The global agricultural wastewater treatment market is valued at USD 2,176.74 million and is expected to grow at a CAGR of 4.53% during the forecast period (2021-2026). Rapidly diminishing freshwater resources and rising agricultural water demand are likely to drive the demand for the studied market. On the flipside, a dearth of awareness regarding agriculture wastewater treatment and the impact of COVID-19 are expected to hinder the market growth.
- Growing investments and active research on water treatment technologies is expected to provide a major growth opportunity for the market studied.
- Asia-Pacific accounted for the highest share of the market and is likely to continue dominating the market during the forecast period.
Key Market Trends
Non-Crop Segment to Dominate the Market
Non-crop is by-far the largest application for agricultural wastewater treatment across the world and is increasing at a steady rate. This segment primarily includes feed production and also dairy farms, poultry. Despite low calorie and protein supply as compared to plant-based food, livestock, meat, and dairy still hold the largest share in terms of consumption. This scenario, in turn, is boosting the demand for water treatment applications in the non-crop sector.
In 2019, the global poultry production increased to 130 metric tons, growing by 3.7% from 2018. The United States with 23 million metric tons, China with 20 million metric tons, and Brazil with 16 million metric tons accounted for the highest volumes of poultry production in 2019, with approximately a combined 45% share of global production. These countries were followed by Russia, India, Mexico, Indonesia, Turkey, Japan, Iran, Argentina, and Myanmar, which together accounted for a further 20% of the production of the overall market. Similarly, in 2019, the global poultry market increased by 6% from 2018 to reach USD 231.5 billion. China with 20 million metric tons, United States with 19 million metric tons, and Brazil with 12 million metric tons accounted for the highest volumes of poultry consumption in 2019, with approximately combined 40% share of global consumption.
Asia-Pacific is the second-most active region for processed food, globally, in terms of poultry. New product development (NPD) accounts for 24% of processed meat, poultry, and fish product innovations in the region, led by China, Thailand, South Korea, Vietnam, and the Philippines. African swine fever (ASF) will further stimulate chicken expansion in Asia in 2020. In addition, global chicken meat imports have also been largely rebounding, as economies have been bouncing back from COVID-19 and food service demand is also improving, thereby, enhancing the demand for the poultry. The countries with highest consumption poultry in 2019 include China, United States and Brazil holding a combined share of almost 40% across the globe. Other major countries include Russia, Mexico, India, Japan, Indonesia, Iran, South Africa, Malaysia, and Myanmar with a combined share of more than 20%. According to FAO, the demand for dairy products has exhibited a positive signs after a slowdown due to COVID-19 pandemic. For instance, milk production across the world increased by almost 1.4% y-o-y in 2020, The trade scenario of milk based products witnessed an improvement in 2020 as compared to the previous year.
China to Dominate the Asia-Pacific Market
In the Asia-Pacific region, China is the largest economy in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbances caused due to the US-China trade war. Although China was the first country affected by COVID-19 and its related lockdown, it was one of the first countries to come out of the lockdown. However, the country has been witnessing recurring cases of COVID-19, leading to brief lockdowns occasionally. The manufacturing sector in the country took a major hit in Q1 2020, subsequently leading to a 6.8% drop in GDP, the lowest ever witnessed in years. However, the country has been focusing on several measures, such as tax breaks and other incentives to enhance economic recovery. Overall, in 2020, Chinaâ€™s GDP recorded a growth rate of 1.9%, indicating signs of a V-shaped recovery.
China accounts for approximately 7% of the overall agricultural acreage, globally, thus feeding 22% of the world population. The country is the largest producer of various crops, including rice, cotton, potatoes, and other vegetables. Hence, the demand for agricultural wastewater treatment is rapidly increasing in the country. Additionally, the population of China has grown at a staggering rate in the past decade, and more than half of the population now live in cities. With the government promoting economic growth, urbanization is on the rise. This is expected to increase the demand for improvement in agricultural wastewater infrastructure.
Chinaâ€™s rapid economic growth and green revolution have placed unprecedented pressure on the availability and quality of its water resources, and the country is rapidly moving toward the situation in many developed countries, where agriculture has become the main source of water pollution. The problem of water pollution is larger in Northern China, where close to 45% of the water available is considered unfit for human consumption. Close to 60% of the Chinese population rely on groundwater sources for drinking, and this is either untreated (in rural areas) or not properly treated (municipal water supplies). The agricultural sector is expected to grow for various reasons, as Chinaâ€™s urban consumers have the intent to eat more freshly produced and processed fruits, vegetables, juices, etc. The demand for freshly produced food items may continue to grow, as population shifts from rural areas to the cities. The serious problem of the water quality is the non-suitable agriculture in the country. The main contributors of the water pollution are agriculture, including plant production and animal breeding, and aquaculture, as well as rural areas. Agriculture is a major cause of sediment runoff into rivers, lakes, and reservoirs. The potential water pollutants in agriculture in the Chinese region are cultivation, animal raising, and aquaculture.
The agricultural gross production value in China increased from CNY 3,590.91 billion in 2015 to CNY 5,763.58 billion in 2019 according to the National Bureau of Statistics China. Two thirds of Chinaâ€™s internal water resources are used for irrigation. The cost of delivering, treating, and cleaning water for industrial, domestic, and agricultural users is borne largely by the state. The growing need for the treated water is estimated to propel the demand for agriculture wastewater treatment over the forecast period.
The global agriculture wastewater treatment market is partially fragmented, with the presence of majorly multi-national players. The top five-six players account for a moderate share of the global market demand. Some of the major players in the market include Veolia Environnement SA, Suez SA, Evoqua Water Technologies LLC, Dupont, and Jacobs, among others.
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