Asia Pacific Specialty Crops Market is expected to reach US$ 574.34 million by 2027

According to the latest study on “Asia Pacific Specialty crops Market Forecast to 2027 – Covid-19 Impact and Analysis – By Category (Organic and Conventional); Crop Type (Fruits and Vegetables, Tree Nuts, Herbs and Spices and Others); and Country,” the Asia Pacific specialty crops market was valued at US$ 470.92 million in 2019 and is projected to reach US$ 574.34 million by 2027; it is expected to grow at a CAGR of 2.5 % during 2020–2027. The report provides understanding on the key driving factors pertaining to the market growth and highlights the prominent players in the market, along with their developments.

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. In the present scenario, consumers are looking forward for new food products and are willingly trying unique food composition and delectable flavors. The demand for specialty crops has risen with the change in Asia Pacific economic condition and favorable trade practices. For instance, the consumption of exotic fruits such as dragon fruit, star fruit, passion fruit and others have risen owing to increasing consumer knowledge and taste supported by health benefits and diversification of application base. This has led to increase in demand in not just source country but also across the world. Fruits such as dragon fruits are not just limited to their parent market Vietnam, where they are extensively grown, but are sold in Asia Pacific. Apart from its rich nutritional profile, they are also used in preparation of marmalades, jams, juice, jellies, wine, and beverages in food and beverage industry. Apart from the use of specialty crops in food and beverage industry, they are significantly being used in personal care, pharmaceutical and nutraceuticals, animal feed, and other industrial bases. For instance, according to study published by Congressional Research Service, the legalization of hemp across several nations has a positive impact upon the demand for the hemp-based derivatives. The demand for hemp has tremendously increased from agriculture, textiles, food and beverages, paper, construction materials, recycling, automotive, furniture, and personal care industries.

The trend of consumption of organic food products is attaining traction across Asia Pacific 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 Asia Pacific. 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 Asia Pacific Specialty crops market has been analyzed on the basis of historical, current, and future trends in countries such as China, India, Japan, Australia, South Korea and rest of Asia Pacific. In 2019, China held the largest share of the Asia Pacific specialty crops market. The region comprises several emerging countries, and owing to the rising disposable income of the populace, the lifestyle of consumers is changing rapidly. Moreover, the influence of western lifestyle and rapid urbanization is further propelling the growth of convenience foods in this region. Customers in the region are highly attracted to plant-based food products, further leading to the growth of the specialty crops market. In order to attain an optimum market share, companies in the region are implementing various technologies. Accelerated ripening guarantees the same color, smell, and taste similar to that of naturally ripened fruits. Many players have started to acknowledge the necessity and importance of accelerated ripening and have established accelerated ripening warehouses. South Korea is estimated to register the fastest CAGR in the market over the forecast period. The changing lifestyle of people and increasing purchasing power are resulting in increased demand for specialty crops. Shifting consumer preferences towards a vegan lifestyle is a significant factor leading to the market's rapid growth. The endorsement of plant-based and vegan products by celebrities further enhances the proliferation of the market. The explosion of the vegan trend during the last few years heavily influenced people to consume plant-based food products. Moreover, consumers in the region are shifting towards healthy consumption habits, further fuelling the market growth.  

Recently, the World Health Organization (WHO) announced the outbreak of COVID-19, the novel form of a disease caused by the virus SARS-CoV-2, as a pandemic. This outbreak started in December 2019 in Wuhan, China, and later, it turned into a pandemic, causing numerous deaths worldwide. The outbreak of COVID-19 pandemic has severely impacted the food and beverages industry. The shutdowns of this industry and supply chain disruptions due to lockdown of countries has created a strain on the supplies of the products of this industry. India has the highest number of confirmed cases of COVID-19 morbidities in Asia Pacific. Owing to this pandemic, the Asia Pacific food and beverages industry has witnessed an abrupt downturn in several major countries. The food and beverages industry in Asia Pacific 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 food products in the region has directly affected the sales of the specialty crops products in Asia Pacific.  

The Asia Pacific specialty crops market is concentrated with several well-established players. A few of the key players in this market include are Olam International; BanaBay Limited; Simped Foods Pty. Ltd., and the Herbs N Spices Company.

The report includes the segmentation of Asia Pacific specialty crops market as follows:

• Organic
• Conventional

• Fruits & Vegetables
• Tree Nuts
• Herbs & Spices
• Others

• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific