The Saudi Arabia agrochemicals and pesticides market was estimated to be worth US$165.715 million in 2020.
Saudi Arabia's agrochemical and pesticide market growth is attributed to the country’s growing population and increased pest attacks. Furthermore, the increased demand for organic products has, in turn, spurred pesticide market expansion in Saudi Arabia. Furthermore, Saudi Arabia's growing population will increase food demand, which will increase the demand for large, healthy produce on farmlands and a high crop yield, which can only be achieved by controlling crop damage. . Furthermore, climatic changes have exacerbated the incidence and spread of plant pests and diseases in the region. Climate change has a substantial impact on crop productivity and insect issue susceptibility. Climate change makes crops more susceptible to various pests and diseases, which has an impact on crop productivity. As a result, each change in the climate causes a shift in farming practices, resulting in lower output. Farmers' reliance on products for effective pest prevention has increased owing to these factors, supporting the market's expansion.
Saudi Arabia Agrochemical and Pesticides Market Drivers
Some of the key elements driving the market's growth is indeed the increasing pest attacks and the need for food security. Farmers' main concern in Saudi Arabia is insect infestation, which is followed by increased crop disease incidence and drought. Pest attacks on important crops like wheat, rice, maize, and pulses have grown during the last few years. In October 2021, the Saudi Arabian Ministry of Environment, Water, & Agriculture announced the first discovery of the fall armyworm in maize plants. More than 100 plant species can be infected by the Fall Armyworm, which can cause catastrophic harm to economically important crops. The Ministry adopted phytosanitary measures, including eradicating infested maize crops, establishing traps around infested areas, as well as spraying pesticides on neighbouring crops. As a result, rising insect infestations are projected to raise pesticide consumption in the country in the upcoming years. Furthermore, Food security is a big concern in a location like Saudi Arabia, where there is a paucity of water and large areas of barren land. Despite climate change, rising heat, and restricted water supplies, the Kingdom has made tremendous progress in strengthening agriculture and boosting food security. Pesticide demand in the country will be driven by the need to secure food security by boosting the operating as well as productivity levels of domestic food and agriculture systems. The market will be pushed even farther by the industry's booming agrochemical sector. According to the latest GCC fertilizer market outlook from the Gulf Petrochemicals & Chemicals Association (GPCA), Over the last five decades, the fertilizer sector in the Arabian Gulf has grown at a rate of 10.3 percent per year, reaching 36.7 million tons of output capacity in 2019. Saudi Arabia is the largest producer in the area, accounting for 45 percent of overall output. Moreover, the country's need for pesticides will be pushed by Vision 2030's aim of long-term food security and increased agricultural efficiency.
Pesticides are projected to show good growth opportunities.
By type, the Saudi Arabian agrochemical and pesticides market is segmented into fertilizers, insecticides, fungicides, herbicides, and pesticides. Pesticides are expected to dominate the segment’s growth during the forecast period. A pesticide is any chemical that is used to kill, remove or control pests in plants and crops. Saudi Arabia is a major exporter of fruits and vegetables to its neighbouring countries. Watermelon, grapes, citrus fruits, squash, and tomatoes are among the most common crops.
However, the country has very limited land available for crop production since most of its land is sandy and unsuitable for farming. Owing to the increasing instances of desert locusts attacks and the limited arable land, the demand for pesticides in the region is expected to rise. Instances such as the desert locust swarm attack in 2019-2021 increased the awareness of the government, as well as farmers, for the efficient use of pesticides in the area. According to the Saudi Arabian Ministry of Environment, Water, and Agriculture, the government used fumigation to eradicate locusts from 369,391 hectares of land between February and May 2020. Owing to the climate and topography of Saudi Arabia, the area is experiencing a lot of pest attacks.
In October 2021, The Saudi Arabian Ministry of Environment, Water, and Agriculture officially declared the discovery of the fall armyworm (Spodoptera frugiperda) in maize plants for the first time. A low infestation rate was first identified in two governorates, particularly Najran and Al-Kora. The Ministry has taken necessary measures, such as removing contaminated maize fields, setting up traps around the two affected areas, and spraying nearby crops with pesticides. Hence, the growing cases of pest infestation in the region are expected to drive the demand for the pesticide market in the Saudi Arabian region. Further, the development of organic pesticides in the region for healthy consumption practices is also expected to propel the market demand.
The Transportation and cross-border import restrictions have resulted in a lack of raw resources and supply chain disruptions. Price fluctuations, as a result of the economic impact of COVID-19, adversely impacted the market. Even though the agrochemical and fertilizer industry has been relatively stable, with favourable weather driving up demand in the interest of food security, the market witnessed a decline. Major players, on the other hand, had to deal with supply chain disruptions and scarcity of raw materials in their operations due to the lockdown and trade restrictions. For instance, revenues from SABIC’s Agri-nutrients business totalled SAR 6.12 billion in 2020, depicting a fall of 14 percent from SAR 7.12 billion in 2019.
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis
5. SAUDI ARABIA AGROCHEMICALS AND PESTICIDES MARKET BY TYPE
6. SAUDI ARABIA AGROCHEMICALS AND PESTICIDES MARKET BY CROP TYPE
6.5. Forage Crops
7. SAUDI ARABIA AGROCHEMICALS AND PESTICIDES MARKET BY PROVINCE
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. BASF SE
9.2. Bayer AG
9.3. Saudi Delta Company Inc
9.5. The Arab Pesticides and Veterinary Drugs Mfg. Co (Mobedco)
9.6. Saudi United Fertilizer Co
9.7. Alahmari Group
9.8. Montajat Veterinary Pharmaceuticals Co., Ltd.
Saudi Delta Company Inc
The Arab Pesticides and Veterinary Drugs Mfg. Co (Mobedco)
Saudi United Fertilizer Co
Montajat Veterinary Pharmaceuticals Co., Ltd.
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