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Agrochemicals Market - Global Industry Size, Share, Trends Opportunity, and Forecast, 2028F

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  • 178 Pages
  • October 2023
  • Region: Global
  • TechSci Research
  • ID: 5900049
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Global Agrochemicals Market Has Valued at USD 221.18 Billion in 2022 and is Anticipated to Project Robust Growth in the Forecast Period with a CAGR of 3.24% Through 2028

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Global Agrochemicals Market has valued at USD 221.18 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 3.24% through 2028 The global agrochemicals market is a dynamic and critical component of the agricultural industry, encompassing a wide range of chemical products designed to enhance crop yield and protect against pests, diseases, and weeds. As of my last knowledge update in September 2021, this market was undergoing significant transformations driven by various factors, including population growth, changing dietary preferences, and the need to maximize agricultural productivity while minimizing environmental impact.

One of the key drivers of the global agrochemicals market is the ever-increasing global population, which demands a consistent and efficient food supply. To meet this growing demand, farmers rely on agrochemicals to increase crop yields and ensure food security. Additionally, the adoption of modern farming practices, such as precision agriculture and genetically modified crops, has further fueled the demand for agrochemicals to optimize production.

However, the market has faced challenges related to environmental sustainability and public health concerns. Pesticides, herbicides, and fertilizers can have adverse effects on the environment, including soil degradation, water pollution, and harm to non-target organisms. Consequently, there has been a growing emphasis on the development of sustainable and eco-friendly agrochemical solutions, including biopesticides and organic fertilizers.

Furthermore, stringent regulations and increasing consumer awareness have pushed agrochemical companies to invest in research and development to create safer and more effective products. The industry has witnessed a shift towards integrated pest management (IPM) and precision application techniques to reduce chemical usage while maintaining crop quality.

Key Market Drivers

Rising Global Population and Food Demand

The rising global population and its insatiable demand for food are primary drivers behind the robust growth of the global agrochemicals market. With the world's population surpassing 7.8 billion people and projections estimating it to reach 9.7 billion by 2050, the pressure on agriculture to meet this burgeoning demand has never been greater. To feed this expanding populace, farmers must maximize crop production on limited arable land.

Agrochemicals, comprising fertilizers, pesticides, and herbicides, have become indispensable tools in achieving this goal. Fertilizers provide essential nutrients to crops, enhancing their growth and yield. Pesticides and herbicides protect crops from pests, diseases, and weeds, reducing yield losses and ensuring a stable food supply. These agrochemicals have revolutionized agriculture by allowing farmers to achieve higher yields per hectare, effectively bridging the gap between food demand and supply.

The global food industry is intricately linked to the agrochemicals market, as it relies on a consistent and abundant supply of raw agricultural products. Whether it's grains, fruits, vegetables, or livestock feed, the agricultural sector's ability to meet the world's dietary needs hinges on the effective use of agrochemicals. As emerging markets continue to urbanize and dietary preferences evolve, the demand for processed foods and high-value crops like fruits and vegetables is on the rise. This shift further intensifies the pressure on agriculture to produce more with limited resources.

Moreover, the connection between rising global population, food demand, and the agrochemicals market extends to the need for sustainability. As the world population grows, it becomes increasingly vital to produce food in a manner that minimizes environmental impact. Sustainable agriculture practices, often facilitated by the responsible use of agrochemicals, aim to strike a balance between meeting food demand and preserving the ecosystem.

Adoption of Modern Farming Practices

The adoption of modern farming practices is a significant catalyst driving the growth of the global agrochemicals market. In an era where agriculture faces the daunting challenge of feeding a rapidly growing global population, modern farming techniques and technologies have become indispensable tools for optimizing crop production and ensuring food security.

One of the cornerstones of modern agriculture is precision farming, which harnesses data, technology, and advanced machinery to make informed decisions about crop management. Farmers are increasingly using tools like satellite imagery, drones, GPS-guided equipment, and soil sensors to fine-tune their agricultural practices. These technologies enable precise and efficient application of agrochemicals, ensuring that fertilizers, pesticides, and herbicides are used judiciously and in the right quantities. As a result, modern farmers can maximize yields while minimizing waste, making agrochemicals a critical component of their strategies.

Genetically modified (GM) crops, engineered to resist pests, diseases, or tolerate specific herbicides, represent another facet of modern farming. These crops require specific agrochemicals to complement their genetic traits, further boosting the demand for agrochemical products. For instance, herbicide-tolerant crops allow farmers to use specific herbicides that target weeds without harming the crops, offering a precise and effective weed control solution.

Additionally, modern farming practices are closely tied to the concept of sustainability. As concerns about the environmental impact of agriculture grow, many farmers are adopting more eco-friendly approaches. Agrochemical manufacturers are responding by developing sustainable products that align with these practices. Biopesticides, organic fertilizers, and integrated pest management (IPM) strategies are gaining traction as alternatives to traditional agrochemicals, catering to the demand for environmentally responsible farming.

Technological Advancements and Innovation

Technological advancements and innovation have emerged as powerful drivers behind the growth of the global agrochemicals market. In the quest to address the ever-increasing demand for food, feed, and fiber, the agricultural sector is undergoing a profound transformation, and technology is at the forefront of this revolution.

One of the most significant contributions of technology to the agrochemicals market is the development of more effective and environmentally friendly products. Agrochemical companies are investing heavily in research and development to create innovative solutions that enhance crop protection and yield without causing undue harm to the environment. Nanotechnology, for example, has led to the creation of nanopesticides that offer improved targeting and reduced environmental impact, as they can deliver active ingredients more precisely to the intended pests or diseases.

Digital tools and artificial intelligence (AI) are also playing a pivotal role in shaping the agrochemicals landscape. Precision agriculture, driven by these technologies, enables farmers to make data-driven decisions regarding the application of agrochemicals. Satellite imagery, drones, soil sensors, and GPS-guided machinery provide farmers with real-time insights into their fields, allowing for optimized application of fertilizers, pesticides, and herbicides. This not only increases efficiency but also reduces waste and minimizes the environmental footprint of agriculture.

Furthermore, biotechnology and genetic engineering have revolutionized crop breeding and protection. Genetically modified (GM) crops engineered to resist pests, diseases, or herbicides have become integral to modern agriculture. These crops often require specific agrochemicals to complement their genetic traits, further stimulating demand in the market. The innovation in crop genetics, along with agrochemical innovation, forms a powerful synergy that enhances agricultural productivity.

Additionally, the development of integrated pest management (IPM) systems is a testament to technological advancement's impact on the agrochemicals market. IPM combines various pest control methods, including the use of biological agents, beneficial insects, and judicious agrochemical application. It reduces the reliance on chemical pesticides while promoting more sustainable and eco-friendly farming practices.

Key Market Challenges

Environmental Concerns

Environmental concerns are a pressing challenge that has been hindering the global agrochemicals market. While agrochemicals play a pivotal role in boosting agricultural productivity and ensuring food security, their widespread use has raised alarm bells regarding their impact on the environment.

One of the primary environmental concerns associated with agrochemicals is water pollution. Runoff from fields treated with pesticides, herbicides, and chemical fertilizers can carry these substances into nearby water bodies, including rivers, lakes, and groundwater reservoirs. This contamination poses a significant risk to aquatic ecosystems, harming aquatic life and affecting the quality of water available for human consumption. Chemical residues in water bodies can disrupt the balance of ecosystems, potentially leading to long-term environmental damage.

Moreover, agrochemicals can have a detrimental impact on non-target organisms.Soil health is another crucial environmental concern. The excessive and persistent use of chemical fertilizers can lead to soil degradation, nutrient imbalances, and reduced soil fertility. Soil erosion and compaction are also exacerbated by certain agricultural practices associated with agrochemical use. Healthy soil is essential for sustaining crop productivity and preserving the long-term viability of agricultural land.

The long-lasting nature of some agrochemical residues compounds environmental concerns. Persistent organic pollutants (POPs), which include some older pesticides, can persist in the environment for extended periods, leading to bioaccumulation in the food chain. This not only affects wildlife but can also have indirect consequences on human health when contaminated food products are consumed.

Pesticide Resistance

Pesticide resistance has emerged as a formidable challenge in the global agrochemicals market, posing significant obstacles to sustainable agriculture. Pesticides, once hailed as essential tools for controlling pests and ensuring crop yield, are losing their efficacy due to the relentless evolution of resistance among pest populations.

The phenomenon of pesticide resistance occurs when pests, such as insects, fungi, or weeds, develop genetic adaptations that render them less susceptible or entirely immune to the effects of chemical pesticides. This resistance often arises from repeated exposure to the same pesticides over time. As a result, the pests that survive pesticide applications pass on their resistant traits to their offspring, leading to a growing population of pesticide-resistant individuals.

Pesticide resistance undermines the effectiveness of these chemical solutions, rendering them increasingly impotent in controlling agricultural pests. Farmers are forced to use larger quantities of pesticides or switch to more potent, often more environmentally harmful chemicals, which can exacerbate the environmental and health concerns associated with agrochemical use.

One of the key reasons for pesticide resistance is the overreliance on a limited number of chemical pesticides. In many cases, a single pesticide or class of pesticides becomes the primary tool for pest control, creating strong selective pressure on pest populations. As a result, pests with innate resistance traits have a survival advantage and can proliferate, diminishing the overall effectiveness of the chemical control method.

Pesticide resistance also poses economic challenges for farmers. As pests become increasingly resistant to chemical treatments, farmers experience reduced crop yields and quality, leading to financial losses. The need to invest in additional pesticides or alternative pest control measures adds to production costs and reduces profitability.

Key Market Trends

Biological and Biopesticide Solutions

Biological and biopesticide solutions have emerged as potent drivers of growth in the global agrochemicals market. As the agriculture industry grapples with increasing pressure to adopt sustainable and environmentally friendly practices, these innovative solutions have gained significant traction. Biopesticides, derived from naturally occurring microorganisms, plants, or other biological sources, offer a safer and more eco-friendly alternative to traditional chemical pesticides. They target specific pests with precision, leaving non-target organisms unharmed and minimizing collateral damage to the environment. This precision and reduced environmental impact align with the growing consumer demand for sustainable agriculture, driving the adoption of biopesticides.

Biological solutions are particularly attractive to farmers seeking to minimize the chemical residues left on their crops, thereby improving food safety and meeting stringent regulatory standards. As consumers become increasingly conscious of pesticide residues in their food, the demand for biopesticides is poised to grow further.

Furthermore, the trend towards organic farming practices has fueled the adoption of biological and biopesticide solutions. Organic farming prohibits the use of synthetic chemicals, making biopesticides a valuable tool for pest management in these systems. Biopesticides are certified for use in organic farming and provide an effective means of protecting organic crops from pests and diseases.

The development and commercialization of biopesticides have become a focal point for agrochemical companies, spurring innovation and investment in this sector. As research continues to uncover new strains of beneficial microorganisms and innovative methods of pest control, the biopesticide market is expected to expand, contributing to the overall growth of the agrochemicals industry.

Genetically Modified (GM) Crops

Genetically Modified (GM) crops have emerged as a powerful driver of growth in the global agrochemicals market. These crops, engineered through biotechnology to possess specific traits such as resistance to pests, diseases, or tolerance to herbicides, have revolutionized modern agriculture in several ways.

GM crops reduce the need for chemical pesticides. By incorporating pest resistance genes, GM crops can withstand attacks from specific insects or pathogens, significantly decreasing the reliance on chemical pesticides for pest control. This not only reduces the environmental impact associated with pesticide applications but also alleviates the financial burden on farmers.

Herbicide-tolerant GM crops have similarly transformed weed management in agriculture. Farmers can use specific herbicides that target weeds without harming the GM crops, allowing for more efficient and selective weed control. This targeted approach minimizes the overall usage of herbicides, contributing to reduced chemical runoff and associated environmental concerns.

The adoption of GM crops has also spurred the development of complementary agrochemical products. Agrochemical companies have formulated specific pesticides and herbicides designed to enhance the performance of GM crops. These agrochemicals are tailored to work synergistically with the genetically modified traits of the crops, maximizing their effectiveness and yield potential.

Moreover, GM crops have extended the range of crops that can be cultivated in various regions and under adverse conditions. Drought-tolerant GM crops, for example, enable farming in arid regions where water scarcity is a significant challenge. In such cases, agrochemical companies may develop specialized agrochemical solutions to optimize the performance of these drought-resistant crops.

The global adoption of GM crops continues to grow, with millions of hectares of GM crops planted each year. This expansion drives the demand for associated agrochemicals, benefiting the agrochemicals market.

Segmental Insights

Product Insights

Based on the Product, fertilizer emerged as the dominant segment in the global market for Global Agrochemicals Market in 2022. Fertilizers address a fundamental need in agriculture - the provision of essential nutrients to crops. With the ever-increasing global population and the consequent need for enhanced food production, the demand for fertilizers remains consistently high. Fertilizers cater to a wide range of crops, including cereals, grains, fruits, vegetables, and more. Their versatility makes them indispensable in diverse agricultural practices and geographical regions, further contributing to their dominance.

Application Insights

Based on the Application, the Cereals & Grains segment emerged as the dominant player in the global market for Global Agrochemicals Market in 2022. cereals and grains, such as rice, wheat, maize, and barley, serve as staple foods for billions of people around the world. These crops form the foundation of diets in many countries and provide a significant portion of daily calorie intake. The demand for high yields and quality in cereal and grain production is therefore consistently high.

Cereals and grains are typically high-yield crops, making them crucial for meeting the food demands of a growing global population. Agrochemicals, including fertilizers, pesticides, and herbicides, play a vital role in optimizing yields and protecting these crops from pests, diseases, and weeds.

Regional Insights

Asia-pacific emerged as the dominant player in the global Agrochemicals Market in 2022, holding the largest market share. Asia-Pacific is home to a substantial portion of the world's population, and the region faces increasing food demand due to population growth and changing dietary preferences. This necessitates higher agricultural productivity and, consequently, a greater demand for agrochemicals to optimize crop yields.The region boasts diverse agricultural landscapes, encompassing a wide range of crops, from staple grains like rice and wheat to cash crops like tea, coffee, and sugarcane. This diversity creates a robust market for various agrochemical products tailored to different crop types and cultivation practices.

Report Scope:

In this report, the Global Agrochemicals Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Global Agrochemicals Market, By Product:

  • Fertilizers
  • Crop Protection Chemicals
  • Plant Growth Regulators
  • Others

Global Agrochemicals Market, By Application:

  • Cereals & Grains
  • Oilseeds & Pulses
  • Fruits & Vegetable
  • Others

Global Agrochemicals Market, By Region:

  • North America
  • United States
  • Canada
  • Mexico
  • Europe
  • France
  • United Kingdom
  • Italy
  • Germany
  • Spain
  • Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • South America
  • Brazil
  • Argentina
  • Colombia
  • Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Kuwait
  • Turkey
  • Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Agrochemicals Market.

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Table of Contents

1. Product Overview
1.1. Market Definition
1.2. Scope of the Market
1.2.1. Markets Covered
1.2.2. Years Considered for Study
1.2.3. Key Market Segmentations
2. Research Methodology
2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations
3. Executive Summary
3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends
4. Global Agrochemicals Market Outlook
4.1. Market Size & Forecast
4.1.1. By Value
4.2. Market Share & Forecast
4.2.1. By Product (Fertilizers, Crop Protection Chemicals, Plant Growth Regulators, Others)
4.2.2. By Application (Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetable, Others)
4.2.3. By Region
4.2.4. By Company (2022)
4.3. Market Map
4.3.1. By Product
4.3.2. By Application
4.3.3. By Region
5. Asia Pacific Agrochemicals Market Outlook
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Product
5.2.2. By Application
5.2.3. By Country
5.3. Asia Pacific: Country Analysis
5.3.1. China Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
5.3.2. India Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
5.3.3. Australia Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
5.3.4. Japan Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
5.3.5. South Korea Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
6. Europe Agrochemicals Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Product
6.2.2. By Application
6.2.3. By Country
6.3. Europe: Country Analysis
6.3.1. France Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
6.3.2. Germany Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
6.3.3. Spain Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
6.3.4. Italy Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
6.3.5. United Kingdom Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
7. North America Agrochemicals Market Outlook
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Product
7.2.2. By Application
7.2.3. By Country
7.3. North America: Country Analysis
7.3.1. United States Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
7.3.2. Mexico Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
7.3.3. Canada Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
8. South America Agrochemicals Market Outlook
8.1. Market Size & Forecast
8.1.1. By Value
8.2. Market Share & Forecast
8.2.1. By Product
8.2.2. By Application
8.2.3. By Country
8.3. South America: Country Analysis
8.3.1. Brazil Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
8.3.2. Argentina Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
8.3.3. Colombia Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
9. Middle East and Africa Agrochemicals Market Outlook
9.1. Market Size & Forecast
9.1.1. By Value
9.2. Market Share & Forecast
9.2.1. By Product
9.2.2. By Application
9.2.3. By Country
9.3. MEA: Country Analysis
9.3.1. South Africa Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
9.3.2. Saudi Arabia Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
9.3.3. UAE Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
9.3.4. Egypt Agrochemicals Market Outlook Market Size & Forecast By Value Market Share & Forecast By Product By Application
10. Market Dynamics
10.1. Drivers
10.2. Challenges
11. Market Trends & Developments
11.1. Recent Developments
11.2. Product Launches
11.3. Mergers & Acquisitions
12. Global Agrochemicals Market: SWOT Analysis
13. Porter’s Five Forces Analysis
13.1. Competition in the Industry
13.2. Potential of New Entrants
13.3. Power of Suppliers
13.4. Power of Customers
13.5. Threat of Substitute Product
14. Competitive Landscape
14.1. Solvay SA
14.1.1. Business Overview
14.1.2. Company Snapshot
14.1.3. Products & Services
14.1.4. Current Capacity Analysis
14.1.5. Financials (In case of listed)
14.1.6. Recent Developments
14.1.7. SWOT Analysis
14.2. Dow Inc.
14.3. Huntsman International LLC
14.4. Evonik Industries AG
14.5. BASF SE
14.6. Bayer AG
14.7. Nufarm Limited
14.8. Croda International Plc
14.9. Helena Agri-Enterprises, LLC
14.10. FMC Corporation
15. Strategic Recommendations16. About the Publisher & Disclaimer

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Solvay SA
  • Dow Inc.
  • Huntsman International LLC
  • Evonik Industries AG
  • Bayer AG
  • Nufarm Limited
  • Croda International Plc
  • Helena Agri-Enterprises, LLC
  • FMC Corporation

Table Information