According to the research reports by MRFR, the agrochemicals market is anticipated to register a healthy CAGR of over 4.50% during the assessment era. The report predicts that the market will attain a size of approximately USD 458.78 billion by the end of during the forecast 2021-2030.
Agrochemicals or agricultural chemicals refer to chemical products used in agriculture to support plant growth. The inorganic pesticides and fertilizers improve the crop's production. The primary function of agrochemicals is to manage the agricultural ecosystem, and the majority of these applications are used in agriculture. The global market for agrochemicals has registered enormous growth in the last few years. The market's growth is mainly credited to the rapid growth in the human population across the globe.
Furthermore, the factors such as scarcity of land and water, growing adoption of agrochemicals in developing countries, and advanced technologies in the agriculture sector are also anticipated to boost the market's growth over the forecasted era. Moreover, the growing effect of urbanization is also anticipated to catalyze the growth of the agrochemicals market over the coming years. On the other hand, the increasing environmental hazards from fertilizers and pesticides, growing usage of biofertilizers, and growing demand for organic food products are projected to impede the growth of the agrochemicals market over the coming years.
COVID-19 Analysis of Agrochemical Market
As the COVID-19 impacts the various sectors very badly, it shows a negative impact on the agrochemical market too for a while. Before the spread of the coronavirus, the crop protection sector, the agrochemical business is in high demand along with its increasing growth. For the benefits of the agrochemical products, most of the farmers are preferring in their farming to prevent the damaging of crops and to increase productivity.
But due to the spread of the COVID-19, the government has imposed the lockdown which leads to various disruptions to the agriculture sector like the supply chain disruptions, lack of labor, restriction for market access, transportation bans, and lack of inventories in some regions. Most of the fertilizer and pesticide manufacturers are also facing a lot of issues like shortage of raw materials and lack of manpower that results in the reduction of manufacturing agrochemical products. After the completion of lockdowns, the rules and regulations by the government are removed and the agricultural activities have normalized and they can deliver their products to their targets. Rapidly the growth towards the agrochemical global market increases.
Currently, the global population is more than 7 billion and is increasing more. The increasing population needs more production of crops during the review period. Apart, scarcity of land and water is also demanding that people use fertilizers and pesticides that help in growing multiple crops in certain areas which propel the growth of the agrochemical market. The growing adoption of agrochemicals in developing countries leads to boost the market growth. The advanced technologies in the agriculture sector may increase the growth. The increased effect of urbanization demands the farmers to use various agrochemicals as fertilizers and pesticides in farming for gaining land productivity and to maintain soil health.
Growing environmental hazards from fertilizers and pesticides may restrain the growth of the agrochemicals market during the assessment period. The growing demand for organic food products and rising usage of biofertilizers are hindering chemical fertilizers consumption and hence declines the market growth.
Owing to the overuse of land for agricultural productivity, the land may lose its nutrients which are important to the growth of the crop. Nitrogenous fertilizers can solve this problem and increases market growth. With increasing investments in the agricultural sector, there will be a chance to develop fertilizing technology to improve crop yield by avoiding the pest attack and diseases caused by them. These factors may have an opportunity to accelerate the agrochemical market growth.
The overuse of agrochemicals in farming causes environmental deterioration and is also a challenge to aquatic and terrestrial ecosystems.
Global Agrochemicals market segment fertilizers product, by type 2016, (%)
Agrochemical Market Research Report – Forecast to 2027
The global agrochemical market has been divided into segments based on type, product type, crop type, and region.
Based on Type
The global agrochemical market based on type is divided into two types as pesticides and fertilizers.
Based on Product Type
Based on the fertilizers product type, the agrochemical market is classified into three types as potassic, nitrogenous, and phosphatic. Out of these segments, nitrogenous fertilizers are expected to account for the largest share of their rising usage in farming. These are used in the production of ammonium nitrate and urea. These help in yield enhancement.
Based on the pesticides product type, the market is segmented into fungicides, insecticides, herbicides, and bio-pesticides. Among these pesticides, the herbicides segment is predicted to account for the significant share of its growing adoption across the world. As the lack of workers in the developing countries to hand weed fields, they are facing a lot of problems. Herbicides solve the problem of shortage of hand weeders and also increase crop yields.
Based on Crop Type
The agrochemical market by crop type is bifurcated into food grains, cash crops, plantation crops, and horticulture crops. Among them, the food grains segment is holding the largest agrochemical market share for the reason soil nutrient deficiencies may cause a reduction in yield production and less bioavailable nutrients in the crops like rice and other cereals. By using fertilizers, the rice crop yield increases and contains nutrients in harvested grains.
According to the report of the Food and Agriculture Organization of the United Nations, the production of cereal crops increases from 2000 to 2050 by 60%.
Based on Region
Regionally, the agrochemical market analysis is divided into Asia-Pacific, Europe, Latin America, North America, and the Middle East & Africa. Out of these regions, Asia-Pacific holds the significant market share for the presence of emerging economies like India and China which are highly subjected to farming and agro-based industries.
Globally, the agrochemical market region-wise is analyzed into Asia-Pacific, Latin America, North America, Europe, and the Middle East & Africa. Among these regions, Asia-Pacific is dominating the largest agrochemical market share for the presence of emerging economies like India and China which are mostly subjected to farming and agro-based industries and are highly populated for the food grain market. And is expected that the demand for food grains may accelerate the growth of the agrochemical global market in this region.
Moreover, these countries are the largest exporters and importers. The presence of the majority of the population in the Asia-Pacific region and the changing diet towards the globe are the major drivers to increase the growth in this region. The Middle East & Africa has emerged as the leading regions followed by Europe and North America. Due to the high consumption of bio-pesticides, growing food demand, and eco-friendly pesticides awareness, North America is anticipated to witness tremendous growth during the review period. Due to the growing expenditure in innovation and rising purchasing power of consumers, the demand for agrochemicals is expected to grow in various like Italy, Germany, Spain, France, U.K, and Russia.
The prominent key players in the agrochemical market trends are the following:
Globally, the agrochemical market research report includes the Market Overview, COVID-19 analysis, Market Dynamics, Study Objectives, Segment Overview, Regional Analysis, Competitive Landscape, Recent developments, Segmentation Table, and FAQs. The market scenario includes the agrochemical market drivers, restraints, challenges, and opportunities. The agrochemical global market forecast segments are type, product type, crop type, and region.
The agrochemical global market outlook has been segmented globally based on the type, product type, crop type, and region.
Pesticides and fertilizers.
By Product Type
By fertilizers, segments are potassic, nitrogenous, and phosphatic and by pesticides, the segments are fungicides, insecticides, herbicides, and bio-pesticides.
By Crop Type
Cash crops, plantation crops, food grains, and horticulture crops.
Asia-Pacific, Europe, North America, Latin America, and the Middle East & Africa are the four main geographies included in this market.
Frequently Asked Questions (FAQ) :
Agrochemicals Market is expected to garner a revenue of USD 458.78 billion by 2030
The Mosaic Company (US), Bayer CropScience Limited (Germany), The Dow Chemical Company (US), BASF SE (Germany), Monsanto Company (US), Syngenta AG (Switzerland), Adama Agricultural Solutions Ltd (Israel), Nufarm Limited (Australia), Arysta Lifescience Corporation (Japan), Crystal Crop Protection Pvt. Ltd. (India)