Agricultural Surfactants Market - Forecast(2023 - 2028)

Agricultural Surfactants Market Overview

The Agricultural Surfactants Market size is projected to grow at a CAGR of 5.1% during the forecast period 2022-2027 and reach US$2.2 billion by 2027. Agricultural surfactants are primarily used as an additive for agrochemicals such as herbicide, insecticide, fungicide and other agrochemicals. According to the Food and Agriculture Organization (FAO), global agricultural production including wheat and coarse grains is expected to increase by 9% from 2021 to 2030. The use of such surfactants on agrochemicals acts as plant regulators that facilitate the growth of the plant while increasing its productivity. They are commonly used as additives in agrochemical formulations that are further utilized on agricultural crops such as grains and cereals, pulses and oilseeds, fruits & vegetables and other crops in order to promote their growth and productivity while controlling various insects or pests from destroying such crops. In 2020, the surge in the COVID-19 pandemic had negatively impacted agricultural production activities as a result of the country-wise shutdown of production sites, shortage of labor and the decline of the supply and demand chain all over the world, thus, temporarily affecting the growth of the agricultural surfactants industry. However, a steady recovery in agricultural production activities has been witnessed across many countries around the world since 2021, which in turn, is driving the demand for agricultural surfactants.

Agricultural Surfactants Market Report Coverage

The "Agricultural Surfactants Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Agricultural Surfactants Market.

Key Takeaways

• The non-ionic segment in Agricultural Surfactants Market held a significant share in 2021. Its wide range of characteristics and lower toxicity made it stand out in comparison to other types of processing methods in the market.
• Row crops type held the largest share in Agricultural Surfactants Market in 2021, owing to the increasing demand for agricultural surfactants during the production of row crops and for improving the overall crop yield and productivity.
• Asia-Pacific dominated the Agricultural Surfactants Market in 2021, owing to its increasing demand from the agricultural sector of the region. The ability of agriculture surfactants to improve the efficacy of agrochemicals such as herbicide, insecticide and fungicide along with their ability to act as plant regulators that facilitate the growth of the crops while increasing their productivity makes them ideal for use in such sectors.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Agricultural Surfactants Market Report.

Agricultural Surfactants Market Segment Analysis – by Type

The non-ionic segment held a significant Agricultural Surfactants Market share of over 18% in 2021, owing to its increasing demand due to the benefits it offers over other types of agricultural surfactants. For instance, non-ionic surfactants combine uncharged hydrophilic and hydrophobic groups which makes them more effective for use as wetting, spreading and emulsifying agents during crop production. Non-ionic surfactants help in reducing the surface tension significantly to aid better penetration of agrochemicals such as herbicide, insecticide and fungicide into the soil surface as compared to other types of agricultural surfactants. Moreover, the addition of non-ionic surfactants to crop formulations improves overall productivity while reducing the amount of runoff water. Furthermore, non-ionic surfactants are excellent dispersing agents, quite stable in cold water and have lower toxicity to plants and animals as opposed to other types of agricultural surfactants. Hence, all of these benefits are driving its demand over other types of agricultural surfactants, which in turn, is expected to boost the market growth during the forecast period.

Agricultural Surfactants Market Segment Analysis – by Crop Type

Row crops held the largest Agricultural Surfactants Market share of over 25% in 2021, owing to the surging production of row crops such as cereal grains, soybeans, cotton and more across the world. For instance, according to the United States Department of Agriculture (USDA), global grain production reached 1,498.9 million metric tons in 2021, an increase of 4.5% in comparison to 1,434 million metric tons in 2020. Moreover, according to the European Union, the total cereal production in Europe reached 296.3 million tons in 2021, an increase of 3.4% from 286.5 million tons in 2020. It further states that the total wheat production in Europe reached 119.3 million tons in 2020 and 131.2 million tons in 2021 respectively. Furthermore, in January 2022, the government of Egypt invested around EGP 6.4 billion (US$413 million) for the continuation of its agricultural project. The project will focus on the production of crops such as wheat, maize, cotton and oil.

Agricultural Surfactants Market Segment Analysis – by Geography

Asia-Pacific held a dominant Agricultural Surfactants Market share of around 46% in the year 2021. The consumption of agricultural surfactants is particularly high in this region due to its increasing demand from the agricultural sector. For instance, according to the US Department of Agriculture, in 2020 the total food crop production in the Asia-Pacific region reached 1026.7 million metric tons 2021, an increase of 2.7% in comparison to 998.8 million metric tons in 2020. According to the Department of Agriculture & Farmers Welfare, the total vegetable production in India reached 191.8 million metric tons in 2019, an increase of 4.7% in comparison to 2018. Furthermore, the total oilseed crop production in the Asia-Pacific region reached 127.6 million metric tons in 2020 and 131 million metric tons in 2021, representing a growth of 2.6% in 2021. This is anticipated to propel the growth of the market during the forecast period.

Agricultural Surfactants Market Drivers

An increase in agricultural production

The ability of agricultural surfactants to reduce surface tension in order to aid better penetration of agrochemicals on the soil surface for improving the overall crop yield and productivity makes them ideal for use in agricultural production activities. According to the US Department of Agriculture, global food crop production reached 2,791.5 million metric tons in 2021 and 2,719.7 million metric tons in 2020, representing an incline of 2.57% in 2021 as compared to 2020. In September 2021, the Spanish government invested around EUR 13 million (US$15.4 million) in order to fund the country’s agricultural projects that aim at increasing the country’s food crop production capacity. Moreover, according to the Food and Agriculture Organization, China produced around 588.26 million metric tons of vegetables in 2019. Furthermore, according to the European Union, the total production of fruits in the European region reached around 36.8 million metric tons in 2020, among which apples and pears production were the highest at 14.3 million metric tons, equivalent to 38.9% of the total fruit production in the region. Hence, such surging agricultural production across multiple regions is expected to increase the demand for agricultural surfactants, owing to their above-mentioned benefits. 

Surging consumer preference toward bio-based agricultural surfactants

Bio-based surfactants are made from renewable resources that are less toxic to the environment. They cause less pollution by emitting very fewer carbon emissions that can be harmful to the environment as opposed to standard petroleum-based surfactants. Owing to these benefits, the demand for bio-based surfactants including agricultural surfactants are increasing over the past few years. For instance, in March 2021, BASF established a strategic alliance with Allied Carbon Solutions Co., Ltd, based in Japan and Holiferm Ltd., based in the UK, with the aim of strengthening its position in the bio-based surfactants market. The alliance aims at expanding the company’s product portfolio of bio-based products including bio-based agricultural surfactants. Thus, such developments associated with bio-based agricultural surfactants, owing to the surging consumer preference for bio-based products, are expected to accelerate the growth of the agricultural surfactants market in the upcoming years.

Agricultural Surfactants Market Challenge

Health hazards associated with the use of agrochemicals

Certain agrochemicals are considered hazardous under EU Regulation (EC) No 1272/2008. They are known to cause acute toxicity in case of inhalation or ingestion. Prolonged exposure to these chemicals may cause dizziness and vomiting, along with specific organ toxicity in severe cases. Moreover, certain agrochemicals are even considered to be carcinogenic in nature and may cause cancer. Furthermore, such chemicals are considered to be hazardous to the aquatic environment as well and can cause long-term effects on aquatic life. In 2020, the European Union banned the insecticide thiacloprid, a type of agrochemical, owing to its adverse effects on human health and the environment. Thus, such health hazards associated with the use of agrochemicals may limit the usage of agricultural surfactants as additives in agrochemical formulations. This, in turn, may confine the growth of the agricultural surfactants industry during the forecast period.

Agricultural Surfactants Industry Outlook

Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Agricultural Surfactants Market. The top 10 companies in the Agricultural Surfactants Market are:

1. BASF SE
2. AkzoNobel
3. Evonik Industries
4. Solvay S.A.
5. Huntsman Corporation
6. Clariant AG
7. Helena Chemical Company
8. Nufarm Limited
9. Croda International
10. Wilbur-Ellis Company

Recent Developments

• In March 2021, BASF established a strategic alliance with Allied Carbon Solutions Co., Ltd, based in Japan and Holiferm Ltd., based in the UK, with the aim of strengthening its position in the bio-based surfactants market. The alliance aims at expanding the company’s product portfolio of bio-based products.
• In July 2021, Azelis acquired the agricultural/horticultural surfactants business of Coseal in South Korea. The main motive of this acquisition was to expand and strengthen the company’s growth across the Asia Pacific region.
• In March 2020, Wilbur-Ellis launched a surfactant that is specifically designed to improve the overall performance and safety of crops. It helps in elevating the performance of insecticides, fungicides and other agrochemicals by increasing the wetting and spreading of spray materials.

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