New Delhi: The global agricultural testing services market is anticipated to create an absolute dollar opportunity of more than US$ 3 billion through 2033. The sales of agricultural testing services are estimated to reach US$ 5.1 billion by 2023, projecting growth at a CAGR of around 7.5% during the forecast period from 2023 to 2033.
The demand for agricultural testing services is expected to surpass a valuation of US$ 10.6 billion by the end of 2033 on account of the growing incorporation of advanced technologies for the assessment of soil and fertilizer.
Key Factors Accelerating the Demand
There is a rapid surge in the global population, an increase in the introduction of innovative food products, and a rise in the consumption of fruits, vegetables, pulses, and others over the past couple of years. Hence, governments in several countries are increasingly undertaking numerous initiatives for increasing the production of high-quality crops and enhancing agricultural productivity to address the growing food demand.
According to a report by the India Investment Grid, the Government of India has announced sanctioning 102 new mobile Soil Testing Labs (STLs), 429 new static STLs, 1562 village-level STLs, and 8752 mini STLs across India in 2020 to increase the agricultural productivity.
Growing awareness regarding the benefits of soil testing such as determining the fertility level, identification of nutrient deficiencies, and others among modern farmers is projected to bolster the sales of agricultural testing services in the market.
Major Challenges
Despite numerous advantages associated with the adoption of agricultural testing services, the high cost of testing and the large amount of time needed for the preparation of extensive testing samples are factors restraining the market growth.
Also, the need for expensive laboratory testing equipment and the lack of testing facilities in several developing & underdeveloped countries are impeding the sales of agricultural testing services in the global market.
Region-wise insights
Why is North America emerging as a highly leading market?
As per FMI, North America is forecasted to emerge as the significantly growing region in the global agricultural testing services market between 2023 and 2033.
Numerous governmental and environmental protection organizations across North America are implementing stringent regulations about increasing agriculture productivity and environmental safety, creating strong demand for assessment solutions. For instance,
The Food and Drug Administration (FDA) and The United States Department of Agriculture (USDA) are emphasizing mandating a thorough study and assessment of crops that are made using genetic engineering processes for commercial usage. A slew of such regulations are estimated to augment the sales of agricultural testing services in North America’s market. North America accounted for a market share of 35% in 2022.
Demand Outlook for Agricultural Testing Services in Asia Pacific Excluding Japan Market
Future Market Insights states that Asia Pacific excluding Japan is anticipated to account for a significant share in the global agricultural testing services market from the forecast period 2023 to 2033.
Leading agricultural testing services providers are focusing on opening new testing facilities to cater to the growing demand, with the growing importance of selecting crops as per the soil type. For instance,
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Intertek India, a leading Total Quality Assurance provider announced the launching of a new AgriTech laboratory in Hyderabad, India for the assessment of plant seeds, agri-biotech, and others.
Such developments are projected to bolster the growth in Asia Pacific excluding Japan market. Asia Pacific accounted for a market share of 29% in 2022. The market in India is anticipated to expand at a CAGR of 7%.
Category-Wise Insights
Demand for Soil Testing Service Segment Increasing
The soil segment is anticipated to take over the global market over the forecast time frame. This is due to the increased relevance of soil testing in maximizing crop productivity, safeguarding the ecosystem from degradation from runoff and excessive fertilizer evaporation, and enhancing the nutrient composition of the medium used for cultivation.
A soil test can assist establish the level of fertility and trace component requirements of a certain soil type. The soil segment is predicted to expand at a CAGR of 7% over the forecast period.
Leading Segment in the Agricultural Testing Services Market by End User
The fertilizers manufacturers segment is projected to rise at a CAGR of 7.2% during the projection period. A few factors are driving the expansion of the fertilizer manufacturers segment in the global market during the forecast time frame, which includes:
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The growing requirement for agriculture testing services by fertilizer manufacturers for safeguarding the atmosphere from runoff.
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Evaporation of excess fertilizer, as well as supporting the identification of plant culture issues.
Comparative Analysis of the Adjacent Agricultural Testing Services Market
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Growth Factors: The demand for agricultural testing services is expected to grow on account of the growing incorporation of advanced technologies for the assessment of soil and fertilizer.
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Opportunities: Governments in several countries are increasingly undertaking numerous initiatives for increasing the production of high-quality crops and enhancing agricultural productivity to address the growing food demand.
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Key Trends: Numerous governmental and environmental protection organizations across North America are implementing stringent regulations on increasing agriculture productivity and environmental safety, creating strong demand for assessment solutions.
Market Competition
Some of the leading players in the global agricultural testing services market are Intertek Group plc, Waters Agricultural Laboratories, Inc., Cope Seeds & Grain, National Agro Foundation, BEREAU VERITAS, AGQ Labs USA, Lilaba Analytical Laboratories, Interstellar Testing Center Pvt. Ltd., Polytest Laboratories, and others.
Leading players in the global market are aiming at increasing their service portfolio and launching novel laboratories across different regions to increase their share in the highly competitive market.
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Hill Laboratories announced a collaborative collaboration deal with Merieux Nutrisciences in February 2023. The Hill Laboratories team might operate with the Mérieux NutriSciences team of professionals to deliver complete food safety testing and inspection services to New Zealand food industries.
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SCS Global Services released its latest plant-based accreditation program in November 2022. This initiative has an ANSI-accredited creating standards organization that differentiates plant-based products based on stringent auditing, evaluation, and labeling standards.
