Agrochemicals Market Size 2024-2028

The agrochemicals market size is forecast to increase by USD 51.2 million at a CAGR of 4.51% between 2023 and 2028.  The market is experiencing significant growth due to several key factors. Firstly, the increasing use of herbicides to control pests and weeds is driving demand. Secondly, there is a growing demand from developing countries as they modernize their agricultural practices. Lastly, technological improvements are leading to more efficient methods of agriculture, enabling larger-scale production and reducing the need for manual labor. These trends are expected to continue, making the agrochemicals industry a promising area for investment. Key players in this market include Syngenta, BASF, and Corteva Agriscience. The market size, historical data (2018-2022), and future forecasts are presented in terms of value (in USD billion/million) for all these mentioned segments.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics

The market encompasses a range of products, including Pesticides, Herbicides, Fertilizers, and their subcategories such as Nitrogen fertilizer, Phosphatic fertilizer, Potassic fertilizer, Fungicides, and Insecticides. These agrochemicals play a crucial role in the agricultural sectors, enhancing crop yields and protecting crops from agricultural pests. Agrochemicals are also essential for optimizing production of palm oil, as they enhance crop yield and manage pests, ensuring the efficiency and sustainability of palm oil plantations. The market includes both Organic and Inorganic fertilizers, with Nitrogenous fertilizers being a significant segment. The use of agrochemicals extends to various crops like Cereals and grains, Oilseeds and pulses, Fruits and vegetables, and even in Animal husbandry for Animal feed production. The market is influenced by factors such as Arable lands availability, Urbanization, and Industrialization. Fertigation, the process of applying fertilizers directly to the soil through irrigation systems, is also a growing trend in the market. Anhydrous ammonia and other Nitrogen fertilizers are commonly used in this process.

Key Market Driver

The increasing use of herbicides is the key factor driving the market growth. The market encompasses the use of Pesticides, Herbicides, Fertilizers, and other related products in agricultural sectors. Herbicides, a subset of Pesticides, are essential for managing agricultural pests and enhancing crop yields. Modern Herbicides are designed to decompose swiftly, ensuring eco-friendliness. Fertilizers, including Nitrogen fertilizer, Phosphatic fertilizer, and Potassic fertilizer, are integral to crop growth.

Furthermore, Fungicides, Insecticides, and other Crop protection chemicals safeguard crops from pest attacks. Cereals and grains, Oilseeds and pulses, Fruits and vegetables, and other crops benefit from these Agrochemicals. Fertigation and Nitrogenous fertilizers, such as Synthetic ammonia, Nitric acid, Ammonium nitrate, and Urea, are widely used. The Organic fertilizer sector, including Neem cake and other Bio fertilizers, is gaining traction due to health, food safety, and environmental protection concerns. Animal welfare regulations and the Organic food business further fuel the demand for these plant nutrients.

Significant Market Trends

The implementation of Integrated Pest Management (IPM) as a new method of crop protection will fuel the market growth. Agrochemicals, including pesticides, herbicides, fungicides, and fertilizers, are essential in the agricultural sectors for enhancing crop yields and protecting crops from pests. Pesticides, such as insecticides and fungicides, play a crucial role in controlling agricultural pests, with losses ranging from 11% to 32%. However, the increasing resistance of pests to these chemicals and concerns over health, food safety, environmental protection, and animal welfare regulations have led to a shift towards Integrated Pest Management (IPM).

Furthermore, IPM is a strategy that combines various control methods, including inspection, monitoring, and reporting, to create an inhospitable environment for pests. Fertilizers, such as nitrogen fertilizer, phosphatic fertilizer, and potassic fertilizer, are essential plant nutrients that contribute to crop growth. Cereals and grains, oilseeds and pulses, fruits and vegetables, and other crops benefit from the use of fertilizers and pesticide applications at optimal times during their life cycles. The organic fertilizer sector, including neem cake and other bio fertilizers, is gaining popularity due to its eco-friendly and sustainable approach to crop production. Crop protection products, including nitrogenous fertilizers like synthetic ammonia, nitric acid, and ammonium nitrate, as well as urea, are essential for maintaining optimal crop health and preventing pest attacks on crops such as blueberries, sorghum, soy, and maize.

Major Market Challenge

The viable substitute for organic farming is a major challenge to market growth. Agrochemicals, including pesticides, herbicides, and fertilizers, are widely used in various agricultural sectors to enhance crop yields and protect against agricultural pests. Pesticides, such as fungicides and insecticides, are essential for crop protection. Fertilizers, including nitrogen, phosphoric, and potassic fertilizers, provide essential plant nutrients. However, excessive use of these chemicals can negatively impact ecosystems and human health. Organic farming, an alternative method, promotes the use of organic fertilizer and balanced relationships between host and predator.

Furthermore, Organic farming also results in higher levels of antioxidants in crops, such as polyphenolics, compared to conventionally grown crops. The agrochemical industry includes the production of crop protection chemicals, such as nitrogenous fertilizers, synthetic ammonia, nitric acid, and ammonium nitrate. Bio fertilizers, like Neem cake, and plant nutrients are also used in the organic fertilizer sector. The use of agrochemicals is regulated for food safety, animal welfare, and environmental protection. Cereals and grains, oilseeds and pulses, fruits and vegetables, and crops like blueberries, sorghum, soy, and maize are all affected by the use of agrochemicals and organic fertilizers. Fertigation is a method of applying fertilizers directly to the soil through irrigation systems. Organic food businesses prioritize the use of organic fertilizers and crop protection products to meet consumer demand for healthier and more sustainable food options.

Market Segmentation

By Product

The market share growth by the fertilizers segment will be significant during the forecast period. The Agrochemicals market encompasses fertilizers, pesticides, herbicides, fungicides, and insecticides. Fertilizers, a significant segment, are further categorized into nitrogenous, phosphatic, and potassic types. Nitrogenous fertilizers, specifically nitrogen fertilizers, dominate the market due to their role in enhancing crop yields. Nitrogen is a crucial macronutrient for plant growth, with urea, ammonia, and ammonium nitrate being common nitrogenous fertilizers. 

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The fertilizers segment showed a gradual increase in the market share of USD 79.70 million in 2018. Pesticides, including herbicides, protect crops from agricultural pests. Cereals and grains, oilseeds and pulses, fruits and vegetables, and other agricultural sectors benefit from these agrochemicals. Fertigation, the application of fertilizers through irrigation systems, is a modern farming practice. Synthetic fertilizers like nitrogenous fertilizers contribute to increased crop productivity. Organic fertilizers, such as neem cake, also play a role in the sector. Agrochemicals ensure food safety, animal welfare regulations, and environmental protection in the organic food business. Biofertilizers, derived from plant and animal sources, offer a sustainable alternative to synthetic fertilizers.

Region Analysis

APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Agriculture and animal husbandry are significant industries in APAC, occupying approximately 60% of the global population and 30% of the world's arable lands. With urbanization and industrialization, the demand for food grains has escalated, leading to the expansion of the agrochemicals market. The region is the largest consumer of pesticides and the fastest-growing market for agrochemicals. Modern farming practices and integrated farming processes are gaining acceptance, driving the demand for various agrochemicals such as organic fertilizers, inorganic fertilizers (anhydrous ammonia, nitrogen, potassium, and phosphorus fertilizers), and rodenticides, bactericides, and other agrochemicals used in animal feed production. Urbanization and industrialization have led to the increased use of agrochemicals in APAC, including inorganic fertilizers like nitrogen, potassium, and phosphorus fertilizers, and organic fertilizers. The agrochemicals market in APAC is primarily driven by the growing demand for food grains and the adoption of modern farming practices.

 Agrochemicals Market Companies Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

American Vanguard Corp., Archer Daniels Midland Co., Arysta LifeScience Corp., BASF SE, Bayer AG, Cargill Inc., CF Industries Holdings Inc., Corteva Inc., Drexel Chemical Co., Evonik Industries AG, FMC Corp., Gharda Chemicals Ltd., Haifa Negev technologies Ltd., Koch Industries Inc., Nissan Chemical Corp., Nufarm Ltd., Nutrien Ltd., Rotam CropSciences Ltd., Syngenta Crop Protection AG, and Yara International ASA

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Product Outlook 
  • Fertilizers
  • Pesticides 
• Application Outlook 
  • Cereals and grains
  • Oilseeds and pulses
  • Fruits and vegetables
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

Agrochemicals play a crucial role in modern agriculture, enhancing crop yields and protecting plants from pests and diseases. The market is driven by various factors, including the increasing global population, rising demand for food, and the need for higher agricultural productivity. The market is segmented into different categories based on types, such as herbicides, pesticides, and fertilizers. Herbicides are used to control unwanted plant growth, while pesticides help protect crops from insects, fungi, and other pests. Fertilizers are essential for providing essential nutrients to crops, ensuring their optimal growth.

Furthermore, the market is expected to grow significantly due to the increasing adoption of modern agricultural practices and the rising demand for food. Moreover, the market is witnessing the introduction of eco-friendly and sustainable agrochemicals, which are gaining popularity due to their minimal impact on the environment. The use of advanced technologies, such as precision farming and drone technology, is also expected to drive the growth of the market. In conclusion, the market is a vital sector that plays a significant role in ensuring food security and agricultural productivity. The market is expected to grow significantly due to various factors, including increasing population, rising demand for food, and the adoption of modern agricultural practices.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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