Agriculture in the MENA Region Market Size

MENA Agriculture Market Analysis

The agriculture market in the MENA (Middle East and North Africa) region is projected to record a CAGR of 5.7% during the forecast period.

• The Middle East and North Africa region comprise 14 low and middle-income countries or territories stretching from Iran to Morocco. In 2022, the region had a population of 486.1 million people, and about 165.3 million lived in rural areas. Of these, about 89 million depend on agriculture, including fishing and livestock. The region covers an area of 1,200 million hectares and includes diverse environments.
• Rainfed crops are grown during the wetter winter period, while irrigated areas are cultivated year-round. The main rainfed crops are wheat, barley, legumes, olives, grapes, fruit, and vegetables. A wide range of subtropical crops, including fruit and vegetables, is also grown under irrigation in summer.
• Livestock, mainly sheep and goats, are an important feature of many farming systems and provide key linkages between and within the different systems. Water-efficient irrigation is expanding and enabling intensive production of high-value cash and export crops, including fruits and vegetables.
• A dominant concern in the MENA region is its high and growing dependence on the international markets for key staple food products as arable land and water grow scarcer. The governments of various countries have taken steps to conserve water by banning the production of water-thirsty crops, such as wheat and green fodder. Food demand is increasing in the MENA region, mainly for two key reasons: population growth and rising incomes.
• According to the Food and Agricultural Organization (FAO), the land reform issue remains one of the most intractable, as many people hold onto their fragmented holdings without any rationalization or consolidation processes in place, even where countries are officially undertaking land reforms. The only places where there have been major changes are where larger operators can buy out smaller farmers. It is widely recognized that reorganizing land holdings is a prerequisite for introducing technologies to conserve soil and water resources in the long run. Thus, the proper use of agricultural resources, new technology, and favorable policies are expected to be crucial in driving the region's agriculture sector during the forecast period.
• The increased consumption of healthy and nutritional diets enhanced the consumption of cereals and fruits in the region. However, the lower GDP of African region countries, and farm labor shortages, especially for high-value crops, are major constraints to the growth of agriculture in the region.