use of automation & control systems, HVAC systems, RFID tags & readers, sensing devices, milking robots, guidance systems, driverless tractors, drones, yield monitoring, crop scouting, field mapping, weather forecasting & tracking, inventory management, and farm labor management. Water scarcity and environmental consciousness are addressed through precision irrigation and HVAC management. These factors are expected to drive the growth of the market in focus during the forecast period.

Major Market Challenge 

Depleting the quality of land and crops produced is a major challenge to the market. In Algeria, the agricultural sector is expanding rapidly, presenting challenges such as the loss of arable land, ecological degradation from pesticides and fertilizers, and food security concerns. To enhance productivity and optimize land use, the country is prioritizing the adoption of advanced agricultural technologies. Key areas for improvement include partnerships and collaborations, regulatory scrutiny, and the transition from conventional farming to precision farming and smart greenhouses. Additionally, there is potential for growth in fish farming, horticulture, precision livestock monitoring, and dairy farms.

Moreover, the implementation of automation and control systems, HVAC systems, RFID tags and readers, sensing devices, milking robots, guidance systems, driverless tractors, drones, yield monitoring, crop scouting, field mapping, weather forecasting and tracking, inventory management, and farm labor management are crucial in addressing the sector's high costs and low profits. Water scarcity and environmental consciousness are also significant considerations, with precision irrigation and HVAC management playing essential roles. The software and hardware segments, including automation & control systems, sensing devices, and guidance systems, are key areas for investment. Imports have increased ultimately as a result of increasing demand for high-quality agricultural products and their constrained supply. Hence, such factors are hindering the market during the forecast period.

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Market Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Amandus Kahl GmbH and Co. KG - The company offers solutions for agriculture that includes equipment from weighing to proportioning, mixing, conditioning, expanding, and extruding. They offer processing machinery for various industries such as the feed industry, biomass industry, and recycling industry. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Air Products and Chemicals Inc.
• ATC Group India
• BAIONI CRUSHING PLANTS SPA UNIPERSONALE
• BASF SE
• Biobritte India
• BIODATES Algeria
• Cargill Inc.
• Clarke Energy
• Corteva Inc.
• FodderTech Americas
• Golden seed
• AGRIVIL Co.
• Hako GmbH
• Landustrie Sneek BV

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Market?

The market share growth by the supermarket segment will be significant during the forecast period. The market is experiencing significant growth, driven by digitization and resource utilization. Supermarkets, as the preferred distribution channel, prioritize convenience and accessibility for consumers. In this context, the use of technology plays a crucial role. Data collection and analysis are essential for optimizing irrigation schedules, crop health data, and monitoring equipment performance, fuel consumption, and operational efficiency.

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The supermarket segment was the largest segment and was valued at USD 1.55 billion in 2018. Data privacy and security concerns are paramount, with technology advancements in precision agriculture, IoT, AI, and ML. Technological literacy and skills gap are areas of focus, with awareness and training programs, educational resources, and technological developments addressing these challenges. Livestock farming and animal health are also priorities, with visualization, reporting, and graphical representation tools aiding data-driven decision-making. Agronomists employ LED grow lights, livestock biometrics, RFID, GPS, agricultural robots, and soil maintenance techniques to enhance productivity. Weeding, fruit picking, and harvesting are streamlined through technological innovations, ensuring optimal crop yields and operational efficiency. Thus, such factors are expected to drive the growth of the supermarket segment in the market during the forecast period. 

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Distribution channel Outlook  
  • Supermarket
  • Convenience stores
  • E-commerce

• Type Outlook  
  • Crop produce
  • Animal produce
  • Rural activities

Market Analyst Overview

The market plays a significant role in the country's economy, with a large portion of the population engaged in agricultural activities. The sector is rich in resources, with fertile lands, water resources, and a favorable climate. The major crops grown in Algeria include cereals, olives, fruits, and vegetables. The country is known for its high-quality olive oil and dates, which are major exports. The Algerian government has implemented various policies to support the agricultural sector, including the provision of assistance, technical assistance, and infrastructure development. The market is also influenced by factors such as weather conditions, global market trends, and domestic demand. The use of modern agricultural techniques and technology is on the rise, with a focus on increasing productivity and efficiency. The future of the market looks promising, with potential for growth in exports and domestic consumption. The government's commitment to the sector and the availability of resources make Algeria an attractive destination for investment in agriculture.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market report during the forecast period
• Detailed information of market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market and its contribution in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Algeria
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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