Featuring a largely consolidated vendor landscape, the global agricultural adjuvants market features the dominance of only a handful of players. According to a recent market research report by Transparency Market Research, only three companies, namely Clariant, Akzo Nobel N.V., and Solvay, collectively held over 50% of the overall market in 2015. The vendor landscape is likely to continue to remain consolidated in the next few years as well, with these leading companies benefitting from their well-established supply chains across developed as well as developing markets. However, as new companies foray into the market, the degree of competition is likely to become intense in the near future.
According to the report, the global agricultural adjuvants market will rise to an opportunity of US$4.16 bn by 2024 from nearly US$2.36 bn in 2015. Considering the numbers are true, the market will have registered a CAGR of 6.6% from 2016 to 2024. Of the key application areas of agricultural adjuvants, the segment of herbicides is reporting a relatively higher demand as compared to others. Geographically, the markets in Latin America and North America are presently the ones registering highly lucrative growth opportunities and are likely to remain rewarding in the next few years as well.
Increased Focus on Using Advanced Techniques in Farming to Drive Agricultural Adjuvants? Market
The market is chiefly driven by the increased understanding regarding the use of adjuvants for the better protection of crops. The market is also driven by the vast reduction in farmlands available for agricultural purposes as constant industrialization and urbanization activities are taking up increased space in emerging and agrarian economies.
The rising population of the globe and the consecutive rise in demand for sustainable production of food products is also a key factor acting in favor of the global agricultural adjuvant market. In the near future, the market will benefit from a vast rise in usage of advanced technologies and techniques in the farming sector, across developed as well as developing economies. In developing economies, this will be driven by the active role of governments, through funding and encouraging regulations, towards bringing improvement in the agricultural sector.
Increased Usage of Genetically Modified Seeds to Hamper Market Growth
The global agricultural adjuvants market features mostly promising growth opportunities. However, certain factors such as the increased use of genetically modified seeds, which are generally more efficient when it comes to safety from pests and crop yield, could lead to a reduced demand for agricultural adjuvants in the near future. Nevertheless, rising awareness among farmers regarding the benefits of agrochemicals and the rising focus of emerging economies on bringing improvements in the agriculture sector through educating farmers are likely to benefit the market.