Agrochemicals Market size was estimated at USD 220.4 billion in 2021 and is projected to reach USD 290.2 billion in 2029, expanding at a CAGR of 3.5% over the forecast period 2022-2029 attributed to growing adoption of fertilizers by farmers to increase their output.
Main Agrochemicals Market Trends and Drivers
Major factors driving agrochemicals market are growing need to produce more crops, increasing demand for crop protection chemicals and growing animal husbandry sector around the world. World’s population has grown significantly in last decade and is projected to continue to grow in the future. With increasing population growth rates, dietary changes in the eating habits of consumers and growing urbanization, demand for is expected to rise in future. According to United Nation’s report, world’s population is expected to reach 9.7 billion in 2050, which will create more pressure farmers to increase their yield. A major proportion of crop production worldwide is lost due to pests, using agrochemicals like fertilizers and pesticides can help farmers to provide protection to their crops against pests and weed and increase their overall output. Since, farmers in many countries are becoming more aware about crop protection chemicals, demand for agrochemicals is expected to increase in future. Global agrochemicals industry is already witnessing massive increase in the number of product registration and patents.
Rise in the cultivation of horticultural crops like floricultural plants and fruits and vegetables, growing investments by leading companies in research and development of biopesticides and increasing adoption of precision farming techniques, are some of the factors accelerating the growth of agrochemicals market. However, agrochemicals such as fertilizers have a negative impact on environment, increasing cost of inputs and disruptions in the global supply chain, are restricting the agrochemicals market growth.
As per agrochemicals market analysis, Fertilizers segment is projected to lead the market.
Fertilizers like ammonium nitrate and urea are widely used by farmers to increase crop production. Additionally, surge in the demand for processed food items owing to changes in dietary patterns of consumers, is boosting demand for fertilizers and pesticides in the agriculture industry. Pesticides are increasingly used by farmers to control the spread of funguses, weeds and insects from damaging crops.
Based on Crop Type, Cereals & Grains segment is forecast to hold the largest market share.
Growing consumption of different types of cereals and grains such as rye, corn, oats, sorghum, is boosting the demand for agrochemicals. In addition, increasing demand for green vegetables and growing popularity of organic vegetables, are accelerating the application of agrochemicals in fruits and vegetable crops.
Based on Region, Asia-Pacific region is estimated to capture the largest market share.
Asia-Pacific agrochemicals market is propelled by declining arable land, increase population growth rates, rising cases of pest infections, presence of massive consumer base and growing demand for organic food products.
Top Market Players
Some of the leading players operating in the agrochemicals market are Crystal Group, Bionema Limited, Nippon Soda Co., Ltd., Yara International ASA, Bayer AG, Israel Chemicals Limited Mitsui & Co., Ltd., BASF SE, The DOW Chemicals Company, and E. I. Du Pont De Nemours and Company, among others.
Key Developments:
In January 2022, Yara and Lantmännen became the first companies to sign commercial agreement for developing fossil free fertilizers.
In January 2020, Crystal Crop Protection, a major agrochemical company based out of India, announced that it has acquired 3 insecticides brands from Corteva Agriscience, to expand its product portfolio and strengthen its position in the Indian market.
In January 2020 Bionema Ltd., a major biopesticide technology developer, based in United Kingdom introduced biocompatible wetting agent NemaSpreader, to increase its efficiency of nematodes by 30%.
Market Segmentation
Segmentation by Type
o Fertilizers
o Pesticides
Segmentation by Crop Type
o Cereals & Grains
o Oilseeds & Pulses
o Fruits & Vegetables
o Others
Segmentation by Region
• Asia Pacific
o China
o Japan
o India
o Rest of APAC
• North America
o United States of America
o Canada
• Europe
o United Kingdom
o Germany
o France
o Spain
o Rest of Europe
• RoW
o Brazil
o South Africa
o Saudi Arabia
o UAE
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