The Pakistani agrochemical market is projected to register a CAGR of 8.0% during the forecast period (2022-2027).
Due to the emergence of the COVID-19 pandemic, there has been a supply chain disruption as the agricultural sector had to face labor unavailability, transportation barriers, restriction on market access, and a lack of inventories in some regions. Many fertilizer and pesticide manufacturers have been facing issues due to a lack of raw material availability, which has led to the reduction of various agrochemical product manufacturing.
Some of the factors driving the Agrochemicals market in Pakistan include the adoption of sustainable farming technologies, increasing adoption of biobased agrochemicals, government subsidies, and the need for increased land productivity, among others.
The fertilizer segment is the largest agrochemical market in the country. Both indigenous and imported fertilizers are used to meet the country's fertilizer needs. There are 14 manufacturing units now in operation, with a total design capacity of 2, 233 metric ton of nitrogen and 239 thousand metric ton of P2O5. In Pakistan, fertilizer usage is influenced by location, weather (availability of water), costs, and the timely availability of various products. Punjab has the most agricultural land and, as a result, uses the most fertilizers, followed by Sindh, NWFP, and Balochistan, in that order.
The grains and cereals segment dominates the market. According to the FAO, Cereal production had increased from 40.2 million metric ton in 2017 that increased to 42.5 million metric ton in 2020. Insect pests are the major cause of crop damage, yield, and quality reduction in Pakistan. The pest problem in the country has increased with the introduction of high-yielding and fertilizer responsive varieties, which prove susceptible to various pests.
Bayer, Syngenta, BASF, Evyol Group, and FMC Corporation are the leading players in the market.
The focus of the agricultural sector is to increase productivity and food security in the country. However, the country’s agricultural productivity has fluctuated over the years compared to neighboring regional economies. Cereal crops require a large number of agrochemicals in the country, particularly wheat, rice, and maize. In the case of vegetable crops, both herbicides and insecticides are used to protect major crops such as tomatoes, onions, chilis, peppers, etc., as they are the primary vegetables produced in the country. The pesticides are effective in combating pests and increasing the yield of fruits. The share of application of such agrochemical products on fruit crops is anticipated to increase in the future. It is anticipated that the agrochemicals market in Pakistan will continue to grow in the coming years, majorly due to the growing population, increasing focus on food security, increased investment in research and development, increase in need to enhance land productivity, and increase in farming income.
As per studies, cereal crops, especially wheat, rice, and maize, have contributed the highest to the overall demand for agrochemicals. Maximum demand for agrochemical products, such as pesticides, is generated by cereal crop growers in the country. According to the Food and Agriculture Organization, in 2020, the country showed an increase in the cultivation and production of grains and cereals, which accounted for the majority of the country’s production. In 2018, the total cereal production in the country was reported to be 39,658,364 metric ton which increased to 42,540,915 metric ton in 2020. This is anticipated to drive the demand for agrochemical products over the forecast period.
Wheat is Pakistan’s largest crop in terms of area sown and is grown under different agro-ecological zones. In irrigated areas, wheat is planted after cotton, rice, and sugarcane, while in rainfed areas, wheat is grown at the same time as maize and millet. Also, there is a heavy demand for animal protein sources in the country, and the demand for feed for poultry and cattle has driven the maize farmers to expand cultivation.
The shift of farmers away from cultivating cotton to cultivating rice during the Kharif/summer season is also significant and is attributable to the multiple problems (e.g., low-quality seed, pest problems, etc.) and lower profitability associated with Pakistan’s cotton crop. All these factors are driving the demand for agrochemicals for grains and cereal production.
The Pakistani agrochemical market is a consolidated market, with major players Bayer, Syngenta, BASF, Pakistan Agrochemicals Private Ltd, and FMC Corporation. The market is anticipated to be more consolidated in the future, as the major players in the market are expanding and investing in their businesses by adopting various strategies, such as mergers and acquisitions, expansions, partnerships, and product launches. The companies will majorly be seen as expanding and diversifying their crop protection chemical businesses by launching products with new ingredients.
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Due to the emergence of the COVID-19 pandemic, there has been a supply chain disruption as the agricultural sector had to face labor unavailability, transportation barriers, restriction on market access, and a lack of inventories in some regions. Many fertilizer and pesticide manufacturers have been facing issues due to a lack of raw material availability, which has led to the reduction of various agrochemical product manufacturing.
Some of the factors driving the Agrochemicals market in Pakistan include the adoption of sustainable farming technologies, increasing adoption of biobased agrochemicals, government subsidies, and the need for increased land productivity, among others.
The fertilizer segment is the largest agrochemical market in the country. Both indigenous and imported fertilizers are used to meet the country's fertilizer needs. There are 14 manufacturing units now in operation, with a total design capacity of 2, 233 metric ton of nitrogen and 239 thousand metric ton of P2O5. In Pakistan, fertilizer usage is influenced by location, weather (availability of water), costs, and the timely availability of various products. Punjab has the most agricultural land and, as a result, uses the most fertilizers, followed by Sindh, NWFP, and Balochistan, in that order.
The grains and cereals segment dominates the market. According to the FAO, Cereal production had increased from 40.2 million metric ton in 2017 that increased to 42.5 million metric ton in 2020. Insect pests are the major cause of crop damage, yield, and quality reduction in Pakistan. The pest problem in the country has increased with the introduction of high-yielding and fertilizer responsive varieties, which prove susceptible to various pests.
Bayer, Syngenta, BASF, Evyol Group, and FMC Corporation are the leading players in the market.
Key Market Trends
Need for Increased Land Productivity
The focus of the agricultural sector is to increase productivity and food security in the country. However, the country’s agricultural productivity has fluctuated over the years compared to neighboring regional economies. Cereal crops require a large number of agrochemicals in the country, particularly wheat, rice, and maize. In the case of vegetable crops, both herbicides and insecticides are used to protect major crops such as tomatoes, onions, chilis, peppers, etc., as they are the primary vegetables produced in the country. The pesticides are effective in combating pests and increasing the yield of fruits. The share of application of such agrochemical products on fruit crops is anticipated to increase in the future. It is anticipated that the agrochemicals market in Pakistan will continue to grow in the coming years, majorly due to the growing population, increasing focus on food security, increased investment in research and development, increase in need to enhance land productivity, and increase in farming income.
Grains and Cereals Dominate the Market
As per studies, cereal crops, especially wheat, rice, and maize, have contributed the highest to the overall demand for agrochemicals. Maximum demand for agrochemical products, such as pesticides, is generated by cereal crop growers in the country. According to the Food and Agriculture Organization, in 2020, the country showed an increase in the cultivation and production of grains and cereals, which accounted for the majority of the country’s production. In 2018, the total cereal production in the country was reported to be 39,658,364 metric ton which increased to 42,540,915 metric ton in 2020. This is anticipated to drive the demand for agrochemical products over the forecast period.
Wheat is Pakistan’s largest crop in terms of area sown and is grown under different agro-ecological zones. In irrigated areas, wheat is planted after cotton, rice, and sugarcane, while in rainfed areas, wheat is grown at the same time as maize and millet. Also, there is a heavy demand for animal protein sources in the country, and the demand for feed for poultry and cattle has driven the maize farmers to expand cultivation.
The shift of farmers away from cultivating cotton to cultivating rice during the Kharif/summer season is also significant and is attributable to the multiple problems (e.g., low-quality seed, pest problems, etc.) and lower profitability associated with Pakistan’s cotton crop. All these factors are driving the demand for agrochemicals for grains and cereal production.
Competitive Landscape
The Pakistani agrochemical market is a consolidated market, with major players Bayer, Syngenta, BASF, Pakistan Agrochemicals Private Ltd, and FMC Corporation. The market is anticipated to be more consolidated in the future, as the major players in the market are expanding and investing in their businesses by adopting various strategies, such as mergers and acquisitions, expansions, partnerships, and product launches. The companies will majorly be seen as expanding and diversifying their crop protection chemical businesses by launching products with new ingredients.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
8 Porter's Five Forces Analysis
9 MARKET SEGMENTATION
13 Company Profiles
Methodology
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