South Korea Carbon Farming Market By Type (Forestry and Land Use,REDD+,ARR,IFM), By Application (Energy Sector,Transportation,Waste Management), By Region, And Segment Forecasts, 2023 to 2031

The South Korea Carbon Farming Market was valued at USD 34.29 million in 2023 and is projected to reach USD 81.62 million by the end of 2031, registering a CAGR of 11.62% during the forecast period of 2023-2031. Carbon farming is gaining momentum in South Korea as a crucial strategy to combat climate change, enhance soil health, and promote sustainable agriculture. The market's growth is driven by government initiatives, the growing demand for carbon credits, and the adoption of innovative farming practices tailored to South Korea’s unique agricultural conditions.

South Korea Carbon Farming Market Dynamics

Drivers

• Government Policies and Initiatives: The South Korean government is actively promoting carbon farming as part of its broader strategy to achieve carbon neutrality by 2050. Various programs, subsidies, and policy frameworks are encouraging farmers to adopt sustainable practices that enhance carbon sequestration and reduce greenhouse gas emissions.

• Growing Demand for Carbon Credits: The demand for carbon credits is rising both domestically and internationally, driven by South Korea’s commitment to reducing its carbon footprint. Farmers can generate additional income by selling carbon credits derived from their carbon farming activities, particularly within the country’s emissions trading scheme.

• Adoption of Innovative Farming Practices: South Korea’s agricultural sector is increasingly adopting innovative farming practices such as precision agriculture, vertical farming, and agroforestry. These practices not only enhance carbon sequestration but also improve agricultural productivity and sustainability.

Restraints

• High Implementation Costs: The initial costs of adopting carbon farming practices, including investments in specialized equipment and the need for technical expertise, can be a barrier for small and medium-sized farms in South Korea.

• Challenges in Carbon Measurement and Verification: Accurately measuring and verifying carbon sequestration in diverse agricultural environments can be complex and costly, which may limit the widespread adoption of carbon farming practices.

Opportunities

• Expansion of Carbon Credit Markets: The continued growth of carbon credit markets, both within South Korea and internationally, presents significant opportunities for the carbon farming market. Farmers can benefit from the increasing demand for carbon offsets across various sectors, including manufacturing, energy, and technology.

• Integration with Digital and Smart Farming Technologies: The integration of carbon farming with digital and smart farming technologies, such as IoT, AI, and big data analytics, offers opportunities to optimize carbon sequestration practices and improve the accuracy of carbon measurements.

• Support for Sustainable and Organic Agriculture: The growing consumer demand for sustainable and organic products provides opportunities for South Korean farmers to adopt carbon farming practices that align with these market trends, enhancing their competitiveness.

  
  

Market by Practice Insights

Agroforestry

Agroforestry emerged as the largest revenue contributor in 2023 and is expected to maintain its dominance during the forecast period. The integration of trees into agricultural systems is particularly relevant in South Korea, where agroforestry practices can enhance carbon sequestration, improve biodiversity, and increase farm resilience.

Precision Agriculture

The precision agriculture segment is also significant, driven by the demand for practices that optimize resource use, improve crop yields, and sequester carbon. Precision farming technologies are widely adopted in South Korea’s agricultural sector, particularly in regions with intensive farming operations.

No-till Farming

The no-till farming segment is expected to witness substantial growth, driven by its ability to reduce soil disturbance, increase organic matter, and enhance carbon sequestration in soils. No-till farming is increasingly recognized as a sustainable practice in South Korea’s agricultural landscape.

Market by Application Insights

Agriculture

The agriculture segment accounted for the largest market share in 2023, with more than 70%. Carbon farming practices are widely used in South Korea’s agricultural sector to improve soil health, increase crop yields, and sequester carbon in the soil.

Forestry

The forestry segment is expected to grow, driven by the adoption of carbon farming practices in forest management, including reforestation and afforestation projects, which contribute significantly to carbon sequestration and climate mitigation.

Livestock Management

The livestock management segment is also growing, with carbon farming practices being used to improve pasture management, enhance soil fertility, and reduce methane emissions from livestock operations.

Market by Regional Insights

Gyeonggi Province

Gyeonggi Province holds a significant market share, driven by its extensive agricultural activities and the adoption of carbon farming practices. The region’s focus on achieving sustainability in agriculture supports the growth of the carbon farming market.

Jeolla Province

Jeolla Province is a major market for carbon farming, particularly in regions with a strong emphasis on sustainable and organic farming. The demand for carbon credits and sustainable farming practices drives market growth in this region.

Chungcheong Province

Chungcheong Province is expected to grow steadily, driven by increasing investments in sustainable agriculture and the adoption of carbon farming practices. The region’s diverse agricultural landscape supports market growth.

Competitive Scenario

Major players in the South Korea Carbon Farming Market include LG Chem, Samsung C&T Corporation, Hanwha Solutions, Korea Agro-Fisheries & Food Trade Corporation (aT), AgriProve, Climate Friendly, GreenCo, SK E&S, Korea Forest Service (KFS), and Carbon Farmers of Korea. These companies are focusing on product innovation, expanding service portfolios, and strategic collaborations to enhance their market presence.

Scope of Work – South Korea Carbon Farming Market Report Metric Details

Key Market Developments

1. September 2023: LG Chem announced the launch of a new carbon farming initiative in South Korea that integrates advanced monitoring technologies to optimize carbon sequestration and improve soil health across participating farms.

2. June 2023: The Korea Forest Service (KFS) introduced a new initiative to promote agroforestry and regenerative agriculture practices in Jeolla Province, targeting increased carbon sequestration and biodiversity enhancement.

3. March 2023: Samsung C&T Corporation entered into a strategic partnership with a South Korean agritech company to develop innovative carbon farming solutions integrated with precision agriculture practices, leveraging cutting-edge technology and expertise.

Frequently Asked Questions

Q1. What is the current market size of the South Korea Carbon Farming Market?
A. The South Korea carbon farming market size was estimated at USD 34.29 million in 2023 and is expected to reach USD 81.62 million by 2031, registering a CAGR of 11.62% during the forecast period of 2023-2031.

Q2. What are the major growth drivers of the South Korea Carbon Farming Market?
A. The growth of the South Korea Carbon Farming Market is mainly driven by government policies and initiatives, the growing demand for carbon credits, and the adoption of innovative farming practices.

Q3. Which region holds the largest market share in the South Korea Carbon Farming Market?
A. Gyeonggi Province holds a significant market share, driven by its extensive agricultural activities and the adoption of carbon farming practices.

Q4. Which segment accounted for the largest market share in the South Korea Carbon Farming Market?
A. The agroforestry segment accounted for the largest market share in 2023, driven by its effectiveness in sequestering carbon, enhancing biodiversity, and improving farm resilience.

Q5. Who are the key market players in the South Korea Carbon Farming Market?
A. Key players include LG Chem, Samsung C&T Corporation, Hanwha Solutions, Korea Agro-Fisheries & Food Trade Corporation (aT), AgriProve, Climate Friendly, GreenCo, SK E&S, Korea Forest Service (KFS), and Carbon Farmers of Korea.