Post Harvest Treatment Products Market Analysis

Post-Harvest Treatment Products Market (Global, 2024)

Introduction

Post-harvest treatment is the subject of this study. The treatment of agricultural products is a major task in the food industry. The demand for fresh and high-quality food products continues to rise, and so the importance of post-harvest treatments such as coatings, preservatives and other solutions has grown for producers, wholesalers and retailers. These products not only prolong the shelf life of fruits, vegetables and grains, but also maintain their nutritional value and aesthetics, and thus meet the requirements of consumers for freshness and quality. In addition, the market is experiencing a growing trend towards technology and sustainable development as participants strive to minimize the negative impact on the environment and increase efficiency. In this dynamic market, there are many players, from established manufacturers to small start-ups, aiming to take a share of the market through new products and strategic alliances. This study is intended to help the participants in the market to understand the trends, challenges and opportunities in the post-harvest treatment of agricultural products.

PESTLE Analysis

Political

By 2024, the government’s agricultural and food safety policies will increasingly influence the post-harvest treatment products market. For example, the U.S. Department of Agriculture (USDA) has allocated around $147 million for the development of sustainable agriculture, which includes post-harvest treatment. In addition, the European Union has set maximum residue limits for over 200 substances, which limits the use of post-harvest treatment products.

Economic

The market for products for the post-harvest treatment of crops is characterized by the increasing costs of raw materials and labor. In 2024, the average hourly cost of agricultural labor in the United States amounted to $18.50, a rise of 5% over the previous year. This rise in labor costs is forcing farmers to invest in more efficient post-harvest equipment, which reduces their dependence on manual labor. Meanwhile, owing to disruptions in the supply chain, the cost of certain raw materials, such as biodegradable packaging, has risen by 12%. This is affecting the overall cost of post-harvest treatment products.

Social

The growing demand for post-harvest protection products is driven by the increasing awareness of consumers for the safety and quality of food. In 2024, research shows that 78% of consumers are willing to pay up to 15 % more for products certified as safe. This change in consumer behavior is putting pressure on manufacturers to adopt more transparent labeling practices and invest in more eco-friendly preservation methods. In addition, the growing popularity of organic products has led to a 20 % increase in the demand for organic post-harvest products, which are also more in line with the consumers' desire for a healthier diet.

Technological

The post-harvest product market is revolutionised by the development of technology. In 2024, the use of smart technology, such as IoT-enabled remote monitoring systems, has increased by a third among large-scale producers. The temperature and humidity in the warehouses can be measured in real time, reducing the loss of produce. Also, the development of biodegradable treatments and coatings is progressing. The companies are investing over £30 million in research and development to find more effective and less harmful products.

Legal

The regulatory framework for post-harvest products is becoming more and more restrictive, particularly with regard to their safety and their effect on the environment. In 2024, the EPA introduced new regulations requiring all post-harvest products to be subjected to a very strict testing procedure, which would cost up to $200,000 per product. Moreover, the European Union has implemented the REACH regulation, which requires companies to register the chemical substances used in post-harvest products. This will affect the 1,500 products currently on the market.

Environmental

Environmental concerns are increasingly influencing the market for post-harvest treatments. In 2024, approximately 40% of the products used for post-harvest treatment will be derived from renewable sources, reflecting a trend towards the use of eco-friendly products. Furthermore, the global initiative to reduce food waste has led to the setting of goals such as the United Nations’ target to reduce food loss by half at the retail and consumer levels by 2030. This has prompted a number of innovations in post-harvest treatment aimed at extending shelf life.

Porter's Five Forces

Threat of New Entrants

The barriers to entry for the market for post-harvest products are moderate because of the need for specialised knowledge and technology. The market is growing, but it may be difficult for newcomers to establish their own brands and distribution channels. The increasing demand for food preservation and quality improvement could, however, attract new competitors.

Bargaining Power of Suppliers

Suppliers in the post-harvest treatment market generally have low bargaining power. The market is characterized by a wide range of suppliers offering different raw materials and chemicals, which reduces dependence on any particular supplier. Suppliers also have low bargaining power because of the large number of alternative sources for these inputs.

Bargaining Power of Buyers

The buyers in this market, the farmers and the food industry, have high bargaining power, as they have a wide choice of products and suppliers. They can thus demand better terms. The pressure on suppliers to offer competitive prices and new products is therefore high.

Threat of Substitutes

The threat of substitution in the post-harvest market is moderate. There are alternative methods for preserving and enhancing the quality of harvested products, such as the traditional method of storage and organic treatments. But the effectiveness and efficiency of chemical treatments often make them preferable. Over time, however, the increasing preference for organic and natural products may increase the threat of substitution.

Competitive Rivalry

The post-harvest treatment products market is highly competitive. The competition is driven by a large number of established and new entrants. Competition is fierce, and innovation is the key to delivering more effective and sustainable solutions. Consequently, the companies are adopting aggressive marketing and price strategies. The need for differentiation and the rapid pace of technological change further intensify the competition among the market players.

SWOT Analysis

Strengths

• Increasing demand for quality produce leading to higher adoption of post-harvest treatments.
• Technological advancements improving the efficacy and efficiency of treatment products.
• Strong regulatory support for food safety and quality standards driving market growth.

Weaknesses

• High costs associated with advanced post-harvest treatment technologies.
• Limited awareness and education among small-scale farmers regarding available products.
• Dependency on specific climatic conditions for the effectiveness of certain treatments.

Opportunities

• Growing organic farming trends creating demand for eco-friendly post-harvest solutions.
• Expansion into emerging markets with increasing agricultural production.
• Potential for innovation in biodegradable and sustainable treatment products.

Threats

• Intense competition from alternative preservation methods and products.
• Regulatory changes that may impose stricter guidelines on chemical treatments.
• Economic fluctuations affecting farmers' ability to invest in post-harvest technologies.

Summary

By 2024, the post-harvest treatment products market will be characterized by strong demand, driven by quality standards and technological advancements. However, the market may be hampered by high costs and a lack of awareness on the part of small farmers. Opportunities for market players lie in the rising trend of organic farming and the expansion into new markets. Threats to the market include competition and regulatory changes. Strategic focus on innovation and education will be crucial for market players to capitalize on these trends.