Agrochemicals Market Poised for Strong Growth owing to High Demand from Emerging Economies
Agrochemicals which includes pesticides, fertilizers, and other agricultural chemicals play a vital role in boosting agricultural yield by protecting crops from weeds, insects, fungi and other pests. Rising population has increased the demand for food globally which has propelled the growth of agrochemical market over the years. The need to increase and maximize crop yield to meet rising food demand is a major factor driving the agrochemical market.
Global agrochemicals market was valued at US$ 81.27 Bn in 2023, and is expected to reach a value of US$ 123.83 Bn by 2030 at a CAGR of 6.2% between 2023 and 2030.
Key Takeaways
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. These players are focusing on new product launches and global expansion strategies to strengthen their market presence. ADAMA Ltd recently launched a new portfolio of agrochemicals in Brazil to tap into the growth opportunities in Latin American region.
The Agrochemicals Market Demand offers significant growth opportunities in emerging economies owing to the increasing cultivation of crops. Countries like India, China, Brazil are witnessing rising demand for foodgrains and expanding agricultural output which is propelling the agrochemical usage. Furthermore, growth in protected cultivation and urban farming is fueling the agrochemical consumption globally.
Key players are expanding their global footprint by acquiring regional players and entering into new markets. For instance, Nutrien Ltd acquired Brazilian ag retailers to solidify its presence in South American region. Bayer AG established a new production plant in China to capture the huge Chinese market. These global expansion strategies will help players capitalize on lucrative growth opportunities in international markets.
Market Drivers
Surging global food demand- Rising population and changing dietary patterns are majorly driving the demand for food grains. To meet the escalating demand, there is an urgent need to boost agricultural production which is fueling the growth of agrochemicals market.
Market Restraints
Stringent regulations on pesticide use- Overuse and misuse of agrochemicals can have adverse impact on the environment and human health. Hence, many countries have formulated strict regulations regarding pesticide approvals and usage which may limit the market growth to some extent.
Segment Analysis
The pesticides sub segment currently dominates the agrochemicals market. Pesticides refer to the chemicals used to kill, disable or deter pests. They play a vital role in protecting crops from weeds, insects, fungus, mites and other pests thereby increasing crop yield. Herbicides, insecticides and fungicides are some of the major types of pesticides used widely across the globe. Herbicides alone account for over 30% market share owing to their effectiveness in eliminating weeds and maintaining quality of agricultural produce.
Global Analysis
The North American region currently dominates the global agrochemicals market. North America has a highly developed agricultural industry and favorable climate which supports crop cultivation throughout the year. The United States is one of the largest consumers of agrochemicals globally. Growing importance of food security and sustainability is driving increased usage of agrochemicals in the region. Asia Pacific is projected to be the fastest growing regional market during the forecast period. Countries such as India, China, Indonesia are witnessing rising demand for agricultural produce to cater to their growing population. This coupled with availability of arable land and government support is anticipated to boost adoption of agrochemicals in Asia Pacific.
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