The Global Agrochemicals Market was valued at USD 203.3 Bn in 2020, and is expected to reach USD 275.9 Bn by 2027, expanding at a CAGR of 4.6% during the forecast period.
The rapidly increasing world population has risen the demand for food production and consequently driving the growth in the agrochemicals market. According to World Bank, the world population increased from 6.9 Bn in 2010 and reached 7.7 Bn in 2020. Therefore, to meet the food requirements of such a rapidly growing population, agrochemical products are widely being deployed in the agricultural sector. In addition, agrochemical products offer several benefits in the agricultural sector which also increasing the agrochemicals industry growth. Agrochemicals provide high yield and improved yield quality to crop production. In addition, they help in reducing crop loss by providing crop protection in the agriculture sector. These benefits help in increasing crop production and consequently meet the surging global demand for agricultural produce.
Moreover, increasing cultivable land area for the production of horticultural crops such as floricultural plants and fruits & vegetables is also an important factor boosting the sales of several agricultural chemicals. Further, agricultural growth in several emerging markets such as Latin America, the Middle East, and Africa is also contributing to the growth of agrochemicals market. Additionally, a strong focus of agrochemical manufacturers on product innovation is also expected to influence the market growth.
Despite such growth factors, rising environmental concerns relating to the excessive use of chemicals in agriculture are posing certain challenges in the growth of the agrochemicals market. Excessive use of agrochemical products results in contamination of water, air, soil and can lead to toxicity in humans. However, the increasing adoption of bio-fertilizers is providing growth opportunities in the agrochemicals market. Bio-fertilizers help in increasing the organic matter of the soil and serves as a low-cost and environment-friendly strategy for sustainable crop production.
Global Agrochemicals Market by Region Outlook (Revenue, USD Billion, 2021-2027)
Based on region, Asia-Pacific has dominated the agrochemicals market. This growth is majorly attributed to China and India which is the most populous country in the world. According to the World Bank, the population of these countries in 2020 stood at more than 1.4 billion and 1.3 billion respectively. Apart from this, other countries in the region including Japan, Indonesia, Singapore have also been experiencing a high population growth rate. The presence of such heavily populated nations in the region is increasing the need for food production. Therefore, to meet this high food demand, farmers in the region are increasingly using agrochemicals to improve crop yields and thereby positively impacting the agrochemicals industry growth. Additionally, the market is experiencing high growth due to the growing agro-based industries including textiles, sugar, animal husbandry, and vegetable oil manufacturing in many developing nations in the region.
The Global Agrochemicals Market Segmentation:
Global Agrochemicals Market by Product Type Outlook (Revenue, USD Billion, 2021-2027)
Global Agrochemicals Market by Application Outlook (Revenue, USD Billion, 2021-2027)
Company Profiles and Competitive Intelligence
The key players operating in the agrochemicals industry are: