Agricultural Testing Market

[254 Pages Report] According to MarketsandMarkets, the agricultural testing market is projected to reach USD 9.8 billion by 2028 from USD 6.7 billion by 2023, at a CAGR of 7.1% during the forecast period in terms of value. The agricultural testing market refers to the industry involved in analyzing various agricultural products, such as soil, water, compost, biosolids, manure and seeds, to determine their quality, composition, and presence of contaminants. This type of testing is crucial for ensuring food safety, optimizing crop production, and maintaining environmental sustainability in the agriculture sector. With the growing global population and rising concerns about foodborne illnesses, there is a greater emphasis on ensuring the safety and quality of agricultural products. Testing helps identifying contaminants, pesticides, heavy metals, and pathogens, enabling proactive measures to be taken to maintain food safety standards. The development of advanced testing methods and technologies has improved the efficiency and accuracy of agricultural testing. These advancements include the use of remote sensing, DNA testing, and rapid diagnostic techniques, which have streamlined the testing process and reduced turnaround times.

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Market Dynamics

Driver: Stringent safety and quality regulations for agricultural commodities

Stringent safety and quality regulations for agriculture commodities refer to the rules and standards set by regulatory bodies and governments to ensure that agricultural products meet specific safety and quality criteria. These regulations are put in place to protect public health, prevent the spread of diseases, and maintain the overall quality of agricultural commodities. The driver for the agriculture testing market is the need to comply with these regulations. Agricultural producers, processors, and exporters are required to demonstrate that their products meet the established safety and quality standards before they can be sold in domestic or international markets. This creates a demand for agriculture testing services and drives the growth of the agriculture testing market.

In order to curb instances of illnesses, food regulatory authorities focus on the framework and implementation of strict safety and quality regulations for food, feed, and agricultural products and commodities. This has driven the growth of the testing, inspection, and certification markets. Regulatory bodies such as the United States Department of Agriculture (USDA) and European Food Safety Authority (EFSA) are introducing guidelines for testing, inspection, and sampling services for safety and quality assurance. Similar guidelines are adopted by other countries, worldwide, with slight variations and exceptions in laws. For instance, in 2020, the USDA released new guidelines for the production of hemp, a crop that has recently been legalized in the United States. The guidelines set strict limits on the levels of THC (tetrahydrocannabinol), the psychoactive component in hemp, that is allowed in the crop. The guidelines also require testing of hemp crops to ensure that they meet these limits before they can be sold. Also, the European Union (EU) has established regulations for the safety and quality of agricultural products that are sold within the EU. In 2021, the EU announced new regulations for organic farming, which will take effect in 2022. The regulations include stricter rules for the use of pesticides and fertilizers, as well as requirements for animal welfare and soil conservation.

Restraint: Lack of coordination between market stakeholders and supporting infrastructure in developing economies, and improper enforcement of regulatory laws

The lack of coordination between market stakeholders and supporting infrastructure in developing economies, combined with improper enforcement of regulatory laws, can create significant barriers to the growth of the agriculture testing market. For example, in 2020, the World Bank published a report on the challenges facing the agricultural sector in sub-Saharan Africa. The report identified a lack of coordination between governments, farmers, and other stakeholders as a key challenge, which can limit the adoption of new technologies and practices, including agriculture testing services.

In addition, inadequate regulatory law enforcement can undermine the credibility of testing services, making it difficult for companies to gain the trust of farmers and consumers. This can limit the demand for testing services, particularly in developing economies where there may be a lack of awareness about the importance of food safety. According to a report by the Food and Agriculture Organization of the United Nations (FAO), only 21% of developing countries have the necessary regulatory frameworks in place to ensure the safety of food and agricultural products. This highlights the need for greater investment in regulatory infrastructure and improved law enforcement to support the growth of the agriculture testing market.

Thus, the lack of coordination between market stakeholders and supporting infrastructure in developing economies, combined with poor regulatory law enforcement, can create significant challenges for companies operating in the agriculture testing market. However, by working closely with governments, farmers, and other stakeholders, and investing in regulatory infrastructure, companies can overcome these challenges and tap into the significant growth potential of the market.

Opportunity: Technological advancements in the testing industry

The focus on reducing lead time, sample utilization, cost of testing, and drawbacks associated with several technologies has resulted in the development of new technologies such as spectrometry and chromatography. Increased adoption of these technologies is an opportunity for medium- and small-scale laboratories to expand their service offerings and compete with large market players in the industry, as these technologies offer higher sensitivity, accuracy in results, reliability, and multi-contaminant and non-targeted screening with low turnaround time, among other benefits.

The agricultural testing industry is experiencing technological innovations as major players are offering faster and more accurate technologies such as liquid chromatography (LC), high-performance liquid chromatography (HPLC), and inductively coupled plasma mass spectrometry (ICP-MS) for testing the safety and quality of various agricultural samples. These methods are used in the detection of almost all targets to be tested, including pathogens, pesticides, toxins, and heavy metals, among others. One company that has made significant advancements in this area is AgroCares. In 2019, AgroCares launched the AgroCares Scanner, a handheld device that can analyze soil and crop samples on-site, providing real-time nutrient measurements. The device uses near-infrared spectroscopy to assess nutrient levels in the samples, eliminating the need for laboratory testing and reducing the time required to get results. Also, in 2021, the company Purigen Biosystems announced the launch of its new automated DNA extraction system, which is designed to help researchers and testing labs quickly and efficiently extract DNA from complex samples, including those from plants and other agricultural sources. The system uses a proprietary microfluidic technology to isolate and purify DNA and can process up to 96 samples at a time. Also in 2021, the company Eurofins announced the launch of its new "AgroSeq" DNA testing service, which is designed to help agricultural companies and researchers quickly and accurately identify and track genetic traits in crops and livestock. The service uses high-throughput sequencing technology to analyze DNA samples and provide detailed information about genetic variation, which can be used to improve breeding programs, monitor food safety, and more.

Thus, technological advancements in the testing industry are driving innovation and efficiency in the agriculture testing market and creating new opportunities for growth and expansion.

Challenge: The high cost of agriculture testing

The cost constraints associated with agricultural testing pose a significant challenge, particularly for small-scale farmers or those operating in developing regions. The expenses related to laboratory equipment, reagents, and specialized testing services can limit the widespread adoption of testing practices.

Some agricultural tests require specialized expertise or external laboratory services, which can be expensive. Farmers may need to send samples to external laboratories, incurring additional costs for sample transportation and analysis fees. These costs can discourage farmers from conducting comprehensive testing or limit their ability to test multiple parameters. In 2019, a study conducted in Uganda examined the cost-effectiveness of soil testing and its impact on fertilizer use. The research found that the high costs associated with specialized soil testing services were a significant barrier for small-scale farmers. The study emphasized the importance of developing affordable and accessible testing services tailored to the needs and financial capabilities of farmers in developing regions.

Agricultural Testing Market Ecosystem

Prominent companies in this market include well-established, financially stable service provider of agriculture testing. These companies have been operating in the market for several years and possess a diversified service portfolio, state-of-the-art laboratory & technologies, and strong global sales and marketing networks. Prominent companies in this market include SGS (Switzerland), Eurofins (Luxembourg), Intertek (UK), Bureau Veritas (France), ALS Limited (Australia), TUV Nord Group (Germany), Merieux (US), AsureQuality (New Zealand), RJ Hill Laboratories Limited (New Zealand), SCS Global (US), Agrifood Technology (Australia), APAL Agricultural Laboratory (Australia), Agvise Laboratories (US), LGC Limited (UK) and Water Agricultural Laboratories (US).

By sample, water is projected to have the fastest growing rate during the forecast period.

The demand for water testing in the agricultural sector has increased as farmers and regulatory bodies recognize its significance in maintaining productivity, profitability, and sustainability in agricultural practices. Water is a crucial resource for agriculture, especially in irrigation systems. The quality of water used for irrigation can directly impact crop health and productivity. Testing water for parameters such as pH, salinity, nutrient levels, heavy metals, and microbial contaminants helps farmers determine its suitability for irrigation. High-quality water is essential to avoid damaging crops, soil, and irrigation equipment. Additionally, agricultural practices often involve the use of pesticides, herbicides, and other chemicals to control pests, diseases, and weeds. Runoff from fields can contaminate water sources with these residues. Water testing allows farmers to monitor the presence and concentration of such substances, ensuring compliance with regulations and minimizing potential health risks associated with contaminated water supplies.

By application, safety testing is projected to have fastest growing rate during the forecast period.

products are subject to various national and international regulations, standards, and guidelines. Safety testing is necessary to comply with these regulations and ensure that products meet the specified safety criteria. Non-compliance can result in product recalls, legal consequences, damage to reputation, and loss of market access. By conducting safety testing, agricultural businesses can demonstrate their commitment to meeting regulatory requirements and providing safe products to consumers. Also, agricultural products are often traded internationally, and different countries have specific safety standards and import regulations. Exporting agricultural products requires compliance with the safety requirements of the destination market. Safety testing is necessary to ensure that products meet these standards and avoid potential trade barriers or rejections. Exporters must provide evidence of safety testing to demonstrate the suitability of their products for international markets.

Asia Pacific is expected to have the fastest growing rate during the forecast period.

The Asia-Pacific region is home to a significant portion of the global population, including countries like China and India, which have the world's largest populations. This densely populated region requires extensive agricultural production to meet the growing food demand. As a result, there is a greater need for agricultural testing to ensure the safety, quality, and productivity of agricultural products. The Asia-Pacific region has experienced rapid industrialization and urbanization, leading to increased pollution and pressure on agricultural lands. This has raised concerns about the impact of industrial activities and urban expansion on agricultural productivity and safety. Agricultural testing helps identify and mitigate potential contamination risks, ensuring the safety and sustainability of agricultural practices in the face of urban development.

Key Market Players

The key players covered in the study include SGS (Switzerland), Eurofins (Luxembourg), Intertek (UK), Bureau Veritas (France), ALS Limited (Australia), TUV Nord Group (Germany), Merieux (US), AsureQuality (New Zealand), RJ Hill Laboratories Limited (New Zealand), SCS Global (US), Agrifood Technology (Australia), APAL Agricultural Laboratory (Australia), Agvise Laboratories (US), LGC Limited (UK) and Water Agricultural Laboratories (US). These companies have been focusing on expanding their market presence, enhancing their solutions, and partnering with many channel partners and technology companies to cater to consumers across the globe. The deep roots of these players in the market and their robust offerings are among the major factors that have helped them achieve major sales and revenues in the global agricultural testing market.

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Scope of the Report

Report Scope

Agricultural Testing Market:

By Sample

• Soil
• Water
• Seed
• Compost
• Manure
• Biosoilds
• Plant Tissue

By Application

• Safety Testing
• Quality Assurance

By Technology

• Conventional
• Rapid

By Region

• North America
• Europe
• Asia Pacific
• RoW

Recent Developments

• In January 2022, SGS announced a collaboration with Transmute, a blockchain technology company, to develop supply chain solutions using blockchain technology. The collaboration will focus on developing a platform that provides transparency and traceability across supply chains.
• In April 2023, Eurofins acquired Inlabtech AG, a Swiss manufacturer of microbiological testing equipment. The company acquired Inlabtech AG to expand its testing equipment.
• In May 2021, Intertek acquired SAI Global Assurance, and this will strengthen Intertek’s Assurance offering by providing additional scale, enhanced geographic coverage and new capabilities.  In addition to management systems certifications, SAI Global Assurance has a particularly strong position in the Food, Agriculture and QSR end-markets, as well as a good presence in environmental & sustainability audits. The benefit from this is ensuring a stronger market position in Australia, the USA, Canada, the UK and China, and an expanded service capability in attractive end-markets.

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