Agricultural Coatings Market Trends

Key Emerging Trends in the Agricultural Coatings Market

Government investments worldwide in strengthening the agricultural sector have led to a surge in the demand for agricultural colorants. These colorants find extensive use in treating seeds, safeguarding crops, and enhancing crop quality, thereby driving the overall growth of the market. For instance, India, as reported by the India Brand Equity Foundation (IBEF), saw a substantial influx of about USD 1 billion in agritech funding between 2017 and 2020. Ranked third globally in agritech finance and the number of agritech start-ups, India is witnessing significant interest from investors. Projections indicate that Indian agritech ventures could attract investments ranging from USD 30-35 billion by 2025.

Additionally, governmental strategies aimed at supporting the agricultural sector further propel market expansion. For instance, the Indian government incentivizes farmers to initiate projects in specific regions by contributing a portion of the project's total cost. These initiatives aim to bolster capital investment, ensure a steady income stream, and generate employment opportunities in key national areas.

An example of such initiatives is the approval of a new PLI (Production-Linked Incentive) program for the food processing industry by India's central government in March 2021, allocating a budget of INR 109 billion. This program will provide incentives over six years until 2026–2027. The recipients of PLI are anticipated to increase industrial capacity for producing processed food valued at USD 4.4 billion, create 250,000 jobs, and boost exports. The program's overarching objectives encompass augmenting sectoral investments, accelerating agricultural exports, promoting higher incomes for farmers, compensating for farm output, and fostering the development of competitive Indian food brands in the global market.

Global government investments aimed at fortifying the agriculture sector have stimulated the demand for agricultural colorants. With India as an example, substantial funding and supportive initiatives are propelling growth in the agritech industry. The implementation of programs such as the PLI scheme in the food processing sector underscores the government's commitment to enhancing agricultural infrastructure, boosting employment, and promoting India's competitiveness in the global food market.