Horticulture Chemical Market - Forecast(2023 - 2028)
Horticulture Chemical Market Overview
The Horticulture Chemical Market size is estimated to reach US$28.9 billion by 2027, after growing at a CAGR of 4.3% during the forecast period 2022-2027. Horticulture chemicals are used to protect crop yields from various agents such as pests, weeds, plant diseases and other organisms that cause damage to horticulture crops. The enormous demand for crop protection chemicals such as fungicides, fertilizers and pesticides from developing countries was the key factor driving the Horticulture Chemical Market. The agricultural industry's increasing need for horticulture chemicals to remove nuisance plants, such as grasses and weeds, is thereby driving the expansion of the global horticulture chemical industry. Furthermore, increasing demand from the forest division for managing grass growth in the forest is predicted to increase market demand for horticulture chemicals. The COVID-19 pandemic majorly impacted the Horticulture Chemical Market due to restricted production, supply chain disruption, logistics restrictions and a fall in demand. However, with robust growth and flourishing applications across major horticulture crops industries, the Horticulture Chemical industry is anticipated to grow rapidly during the forecast period.
Horticulture Chemical Market Report Coverage
The “Horticulture Chemical Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Horticulture Chemical Industry.
- The Asia-Pacific region dominates the Horticulture Chemical Market size, owing to the region's high economic growth rate and high investment in the agriculture industry.
- The Horticulture industry is expanding due to the rapid increase in food demand driven by the growing population, which is boosting the need and demand for Horticulture Chemicals.
- Increasing government investments in the agriculture industry are expected to augment the Horticulture Chemical demand in near future.
- However, the market's expansion is projected to be hampered by the hazardous effect of Horticulture Chemicals.
Figure: Horticulture Chemical Market Revenue Share by Geography, 2021 (%)
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Horticulture Chemical Market Segment Analysis – by Form
The Solid segment held a significant share of the Horticulture Chemical Market in 2021 and is projected to grow at a CAGR of 4.5% during the forecast period 2022-2027, owing to extensive characteristics provided by solid over liquid form. The solid form is extremely popular in the market due to its ease of use, long shelf life and low cost. Farmers can use the solid form as a direct sprayer on the ground or combine it with water to use as a foliar spray. It can also be mixed with seeds before planting or it can be mixed with any liquid and sprayed over the soil on a regular basis. The benefits of the solid form have resulted in high popularity over all the other forms of horticulture chemicals available in the market. These extensive properties compiled with increasing application in the horticulture industry are majorly driving its segmental growth. Thus, the use of solids in the Horticulture industry would boost the market size.
Horticulture Chemical Market Segment Analysis – by End-use Industry
The fruits segment held a significant share of the Horticulture Chemical Market in 2021 and is projected to grow at a CAGR of 4.7% during the forecast period 2022-2027. Horticulture chemicals like herbicides, insecticides, fungicides, fertilizers, pesticides and bactericides are used in fruit farming to increase production, reduce food waste and ensure an adequate supply. The increased production of fruits in various regions has increased the global demand for horticulture chemicals. The fruits sector is rapidly growing because of the growth factors such as a rise in agricultural produce, flourishing trade activities and rising income levels. According to the National Statistics, Department for Environment Food & Rural Affairs, the value of fresh fruits in the UK increased from US$903 million in 2019 to US$1,045 million in 2020. Moreover, the value of fresh vegetables increased from US$1,516 million to US$1,670 in 2020. According to Avocados Australia Limited (AAL), the avocado sector production in Australia increased to 87,546 tonnes in 2019-20, marking a growth of 2% over the previous year. With the rise in global fruit production and trade, the applicability of horticulture chemicals is rising for the easy production of crops. This is anticipated to boost the growth scope for the Horticulture Chemical industry in the fruits sector during the forecast period.
Horticulture Chemical Market Segment Analysis – by Geography
The Asia-Pacific held up to 43.8% share of the Horticulture Chemical Market in 2021. The flourishing growth of horticulture chemicals in this region is influenced by growing agricultural production, farming trends and government support policies for agriculture. The horticulture crops are significantly flourishing in APAC due to growth factors such as rising fruit production and trade, favorable agricultural policies and urbanization. According to the International Trade Administration (ITA), the total local production in Thailand’s agriculture sector increased from US$41,459 in 2018 to 43,379 in 2020. With the established base for the agricultural sector and flourishing production of horticulture crops, the use of horticulture chemicals is rising, which is projected to boost the demand and growth of the Horticulture Chemical Market in the APAC region during the forecast period.
Horticulture Chemical Market Drivers
Increasing Government Initiatives:
Governments are investing extensively in agricultural projects and investments to improve environmental sustainability. The US Department of Agriculture launched the "Agriculture and Food Research Initiative (AFRI)" to assure food safety and security while also training the next generation of agricultural workers. The Canadian government would invest $560,000 in the Canadian Federation of Agriculture (CFA) in 2020 to create the Canadian Agri-Food Sustainability Initiative. The European Government has taken initiatives such as the Common Agricultural Policy (CAP) and Young Farmers. Furthermore, the United Nations' "Zero Hunger Vision by 2030," which aims to end hunger and double agricultural production and incomes of small-scale food producers, is expected to boost demand for the horticulture chemical industry. Thus, the various agricultural initiatives by the governments are booming the agricultural sector, hence, driving the Horticulture Chemical Market during the forecast period.
Surging Vegetable Production:
Horticulture Chemicals are used for crop protection such as fruit, vegetable and grain crops from insects, weeds, fungi, diseases, mice and other animals, bacteria and viruses. The increased production of vegetables in various regions has increased the global demand for horticulture chemicals. According to the Department of Agriculture and Farmers Welfare, India's total vegetable production in 2019 was 191.8 million metric tonnes, a 4.7% increase over the previous year. According to the Department of Environment, Food & Rural Affairs, in the UK, Calabrese (broccoli) production increased by 31% in 2020 to 84 thousand tonnes (compared to 64 thousand tonnes in 2019), with a 19% increase in value to £85 million (compared to £71 million in 2019). With the established base for the agricultural sector and flourishing production of vegetable crops, the use of horticulture chemicals is rising, which is projected to boost the demand and growth of the Horticulture Chemical industry during the forecast period.
Horticulture Chemical Market Challenges
Hazardous Effects of Horticulture Chemicals:
The negative effects of Horticulture Chemicals are anticipated to restrain the market's expansion on a global scale. Horticulture chemicals include herbicides, insecticides, fungicides, fertilizers, pesticides and other poisons that can harm more than just the pests they are designed to kill. They are toxic and exposure to crop protection products can result in a variety of health problems. Due to the chemical component they contain, the majority of horticulture chemicals cause skin irritation, respiratory difficulties and digestive issues. An Australian study showed that people who use herbicides have a higher risk of developing respiratory illnesses. Anaemia, cancer and tumors are some of the long-term side effects of horticulture chemicals. The United States Environmental Protection Agency has identified horticulture chemicals as a possible human carcinogen. It has also been identified as a water pollutant. These factors are projected to hamper the expansion of the global Horticulture Chemical Market in the near future.
Horticulture Chemical Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Horticulture Chemical Market. The top 10 companies in the Horticulture Chemical Market are:
- BASF SE
- Syngenta International AG
- Bayer Crop Science
- Corteva AgriScience
- United Phosphorus Limited (UPL) Ltd.
- Dow DuPont
- Nufarm Limited
- Adama Agricultural Solutions Ltd.
- FMC Corporation
- In July 2022, FMC introduced a pre-emergent herbicide to help sugarcane farmers in Maharashtra. Austral herbicide provides a new level of broad-spectrum weed control in the critical growth stage of sugarcane.
- In July 2022, BASF introduced Voraxor, a new herbicide in the Uruguayan market that contains the active ingredient trifludimoxazin + saflufenacil.
- In March 2020, Sumitomo Chemical Company Limited (Sumitomo Chemical) introduced KANAME® Flowable*, a new fungicide containing INDIFLINTM (inpyrfluxam) in Japan.
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