Turf and Ornamental Inputs Market is Steadily Growing and Offers Ripe Opportunities

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Driving Factors Include Aesthetic Demand and Rising Sports Development  

The turf and ornamental inputs market includes fertilizers, growth regulators, pesticides, insecticides, fungicides, and other products that help maintain soil fertility and improve grass and crop quality, development, and appearance. Turf includes grass and other ground coverings often used for lawns, golf courses, and athletic fields. Ornamental refers to plants, flowers, shrubs, and trees used for decorative purposes.  

Estimated at $7.02 billion this year, the turf and ornamental inputs global market size is projected to reach $8.68 billion by 2029, growing at a compound annual growth rate (CAGR) of 4.34%. Driving factors include increasing consumer demand for landscaping and urban beautification, as well as rising development in golf courses and sports fields.¹ In addition, growth is being driven by a growing population, decreasing arable land, and the need for greater agricultural productivity.²  

Industrial Inputs Investment Insights 

Sectors Driving Market Growth 

Soil Colorant and Surfactants: Colorants and surfactants are used to enhance turfgrass color and aesthetic appeal, improve quality, and use water more efficiently. They’re especially useful in drought situations, drought-prone areas, or regions where governments have implemented water restrictions.³ In addition, increasing consumer awareness and demand for more eco-friendly landscaping practices creates opportunities for organic and bio-based inputs.⁴ Investments into companies that can innovate in water-saving or eco-friendly products are well-positioned to benefit from the anticipated growth in this segment. 

Sports Fields: There’s a rising development of sports fields, especially golf courses, in North America.⁵ Installing and maintaining golf courses and athletic fields requires turf and ornamental materials and chemicals, such as fertilizers. In recent years, there’s been a boom in new golf course construction and this year could see record levels of golf course renovations, with many in the multi-million-dollar range. ⁶ Investors should consider companies involved in supplying or maintaining sports and golf turf a promising opportunity. 

Industry Landscape and Challenges 

Competitive Landscape: The market is comprised of global and regional players, including BASF SE, Nufarm Limited, Bayer Crop Science, ADAMA Ltd., and Syngenta.  

To expand market reach, companies are focusing on strategic collaborations, product innovation, and acquisitions. In January 2022, Syngenta acquired two next-gen bioinsecticides, and in March 2022, BASF SE introduced a new fungicide for lawn care.  

R&D investments, as well as developing new and original products to tap into the demand for more eco-friendly formulas, are expected to be key strategies in the coming years.⁷ Opportunities exist for private equity firms targeting companies with strong R&D pipelines, as well as companies that can support or collaborate on eco-friendly product innovation. 

Restraints: Factors that are expected to limit future market growth includes growing environmental concerns related to water pollution and chemical runoff that occurs when maintaining turf and ornamental items. Changing regulations ​surrounding ​​pesticide and fertilizer use pose challenges as well.⁸ However, these restraints provide opportunities to invest in companies that develop environmentally friendly solutions. 

Cultivating Successful Investments 

The turf and ornamental inputs market is consistently growing, driven by factors such as rising demand for aesthetic appeal and increasing development in golf courses and sports fields. This market offers many promising opportunities for private equity investors.  

We work with private equity firms to match them with experienced advisors who can direct them to the best investment opportunities. Contact us to learn more. 

Resources:

¹MarkWide Research Turf and Ornamental Inputs Market Analysis
²Mordor Intelligence Turf and Ornamental Inputs Market Size & Share Analysis – Growth Trends & Forecasts
³Ibid.
⁴Ibid.
⁵Ibid.
⁶A New Golf Course Construction Boom is Spreading Across the World
⁷Ibid.
⁸Ibid.