Regenerative Agriculture on the Rise: A £13 Billion Market by 2027
In an era marked by environmental crises, food insecurity and growing concern over industrial farming’s impact on the planet, regenerative agriculture is emerging as a beacon of hope. More than just a buzzword, regenerative farming is fast becoming a mainstream movement with the potential to reshape the future of agriculture. With market projections estimating it will be worth over £13 billion (USD 16.8 billion) globally by 2027, this once-niche approach is rapidly gaining momentum across the world.
But what exactly is regenerative agriculture, and why is it attracting so much attention from farmers, governments, scientists and investors?
Regenerative agriculture refers to a suite of land management practices designed to restore and enhance the health of agricultural ecosystems. Unlike conventional farming, which often relies on monocultures, synthetic inputs and heavy machinery, regenerative methods work in harmony with natural processes to rebuild soil health, increase biodiversity, improve water cycles and sequester atmospheric carbon.
Key principles of regenerative agriculture include:
• Minimal or no tillage:
Preserving soil structure and microbial communities that are vital for nutrient cycling and plant health.
• Diverse crop rotations:
Reducing pest pressures and improving soil fertility by alternating different types of crops seasonally.
• Cover cropping:
Planting crops between harvests to prevent soil erosion, retain moisture and suppress weeds.
• Managed rotational grazing:
Mimicking natural herd behaviour to revitalise pastures and increase organic matter in the soil.
• Composting and organic fertilisers:
Reducing dependence on synthetic chemicals while returning nutrients to the soil.
These methods collectively contribute to what scientists and practitioners refer to as soil regeneration. As healthy soil captures more carbon and retains more water, it not only supports more resilient crops but also plays a role in addressing climate change.
Recent market analysis by MarketsandMarkets projects the global regenerative agriculture sector will grow at a compound annual growth rate (CAGR) of 14% to reach USD 16.8 billion by 2027 (MarketsandMarkets). This growth is being driven by a confluence of factors:
• Rising demand for organic and sustainably produced food
• Government incentives supporting climate-smart agriculture
• Increased awareness of soil degradation and the climate crisis
• Investment from multinational food and beverage corporations
Major players like Nestlé, PepsiCo and General Mills have publicly committed to sourcing ingredients from farms using regenerative practices. In 2022, General Mills pledged to advance regenerative agriculture on one million acres of farmland by 2030 as part of its climate roadmap. These corporate commitments are helping scale adoption, especially in countries like the United States, Australia, and Brazil.
Why Regenerative Agriculture Matters Now
Soil degradation is a global issue. According to the United Nations, a third of the world’s soil is already moderately to severely degraded. In the UK, the situation is equally alarming. A 2025 report by the Sustainable Soils Alliance and the WWF revealed that over 40% of agricultural soils in Britain are degraded due to decades of intensive farming, leaving them vulnerable to drought, flooding and nutrient depletion (The Guardian).
Poor soil health not only reduces agricultural productivity but also compromises food security. Degraded soils are less able to retain water, store carbon or support beneficial microbial life, all of which are essential to growing nutritious food in a changing climate.
Regenerative agriculture addresses these challenges head-on. For instance, research by the Rodale Institute has shown that regenerative organic farming systems can outperform conventional ones in years of drought, thanks to improved soil structure and water retention (Rodale Institute).
In recent years, the UK government has begun pivoting away from conventional subsidy models toward more sustainable support schemes. Central to this shift is the Sustainable Farming Incentive (SFI), part of the post-Brexit Environmental Land Management schemes (ELMs), which rewards farmers for actions that benefit the environment.
As of March 2025, over 37,000 agreements have been signed under the SFI, with the Department for Environment, Food & Rural Affairs (DEFRA) committing £5 billion to the programme over two years (DEFRA Blog).
In tandem with government efforts, civil society organisations like WWF-UK have released roadmaps to help farmers transition to regenerative models. Their 2023 report “A Roadmap for Regenerative Agriculture” calls for public and private investment, supply chain reform and farmer training to accelerate uptake (WWF-UK).
Adoption of regenerative agriculture is being driven not only by policy and markets, but also by farmers themselves. Across the UK, pioneering growers are reintroducing heritage crop rotations, planting diverse cover crops, and embracing holistic grazing systems. These farmers often report not only improved yields but greater resilience to weather extremes, better mental well-being and stronger community support.
For example, the Groundswell Agriculture community in Hertfordshire has grown into a national network of regenerative farmers, sharing practical knowledge and hosting an annual conference that attracts hundreds of attendees focused on soil health and ecological stewardship.
The expansion of regenerative agriculture signals a broader transformation in how we think about land, food and climate. It challenges the industrial paradigm by prioritising long-term resilience over short-term yields. As we face increasing climate disruptions and environmental degradation, this approach offers a grounded, science-backed path forward.
Still, challenges remain. Scaling regenerative practices across large areas will require continued investment, supportive policies, cross-sector collaboration and a cultural shift in how we value farming and nature. But if current trends are any indication, the transition is already well underway.
As the regenerative agriculture market heads toward a £13 billion valuation, the message is clear: the future of farming is not just about feeding the world — it’s about doing so in a way that regenerates the earth, supports farmers and nourishes communities for generations to come.
Further Reading and Resources:
• MarketsandMarkets: Regenerative Agriculture Market Forecast
• WWF-UK: A Roadmap for Regenerative Agriculture in England
• DEFRA: Sustainable Farming Incentive Update
