The New Agrarian Economy: Power Shifts to Developing Regions
Emerging market economies will lead the growth in global agricultural consumption and production over the next decade, says a report by the OECD.
This trend has persisted for the past 20 years and will continue with some shifts in the leading countries.
The OECD projects that global agricultural consumption will rise by 1.1% annually over the next ten years. Low and middle-income countries will primarily drive this growth.
China accounted for 28% of the global increase in agricultural consumption over the last decade.
However, its share is expected to decrease to 11%. Instead, India, Southeast Asia, and Sub-Saharan Africa will lead the demand growth in the coming decade, according to the OECD.
The OECD estimates that India and Southeast Asian countries will account for 31% of global consumption growth by 2033. Urban population increases and rising wealth fuel this growth.
Sub-Saharan Africa will also contribute significantly, with an 18% increase in global consumption. Rapid population growth in the region drives this rise in food demand.
The global agricultural sector will experience sustained growth, primarily driven by emerging economies.
According to the OECD-FAO Agricultural Outlook, countries like India and regions such as Southeast Asia and Sub-Saharan Africa will play crucial roles in global agricultural consumption.
Their increasing urban populations and rising economic status amplify demand for agricultural products.
The New Agrarian Economy: Power Shifts to Developing Regions
India and Southeast Asia will account for 31% of global consumption growth by 2033.
Urbanization and enhanced wealth are key factors driving this demand surge. Sub-Saharan Africa will contribute 18%, mainly due to rapid population growth.
In contrast, China’s dominance in global agricultural consumption growth will decline.
Over the last decade, China had a significant share, but its future contribution will drop to around 11%, signaling a shift in global agricultural demand dynamics.
This evolving landscape highlights the central role of emerging economies in global agricultural consumption and production.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief