April 23, 2024

The Agrochemicals Market is Estimated to Witness High Growth Owing to Rising Demand for Crop Protection Chemicals

The agrochemicals market includes crop protection chemicals and fertilizers which are used to increase agricultural productivity and reduce crop damage. Crop protection chemicals such as herbicides, fungicides and insecticides help protect crops from weeds, pests and diseases. Agrochemicals play a vital role in ensuring food security by boosting crop yields.

The Global agrochemicals Market is estimated to be valued at US$ 81.27 Bn in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the agrochemicals are ADAMA Ltd., Arysta Life Science, Bayer AG, Isagro Spa, Nufarm, Nutrien Ltd, OCI Nitrogen, Sociedad Quimica Y Minera De Chile, and The Mosaic Company among others. Key players are focused on developing biopesticides and other sustainable solutions to address environmental concerns. Rising global population and shrinking arable land present significant opportunities for agrochemical companies to develop innovative and efficient crop protection products. Leading agrochemical manufacturers are expanding their operations in emerging markets of Asia Pacific, Latin America, Africa and Middle East to tap the growth potential.

Market drivers

The primary driver for the agrochemicals market is the rising global demand for food. With the growing population, there is increased pressure on farmers to boost crop yields to ensure food security. Agrochemicals play a vital role in increasing agricultural productivity. Other key factors such as changing climatic conditions, shortage of water and arable land also necessitate the use of advanced agrochemical solutions. Crop protection chemicals protect crops from massive yield losses due to weeds, insects, pests and fungal diseases.

PEST Analysis

  • Political: The agrochemicals market is regulated by various government policies and regulations imposed to ensure the safety of pesticides usage and environmental protection. Regulations on pesticide residue limits influence the demand trends in this market.
  • Economic: Overall growth in the agriculture industry and demand for high yielding crops positively impacts the agrochemicals market. Changes in global trade policies and fluctuations in currency exchange rates can influence the prices of agrochemicals.
  • Social: Rising global population rate increases the demand for food production. Farmers’ awareness regarding new technologies and the use of agrochemicals for higher crop productivity drives market growth. However, negative perception about pesticide usage also acts as a restraint.
  • Technological: Development of biopesticides and other new generation agrochemicals enhances productivity with lower environmental impact. Advancements in precision farming technologies help optimize agrochemical usage through remote monitoring and data analytics.

The agrochemicals market witnesses high concentration of value in regions with extensive cultivation such as North America, Europe and Asia Pacific. In terms of volume, Asia Pacific dominates the market and is also the fastest growing regional market backed by large agricultural land, increasing cultivation in countries like India and China, and rising demand for food grains. The growing population and arable land expansion rates in Asia Pacific are the key factors fueling the demand for agrochemicals in this region.

Some key geographical areas where the agrochemicals market is highly concentrated in terms of value include major cultivation belts of Midwest and Western United States, Eastern Europe, and major farming provinces of China and India. Western Europe is also a lucrative market owing to stringent regulations regarding food production methods and high farmer income levels driving higher pesticide usage.