The global agrochemicals market is projected to reach USD 282.2 billion by 2028 from USD 235.2 billion by 2023, at a CAGR of 3.7% during the forecast period in terms of value. Agrochemicals include fertilizers, pesticides, adjuvants, and plant regulators. Agrochemicals reduce crop loss by protecting crops from disease-causing pathogens, increasing crop yield, and maintaining crop yield quality. The rapid growth in human population increased the demand for food supply, resulting in agricultural intensification during the last few decades. According to World Population Prospects 2022, the population of the world reached an all-time high of 8 billion. The growing population puts immense pressure on limited agricultural land for higher yields. In order to meet growing food demand, agrochemicals in the form of fertilizers and diverse pesticides are rigorously used in agriculture and bridge the gap between food production and consumption. The agrochemicals market is highly fragmented, with many players offering a wide product portfolio catering to different agricultural applications. Companies such as BASF SE (Germany), Bayer AG (Germany), YARA (Norway), and UPL (India) are some of the major players in the agrochemicals market.
Agrochemicals Market Drivers: Changing Climatic Conditions Lead to Increased Pest and Disease Infestation
The rise in agricultural pests—comprising diseases, insects, and weeds—poses a significant threat to crop production and global yields. This issue has been exacerbated by the evolving effects of climate change, which alters environmental conditions and creates new challenges for pest management in major agricultural systems. Shifting rainfall patterns and rising temperatures create new demands for innovative and effective crop protection chemicals. For example, changes in precipitation that increase humidity and wetness can trigger fungal outbreaks in crops like rice and wheat, requiring advanced fungicides. Similarly, higher levels of CO2 can lead to an increase in aphids on soybean plants, prompting the need for better insecticides and integrated pest management strategies. Weeds, animal pests, and pathogens are key contributors to these losses. On average, pests reduce global crop yields by 20-40%, resulting in an estimated global economic loss of about USD 290 billion.
In the crop type segment, cereals and grains hold a significant share of the global agrochemicals market.
Cereals and grains are essential for satisfying the dietary needs of a growing global population, creating a need to increase crop yields to meet rising demand. Agrochemical applications are playing a key role in this process. According to FAO reports, global cereal utilization in the 2023/24 period is expected to increase compared to previous years, with a forecasted rise in global cereal stocks by 2024. This suggests a steady supply of cereals to meet demand. As the demand for cereals continues to grow, enhancing agricultural productivity becomes increasingly important, potentially driving greater use of agrochemicals to optimize yields and meet global needs.
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Fungicide Segment to Grow at the Fastest Rate in the Pesticide Category of the Agrochemicals Market
The demand for fungicides is primarily driven by the increasing prevalence of fungal diseases, which pose significant threats to crop yields and quality. The growing variability in climate and changes in agricultural practices elevate the risk of these diseases, leading to a rising demand for effective solutions to safeguard crops. The agricultural industry is increasingly adopting advanced technologies to address the limitations of traditional pesticides, which often lack efficacy and can harm the environment. Innovations in microencapsulation and nanotechnology are particularly notable in this regard. Companies like Vive Crop Protection and Aqua-Yield offer nanoparticle-based delivery systems for crop protection. Syngenta Group, a global technology leader, continues to advance the fungicide sector with its groundbreaking ADEPIDYN technology (pydiflumetofen) and its globally launched TYMIRIUM technology in 2022. These advancements in crop protection chemicals, which focus on more potent, environmentally friendly, and targeted solutions, are driving the growth of the fungicides market.
Asia Pacific Expected to dominate the Agrochemicals Market Share.
The Asia Pacific region is set to lead the agrochemicals market. This area encompasses countries like India, China, Japan, Australia, and Indonesia, which have vast agricultural lands, with the region’s economy heavily reliant on agriculture. Agricultural technologies are widely adopted and practiced throughout the region. The Asia Pacific Plant Protection Commission plays a vital role in safeguarding plant, human, and animal health, as well as protecting the environment. The Commission’s mission includes promoting trade and ensuring agricultural sustainability. A key part of its mandate is providing a regional platform for cooperation and the effective implementation of the Plant Protection Agreement. This is achieved by developing plant protection standards, including regional phytosanitary regulations, promoting integrated pest management, and ensuring compliance with the Code of Conduct for the Distribution and Use of Pesticides.
Leading Agrochemicals Companies:
The key players in this market include Bayer AG (Germany), BASF SE (Germany), Syngenta (Switzerland), Eurochem Group (Switzerland), Corteva (US), Compass Minerals (US), UPL (India), K+S Aktiengesellschaft (Germany ), Sociedad Química y Minera de Chile (Chile), Sumitomo Chemical Co., Ltd. (Japan), Nutrien Ltd. (Canada), YARA (Norway), ICL (Isarel), Isagro S.p.A (Italy), and Verdesian Life Sciences (US). These market participants are emphasizing the expansion of their footprint via agreements and partnerships. They maintain a robust presence in North America, Asia Pacific, South America, RoW, and Europe, and they are supported by manufacturing facilities and well-established distribution networks spanning these regions.
Key Questions Addressed by the Agrochemicals Market Report:
What are agrochemicals?
Why is market research important in the agrochemicals industry?
What factors drive the growth of the agrochemicals market?
What are the key trends in the agrochemicals market?
What are the major segments in the agrochemicals market?
What regions are experiencing the highest growth in the agrochemicals market?
How does market research help in identifying emerging opportunities in the agrochemicals industry?
What are the challenges faced by the agrochemicals market?
How do regulatory changes impact the agrochemicals market?
What is the impact of technological advancements on the agrochemicals market?
What role does sustainability play in the agrochemicals market?
How can market research firms help agrochemical companies with product development?
What are some of the key players in the agrochemicals market?
How is the agrochemicals market affected by global food security concerns?
What is the future outlook for the agrochemicals market?
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