Market Overview/Outlook (2022 to 2030)
The Global Agrochemical Market was valued at USD 233.10 Billion in 2022 and is projected to reach USD 302.48 Billion by 2030, registering a CAGR of 3.20 % for the forecast period 2023-2030.Market Definition
The demand for higher agriculture yield, a growing population, and declining crop harvesting area are some of the main reasons anticipated to propel the agrochemical market expansion. Additionally, it is anticipated that growing production of horticulture crops such as fruits and vegetables, floricultural plant and animal feed will increase demand for agrochemical products. The market is expanding faster due to numerous advantages provided by agrochemical. Technology development in agriculture sector such as creation of genetically modified crops with increase resistance to pest and disease also have an impact on the market. This has raised the need for pesticide, fungicide and herbicide chemical used to protect crops, however the usage of agrochemical has sparked concern about how these chemicals may affect the potential effect on human health and the ecosystem. Additionally, growing population and ensuing rise in the need for food, soil deterioration, a lack of arable land, and rising consumer knowledge of agrochemical benefits are the main factors to fueling the growth for agrochemical market.
Market Size:
- 2022: USD 233.10 Billion
- 2030: USD 302.48 Billion
- CAGR (2023-2030): 3.20%
Drivers: Growing demand for food and increasing global population fueling the growth of market
In order to feed expanding population, agriculture production must rose. Fertilizers, insecticide, and other agrochemical are essential for raising crop yield and agriculture production. Fertilizers aid in replenishing the nutrient in the soil that are lost via frequent cultivation are necessary for plant growth. Crops are shielded by pesticides against weeds, fungus, and insect that can drastically lower harvests. Global demand for agrochemical goods is predicted to rise as result of the need to produce more food to feed expanding human population. The restricted amount of arable land available further support the expansion of agriculture sector, due to land limitation, productivity on current farmland must be increased through agrochemical optimization, as a result the need for more food, increased population density and limited land make the usage of agrochemical necessary, additionally, growing demand for processes food and meet, which acquire more agriculture input to produce, is a result of rising earnings in developing countries, this is increasing the demand for agrochemical, which is fueling the expansion of agrochemical market.
For instance, according to United Nations, the world’s population is more than three times larger than it was in the mid-twentieth century. The global human population reached 8.0 billion in mid-November 2022 from an estimated 2.5 billion people in 1950, adding 1 billion people since 2010 and 2 billion since 1998
Enhancing crop protection and agriculture efficiency is crucial:
Herbicide, fungicide, and insecticide are example of agrochemicals that are essential for preventing yield losses and safeguarding crops. Crop stressor including heat, cold, draught and salinity are getting worst due to climate change which has an impact on crop yield. Agrochemical have a potential to increase crop resilience to the effect of climate change. Tropical climate region also has increased rate of fungal infection, insect infestation and weed growth, which increase the need of pesticide and other chemical used in crop protection. Furthermore, a decline in soil health and the establishment of resistance weeds and pests are caused by decreasing seed replacement rates, not rotating crops, reducing follow times and continuously cultivating the same area. In order to restore new soil nutrients, the raises the demand for agrochemical such as insecticide with various mode of action and sophisticated fertilizer solution. Agrochemical products are still necessary for sustainable agriculture because of the increasing requirement to safeguard crops against biotic and abiotic a challenge and maintain soil health. Another factor driving the need for agrochemical is the growing trend in horticulture toward high value crops that need more plant protection. Thus, due to this factor fueling the growth of agrochemical market.
For instance, FMC is launching Adastrio fungicide on a limited commercial basis for the 2023 crop season. Adastrio fungicide is a foliar fungicide that combines three modes of action and is the first fungicide to use the newest molecule in the SDHI class, fluindapyr. This fungicide is built to provide broad-spectrum control of key foliar diseases and help protect yield potential all the way through to harvest.
Recent Developments
In November 2022, Corteva Agriscience today announced the launch of a new postemergence corn herbicide. Kyro™ herbicide will be the first product on the market to combine the active ingredients acetochlor, topramezone and clopyralid into one premix. The U.S. Environmental Protection Agency (EPA) has approved registration of Kyro herbicide and the new solution will be available for U.S. corn farmers for the 2023 growing season, pending individual state registrations.
In February 2022, ADAMA Ltd. one of the world's leading crop protection companies, announced the launch of Timeline FX, the industry’s most advanced cross-spectrum spring foliar herbicide for cereals. Engineered with three Active Ingredients with complementary modes of action together with a built-in adjuvant, Timeline FX ensures flexibility for growers by giving the widest application window of any herbicide for controlling broadleaf and grass weeds for cereal crops.
In November 2022, Corteva Agriscience and BASF Agricultural Solutions announce their agreement to develop future herbicide-tolerant soybeans and complementing herbicides for farmers in North America and beyond. The collaboration aims to bring competitive alternatives to manage resistant and tough-to-control weeds through innovative trait stacks and durable, long-lasting modes of action. Farmers will benefit from broader weed management options and strong germplasm choices from both Corteva and BASF seed brands.
Restraint: Health and environmental concerns associated with agrochemical is hinder the growth of market
Given the possible risk to the environment and human health, the use of agrochemical in global to boost crop yields and reduce pest problem has generated discussion. Agrochemical have been demonstrated to raise crop yields by 25% to 50%, but excessive use of them can degrade soil, pollute water, and cause pests to become resistance. In addition to causing cancer and endocrine disruption, pesticide residue in food can have a negative impact on health by causing neurological and development issues agrochemical use has also been connected to decrease in pollinators, which are important for crop productivity and include bees and butterflies. The loss of biodiversity and the devastation of natural ecosystem can also result from the careless use of agrochemicals. Acute poisoning from excessive agrochemical exposure can result in symptoms like nausea, vomiting, diarrhea, headache, disorientation and seizures, when acute poisoning is severe, it can be lethal. As a result, this factor hinders the growth of market.
For instance, in October 2023, according to United States Environmental Protection Agency, the health effects of pesticides depend on the type of pesticide. Some, such as the organophosphates and carbamates, affect the nervous system. Others may irritate the skin or eyes. Some pesticides may be carcinogens. Others may affect the hormone or endocrine system in the body.
Challenges: Increasing cost of agrochemical raw material
One of the main obstacles to the agrochemical market expansion is the growing prices of raw material, this is due to the agrochemical business depend upon wide range of new sources such as plant extract, minerals and petroleum-based goods. These raw material cost have been gradually increasing in recent years as an agrochemical demand is rising globally, farmer try to keep pests and illness away from their crops. The prices of raw materials are rising as a result as a result of this increased demand. Supply issue exist for certain raw materials used in the manufacturing of agrochemicals, for examples the conflict in Ukraine has hampered the flow of goods depending on petroleum, as a result the prices hikes of agrochemicals. Additionally, inflation also contributing to driving up the prices of raw material. According to World Bank Blogs, in 2023, fertilizer prices have eased from their early 2022 peaks but they remain at historically elevated levels. The price easing partly reflects weak demand as farmers cut back fertilizer field applications due to affordability and availability issues. The industry is also affected by supply-side issues, including a production crunch in Europe, disruptions due to sanctions on Russia and Belarus, and trade restrictions in China
Opportunities: Nutrient management customized to individual crops using precision farming
Using specialized application equipment to grow crops effectively and site specifically can help keep water and nutrient in root zone. This is known as precision agriculture. Precision agriculture has three main stages in its work plan, employing specific sensors to gathered geo reference information from remote areas, analyzing the data using an appropriate information processing system and adjusting the amount applied based on-site requirement. Also, precision farming data can be utilized by agrochemical companies to enhance their customer service toward farmers. By preventing nutrients from or building up in areas of the field where they shouldn’t precision farming can increase output and optimize the usage of nutrient. In wealthy nations precision farming is becoming more and more popular as means of effectively using fertigation. For an accurate estimate of the nutrient requirement of crops, the application rate and mixing ratio necessary within the fertigation system can be loaded with the release pattern and coating technology of CRFs. A wide range of digital technologies are being used in precision agriculture to improve farming efficiency and boost crop yield and quality.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 233.10 Billion |
| Market Forecast in 2030 | USD 302.48 Billion |
| Compound Annual Growth Rate (CAGR) | 3.20 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Product Type, By Application & By Region |
| By Product Type |
|
| By Application |
|
| By Region |
|
| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Agrochemical Market
The Agrochemical Market is segmented by product type, application and region.
By Product Type: The fertilizers segment held the largest market share in 2022
By product type is sub segmented into fertilizers and pesticides, The fertilizers segment accounted for highest market share 65% in global agrochemical market for 2022. The market for fertilizers is driven by the rising consumption of fertilizers to boost crop productivity. Grain and cereals fertilization can be done in three main ways. These nutrients can be applied to seedling by spraying, top dressing separately, or combining them with other fertilizers. Fertilizers need to be applied correctly both in terms of rate and amount in order to raise grain and cereal yield. Due to rising need for food, farmers are using more fertilizers to boost crop productivity and yield because agriculture land is under higher stress. Nitrogenous fertilizers are anticipated to be the forerunning contributor to market growth on account of nitrogen being a mandatory nutrient for growth and development of crops.
On the other hand, the pesticides segment has the significant market share over the forecast period, however, the nitrogenous fertilizers are increasing, and this has negative consequences on the surrounding area, especially water bodies. In terms of revenue, the pesticides market is anticipated to expand at a sizable CAGR during the forecast period. Pesticides that target plants are frequently employed in agriculture. They are employed to eradicate weeds and other undesirable plants from crops.
By Application: The cereal and grains segment were the leading segment in 2022
By application, which is divided into cereal & grains, oilseeds & pulses, fruits & vegetables, others. The cereal & grains segment accounted for largest share 47% in global agrochemical market for 2022. This is attributed by the fact that Asia Pacific region consumes the majority of the world cereals and grain consumption, furthermore a sizeable portion of the world land is dedicated to the cultivation of grains and cereals. The increased use of cereal and grains such as rice, wheats, rye, corn, oats, sorghum and barley in various other location is driving demand because of fertilizers. Agrochemical use is highest when it comes to rice, wheat, other cereals and grains. Farmers may now apply more effectively and with less of an impact of environment due to ongoing advancement in the field. For example, targeted pesticide application has improved due to precision agriculture. Grain and cereal crops are especially vulnerable to a wide range of pests, insects, and illness, without these proper pest and disease management these crops can suffer loss. Overall due to this factor fueling the growth of cereal and grain segment in global agrochemical market.
On the other hand, the fruits and vegetables segment are anticipated to expand over the forecast period, Due to rising health consciousness among consumers, there is a growing global demand for fresh fruits and vegetables, which can be attributed to this growth. Agrochemicals are crucial to the development of fruits and vegetables. Pesticides assist farmers in growing fruit and vegetable crops that are secure, of good quality, and cost-effective. Fertilizers assist in giving fruits and vegetables an abundance of nutrients. To give numerous nutrients at once, many farmers employ a combination of nitrogen, phosphorus, and potassium fertilizers.
Regional Analysis
Asia Pacific occupied the largest market share in 2022: Asia Pacific has the largest revenue market share 31% in 2022, the top producers of agriculture goods in world is Asia Pacific which is reason for this. China and India are some of the main suppliers, the International Trade Center and FAO report that China is world larger producer and exporter of pesticides. The Organization for economic Co operation and Development and Food and Agriculture Organization rank India as world 4th largest producers of agrochemicals behind China, Japan, US, the per capita income of that region is significantly influenced by the agriculture sector. the Indian government launched the Aatmanirbhar Bharat Abhiyan economic package, which included substantial programs for strengthening farming infrastructure and expanding credit access. Such efforts can boost the rural economy indirectly support agrochemical sales. increasing middle-class populations and increasing meat consumption fuel demand for animal feed, and creating demand for herbicides, fungicides, and other products. because huge population, growing economy and supportive policies, Asia Pacific presents the highest growth opportunity for agrochemical companies looking to expand globally.
On the other hand, North America accounted for the significant share over the forecast period, Due to the rising demand for commodities including blueberries, sorghum, soy, and maize, the U.S. had the lion's share of the North American agrochemicals industry. In addition, the United States is the biggest producer of blueberries, almonds, sorghum, and maize. It is also, after Brazil, the country that produces the most soybean. These are the main drivers of market expansion in the region.
List of the prominent players in the Agrochemical Market
- Clariant AG
- BASF SE
- Huntsman International LLC
- Bayer AG
- The DOW Chemical Company
- Solvay
- Nufarm
- Evonik Industries AG
- Croda International Plc
- Helena Agri-Enterprises, LLC
- Ashland, Inc.
- Land O’ Lakes, Inc.
- FMC Corp.
- ADAMA Ltd.
- Stepan Company
Segmentation Analysis of the Agrochemical Market
By Product Type
- Fertilizers
- Pesticides
- Cereal and Grains
- Oilseeds and Pulses
- Fruits and Vegetables
- Others
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Agrochemical Market:
The agrochemical industry has lodged a strong protest as the ban disregards FAO’s advice that climate, crop grown, pests and diseases must guide the choice of pesticides for every country, due to which the ban on export has been lifted under conditions. The banned molecules produce more than 130 formulations used by the farmers for crop protection who are likely to face increased farm input cost, The ban, while at one hand increases cost for farmers, decimates the market for manufacturers. With the spread of coronavirus, China stopped the shipments of raw materials, crucial for the products developed here which created a gap, though the supply is regularized in the latter half of the Post Covid period. Indian agrochemical companies import an estimated 50 per cent of the raw material it needs. Promoting domestic manufacturing, especially for raw materials as is proposed for the pharmaceutical sector, will take care of one of the biggest concerns of companies as the cost of raw material will be under control. The current model of production makes India a profitable manufacturer but not a producer. The agrochemical business probability come under more scrutiny as a result of the pandemic. Concern over the effect of pesticide used on the environment and human health is growing, stricter rules for agrochemical sector probably going to result from this concern, which reduced consumer demand for agrochemicals.
