by The agrochemicals market is estimated to be valued at US$ 81.27 Bn or in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Agrochemicals are substances or mixtures of substances used in agriculture to enhance the quality and quantity of crops. Key agrochemicals include pesticides, fertilizers, and other agricultural chemicals. The major classes of pesticides used are herbicides, insecticides, fungicides, and others. Fertilizers include nitrogen, phosphorus, potassium, and secondary and micro-nutrients. Agrochemicals play a vital role in increasing agricultural productivity by protecting crops, improving soil fertility and ensuring high yields.
Market Dynamics:
Growing population and rising demand for food is a key driver propelling the agrochemicals market growth. Population is expected to reach around 9.7 billion by 2050 putting pressure on available agricultural lands. This is increasing the need for high crop yields to meet food demand, thereby supporting agrochemicals consumption. Secondly, changes in climatic conditions and spread of pests and diseases is necessitating greater use of agrochemicals like pesticides and fertilizers for enhancing crop resilience. Increased prevalence of weed, insect pests and plant diseases due to changing climate is promoting pesticide adoption.
Segment Analysis
The agrochemicals market can be segmented into fertilizers and pesticides. The fertilizers segment is currently dominating the market due to increasing global demand for food. Fertilizers help boost agricultural productivity thereby increasing the yield of crops. Within fertilizers, nitrogen fertilizers have the largest share as nitrogen is essential for plant growth and is applied in largest volumes across the world.
PEST Analysis
- Political: The government policies supporting sustainable agriculture and subsidies on fertilizers in countries like India and China are boosting the demand for agrochemicals.
- Economic: The growing population and rising income levels are increasing the global demand for food. This is driving agricultural production and subsequently the agrochemicals market.
- Social: With growing health consciousness, manufacturers are developing biopesticides and other organic variants to cater to consumer demand for safer food options.
- Technological: Advancements in seed genetics and precision farming technologies allow minimal usage of agrochemicals while maximizing yield. This influences the demand pattern in the market.
Key Takeaways
The global agrochemicals market is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing global food demand. The market size for 2023 is estimated to be US$ 81.27 Bn.
The Asia Pacific region dominates the agrochemicals market with China and India as the major consumers. Supported by favorable government initiatives and growing population, the demand in the region is expected to increase substantially in the coming years.
North America and Europe are also significant markets for agrochemicals. Strong agricultural productivity and increased awareness about sustainability are fueling market growth.
Key players operating in the agrochemicals market are ADAMA Ltd., Arysta Life Science, Bayer AG, Isagro Spa, K+S Aktiengesellschaft, Nufarm, Nutrien Ltd, OCI Nitrogen, Sociedad Quimica Y Minera De Chile, and The Mosaic Company among others. Strategic partnerships and new product launches focusing on specialty crops and organic solutions will help these players strengthen their position in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
