Marketing trends in the agricultural industry in 2023

According to the results of a study by The Business Research Company, the global value of the agricultural market in 2022 reached $12.2 billion. It is predicted that by 2027, the compound annual growth rate (CAGR) will remain at the level of 9.1%, and the volume of the industry will increase to $19 billion. These the figures indicate the development of the market, despite the challenges of recent years, which caused partial stagnation.

 

The success of agribusiness depends on a number of factors:

• the number of companies in the field;
• demand for products or raw materials;
• brand offers;
• the stability of logistics;
• positioning of industry players.

 

It does not matter what exactly the company does - the preparation of raw materials, its processing or the sale of finished products. It needs marketing to grow, scale and maximize profits.

 

AGRO Marketing Agency specialists conducted a study of the agricultural industry and trends that will affect it throughout 2023. From the material, you will learn about marketing for the agricultural sector and market trends, which will allow your company to develop effectively even in today's extremely difficult conditions.

Briefly about the main thing: the role of marketing in agrarian business

Agricultural marketing is a set of processes accompanying agribusiness from the first stages of brand concept planning. Regardless of the company's model of interaction with consumers (wholesale - B2B, retail - B2C, etc.), advertising is a key driver of its scaling.

 

Situationally, marketing can be:

 

• short-term, aimed at obtaining profit in the near future;
• medium-term, which aims at the gradual development of the company with step-by-step coverage of different target audiences (CA);
• long-term, aimed at leveling risks for business and adapting it to current market conditions;
• mixed, which combines all types of marketing to achieve the highest results.

 

The only caveat is that there is no clearly defined way to effectively promote the company. Each type of business, type of product, and target audience requires personalization of the advertising strategy. In addition, it is necessary to adapt to a number of factors that depend on the region, season, specific market needs, etc.

 

It is equally important to observe trends that have a direct impact on the company's profitability. We will talk about the key ones and their role in scaling and marketing strategies later.

Trending agricultural marketing 2023: 6 drivers of the promotion of companies in the market

Against the background of the threats of the Covid-19 virus and the war in Ukraine, the European agricultural business has shown an extraordinary level of resilience and adaptability. And although food inflation increased somewhat, it remained under control. In such conditions, it is difficult to predict the future state of the market, but it is safe to say that competition is gaining momentum.

 

In order to support the business during the crisis and even ensure the maximization of profits, you should pay attention to the marketing trends for the sector.

1. Individual offers

The key trend of the last decade is the individualization of the approach to customers. This applies to both retail (B2C) and wholesale (B2B) businesses. Regardless of what you sell, each customer (or partner) should receive a personalized offer.

 

It is important to track and analyze the key needs of CAs in order to develop effective marketing strategies based on them. Offer partners or consumers what they want - and you will get maximum loyalty and stable income.

2. Adaptation of marketing strategies

Marketing for the agricultural sector - constant monitoring of market trends and adaptation of the strategy to them. This allows the business to adjust the advertising vector in time, for example, for the short-term perspective, increasing income at the peak of demand for a certain group of goods.

 

• In the conditions of increased competition, the trend towards adaptability encourages companies to personalize the approach to interaction with customers and highlight potentially profitable CA from the broad masses of consumers.

 

Similarly with advertising: it is better not to spam with template calls to action (CTA), but to focus on building communication specifically with your target audience, taking into account their needs and the tasks they want to achieve.

 

Marketing strategies usually do not work according to a pattern in agribusiness. As a brand owner, you need to actively change advertising campaigns or completely abandon their systematization. It is better to assess the current market situation in time and adapt the current approach to it, thereby increasing conversion.

3. Segmentation and flexibility in positioning

It is impossible to be good to everyone at once. This applies both to relationships between people and to business. That is why it is recommended to choose the most promising audience of consumers for constant interaction.

 

This trend means updating business offers for certain niches and consumer groups. For example, you are engaged in the cultivation of cereals and their subsequent distribution based on the B2B model. To scale, you just need to invest in processing raw materials and manufacturing certain products (bakeries, etc.).

 

Usually, such product groups sell well even without advertising, but marketing (especially organic) stimulates sales and, accordingly, company profits.

4. Several types of advertising (with an emphasis on organic)

Have you ever tried to look through the eyes of a potential consumer at aggressive advertising? In every second material on the network there is a STA, which is already subconsciously ignored by the brain. Accordingly, such intrusive marketing brings minimal conversions.

 

The same applies to traffic arbitrage (more precisely, certain types of it). For example, the same advertising content in software (software) banners or websites becomes uninteresting to the audience over time. Its value to the average user is minimal, let alone blocking this kind of content.

 

Is this type of marketing effective for agricultural business? Practically no, with the exception of publication on profile resources (pages of the publication, marketplace, etc.). That is, bilateral public relations (PR). It is active work with a potential audience that stimulates it to perform a targeted action.

 

Usually, a brand's reputation plays a key role in its success in the market and affects the recognition of the brand, as well as its position in professional circles. As a result of branding, there is an opportunity to promote the company natively, using reputation as a marketing catalyst.

 

Organic traffic (for example, as a result of the effect of radio, native advertising, consumer attention to promotional offers) shows the greatest effectiveness, but requires painstaking work on brand positioning.

The best solution as of 2023 remains a mix of all available advertising sources and methods. At the same time, the goal remains to attract only a potentially loyal audience with gradual expansion.

 

5. Personalized UTP and STA - motivation for cooperation

Unique Selling Proposition (USP) and CTAs are considered key aspects of marketing for all areas of business. Do they work as intended? Are they bringing the desired conversion rate? Not at all.

 

• The fact is that classic UTP and STA from methods of attracting the user's attention have been transformed into factors that can, on the contrary, annoy consumers.

 

In modern advertising, traditional textual content (which includes UTP and STA) has partially moved into the background. Yes, these creatives still work as search engine optimization (SEO elements), although they are gradually being replaced by video ads and other visual content.

 

 

• However, this does not mean that they should be completely abandoned. On the contrary, now the trends are focused precisely on persuading the potential audience to take the targeted action. But in a softer and more personalized format.

  Let's say your business offers flour to consumers. Replace the CTA in such a way as to encourage a narrow audience (for example, cake bakers) to choose your product because of its qualities manifested in a certain type of confectionery. And so for each group of potential customers.

6. Digitalization of marketing and business processes

Digitalization of business is about the company's presence on the Internet or, one might even say, in the smartphone of a potential consumer. Communication, personalized offers, notifications about promotions and the ability to analyze customers are the advantages of having a branded digital product.

 

Even for marketing, IT solutions have their advantages, for example, direct communication with business representatives for consumers and partners.

 

The company's openness to communication encourages people to spread information about it in organic ways, talking about the brand in social networks, messengers, etc.

 

Having a themed blog with educational materials or more entertaining content also increases brand value. Especially if the publications are commented not only by customers, but also by company representatives.

Let's summarize

The success and recognition of a brand in the agricultural industry depends on a number of factors:

 

• the value of products or services for users and partners;
• demand for the company's goods or their analogues;
• openness of the brand to the potential audience;
• Internet presence (social networks, website, etc.);
• effectiveness of the marketing strategy, taking into account market trends.

 

The experts of AGRO Marketing Agency, a company specializing in the promotion of agrarian business of any type and scale, will help you with the latter. Contact an agency manager to increase your brand awareness and conversion!

 

Briefly about the main thing: the role of marketing in agrarian business