McKinsey: European online farming market could exceed $12bn by 2025

October 19, 2020

Covid-19 is having a huge impact on farmers’ purchasing practices, according to new research from consultancy firm McKinsey & Company.

The survey of financial decision-makers at farms across Europe reveals that 95% of farms are considering adjusting purchasing behaviour to minimize physical interactions in response to the global pandemic.

Digital purchasing may provide the answer, with McKinsey uncovering a 36% increase in both farmers’ desire to use digital channels to make product-purchase decisions (up from 51% in 2019 to 87% post-Covid-19) and their desire to use digital channels to make actual purchases (up from 33% to 69%). Across Europe, that adds up to almost 4 million more farmers who say they are ready to use online channels as their main sources of ordering.

This could prove heartening sentiment to startups building out online agribusiness marketplaces across Europe, such as France’s Agriconomie or Germany’s E-Farm.

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