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The impact of the dynamics of Saudi Arabia Agricultural Chemicals Market is more complex column gives an interesting view based on supply and demand in this sector of the society. In the past few years, the Kingdom of Saudi Arabia has undergone an agriculture regime transformation led by the necessity to attain food security and reducing dependence on foreign produce. This shift itself induced the demand of agricultural chemicals that became unstable and even drifted from time to time.
One of the main motives of a dynamism of the market in the kingdom of Saudi Arabia is the government's strategic reforms that seek to update and the diversification of the agricultural sector. The main goal of the Kingdom's Vision 2030 campaign is to ensure the dominance of the country in the production of some foodstuffs, which results in higher funds allocated to precision, efficient and advanced agricultural practices and technologies. Consequently, consumers' demands for chemical inputs (fertilizers and pesticides) has grown beyond measure to try and achieve maximum yields and avert losses to pests and diseases.
In addition, the climatic and geographical settings where its agricultural chemical markets thrive are among the reasons for its specificities. It may confront several difficulties like dry terrain and water shortage and, thus, requires intensive and innovative approaches in agrarian field. This is evidenced by the fact that precision farming technologies have attracted a big number of farmers who are operating to be environmental friendly in the production process of the formulation drugs. This has led to a situation where the market is inclined to sustainability practices.
Regulatory environment as well does renders as very important criterion which define market condition. History of control over agricultural components products marketing and distribution by the Saudi Food and Drug Authority (SFDA) in order to insure the quality and effectiveness of the products. Observation of these legal requirements a must for any market operator, otherwise the respective innovations will be affected; registration procedures will be delayed, as well as the access to market will not be easy at the beginning. The strict regulatory condition gives a competitive market, therefore only high-quality and rectidrulary products permissible can succeed.
On the one hand, domestic factors include ranchers, farmers, and wholesalers/supermarkets. International factors include commodity exchange markets, consumer demand, and shipping/transportation costs. The fact that international as well as domestic producers compete to exist in the market brings a gamut of products to the market. Such rivalry in commodity sectors brings the advancement into technology and operation thus ensuring customers access the better yields. Furthermore, there will always be entities of the world order, which prioritize the idea of organic and sustainable farming techniques, and this, in one way or another, may affect the decisions that Saudi farmers will make, impacting the demand for particular kinds of agricultural chemicals.
The at-first market dynamics will be shifted by the state of the art in agricultural research and development activities in the current time. The GMO use and the introduction of the biopesticides have added new objectives and obstacles to the Saudi Arabia agricultural chemicals market.
Saudi Arabia Agricultural Chemicals Market Highlights:
Saudi Arabia Agricultural Chemicals Market Overview
Saudi Arabia Agricultural Chemicals Market Size was valued at USD 12.5 Billion in 2022. The agricultural chemicals industry is projected to grow from USD 12.97 Billion in 2023 to USD 17.485 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.80% during the forecast period (2023 - 2032). A few of the key market drivers propelling the market expansion are the burgeoning greenhouse vegetable output, the scarcity of arable land, the evolution of R&D investments, and the rising environmental concerns regarding the overuse of chemicals in agriculture.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Agricultural Chemicals Market Trends
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Rising scarcity of water to boost the market growth
Due to its effect on farming techniques, water shortage is a major driver of the market for agricultural chemicals. Agriculture must use water more effectively due to water constraint. To maximize water usage, sophisticated irrigation techniques are used, such as drip irrigation and precision irrigation. The need for chemicals employed in these systems, such as fertilizers and soil conditioners, is subsequently driven by this. Furthermore, in areas with limited water supplies, fertigation—the incorporation of nutrients with irrigation systems—becomes essential. Farmers use this technique to increase fertilizer efficiency by directly supplying nutrients to crops through irrigation water. This pattern helps fuel the market expansion for agricultural chemicals, especially in the fertigation sector. Additionally, crop stress is frequently caused by a lack of water. Crop management in water-limited environments requires the use of agricultural chemicals, such as plant growth regulators and biotechnologically produced stress-tolerant cultivars.
Government actions are crucial in promoting growth in the agriculture chemicals sector in Saudi Arabia. Fertilizers and other necessary agricultural chemicals are frequently subsidized by the government, which lowers their cost for farmers. The goal of this assistance is to promote broad use and raise total agricultural yield. Additionally, funding for agricultural chemical research and development projects aids in the creation of novel and effective goods. This helps the agriculture industry thrive and remain competitive in addition to helping farmers. Moreover, the use of contemporary agricultural technologies, such as smart irrigation systems and precision farming, is encouraged by the government. Frequently, these technologies employ certain agricultural chemicals in order to optimize productivity and reduce wasteful use of resources. Thus, driving the agricultural chemicals market revenue.
Agricultural Chemicals Market Segment Insights
Agricultural Chemicals Crop Type Insights
The Saudi Arabia Agricultural Chemicals market segmentation, based on crop type includes Cereals, Pulses and oilseeds, Fruits and vegetables, Lawns and turfs, and Others. The cereals segment dominated the market mostly. The majority of agricultural chemicals are applied to cereals because poor soil quality can result in lower yields and lower nutritional levels for crops like rice. In order to address this issue, fertilizers with additional minerals increase the nutrient content and production of cereals.
Agricultural Chemicals Mode of Application Insights
The Saudi Arabia Agricultural Chemicals market segmentation, based on mode of application, includes Foliar, Fertigation, and Others. The fertigation category generated the most income. Because of its accuracy and advantages for the environment, this technique increases crop yields while reducing resource waste and is becoming more and more common. The growing significance of fertigation in the larger agriculture chemicals business is a result of the growing adoption of modern agricultural practices.
Figure 1: Saudi Arabia Agricultural Chemicals Market, by Mode of Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Agricultural Chemicals Type Insights
The Saudi Arabia Agricultural Chemicals market segmentation, based on type, includes Pesticides and Fertilisers. The fertilisers category generated the most income. The production of a huge amount of fertilizers and the efforts of corporations and governments to educate farmers about their benefits are likely to contribute to a major growth in sales over the projection period. In other words, because of the tremendous pressure the agrarian community faces to meet the growing need for food, the population growth is probably going to increase the need for fertilizers.
Agricultural Chemicals Country Insights
Saudi Arabia held a significant share in the market for agricultural chemicals due to shifting consumer consumption habits and rising awareness. The GDP of the nation is boosted by the agriculture industry every year by 53 billion SR. Furthermore, the population growth in recent years has increased the significance of agriculture in this area, which is what is fueling the market expansion. Furthermore, the Saudi Arabian government is quite supportive of beneficial initiatives that boost agricultural in the area. Additionally, the market's rise is ascribed to higher investments in the development of the agricultural sector and the region's adoption of better water preservation technology. Increases in disposable income, the nation's fast urbanization, and the modernization of the food industry all contribute to the expansion of the agriculture chemicals market.
Agricultural Chemicals Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the agricultural chemicals market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, agricultural chemicals industry must offer cost-effective items.
Major players in the agricultural chemicals market are attempting to increase market demand by investing in research and development operations includes Bayer AG (Germany), BASF SE (Germany), Yara (Norway), Compass Minerals (US), Syngenta Crop Protection AG (Switzerland), ADAMA (Israel), Sumitomo Chemicals Co. Ltd. (Japan), Nufarm (Australia), UPL (India), K+S Aktiengesellschaft (Germany), ICL (Israel), Rotam (South Korea), Corteva (US), and FMC Corporation (US).
Key Companies in the agricultural chemicals market include
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Bayer AG (Germany)
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BASF SE (Germany)
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Yara (Norway)
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Compass Minerals (US)
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Syngenta Crop Protection AG (Switzerland)
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ADAMA (Israel)
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Sumitomo Chemicals Co. Ltd. (Japan)
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Nufarm (Australia)
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UPL (India)
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K+S Aktiengesellschaft (Germany)
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ICL (Israel)
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Rotam (South Korea)
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Corteva (US)
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FMC Corporation (US)
Agricultural Chemicals Industry Developments
February 2022: Adama released Timeline FX, a cutting-edge cross-spectrum spring foliar herbicide for cereals. With its three complimentary modes of action and integrated adjuvant, the product offers growers the widest treatment window of any herbicide for managing grass and broadleaf weeds in cereal crops.
January 2022: Yara and Lantmännen inked a contract to introduce fertilizers free of fossil fuels to the market. As a result of the firms' cooperation, Yara and Lantmännen have signed a commercial agreement for the production and marketing of green fertilizers in Sweden starting in 2023.
Agricultural Chemicals Market Segmentation
Agricultural Chemicals Crop Type Outlook
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Cereals
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Pulses and oilseeds
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Fruits and vegetables
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Lawns and turfs
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Others
Agricultural Chemicals Mode of Application Outlook
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Foliar
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Fertigation
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Others
Agricultural Chemicals Type Outlook
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Pesticides
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Fertilisers
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