Perennial Crop Varieties for Carbon Farming Market Size, By Amendment Type, Application, End Use Sector Analysis, Share, Growth Forecast, 2025 - 2034

Perennial Crop Varieties for Carbon Farming Market Size

The global perennial crop varieties for carbon farming market was valued at USD 1.5 billion in 2024. The market is expected to grow from USD 1.6 billion in 2025 and is projected to grow at a compound annual growth rate (CAGR) of 10.1% from 2025 to 2034. By the end of 2034, the market is anticipated to reach approximately USD 4 billion.

• Several key reasons underpin this upward trajectory. First, increasing global awareness and commitment to climate change mitigation have propelled the adoption of sustainable agricultural practices, with perennial crops playing a vital role in sequestering atmospheric carbon and improving soil health. Governments and international organizations are implementing policies, incentives, and carbon credit frameworks that favor the integration of perennial crops into agricultural landscapes, further stimulating market growth. The rising demand for eco-friendly and sustainable food sources has encouraged farmers and agribusinesses to invest in perennial crop varieties, which offer benefits such as reduced soil erosion, enhanced biodiversity, and lower input requirements compared to annual crops.
   
• Technological advancements, including improved breeding techniques and crop management practices, have made perennial crops more viable and profitable, encouraging wider adoption. Moreover, the increasing focus on regenerative agriculture practices aligns with the benefits offered by perennial crops, fostering their integration into mainstream farming systems. The expanding bioenergy sector also contributes to market growth, as perennial bioenergy crops serve as renewable feedstocks for biofuel production, thus supporting renewable energy targets. Furthermore, rising consumer awareness about environmental issues and sustainable consumption influences market dynamics, prompting support for perennial crop-based products. Financial incentives such as subsidies, grants, and carbon trading schemes act as catalysts, reducing barriers for farmers to transition to perennial cropping systems.
   
• The growing focus on land restoration and sustainable land management practices globally, especially in regions affected by land degradation, further bolsters the market by creating demand for perennial crops that restore soil fertility and ecosystem stability. Lastly, the increasing investments by agritech companies and research institutions into developing resilient, high-yielding perennial crop varieties with enhanced carbon sequestration capabilities are expected to propel market expansion further. Overall, the combination of policy support, technological innovation, environmental imperatives, and economic incentives are the primary drivers propelling the growth of the perennial crop varieties for carbon farming market over the next decade, making it a significant component of global efforts to combat climate change and promote sustainable agriculture.
   

Perennial Crop Varieties for Carbon Farming Market Trends

Integration of Advanced Agricultural Technologies

Technological innovations, such as precision farming and remote sensing, are transforming carbon farming practices. These technologies enable farmers to monitor soil health, optimize crop yields, and enhance carbon sequestration efficiency. For instance, the use of drones and satellite imagery provides real-time data, allowing for better decision-making and resource management. This trend is expected to drive the adoption of perennial crop varieties, as they are well-suited for sustainable farming practices.
 

Increasing Focus on Climate Change Mitigation

Governments and organizations worldwide are prioritizing climate change mitigation, leading to the promotion of carbon farming initiatives. Policies encouraging carbon credits and financial incentives for farmers adopting sustainable practices are boosting the demand for perennial crop varieties. These crops, known for their ability to store carbon in the soil over extended periods, are becoming a critical component of global carbon reduction strategies.
 

Growing Consumer Demand for Sustainable Products

Consumers are increasingly favoring products derived from sustainable agricultural practices. This shift in preference is encouraging farmers to adopt perennial crop varieties, which contribute to long-term soil health and reduced greenhouse gas emissions. The rising awareness of environmental sustainability is expected to further propel the market, as companies align their supply chains with eco-friendly practices to meet consumer expectations.
 

Advancements in Crop Breeding Techniques

Innovations in crop breeding, including genetic modification and hybridization, are enhancing the resilience and productivity of perennial crops. These advancements are enabling the development of varieties that can thrive in diverse climatic conditions while maximizing carbon sequestration. As a result, farmers are increasingly adopting these improved crop varieties to achieve higher yields and environmental benefits.
 

Supportive Regulatory Frameworks

Regulatory bodies are implementing policies to promote carbon farming as part of broader sustainability goals. For example, subsidies and grants for adopting perennial crops are encouraging farmers to transition to carbon farming practices. Additionally, international agreements emphasizing carbon neutrality are driving investments in this market, creating opportunities for stakeholders across the value chain.
 

Perennial Crop Varieties for Carbon Farming Market Analysis

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By crop type, the market is segmented into categories such as perennial grains, perennial oilseeds, perennial legumes, perennial forages and pastures, perennial tree crops, and other perennial crops. The perennial grains segment is projected to reach USD 532.1 million in 2024, driven by the increasing adoption of sustainable farming practices and their potential to enhance soil carbon sequestration during the forecast period.
 

• The perennial grains segment is experiencing significant growth due to its ability to support sustainable farming practices. These crops enhance soil carbon sequestration, making them a critical component of carbon farming systems. Innovations in breeding have improved yield stability and resilience to environmental stressors, further driving adoption. However, higher initial costs and limited availability of advanced varieties remain key challenges for this segment.
   
• Perennial oilseeds are gaining traction due to their versatility in food production and biofuel applications. Their dual-purpose nature makes them an attractive option for farmers seeking to diversify income streams while contributing to carbon farming goals. Advances in oil extraction technologies and improved seed varieties are enhancing their market potential. Despite these advantages, fluctuating oilseed prices and competition from annual oilseed crops pose challenges to market growth.
   
• Perennial legumes play a vital role in carbon farming systems by improving soil fertility through nitrogen fixation. This natural process reduces the need for synthetic fertilizers, aligning with sustainable agricultural practices. The segment benefits from ongoing research into developing high-performing legume varieties with enhanced nitrogen-fixing capabilities. However, adoption is hindered by the relatively longer time required for these crops to establish compared to annual legumes.
   
• The perennial forages and pastures segment is essential for livestock farming, offering year-round grazing options while contributing to soil health and carbon storage. Improved forage varieties with higher nutritional content and better drought tolerance are driving demand. Nevertheless, challenges such as land-use competition and the need for proper pasture management practices may limit growth in this segment.
   
• Perennial tree crops, including fruit and nut trees, are integral to agroforestry systems, which combine agricultural and forestry practices. These crops provide long-term carbon storage while offering economic benefits through fruit and nut production. Innovations in tree breeding and orchard management techniques are enhancing productivity. However, the high initial investment and longer maturation periods remain barriers to widespread adoption.

Learn more about the key segments shaping this market

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Based on application, the perennial crop varieties for carbon farming market are segmented into carbon sequestration projects and offsets, food and feed production, bioenergy and biomaterials, soil health and erosion control, and watershed and habitat restoration. Among these, the carbon sequestration projects and offsets segment accounted for the largest market share in 2024, representing 41.6% of the total market. This segment is expected to grow further at a compound annual growth rate (CAGR) of 10.3% during the forecast period from 2025 to 2034.
 

• Perennial crops are increasingly utilized in food and feed production due to their resilience and ability to thrive in diverse climatic conditions. These crops contribute to sustainable food systems by reducing the need for annual replanting, thereby lowering input costs and minimizing soil disturbance. The growing demand for organic and sustainably sourced food products is expected to drive innovation in this segment, fostering the development of high-yield, nutrient-rich perennial crop varieties.
   
• The bioenergy and biomaterials segment is witnessing significant growth as industries seek renewable alternatives to fossil fuels and synthetic materials. Perennial crops, such as switchgrass and miscanthus, are being cultivated for bioenergy production due to their high biomass yield and low environmental impact. Additionally, these crops are used in the production of biodegradable materials, aligning with the increasing focus on reducing plastic waste. This segment's growth is supported by government incentives and policies promoting renewable energy and sustainable materials.
   
• Perennial crops play a vital role in improving soil health and preventing erosion. Their deep root systems enhance soil structure, increase organic matter, and promote water retention, making them an essential component of regenerative agriculture practices. The adoption of these crops is driven by the need to combat soil degradation and ensure long-term agricultural productivity. This segment is expected to witness steady growth as farmers and policymakers prioritize soil conservation initiatives.
   
• The use of perennial crops in watershed and habitat restoration projects is gaining momentum due to their ability to stabilize ecosystems and support biodiversity. These crops help reduce water runoff, improve water quality, and provide habitat for wildlife. As environmental restoration efforts expand globally, this segment is anticipated to grow, supported by collaborations between governments, non-governmental organizations, and private stakeholders.
   

Based on end use, perennial crop varieties for carbon farming market is segmented into commercial farms and agribusinesses, smallholder and regenerative farmers, carbon project developers and land trusts, NGOs, development agencies, and governments, food and beverage companies, and bioenergy and industrial users. Among these, Commercial Farms and Agribusinesses dominate the market. This segment holds the largest share in the market, driven by the increasing adoption of sustainable farming practices to meet regulatory requirements and consumer demand for eco-friendly products. Commercial farms are investing in perennial crops to enhance soil health and reduce carbon emissions, which aligns with their long-term profitability goals. Agribusinesses are leveraging these crops to strengthen their supply chains and meet sustainability targets, contributing significantly to market expansion.
 

• Smallholder and Regenerative Farmers: Smallholder farmers are increasingly adopting perennial crop varieties due to their ability to improve soil fertility and provide long-term economic benefits. Regenerative farming practices, which emphasize soil carbon sequestration, are gaining traction among this group. This segment is expected to grow steadily as governments and NGOs provide financial and technical support to promote sustainable agriculture among smallholders.
   
• Carbon Project Developers and Land Trusts: This segment is pivotal in driving innovation in carbon farming. Carbon project developers are utilizing perennial crops to generate carbon credits, which are sold to industries aiming to offset their emissions. Land trusts are incorporating these crops into conservation projects to enhance biodiversity and carbon storage. The increasing demand for carbon credits is expected to fuel growth in this segment.
   
• NGOs, Development Agencies, and Governments: These entities play a crucial role in promoting the adoption of perennial crop varieties through policy frameworks, subsidies, and awareness campaigns. Governments are integrating carbon farming into national climate strategies, while NGOs and development agencies are facilitating knowledge transfer and capacity building among farmers. Their efforts are accelerating market growth by creating an enabling environment for adoption.
   
• Food and Beverage Companies: Companies in this sector are incorporating perennial crops into their supply chains to meet sustainability goals and cater to environmentally conscious consumers. These crops are being used to produce eco-friendly products, driving innovation and market demand. The sector’s commitment to reducing its carbon footprint is a key growth driver.

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U.S. dominated the market in North America with around 80% share and generated USD 313.5 million in revenue in 2024.
 

• The U.S. leads the perennial crop varieties for carbon farming market in North America due to its advanced agricultural practices and substantial investments in sustainable farming technologies. The country has adopted innovative soil management techniques to enhance carbon capture and improve soil health. These efforts have established the U.S. as a key market player.
   
• Strong government support and policies aimed at reducing greenhouse gas emissions further bolster the U.S. market. Federal and state-level initiatives, such as subsidies and incentives for sustainable farming practices, have encouraged the adoption of sustainable agricultural methods, driving market growth and reinforcing the country's leadership in this domain.
   
• The U.S. also benefits from a well-developed agricultural infrastructure and an efficient supply chain. Access to advanced research facilities, skilled labor, and effective distribution networks has enabled the country to scale the production and application of sustainable farming practices. This comprehensive ecosystem supports widespread adoption, ensuring the U.S. maintains its dominant position in the North American market.
   
• In Canada, the perennial crop varieties for carbon farming market is expected to grow at a compound annual growth rate (CAGR) of 9.7% during the forecast period, extending through 2034. This growth is driven by increasing awareness of carbon sequestration's role in combating climate change and the adoption of sustainable agricultural practices. Government initiatives and policies aimed at reducing greenhouse gas emissions further encourage the use of sustainable methods to enhance carbon storage.
   
• Technological advancements in sustainable farming practices and the growing demand for organic farming are also contributing to market expansion in Canada. Key stakeholders, including manufacturers and agricultural producers, are focusing on innovative solutions to improve soil health and carbon retention. These factors position Canada as an emerging player in the global market.
   

Germany accounted for a significant share of the Europe market in 2024, driven by strong regulatory frameworks and widespread adoption of sustainable agricultural practices.
 

• France is another major player in the Europe perennial crop varieties for carbon farming market. The country’s strong emphasis on environmental sustainability and its commitment to achieving carbon neutrality by 2050 have propelled the adoption of carbon farming practices. French farmers are increasingly integrating perennial crops into their farming systems, supported by government-backed programs and collaborations with research institutions. These efforts aim to enhance soil health, sequester carbon, and improve overall agricultural productivity.
   
• Italy has also emerged as a significant contributor to the market, leveraging its favorable climatic conditions and agricultural heritage. The Italian government has introduced policies to promote sustainable farming practices, including the use of perennial crop varieties for carbon sequestration. Additionally, Italy’s focus on organic farming and agroforestry has further driven the adoption of these crops, aligning with the country’s broader sustainability goals.
   
• Spain, with its extensive agricultural land and diverse climatic zones, plays a crucial role in the Europe perennial crop varieties for carbon farming market. The Spanish government has prioritized carbon farming as part of its strategy to combat climate change and enhance agricultural resilience. Farmers in Spain are increasingly adopting perennial crops, supported by financial incentives and technical assistance programs. These initiatives aim to improve soil quality, reduce greenhouse gas emissions, and ensure long-term agricultural sustainability.
   

The Asia-Pacific region is becoming a key player in the perennial crop varieties for the carbon farming market, fueled by expanding agricultural activities and heightened awareness of sustainable farming practices. Among the countries in this region, China, India, Australia, and Indonesia are experiencing notable growth in this market.
 

• China: China is leading the growth in the Asia-Pacific carbon farming market due to its large-scale agricultural sector and government initiatives promoting sustainable farming. The country has implemented policies to reduce carbon emissions and enhance soil health, encouraging the adoption of perennial crop varieties. Additionally, advancements in agricultural technology and increased investment in research and development are further driving market growth in China.
   
• India: India is witnessing rapid growth in the adoption of perennial crop varieties for carbon farming, driven by its vast agricultural landscape and increasing focus on climate-resilient farming practices. Government programs, such as the National Mission for Sustainable Agriculture, aim to promote sustainable farming techniques, including carbon farming. The rising awareness among farmers about the long-term benefits of perennial crops, such as improved soil fertility and carbon sequestration, is also contributing to market expansion.
   
• Australia: Australia is emerging as a significant market for perennial crop varieties in carbon farming, supported by its strong emphasis on environmental sustainability and carbon reduction. The government’s Carbon Farming Initiative and other related programs provide financial incentives to farmers adopting sustainable practices. Additionally, the country’s research institutions are actively involved in developing innovative solutions to enhance the efficiency of carbon farming, further boosting market growth.
   
• Indonesia: Indonesia is experiencing steady growth in the carbon farming market, driven by its extensive agricultural sector and increasing efforts to combat deforestation and land degradation. The government is promoting agroforestry and sustainable farming practices to address environmental challenges while improving agricultural productivity. The adoption of perennial crop varieties is gaining traction as farmers recognize their potential to enhance soil health and contribute to carbon sequestration.
   

Latin America is positioning itself as a key region in the perennial crop varieties for carbon farming market. This growth is attributed to the region's expansive agricultural land and the rising adoption of sustainable farming practices aimed at reducing carbon emissions and enhancing soil health.
 

• Brazil, one of the leading countries in the region, has been at the forefront of this market. With its vast arable land and favorable climatic conditions, Brazil is leveraging perennial crops like coffee and sugarcane to sequester carbon effectively. The government’s initiatives to promote sustainable agriculture and the increasing participation of private stakeholders have further bolstered the market in the country.
   
• Argentina is another significant contributor to the market. Known for its extensive soybean and wheat cultivation, the country is increasingly adopting perennial crop varieties to improve soil fertility and reduce greenhouse gas emissions. The government’s focus on carbon farming aligns with its commitments under international climate agreements, driving the adoption of these practices.
   
• Mexico also plays a crucial role in the region's market growth. The country’s agricultural sector is gradually transitioning toward sustainable practices, with perennial crops like agave and avocado gaining prominence. These crops not only contribute to carbon sequestration but also provide economic benefits to farmers, making them a viable option for long-term sustainability.
   

The Middle East and Africa region is witnessing increasing adoption of perennial crop varieties for carbon farming, primarily driven by initiatives to combat desertification and enhance agricultural productivity. Countries such as South Africa and Saudi Arabia are emerging as key contributors to this market's growth.
 

• South Africa has been actively promoting sustainable agricultural practices to address soil degradation and improve carbon sequestration. The government, in collaboration with private stakeholders, has introduced policies and programs aimed at encouraging farmers to adopt perennial crops. These crops not only enhance soil health but also contribute to long-term carbon storage, aligning with the country’s broader environmental goals. Additionally, South Africa’s diverse climatic zones provide an opportunity to cultivate a wide range of perennial crop varieties, further supporting the market's expansion.
   
• Saudi Arabia, on the other hand, is leveraging advanced agricultural technologies to overcome its arid climate and limited arable land. The country has been investing heavily in research and development to identify perennial crop varieties that can thrive in harsh conditions while contributing to carbon farming. Initiatives such as the Saudi Green Initiative aim to increase vegetation cover and promote sustainable farming practices, creating a favorable environment for the adoption of perennial crops. These efforts are part of Saudi Arabia’s broader strategy to reduce carbon emissions and achieve environmental sustainability.
   

Perennial Crop Varieties for Carbon Farming Market Share

The perennial crop varieties for carbon farming industry is characterized by the presence of several key players, with The Land Institute (Kernza) emerging as a market leader. The top five companies, including The Land Institute, Svalöf Weibull AB, S&W Seed Company, CIRAD, and ICRAF (World Agroforestry), collectively hold a significant share of 40.7% the market, driven by their innovative approaches and strategic initiatives.
 

The Land Institute has gained a competitive edge through its focus on Kernza, a perennial grain that supports sustainable agriculture and carbon sequestration. The company’s emphasis on research and development (R&D) has enabled it to enhance crop yields and expand its market presence. Similarly, Svalöf Weibull AB has leveraged its expertise in perennial rye and wheat to cater to the growing demand for sustainable crop varieties, focusing on breeding programs to improve crop resilience and productivity.
 

S&W Seed Company has adopted a strategy centered on expanding its product portfolio and entering strategic partnerships to strengthen its position in the market. CIRAD, known for its work on perennial rice, has been actively involved in R&D collaborations to address unmet needs in carbon farming, particularly in regions with challenging agricultural conditions. ICRAF (World Agroforestry) has focused on integrating perennial crops into agroforestry systems, promoting sustainable land use practices and enhancing carbon capture.
 

Perennial Crop Varieties for Carbon Farming Market Companies

Major players operating in the market are:

• The Land Institute (Kernza)
• Svalöf Weibull AB (perennial rye, wheat)
• S&W Seed Company
• CIRAD (Perennial Rice)
• ICRAF (World Agroforestry)
• Savanna Institute
• Perennial Pantry
• Green Cover Seed
• Prairie Horizons
   

The Land Institute is a key player in the perennial grains market, primarily known for its development of Kernza, a perennial grain with significant environmental benefits. The organization focuses on research and innovation, aiming to create sustainable agricultural systems. It actively collaborates with farmers, researchers, and food companies to promote Kernza adoption and expand its applications in the food industry.
 

Svalöf Weibull AB specializes in breeding perennial rye and wheat varieties. The company emphasizes innovation in crop development to enhance yield, disease resistance, and adaptability to diverse climates. Svalöf Weibull AB has established strategic partnerships with agricultural research institutions to advance its breeding programs and introduce improved perennial grain varieties to the market.
 

S&W Seed Company is a prominent player in the seed industry, offering a diverse portfolio that includes perennial grains. The company focuses on leveraging advanced breeding technologies to develop high-performing seed varieties. S&W Seed Company has engaged in mergers and acquisitions to strengthen its market position and expand its product offerings, ensuring a competitive edge in the perennial grains market.
 

CIRAD, a French agricultural research organization, is actively involved in the development of perennial rice. The organization collaborates with global research institutions and local farmers to promote sustainable agricultural practices. CIRAD’s innovative approach to perennial rice breeding aims to reduce the environmental impact of rice cultivation while improving food security in regions dependent on rice production.
 

Perennial Crop Varieties for Carbon Farming Industry News

• In October 2024, The Land Institute launched the Perennial Percent label, the first program promoting the use of perennial grains like Kernza in food and beverage products. By encouraging companies to include at least 1% of these grains, the initiative aims to enhance sustainability by reducing soil erosion and carbon emissions. Minnesota-based Sturdiwheat and Bang Brewing are among the early adopters, showcasing the potential for regenerative agriculture to benefit both the environment and the market. Companies can join the program and receive waived fees for the first year if enrolled before January 2026.
   
• In February 2024, Indigo Ag, a leader in sustainable agriculture, announced the successful completion of its third carbon crop, producing 163,048 carbon credits. This achievement makes Indigo the only company to complete three large-scale carbon harvests, with year-over-year growth in farmers paid, fields filed, and credits produced.
   

The perennial crop varieties for carbon farming market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Crop Type

• Perennial grains         
  • Kernza / intermediate wheatgrass
  • Perennial rice
  • Perennial sorghum
• Perennial oilseeds      
  • Silphium
  • Perennial sunflower
  • Camelina
• Perennial legumes     
  • Alfalfa
  • Clover
  • Sainfoin
  • Perennial pea
• Perennial forages and pastures         
  • Switchgrass
  • Miscanthus
  • Napier grass
• Perennial tree crops  
  • Hazelnut
  • Chestnut
  • Walnut
  • Agroforestry trees
• Other perennial crops
  • Bamboo
  • Vetiver
  • Others  

Market, By Application

• Carbon sequestration projects and offsets
• Food and feed production
• Bioenergy and biomaterials
• Soil health and erosion control
• Watershed and habitat restoration   

Market, By End Use

• Commercial farms and agribusinesses
• Smallholder and regenerative farmers
• Carbon project developers and land trusts
• NGOs, development agencies, and governments
• Food and beverage companies
• Bioenergy and industrial users          

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East and Africa