February 29, 2024
Agrochemicals Market

Emergence Of Eco-Friendly Farming Practices Is Anticipated To Openup The New Avenue For Agrochemicals Market

The Agrochemicals Market is estimated to be valued at US$ 81274.23 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Agrochemicals are chemical products used for agricultural purposes, such as pesticides, herbicides, fungicides and insecticides. They are widely used to protect crops from unwanted weeds, insects, fungus, bacteria and other pests. The major application of agrochemicals is in crop protection which increases yield by preventing crop diseases and protecting them from pests and weeds. They are also used to regulate plant growth, nutrition and for post-harvest protection.

Market Dynamics:

One of the major drivers of the agrochemicals market is increasing demand for food grains and crop protection from growing population. According to World Bank data, the global population is projected to grow over 9 billion by 2050 from current level of around 7.7 billion. This rising population will further increase the pressure on farmlands to produce more food, driving demand for agrochemicals. Secondly, climate change is increasing risks of crop diseases and pest attacks which requires higher use of agrochemicals for crop protection. Changing climatic conditions support growth and spread of weeds, insects and other pests thus creating need for agrochemicals.

Segment Analysis

The agrochemicals market is dominated by the herbicides segment which holds around 35% share of the overall market. Herbicides help in removing unwanted weeds and plants. They find widespread application in farms to control weeds and increase crop yields. Their usage is critical to obtain high productivity from agricultural lands. Among herbicides, glyphosate is the most widely used and dominating herbicide in the market due to its effectiveness against various weeds.

PEST Analysis

Political: The government regulations pertaining to the usage of agrochemicals are becoming more stringent to reduce their environmental impact and promote organic farming. Various nations have banned certain agrochemicals.

Economic: The growth of the agriculture industry along with the need to increase food production is driving the demand for agrochemicals. However, fluctuating foreign currency exchange rates can impact the overall cost of agrochemicals.

Social: Rising health concerns pertaining to the residues of agrochemicals on food products is prompting farmers to use biopesticides and adopt integrated pest management practices. However, the need for higher farm productivity and crop yields sustains the demand for agrochemicals.

Technological: Biotechnology and digitization are bringing newer innovations like genetically modified crops, organic biopesticides, application of drones and sensors for precise spraying of agrochemicals which is improving the efficiency and reducing environmental hazards.

Key Takeaway

The Global Agrochemicals Market Size is expected to witness high growth, exhibiting a CAGR of 6.2% over the forecast period of 2023 to 2030, due to increasing pressure on the agricultural lands to meet the rising food demand of the growing population. The market size for agrochemicals was valued at US$ 81274.23 Mn in 2023.

Regional analysis: Asia Pacific dominates the agrochemicals market with over 35% share owing to the large farmlands and growing agriculture industry in nations like India and China. Countries like Brazil and Argentina are also steadily expanding the usage of agrochemicals in Latin America.

Key players operating in the Agrochemicals market includes ADAMA Ltd., Arysta Life Science, Bayer AG, Isagro Spa, Nufarm, Nutrien Ltd, OCI Nitrogen, Sociedad Quimica Y Minera De Chile, and The Mosaic Company. Bayer AG and Syngenta account for the largest shares in the global agrochemicals market due to their diversified product portfolios and strong distribution networks worldwide.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it