Agrochemicals Market

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The Global Agrochemicals Market is valued at USD 221.5 Billion in 2021 and is projected to reach a value of USD 264.4 Billion by 2028 at a CAGR of 3% over the forecast period.

Agrochemical production and supply have been impacted by COVID-19. The global pandemic affected many industries, including the Agrochemicals Market. A short-term lack of migrant laborers and distribution bottlenecks caused a large disparity between the number of workers needed to produce Agrochemicals and those available. During the pandemic, manpower shortages in large-scale plantations impacted agricultural yield and agrochemical use. Global population and income are changing consumption patterns. FAO predicts 9 billion people by 2050. Food is needed to feed the growing population. According to FAO, pests and illness destroy roughly 40% of crops worldwide. The overall pesticide market is expected to grow at a CAGR of 5.6% from 2021 to 2025.

Crop protection chemicals will rise to address these issues and boost yield. Plants need nutrients to grow and produce. Crops and soil affect nutrient requirements. Chemicals meet these nutrient needs. Urea adds 46% nitrogen to the soil, while organic fertilizers like neem cake add 2–5% nitrogen, which plants need to grow. Production must rise to fulfill demand and suit the nutritional needs of an increasingly affluent population. The wastage from shrinking arable land and pest invasions threatens food and nutritional security.

Agrochemicals improve agricultural yield. These boost market growth. The European Union has also announced plans to introduce new agricultural chemical regulations in 2021. This new regulation would require companies selling organic products in the EU to disclose all ingredients. This disclosure requirement aims to ensure that consumers can make informed decisions about which agrichemicals to buy.

The growing awareness about the importance of chemical fertilizers and pesticides in crop production also contributes to market growth. The European Union (EU) is expected to be the fastest-growing agrochemical market region, with a growth rate of 6%. Some key restraints hampering the market growth are the high cost of raw materials and stringent regulations. Market factors restraining the growth of the global agrochemical market include: 1) Rising demand for natural pesticides and herbicides due to changing environmental regulations and rising concerns over food safety. The growth of the Global Agrochemicals Market includes restrictions on production in major developed countries due to environmental concerns and regulations. Additionally, increasing awareness about the adverse effects of Agrochemicals on human health is also restraining the growth of the Global Agrochemicals Market. 2) Declining crop yields due to increased use of chemical fertilizers and water scarcity. 3) Growing appreciation for sustainable agricultural practices. 4) Restrictions on exports owing to regional security issues.

Major Contributions to the Agriculture Sector

The growth in the Agrochemicals Market is attributed to increasing mechanization, farmers’ rising incomes, and food security. The worldwide demand for crop protection products results from increased mechanization, farmers' rising incomes, and food security. Crop pests and diseases are becoming increasingly resistant to traditional agricultural inputs such as pesticides and herbicides. These inputs have led to an increase in the use of Agrochemicals, which have provided relief from pest infestations. Many farmers now use Agrochemicals to treat their crops before selling them to make them resistant to insects or diseases. This leads to considerable environmental damage, as these chemicals can pollute water supplies or damage soil fertility. Agrochemicals also significantly impact human health, with exposure leading to illnesses such as cancer.

Top Market Trends

The top market trends expected to drive the growth of the agrochemical market include an increase in demand for biopesticides, the development of green chemistry, and the adoption of precision agriculture technologies.

• Growing focus on organic farming
• Expansion of biocides
• Development of novel pesticides
• Growth in the use of herbicides
• Increased demand for crop protection products in emerging economies
• Advances in plant breeding and genetic engineering
• Increasing incidence of pests and diseases
• Additionally, agrochemical expenditures are rising in these countries as farmers seek to maximize profits.
• The proliferation of counterfeit products. The impact of counterfeiting on the Global Agrochemicals Market is significant. Not only does it compromise the quality of products sold, but it also drives up prices and reduces consumer trust in these chemicals.

Market Segmentation

The Global Agrochemicals Market is segmented based on Fertilizer Type, Pesticide Type, Crop Type, and Region. Based on the Fertilizer Type, the market is classified into Nitrogen Fertilizer, Phosphatic Fertilizer, and Potassic Fertilizer. Based on Pesticide Type, the market is segmented into Fungicides, Herbicides, Insecticides, and Other Pesticide Types. Based on Crop Type, the market is segmented into Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables, and Other Crop Types. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Fertilizer Type

Nitrogen fertilizer is the most popular type of fertilizer in the world. The demand for this type of fertilizer is expected to grow at the highest rate during the forecast period. This is due to the increasing agricultural sector in developing countries, which depends on nitrogen fertilizer for crop production. Phosphatic fertilizer is another highly consumed type of fertilizer. This category is expected to witness high growth owing to rising demand from sectors such as mining and manufacturing. Moreover, the increased uptake of bioproducts and green manure crops is contributing to the growth of this market segment. Potassic fertilizers are expected to witness moderate growth during the forecast period owing to constraints arising from environmental issues such as water scarcity.

Based on Pesticide Type

Fungicides are expected to account for the largest share of the Agrochemicals Market during the forecast period. This is mainly because of the increasing awareness about fungal diseases and the need to control them effectively. The growth in herbicides is also attributed to their effectiveness in controlling weeds and other plant pests. In contrast, infestation control products are expected to grow slower due to limited demand from growers for this type of product. The global agricultural markets have been witnessing an increase in demand for insecticides and nematicides over the past few years owing to increased incidence of insect pests such as Lepidoptera, thrips, and whitefly across different crops. This trend is likely to continue in the future as well, owing to increasing incidences of such pests across different parts of the world.

Based on Crop Type

Cereals and grains will account for the largest share of the overall Agrochemicals Market due to their high demand from the animal feed industry. The cereals & grains segment is expected to grow at a CAGR of 7.5% from 2021 to 2028. The oilseeds & pulses segment is expected to grow at a CAGR of 6% during the same period. This is primarily due to growing demand from developing countries such as China and India. The increase in demand for oilseeds and pulses will drive the growth of this market segment during the forecast period. The growth in the fruits and vegetable market is mainly attributable to increasing consumer preference for healthy foods. The others segment is expected to be the smallest segment in the Agrochemicals Market during the forecast period.

Based on Region

The North American market is projected to grow at the highest rate during the forecast period due to increasing demand from the landscaping and agricultural sectors. In Europe, the market is anticipated to grow slower owing to stringent environmental regulations and increasing concerns about chemical safety. The Asia Pacific market is projected to register the highest CAGR during the forecast period due to increasing economic growth in key countries such as China and India. The Latin American market is expected to grow at a comparatively slower rate owing to higher costs associated with biotechnology products. The Middle East & Africa market is projected to experience significant growth owing to increased agrochemical demand in emerging economies such as South Africa and Nigeria.

Competitive Landscape

The key players in the Global Agrochemicals Market include- Clariant AG (Switzerland), BASF SE (Germany), Huntsman International LLC (US), Bayer AG (Germany), The DOW Chemical Company (US), Solvay (Belgium), Nufarm (Australia), Evonik Industries AG (Germany), Croda International PLC (UK), Helena Agri-Enterprises LLC (US), Ashland Inc. (US), Land O’ Lakes Inc. (US), FMC Corp. (US), ADAMA Ltd. (Israel), Stepan Company (US) and others.

Recent Developments

• Adama's Timeline® FX, a cutting-edge, broad-spectrum spring foliar herbicide for cereals, was introduced in February 2022. It has the widest application window of any herbicide for suppressing broadleaf and grass weeds in cereal crops because it is formulated with three active components, complementary modes of action, and a built-in adjuvant.
• Commercial terms for introducing fossil fuel–free fertilizers to the market were agreed upon in January 2022 by Yara and Lantmännen. As a result of the firms' efforts to work together, a commercial contract was signed in which Yara would make green fertilizers, and Lantmännen would market them in Sweden beginning in 2023.
• Corteva Agriscience's UtrishaTM N nutrient efficiency optimizer, part of the company's biologicals portfolio, was released in Europe in November 2021.2 This product will assist the company in satisfying the demand for more environmentally friendly crop protection options. UtrishaTM N can fertilize actively growing plants with more nitrogen as an alternate nitrogen source.
• Monsanto Company launched three new products: XtendiMax TM3 herbicide, Roundup Ready 2 Yield® soybean cultivars, and Farmer John Roundup Ready 3 Yield® corn.
• The U.S. Environmental Protection Agency (EPA) is undertaking several initiatives to reduce greenhouse gas emissions from industrial plants. These initiatives include regulatory changes related to air pollution control, renewable fuel standards, and energy efficiency measures. In addition, China is promoting green chemistry to improve environmental conditions and increase domestic production capabilities in the synthetic chemicals sectors.

Segmentation of the Global Agrochemicals Market