From Startups to Multinationals, Regenerative Agriculture Reshapes the Food Business
By Steven Hoffman
As climate change accelerates, the food industry faces a paradox: It is both a driver of ecological degradation and a potential solution. Agriculture accounts for about a quarter of global greenhouse gas emissions, yet it also has the capacity to sequester carbon and rebuild ecosystems. At the center of this opportunity sits regenerative agriculture – a set of practices that go beyond “sustainable” to actively rebuild soil, restore biodiversity, and promote community health and the health of local economies.
In business terms, regenerative agriculture is moving from philosophy to label. Much as “organic” transformed consumer expectations in the 1990s and early 2000s, “regenerative” is quickly becoming one of the fastest-growing claims appearing on food and beverage products. Retailers, too, are beginning to carve out shelf space for regenerative brands, echoing the early days of organic.
The rise of regenerative can be attributed in great part to the fact that, according to GLOW/NielsenIQ surveys, 70% of consumers consider environmental responsibility more important than they did just two years ago, and 90% see eco-friendliness as a key decision criteria. Over 78% of consumers aged 18-24 believe the current food system is not sustainable and is a major cause of the climate crisis, reported Errol Schweizer on Sept. 22, 2025, in Forbes.
For companies across the value chain – from Roaring Fork Mill, a family-run mill working to restore heirloom grain farming in the Rocky Mountain West, to Lundberg Family Farms, which recently converted all of its organic rice production to Regenerative Organic Certified, and to multinationals including McDonald’s, PepsiCo, General Mills, Nestlé, and others – adopting regenerative practices represents not just climate responsibility, but it also gives them a competitive edge in a changing marketplace.
What Regenerative Agriculture Means
The concept of regeneration is not new. Farmers and Indigenous communities have practiced soil-restoring methods — such as cover cropping, crop rotation, and integrated livestock management — for centuries. What distinguishes modern regenerative agriculture, as coined by Robert Rodale in the late 1970s, is its intentional framing as a climate strategy, ecosystem rebuilder, and market driver.
At its core, regenerative agriculture refers to farming and grazing practices that restore soil health, increase biodiversity, improve water cycles, and strengthen the resilience of agricultural regions. These practices, which vary according to crop, climate, and ecosystem, are helping to rebuild soils, sequester carbon, and revitalize farming communities. While not all regenerative standards are based on organic principles, many proponents argue that organic remains a baseline for regenerative practices.
The Regenerative Organic Certified (ROC) standard, launched by the Regenerative Organic Alliance (ROA) in 2017, represents the most rigorous framework for these practices worldwide. Unlike other regenerative programs, ROC prohibits the use of synthetic pesticides and fertilizers, which the organization asserts contribute to the climate crisis. ROC certification includes requirements for practices that respect animal welfare and promote social fairness.
The results are becoming measurable. According to industry data released by ROA in September 2025, ROC practices now span nearly 20 million acres across 46 countries, involving more than 67,000 smallholder farms and 320 participating brands.
From Niche to Mainstream: Market Momentum
Consumer demand is pushing regenerative agriculture into the mainstream. Products carrying the ROC label have grown 45% year-to-date, with retail sales up $20 million, representing a 24% jump over the previous year, according to ROA. Such growth is remarkable given that regenerative certification is relatively new, and it demonstrates that consumer appetite for climate-friendly products extends beyond niche markets, according to the organization.
Several pioneering brands working with the Regenerative Organic Alliance illustrate how regenerative claims are translating into market share:
- Dr. Bronner’s, the natural soap leader, has worked with more than 18,000 smallholder farmers to convert 52,000 acres to ROC standards.
- Lundberg Family Farms, known for its California-grown rice, has transitioned all of the organic rice it grows to ROC. The company reports that 65% of its consumers actively seek ROC products, creating clear market differentiation.
- Applegate, a leader in organic meats, converted 100% of the beef in its organic hot dogs to ROC in 2025, touching nearly 10 million acres, the company claims. Label research found that adding the regenerative claim increased purchase consideration significantly among hot dog buyers, a signal to CPG marketers that the regenerative label stands out in crowded categories.
- Gallant International, a private-label textiles company, has grown its farmer network from 700 to 1,250 in just three years to meet demand for ROC cotton.
- Patagonia continues to invest in regenerative supply chains through its clothing and also via its food division, Patagonia Provisions, and also through its membership in coalitions such as One Planet Business for Biodiversity.
“Regenerative organic farming practices can draw down carbon instead of releasing it, enhance ecosystem biodiversity instead of degrading it, and increase nutrient density instead of depleting it,” said Lundberg Family Farms CEO Craig Stevenson. “People say it can’t be done at scale, but we’re bringing ROC rice to every category of our portfolio, showing that when farmers commit to regeneration, the result is healthier food, stronger ecosystems, and real progress in the fight against climate change.”
The Multinational Pivot
While smaller players often lead the way, the sheer scale of agriculture requires buy-in from multinational corporations. In recent years, some of the world’s largest food companies have made highly publicized commitments to regenerative agriculture:
- General Mills pledged to advance regenerative practices across one million acres by 2030. Five years in, progress reports show that farmers are seeing improved soil health and reduced input costs, though scaling challenges remain.
- PepsiCo launched regenerative potato farming initiatives in Latin America, tying regenerative practices to the sustainability of its Lay’s and Sabritas brands. The company is also part of the Step Up for Agriculture Initiative, a collaboration with major retailers and other food and beverage companies to scale regenerative agriculture through locally tailored support systems.
- McDonald’s announced a $200 million investment in regenerative practices in 2025, targeting beef, potato, and dairy supply chains.
- Nestlé has embedded regenerative agriculture into its cocoa sourcing strategy, linking it to deforestation reduction goals.
- Archer Daniels Midland (ADM) in September 2025 released its third annual report, which announced that in 2024 the company engaged more than 5 million acres in advancing regenerative agriculture practices.
- Mondelez International announced in May 2025 a “new wave of impact-first investments,” including an investment in eAgronom, an ag-tech company supporting the transition to regenerative agriculture to improve soil health, reduce carbon emissions, and “enhance financial resilience through sustainable practices.”
Collectively, these companies signal that regenerative agriculture is no longer a fringe concept but an integral part of corporate climate strategy. By joining efforts such as the Step Up for Agriculture Initiative and One Planet Business for Biodiversity, they also acknowledge that collaborative approaches are needed to scale regenerative systems globally.
Certifications and Standards: Who Defines “Regenerative?”
As regenerative agriculture has gained traction, the number of new product entries with regenerative claims on the label has surged across categories. Yet, as the USDA has not regulated any standard for regenerative agriculture, questions of definition, standards, and credibility remain, leading to the emergence of a number of regenerative certification seals, creating both momentum and some confusion.
Amazon-owned Whole Foods Market allows four regenerative agriculture certifications to appear on front-of-package claims in its stores: Regenerative Organic Certified (ROC), Certified Regenified, Certified Regenerative by A Greener World, and Ecological Outcome Verified by Land to Market (see below). The retailer does not recognize organic as the only baseline standard for regenerative practices, which is one reason it accepts more certifications than just ROC, the Observer reported.
For business leaders, however, the takeaway is clear: certification matters. Manufacturers may complain about the need for a parade of seals across the front panel of a food package, yet it comes down to the fact that consumers (and investors) increasingly demand third-party verification to avoid “greenwashing” and to ensure label claims such as “fair trade” or “gluten free” are true. The same applies to regenerative agriculture claims made on a product label.
According to Ken Roseboro, reporting in February 2025 in The Organic & Non-GMO Report, demand for regenerative certification has been overwhelming. Today, several certification programs provide frameworks for brands and farmers:
- Regenerative Organic Certified (ROC): Overseen by the Regenerative Organic Alliance, the ROC seal is widely considered the gold standard because it integrates soil health, organic farming practices, animal welfare, and social fairness. According to a SPINS report published in August 2025, ROC products saw a 22% year-over-year increase in buyers, making it one of the fastest growing certifications in the country.
- Regenified certifies producers, brands, and supply partners committed to the adoption of regenerative agriculture, offering a seal to place on the label of certified products to signal to consumers that the product comes from a farm that is putting regenerative principles into action.
- Land to Market, created by the Savory Institute, works to connect brands with raw materials that come from verified regenerative land bases. The program verifies regenerative outcomes using ecological monitoring rather than prescriptive practices. Founded by Allan Savory, the program focuses primarily on livestock.
- A Greener World has established a set of standards for its Certified Regenerative program, which the organization says offers supply chain assurance for brands, processors, distributors, and others who want to assure customers of transparency.
- Soil & Climate Initiative, developed by Green America, offers a whole-systems, farm-to-shelf regenerative agriculture program with options for third-party verification.
- Rainforest Alliance in September 2025 announced the launch of a new regenerative agriculture standard, certification program, and seal for coffee, expected to appear on consumer coffee bags in 2026.
Investor Interest in Regenerative Food Systems
Behind the consumer-facing story lies another trend: a surge of capital into regenerative food and agriculture. Impact investors, venture capitalists, and blended-finance funds are betting on regeneration as both a climate solution and a growth opportunity. For investors, regenerative agriculture represents an unusual convergence, offering measurable environmental impact alongside competitive financial returns, especially as consumer demand continues to climb.
As an investment category, regenerative food and agriculture systems raised $1.17 billion in funding in the first quarter of 2025, according to data released in April 2025 by the Regenerative Food Systems Investment (RFSI) group. RFSI, which hosts the annual Regenerative Food Systems Investment Forum, reports that almost half (46%) of all deals in Q1 2025 came from venture capital investment.
Recent investment highlights in regenerative food and agriculture include:
- Mad Capital, the investment arm created by leading consultancy Mad Agriculture dedicated to scaling regenerative agriculture systems, announced in September 2025 that it had closed a $78 million oversubscribed Perennial Fund II to finance regenerative organic food and agriculture.
- DiversiFund, launched in 2025 by an affiliate of Transformational Investing in Food Systems, introduced a new pooled-financing model for regenerative food systems, aiming for $100 million in capital commitments in 2026.
- TransCap Initiative, with financial support from the Walton Family Foundation and the Rockefeller Foundation, along with 20 leading investors, funders and farming organizations, announced in June 2025 that they were joining forces to design innovative financial infrastructure to align capital flows to accelerate regenerative agricultural production in the U.S. Midwest.
- Mirova, a French impact investment firm that manages more than $34 billion in assets, is financing a portfolio of 12 regenerative agriculture projects across Latin America, Africa, and Asia, focusing on crops such as cacao, citrus, coffee, nuts, and botanical ingredients. One project currently underway in Morocco is converting conventional citrus orchards to regenerative organic practices. The World Economic Forum in September 2025 called on the global food industry to “embrace regenerative agriculture now.”
- Zintinus, a German investment firm managing $175 million, projects that regenerative agriculture will be a key part of a $4.5 trillion business opportunity in 2030 associated with 10 “critical transitions,” including organic foods, diversifying protein, reducing food waste, restoring ecosystems and promoting resilient rural economies.
What’s Next?
Despite momentum, regenerative agriculture still faces critical challenges, such as scaling. Can regenerative methods be deployed across millions of acres quickly enough to make a dent in climate change? Can carbon sequestration from such farming practices be quantified? With multiple certification programs, how will the industry ensure consistent, credible standards and metrics? For farmers, transitioning to regenerative practices often requires upfront costs and new knowledge. Without financial support and assistance, many farmers will struggle to make the leap.
For consumers, while “organic” is now widely understood, “regenerative” is still emerging in the lexicon. Brands must invest in storytelling and education to connect the regenerative label to tangible benefits.
To address this, ROA announced in September 2025 that it has partnered with food tech company Edacious on a four-year study to test the nutritional makeup of Regenerative Organic Certified foods and to drive further awareness of the health benefits of ROC products. ROA and Edacious will analyze more than 200 food products bearing the ROC seal. “With Edacious and the Regenerative Organic Alliance, this data becomes more than numbers: it becomes a story about how regenerative organic systems deliver measurable nutritional benefits,” Eric Smith, CEO of Edacious, told AgFunderNews.
For producers, practices such as no-till farming, cover cropping and rotational grazing are presented as effective solutions to restore soil organic carbon and improve soil health, ultimately increasing farm profitability and resilience against climate change. But how do you measure that? Researchers from the Soil Health Institute, University of Vermont Agricultural Research Service, the Regenerative Viticulture Foundation, Agoro and elsewhere are currently addressing that question by developing tools and methods to measure and quantify carbon sequestration in regenerative soils – key data for farmers, agriculturalists, climate change experts, policymakers and others.
The rise of the regenerative label reflects more than a marketing trend — it signals a strategic pivot for an industry under pressure from climate change, shifting consumer values, and investor scrutiny. For small brands, regeneration offers differentiation and authenticity. For multinationals, it represents risk management and brand relevance. For investors, it provides a rare dual return: financial performance and measurable climate impact. Much as the organic label reshaped food markets over the last 30 years, regenerative is poised to redefine them in the decades ahead. The question is no longer whether regenerative agriculture can scale, but how quickly — and who will lead the transition.
Momentum is building. As Christopher Gergen, CEO of the Regenerative Organic Alliance, noted, “Nearly 20 million acres are already under regenerative organic management, and with accelerating adoption rates and growing consumer demand creating clear market incentives, the movement is shifting from an emerging practice to a mainstream business and climate strategy.”
Steven Hoffman is Managing Director of Compass Natural Marketing, a strategic communications and brand development agency serving the natural and organic products industry. Learn more at www.compassnatural.com.
Natural, Organic and Regenerative Food and Agriculture Surge in Popularity
This article first appeared in the May/June 2025 issue of GreenMoney Journal
By Steven Hoffman
The market for organic food and agriculture has grown significantly since the National Organic Program was first established in 2001, placing the USDA Certified Organic seal on products that qualify for this distinction. Today, it’s a $70 billion market that’s been growing an average of 8% per year. And while it may be maturing, younger consumers, including new parents and their babies, are eating it up. And now, in the post-pandemic era, investors are once again paying attention to the potential of organic and regenerative products and brands that take into account health and the environment, and how the way we produce our food and consumer products affects climate change.
A survey released in February 2025 by the Organic Trade Association (OTA), the industry’s leading trade group, found that organic’s benefits to personal health and nutrition are resonating deeply with millennials and Gen Zers, making them the most committed organic consumers of any generation. Also, a February 2025 study by the Acosta Group, one of the nation’s top natural and organic products sales firms, reflected that 75% of all shoppers purchased at least one natural or organic product in the six months prior to the survey, with 59% responding that they think it’s important that their groceries and/or household products are natural and organic because they “are better for them” and “they tend to have fewer synthetic chemicals and additives.”
Natural and Organic Industry Is a Force
Overall, the natural and organic products industry combined has more than tripled in size since 2007, growing from $97 billion in sales in 2007 to over $325 billion in 2024, according to data compiled by New Hope Network, SPINS (a division of Nielsen), Whipstitch Capital and others, and presented at this year’s State of Natural & Organic keynote presentation at Natural Products Expo West, the world’s largest trade exhibition for the natural, organic, regenerative, nutritional and eco-friendly consumer products industry, held in March 2025.
“Wow, this industry is a force,” said Jessica Rubino, VP of Content & Summits for New Hope Network, at the keynote presentation. “That is a tremendous amount of growth. Today, we’re defining the industry as the natural, organic and functional food and beverage space, dietary supplements and personal care.” According to Rubino, the industry grew 5.7% in 2024, exceeding expectations. “The biggest piece of the pie is food and beverage, followed by dietary supplements and then personal care.” Rubino also said that while personal care is the smallest segment, it is the fastest growing and a category to watch.
“Natural products are absolutely continuing to accelerate again. Of course, they’re all outpacing non-natural products, and that’s even with not a whole lot of new items coming through,” said Kathryn Peters, Head of Industry Relations for SPINS and one of this year’s keynote presenters. “We’re also seeing more buyers coming in. This is being driven across many areas of the store, whether it’s refrigerated, grocery or vitamins and supplements. So, it’s just a resilient, wonderful story of growth we see in the industry. And really importantly, the game is continuing to be all about smart, profitable growth.”
In addition, “Organic is still very solid and strong, moving about the same pace as natural,” Peters said. “Consumers obviously have a strong awareness more than a lot of other certifications and a confidence in organic.” Certified regenerative products, too, showed significant growth of 20% in 2024, the panel noted.
“In just a little over two decades, the USDA Organic label has earned deep trust among consumers and has become one of the most identifiable food labels in our grocery stores,” said Matthew Dillon, Co-CEO of the OTA. According to OTA’s survey, more than half of U.S. consumers bought an organic fruit or vegetable in the last year. Consumers surveyed bought more bread in the last six months than any other food item, and 27% said they chose organic bread. For those surveyed consumers buying baby food, a whopping 93% chose organic. The USDA Organic label is particularly important for younger consumers, with over two-thirds seeking out the organic label in almost every food purchase. The Organic label was most valued in fresh food categories including fruits, vegetables, meat/poultry, baby food, eggs and dairy, and these items were the most likely products to be purchased as organic over the last 12 months.
Regenerative Agriculture Draws Investor Interest
In addition, regenerative agriculture — a system of farming that seeks to sequester carbon by rebuilding healthy soil — is among the sectors attracting more interest from impact investors, despite being an underfunded sector. However, there is growing consensus that the increasing threat to biodiversity is unsustainable and regenerative agriculture urgently needs to scale up. Now, groups such as Regenerative Food Systems Investors Forum and Impact Investor are drawing investor’s interest to the space.
One of the primary challenges to investing in regenerative food and farming is due to the fact that it requires significant upfront investment to transition from conventional farming. As such, many institutional investors remain hesitant due to uncertain returns and long payback periods. “This transition to regenerative farming is a long term one. That’s why intensive agriculture is so widespread, because it’s a very quick win. This is why you need investors to be patient and be willing to take some of the first loss and risk. This then accelerates the amount of private capital that will come in, because risk is protected,” said Harriet Jackson of responsAbility, a Swiss impact investing firm, speaking at Impact Investor’s 2024 conference in The Hague.
“Today…we are at what appears to be a crucial point in the transformation of agriculture and food systems. The momentum for regeneration is distinct,” said Sarah Day Levesque, Managing Director of Regenerative Food Systems Investment Forum, an investor’s organization seeking to build a more resilient food system. “There’s an increasing number of farmers pioneering the transition on the farm and increasing acreage. We can also see it in the incredible growth of organizations like EARA — the European Alliance for Regenerative Agriculture – designed to give rise to the voices of farmers in transition. Governments and public policy makers are acknowledging the very real risk presented by climate change and degradation of nature, including that caused by extractive agricultural practices. We are increasingly seeing policies and public sector investment that seeks to address these risks and support transition. Businesses and asset owners are starting to see and feel the importance of investing in nature and climate positive land use – seeing how critical investments in natural capital will de-risk production and create resilience in business models and investment outcomes.”
One organization seeking to foster investment in regenerative agriculture is the Boulder, CO-based Mad Agriculture, which in March 2024 launched Mad Capital, a $50 million investment fund aiming to de-risk regenerative and organic farming. With commitments from The Rockefeller Foundation, Schmidt Family Foundation and more, Mad Capital established its Perennial Fund II to provide loans to U.S. farmers to help them transition to regenerative and/or organic agriculture. The fund has made two closes and is “actively deploying capital to farmers,” said Mad Capital Co-founder and CEO Brandon Welch.
Natural and Organic Brands Are Outperforming
From an investor’s perspective, the overall natural, organic and regenerative products industry is looking better than it has in some time, asserted Nick McCoy, Managing Director and Cofounder of Whipstitch Capital, at the State of Natural & Organic keynote at Natural Products Expo West. “Over the last couple of years there’s been a lot of talk and a lot of pain for the lack of liquidity in this industry. It’s been very difficult for founders to find money compared to pre-Covid. Right now, we’re sitting in a very similar point as we were in 2010 or 2011 facing the millennial launch and emerging from the great recession…when it was very difficult to raise small checks. So, what's the hand of cards that we're playing in this industry now? Well, we have natural products that are very attractive. They're outperforming…consumers are running to them. We have positive ROI in cash invested. Cash invested is resulting in big revenue gains right now, and ultimately dollars chase dollars,” McCoy said.
“We may not have had as much M&A or fundings over the last two years, but…we've built a tremendous amount of value in this industry. And when you see more consumers spending more money in wellness, investment in M&A and other dollars eventually catch up and that's what's going to happen. CPG investors right now are sitting on a very large pool of illiquid but very attractive assets. There's a lot of viable brands that are growing faster than basically the broader market... Interest rates are starting to stabilize. We're seeing more fund closings and more investors getting more liquid money and the amount of illiquid value locked up is going up.”
According to McCoy, it’s not just the “big strategics" buying natural food brands. The natural products industry itself is seeing companies growing large enough to potentially become buyers themselves. “We’re seeing lots of talk about the IPO market starting again. Before 2021, I could probably count on one hand the number of brands that IPO’d in this industry. Now it sounds like it’s going to come back,” McCoy shared.
“There’re a lot of different ways that people get to liquidity,” McCoy added. “And once it does get liquid, then basically the money will flow from the bigger funds to the smaller funds, and the longer it takes, the more money these individual investors are going to get — surprising amounts. They thought they were going to get five times their money or 10 times their money investing in the company in 2015, and now it's grown so large they get 50X when it sells. And that's a true case of some that recently sold.”
According to McCoy, the $100-$300 million in revenue independent natural CPG brands — a group showing “tremendous growth” — represent major M&A and consolidation opportunity. “If we look at some of these recent high-profile deals, two, two and a half, three times revenue are where some of these things are trading. So, if we apply a two and a half times revenue multiple using SPINS sell-through data, you can see that this kind of locked up illiquid value that was $13 billion two years ago is up to $19 billion now. And when you think about a number like that, when that money starts to go back to investors, if you're an investor and you put $25,000 into a company expecting to get $250,000 and suddenly you get $1.5 million, you're going to be investing a lot more than $25,000 into other companies and that's going to bring the liquidity back over these next few years. It's really exciting to me.”
Resources
● The State of Natural & Organic — Keynote Presentation recorded at Natural Products Expo West 2025; watch here.
● Nutrition Capital Network — With news, resources, and events, NCN brings together active investors and innovative companies in health, nutrition and wellness,, www.nutritioncapital.com
● Whipstitch Capital — A leading investment bank tracking the food & beverage and health & wellness space, www.whipstitchcapital.com
● Big Path Capital — A leading investment bank and annual conference for impact investing and “Impact CEOs,” www.bigpathcapital.com
● MAD Capital — An investment fund for regenerative and organic ranchers and farmers, www.madcapital.com
● Regenerative Food Systems Investment Forum — An investor’s organization seeking to build a more resilient food system, www.rfsi-forum.com
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media and strategic business development services to natural, organic, regenerative and sustainable products businesses. Contact steve@compassnaturalmarketing.com.