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.
Agrochemicals are chemical products that are specifically designed for use in agriculture. They include pesticides, herbicides, and fertilizers that help in improving crop productivity and protecting crops from insects, pests, fungi, weeds, and others. Agrochemicals can be produced in both, biological as well as chemical methods.
The global agrochemicals market is majorly driven by the increasing gap between food production and consumption due to the increasing population. The report “The State of Food Security and Nutrition in the world 2020” published by WHO in partnership with the World Food Programme, UNICEF, International Fund for Agricultural Development, and Food and Agriculture Organization of the United Nation states that 690 Mn people around the world are hungry and would surpass 840 Mn by 2030. In addition, the report also shows that in 2019, nearly 750 Mn people across the globe suffered from severe levels of food insecurity. To overcome such a high hunger rate, there has been an urgent need to increase the production and supply of healthy and nutritious food across the globe. Agrochemical products such as fertilizers, pesticides, adjuvants, etc. immensely help in raising crop production and meeting the demand for food. They help to improve crop growth by killing the damaging insects, weeds, pests, and diseases that have a major impact on crop production. Therefore, the growing demand for food production is expected to bloom demand in the global agrochemicals market.
Moreover, decreasing arable land due to rapid industrialization and urbanization is also contributing to majorly driving the market growth. Also, the rising demand for crops for the use of fiber and animal fodder in the textile industry is also paving a path for the growth of the agrochemical industry. Further, increasing awareness relating to the benefits of agrochemicals is also expected to bolster the adoption of agrochemicals throughout the forecast period.
By Product Type
The unique insight provided by this report also includes the following:
Based on product type, the fertilizers segment has dominated the agrochemicals industry across the globe due to several benefits offered by fertilizers in the agricultural sector
Based on product type, the agrochemicals market is segmented as fertilizer, pesticide, and others. Among these, the fertilizers segment has dominated the agrochemicals market across the globe. This dominance is due to several benefits offered by fertilizers in the agricultural sector. Fertilizers play a crucial role in providing crops with the nutrients that are needed for their growth and harvest for nutritious food. The presence of phosphorous in the fertilizers enables faster root development and seed formation in plants. Nitrogen in the fertilizers enhances the growth of the plants which can be characterized by the green colour of the plants. Apart from this, fertilizers immensely contribute to increasing the water holding capacity of the plants and improves root depth. Further, fertilizers help in improving the tolerance of plants towards pests, thus reducing their reliance on herbicides and insecticides and thereby, producing healthier crops. This consequently results in a reduction in the number of diseases and providing aesthetic value to the crops. Owing to these benefits, there has been increasing deployment of fertilizers in the agricultural sector, which is thereby influencing the agrochemicals market growth.
Based on application, the crop-based segment has held the largest share in the agrochemicals market due to the rising population and increasing food requirements across the globe
Based on application, the agrochemicals industry is segmented as crop-based and non-crop-based. The crop-based segment has held the largest share in the market. The growth of this segment is majorly attributed to the rising population and increasing food requirements across the globe. Agrochemicals play an important role in the growth of crops, exhibiting better performance and noticeable results. Agrochemicals such as fertilizers and pesticides help farmers to produce safe and quality foods at affordable prices. They also enable farmers to offer an abundance of nutritious food all year round, which is crucial for human health. For instance, fruits and vegetables that provide essential nutrients to the human body are more abundantly and affordably available with the use of these agrochemicals. Similarly, grains and cereals which are vital in the overall growth and development of a child are more widely available due to the application of agrochemicals.
Based on regions, the Asia-Pacific region has dominated the global agrochemicals market due to high population growth in the region
Based on region, the agrochemicals market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East & Africa. Among these, the Asia-Pacific region has dominated the global agrochemicals industry and is expected to hold a constant position during the forecast period. This is because Asia-pacific is the most populous region in the world. According to World Population Review, the Asia Pacific region accounted for approximately 60% of the world population and nearly 30% of the land available on Earth. Therefore, to meet the food requirement of such huge population, the use of agrochemicals has increased significantly in the region. Further, Japan, India, Australia, China, and Thailand are the highest agrochemicals consuming nations in the world and are thus contributing in driving the market growth. In addition, a decrease in arable land per person in major countries in the region such as India and China are also increasing the need for agrochemicals to improve crop yield and thereby positively impacting the agrochemicals industry.
The report also provides an in-depth analysis of Agrochemicals market dynamics such as drivers, restraints, opportunities and challenges
The Covid-19 pandemic has majorly impacted the world economy and forced many nations to impose lockdown. This has negatively affected cross-border trade among many nations and disrupted the supply chain of raw materials. Due to this, many pesticide and fertilizer manufacturers have faced challenges due to lack of raw material availability, which has resulted in the reduction of several agrochemical product manufacturing. However, post lockdown, the supply chain of raw materials has again gained traction which has helped the companies to manufacture and deliver agrochemical products to target locations.
The report also provides an in-depth analysis of key trends in agrochemicals market
The report also provides in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the agrochemicals market are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.