Market Overview:
Agricultural testing products provide vital analysis and information on soil nutrients, quality of seeds, presence of pathogens etc. Regular testing ensures optimum soil fertility and crop health. It helps farmers choose appropriate fertilizers and chemicals for efficient farming. Precision farming techniques rely on testing to customize soil and crop management.
Market key trends:
One of the major trends driving the agricultural testing market is growing adoption of precision farming techniques. Precision farming utilizes site-specific yield data, soil analysis, and other field information to optimize crop cultivation practices. Sensors, automation, and data analytics are integral parts of precision agriculture. Field testing helps generate spatial data on soil composition, pH, moisture etc. which is essential for precision farming solutions to monitor crop/soil health and maximize productivity. Customized soil and crop management based on testing results improves yields and farming efficiency. This boosts demand for various field testing kits, soil scanning devices among other precision agriculture tools.
The global Agricultural Testing Market Demand is estimated to be valued at US$ 6.1 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: Low capital requirements and knowledge for starting agricultural testing labs pose low threat of new entrants. Bargaining power of buyers: Large buyers like agricultural product manufacturers have significant bargaining power due to bulk purchases. Bargaining power of suppliers: Suppliers of testing equipment and consumables have moderate bargaining power with established buyers having alternatives. Threat of new substitutes: No major substitutes available currently but emerging technologies can threaten market. Competitive rivalry: Intense competition among existing players to improve service quality, develop new tests and expand capabilities.
SWOT Analysis
Strengths: Strong R&D capabilities, global footprint and certification approvals of major players. Weaknesses: High dependence on seasonal demand from agricultural industry. Opportunities: Growing demand for testing of organic, GMO and residue free food products globally. Threats: Price wars cutting profit margins among players and stringent food safety regulations.
Key Takeaways
The global Agricultural Testing Market is expected to witness high growth, exhibiting CAGR of 6.3% over the forecast period, due to increasing demand for residue testing of agrochemicals used on farm produce. North America dominated the market in 2023 with over 30% share owing to stringent food safety policies and awareness among consumers regarding tested farm produce in the region. The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to increasing agricultural exports and maturing middle class demanding tested farm produce in countries like India and China.
Key players operating in the agricultural testing market are Eurofins Scientific, Agilent Technologies Inc., SCS Global Services, Bureau Veritas SA, ALS Limited, Element Materials Technology (EXOVA), TUV Nord Group, Apal Agricultural Laboratory, Intertek Group PLC, EMD Millipore Corporation (Millipore Sigma), BioMerieux SA, Aurea AgroSciences, 3M Company, Charm Sciences Inc., Neogen Corporation, and Biolumix. Major players are investing in R&D to develop new testing methods and expand their service portfolio and global footprint to tap growing market opportunities.
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