by Agrochemicals Market is Estimated to Witness Steady Growth Owing to Rising Concern for Crop Protection
The agrochemicals market has witnessed significant growth over the past few years owing to the rising need for crop protection agents across the globe. Agrochemicals are widely used in crop protection as pesticides, herbicides, and fungicides to protect crops from weeds, pests, diseases, and other threats. They play a vital role in boosting agricultural productivity and safeguarding crops from yield losses. Some of the commonly used agrochemical products include insecticides, weedicides, rodenticides, disinfectants, and others.
The Global agrochemicals market is estimated to be valued at US$ 81.27 Bn in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the agrochemicals market are ADAMA Ltd., Arysta Life Science, Bayer AG, Isagro Spa, K+S Aktiengesellschaft, Nufarm, Nutrien Ltd, OCI Nitrogen, Sociedad Quimica Y Minera De Chile, and The Mosaic Company among others. These players are focusing on new product launches and mergers & acquisitions to expand their global presence and services offerings. The increasing demand for high-value and specialty crops worldwide has opened new growth avenues for agrochemical manufacturers. Emerging markets in Asia Pacific and Latin America are expected to drive the global expansion of the agrochemicals market over the coming years.
Market Drivers
The rising population globally has increased the demand for food, boosting the need for agricultural productivity and crop protection. Agrochemicals play a vital role in protecting crops from pests, weeds, and diseases, enabling improved yields. The growing focus on integrated pest management and sustainable agricultural practices is also driving the demand for advanced agrochemical formulations. With rapid urbanization, the availability of arable land is declining. Agrochemicals help maximize crop yields from limited cultivable land areas, which is expected to support the growth of the market over the forecast period.
PEST Analysis
Political: The agrochemicals market is dependent on government policies and regulations concerning the usage and production of agrochemicals. Any changes in legislation regarding the levels of chemical residues allowed on food crops can impact market demand. Production quotas and import duties also influence market dynamics.
Economic: Fluctuations in crop prices and international trade agreements affect the purchasing power of farmers and their demand for agrochemicals. changes in macroeconomic factors like GDP growth, disposable incomes also determine the spending on food and agricultural production.
Social: Consumer awareness about health and environmental impacts of chemical usage in farming is a key factor. Shift to organic farming and sustainable practices change the social preference for agrochemicals.
Technological: Advancements in biopesticides and other natural farming methods provide alternatives and competition to conventional agrochemicals. Precision farming technologies help maximize yields while minimizing chemical inputs.
Among regions, North America accounts for the largest share of the global agrochemicals market in terms of value currently due to large agricultural lands and production of key crops. The Asia Pacific region is projected to be the fastest growing market during the forecast period with increasing cultivation and use of high-value crops supported by favorable policies and investments in the agriculture sector across nations like India and China.
India stands out as one of the fastest expanding markets for agrochemicals globally due to the substantial size of its agricultural industry and farmer population and ongoing initiatives to boost agricultural productivity and outputs through increased use of inputs. India is aiming to raise its overall crop yields and production of food grains, horticulture crops through intensive farming practices which will spur demand for agrochemicals in the coming years.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
