Market Trends of Agricultural Antibacterials Industry
Rising Food Demand
According to the United Nations, the world's population has increased nearly fourfold in the past 100 years and is projected to reach 9.7 billion by 2050. While new plant technologies continue to emerge for pest control, pests are developing resistance to these technologies. This challenge is compounded by the fact that arable land per capita remained at 0.18 hectares from 2020 to 2021, as reported by World Bank data, highlighting the need for antibacterial applications to increase food production and maintain crop quality.
The situation is particularly critical in Asia, where the UN Population Division projects the largest population increase, with India, China, and Southeast Asia anticipated to represent 60% or more of the global population by 2050. Consequently, this region is anticipated to require significant quantities of crop protection chemicals to meet the food production demands of its growing population.
The impact of population growth is already evident in agricultural markets. For instance, Indonesia's grain imports reached a record level in MY 2023-24, increasing by over 30 percent from the previous marketing year, according to USDA data. This growth in food grain consumption and agricultural production directly drives the demand for agricultural antibacterial products, which are essential for protecting crops from bacterial infections and ensuring optimal yields.
Asia-Pacific is the Fastest Growing Market
The Asia Pacific region, particularly China, India, and Japan, is experiencing increased demand for antibacterials as the expansion of agricultural activities and growing emphasis on crop quality drive the agricultural antibacterial market growth. This trend is evident in India, where according to the Department of Agriculture and Farmers Welfare, total foodgrain production for 2023-24 is estimated at 332.3 million metric tons, an increase of 2.6 million metric tons from the 329.7 million metric tons produced in 2022-23. The use of the antibacterials in the region is gaining popularity as farmers become increasingly aware of bacterial infections' impact on crop yields.
Government schemes and policies providing financial and extension support to farmers have encouraged the adoption of antibacterial products, while global supply chain disruptions from the pandemic and conflicts have led to policies prioritizing domestic production. This shift is amplified in Japan's 2024 amendment to its Basic Law on Food, Agriculture, and Rural Areas, which focuses on food security due to rising international political instability. This amendment specifically addresses critical challenges in Japanese agriculture, including the annual decline of 50,000 farmers and their average age exceeding 65 years, thereby creating potential for the use of antibacterials in the country in order to reduce dependence on man-power and labour to curb the spread of bacterial diseases in the field.
