Agricultural Colorants Market Analysis and Forecast 2024-2033"

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Agricultural Colorants Market

Agricultural Colorants market are usually dyes and pigments that are used to impart colors to color herbicides, pesticides, fungicides, and indicator dispersants. In addition, seed-coating colorants support brand identity and sowing rates. The hue helps to identify the seed's intended usage and prevents treated seeds from entering the food supply. Increasing government investment to strengthen the agricultural sector coupled with the growing population across various regions is set to boost its market growth. Apart from this, the growing innovations by key players may serve as an opportunity for market growth. However, the lack of awareness among farmers in emerging and underdeveloped economies may restrain its market growth.

The growing expansion policies adopted by major players operating in the agricultural colorants market in order to expand their product portfolio and better serve the customers are set to increase their market growth during the forecast period. For instance, in February 2018, the Macrolex dye production capacity at the LANXESS plant in Leverkusen has been increased. The existing production capacity will be enhanced by 25% with an investment volume of more than five million euros. The company intends to expand its Lanxess colorants business as part of this expansion, which will lead to the creation of more employment at Chempark Leverkusen.

Market Synopsis

According to the MRFR analysis, the global agricultural colorants market size is projected to reach USD 3,815.30 million by 2032 at a CAGR of 7.91%.

Agricultural colorants refer to the use of dyes and pigments for various applications such as crop protection, and seed treatment, and for fertilizers such as fungicides, pesticides, and others. Moreover, in the fertilizers industry, it is used to distinguish pesticides and herbicides which are typically colored by combining chromatic pigments with their dry powder formulations. Other types of pigments include litho rubine, heliogen blue, and many others. Milori blue is a highly well-liked pigment that works well with viticultural fungicides. Solvent dyes, acid dyes, and basic dyes are the types of dyes utilized in the crop protection sector.

The growing government investment across the globe to strengthen the agriculture sector has eventually increased the demand for agricultural colorants owing to their wide usage for seed treatment, and crop protection in order to yield better quality crops, which is eventually contributing to its overall market growth. For instance, according to India Brand Equity Foundation (IBEF), India received about USD1 billion in agritech funding between 2017 and 2020. India stands in the third spot in terms of agricultural technology start-ups and financing, with significant investor interest. By 2025, it is projected that Indian agritech companies will be attracting investments amounting to about $30–$35 billion. The PLI grantees are expected to increase industrial capacity to produce processed food worth USD 4.4 billion and 250,000 jobs, as well as increase exports. The scheme's ultimate goals include increasing sectoral investment, accelerating agri-exports, promoting an increase in farmer incomes and compensation for farm output, and leading to the development of globally competitive Indian food brands.

Competitive Landscape

The key players operating in the global Agricultural Colorants market key playes  include Lanxess (Germany), BASF SE (Germany), Organic Dyes and Pigments (US), Sensient Technologies Corporation (US), Vivify (US), Sun Chemical (US), Milliken (US), Arrmaz Products, Inc. (US), Heubach GMBH (Germany), and Chromatech Incorporation (US) are dominating the market through constant merger and acquisitions, strategic collaboration and agreement with the key stakeholders in the market. To enhance their market positions and draw in a sizable customer base, the players are concentrating on reducing their environmental impact and investing in research and development in addition to strategic expansion activities like product launches and acquisitions.

Segmentation

By Type

  • Dyes: Agriculture dyes are soluble color compounds applied on seeds from a solution in water. They are used to color herbicides, pesticides, fungicides, and indicator dispersants to identify seeds in different levels and different stages. Agricultural dyes are widely used in the agricultural industry worldwide for everything from seed treatment to colorants in fertilizer. It can be defined as the application of colorants that are used to boost the health of the seeds and meet all the standards of Codes of Federal Regulations. Moreover, the presence of major players in the APAC region providing dyes for the agriculture sector is set to drive its market growth during the forecast period.
  • Pigments: Pigments refer to the colors that are made up for fertilizer, seed treatments, and other agricultural products. These pigment colorants are used in the agriculture industry to transform the product which can make the inspection process easy of the crops. Pigment act as an essential part of agricultural industries that can be used in different applications such as seed coating, fertilizers, and so on. Moreover, the recent strategies adopted by major players across the region are contributing to its segmental growth.

By Nature

  • Organic: Instead of creating wholesome, plentiful food, organic depends on natural principles like biodiversity and composting. Carbon atoms and carbon-based compounds are the building elements of organic colorants. By collecting certain plant extracts, vegetable-based organic colorants are created. Bright, vivid hues are frequently found in organic sources of color, although they are not particularly stable and long-lasting. Organic pigments and dyes are used in a variety of industrial processes, including agriculture. The demand for organic products has increased in recent years due to their safety, eco-friendliness, naturalness, affordability, and ease of disposal.
  • Conventional: Conventional dyes and pigments that can be stimulated by light give a brighter and more aesthetic color than conventional dyes and pigments used in the agricultural industry. The production of conventional or in other words synthetic chemicals kinds of stuff becomes a big business, but on the other hand, it is polluting the environment also. These types of colorants are beneficial also for agriculture products but also have some limitations. A 2002 FOA study found that organic cultivation produces 12–13% more per unit of agricultural land than industrial fertilizers and pesticides do. The conventional segment accounted for the largest market share of 60.04% in 2022.

By Application

  • Seed Treatment: The use of biological, physical, and chemical methods to safeguard seeds is referred to as "seed treatments." In order to rid them of seed-borne and storage insects, this treatment involves spraying them with an insecticide, fungicide, or a mixture of the two. These seed treatments are carried out to reduce soil insects, guard against storage insects, and stop the development of plant diseases. In order to produce better and healthier crops for consumers, numerous seed treatments like seed disinfection, seed disinfestation, and seed protection are available. An important factor in enhancing the development of healthy crops is seed treatment.
  • Fertilizer: Synthetic and natural fertilizers are used to boost the growth and production of crops. They are used to boost agricultural productivity and include nitrogen, potassium, and phosphorus, which are vital elements needed by plants. For growth, plants require nutrients that are taken up by the soil and root systems of the plants. Mineral fertilizers are crucial to the production of food because they increase the amount of food that can be grown on a given plot of land. The fertilizers are colored to improve their appearance and come in a variety of colorants to be fertilized in various systems.
  • Ponds & Lakes Colors: The colors of ponds and lakes are created by blending inert materials with water-soluble pigments. These colorants are intended for use in decorative water features such as lakes, ponds, and others. The colorants are frequently used in ponds and lakes to reduce the growth of algae. Pond & lakes colorants are made to adorn lakes, ponds, and aesthetic water features. They are water-soluble. Water that has been treated can be used for irrigation, aquaculture, and leisure activities like swimming and fishing. The natural ponds, lakes, golf courses, reflection pools, farm ponds, fish hatcheries, and aquascapes can all use the ponds & lakes' colorant.
  • Turfs & Ornamentals: On Turf & Ornamentals, dyes & pigment colorants can be used for golf courses to home lawns. The colorants are used on these surfaces to make them more evenly green and for times for overseeding. Some of the benefits include snow mold areas that can be covered, are not very noticeable on the turfs, masks summer declines, are useful as spray pattern indicators, and much more. The application covers golf courses, sports turf, lawns, landscapes, sod farms, nurseries, greenhouses, and much more.
  • Others: The other segment includes crop protection, mulch, ice-melting, & de-icing. Crop protection products provide protection from the attack of insects, weeds, and diseases. Mulch is a layer of material used on the soil surface as it improves the fertility and health of the soil.

By Region

  • North America: The countries of North America are the economic and agricultural powerhouses of the planet. The agricultural sectors of Canada, Mexico, and the USA are quite successful. In the United States, agriculture encompasses more than just farming itself. Catering and food processing are the two most prominent. On average, Americans spend 12% of their income on food. North American market worth is over 29.57% controlled by the United States. Precision farming technology is in high demand because highly mechanized row crop farms in developed countries like the United States focus on increasing yields in a relatively small area.
  • Europe: Europe is one of the prominent regions which includes Germany, France, Italy, Spain, the UK, and the Rest of Europe. In many ways, European farmers are pioneers, including in the areas of increased yields, environmental responsibility, and animal well-being. However, it seems they are slow to adopt new technologies; they rarely use the internet to purchase crucial inputs like machinery and agri-tech. The climate in Spain is famously arid. Irrigation is a crucial part of farming. When it comes to olive oil and wine, Spain and Italy are among the top three producers worldwide. Even in the realm of pear production, they are the undisputed leaders. Germany accounts for a 10.02% share of the market in 2021 growing with a CAGR of 6.59% over the forecast period. Out of all countries in Europe, France is anticipated to generate the least revenue in the European Agricultural Colorants Market.
  • Asia-Pacific: With 19% of worldwide food and agriculture exports and 31% of global food and agriculture imports, Asia is a critical node in the global food chain. Due to the region's rapidly expanding population, rising per capita income, and expanding middle class, Asia will continue to be a region with the highest demand for agricultural products and inputs. However, Asia is unable to sustain itself by agricultural output alone. Low agricultural yields, environmental and soil deterioration, insufficient infrastructure, and a lack of available arable land all contribute to production constraints. As a result, the demand for imports and investment in both domestic and international markets in Asia, particularly China, is expected to rise. With so much fertile land and such a large population, China and India are the biggest contributors to Asia and the Pacific's food output. Strong government financial support to drive mechanization and productivity in agriculture is expected to sustain the trend.
  • Rest of the World: When it comes to changing the way farming is done, the Middle East is way out in front. As part of the agri-tech revolution, the area is heavily reliant on cutting-edge technical solutions like the Internet of Things (IoT) and artificial intelligence (AI), among others. The federal government is spending a lot of money on public-private partnerships and cooperation to promote environmentally friendly farming methods. The United Arab Emirates has contributed the most money—USD 100 million—to the National Food Security Strategy. The nation intends to decrease food waste by encouraging the development of infrastructure conducive to vertical farming. In addition, the United Arab Emirates (UAE) is making use of cutting-edge new technology—non-intrusive soil reclamation based on Liquid NanoClay (LNC)—to transform the barren desert into fruitful soil as a result, weather and desertification patterns are becoming more chaotic all around the globe. Almost two-thirds of the people in the Middle East are located in locations with inadequate renewable water resources to maintain food production. Agriculture uses over 83% of MENA's total water supply, while industry receives only 4%.

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