by Agrochemicals Market is Growing in Trends with Sustainable Agriculture
The agrochemicals industry involves production of fertilizers, pesticides, and other agricultural chemicals that help farmers increasing crop yield and protection. Agrochemicals such as fertilizers enhance soil fertility while pesticides prevent infestation of weeds, insects, and pests.
The global agrochemicals market size is estimated to be valued at US$ 81.27 billion in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.
Key Takeaways
Key players: 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 are the major players in the agrochemicals market globally.
Growing demand: The rising global population and shrinking arable land are fueling the demand for agrochemicals to boost agricultural productivity. Countries like India and China in Asia Pacific are the key demand generators.
Global expansion: Leading agrochemical companies are expanding their footprint in developing markets of Asia Pacific and Latin America through acquisitions and distributor partnerships to tap the growth opportunities. However, stringent regulations in Europe and North America are prompting them to focus on biopesticides and other sustainable solutions.
Market key trends
One of the major trends in the agrochemicals industry is the growing adoption of sustainable and environment-friendly practices. Agrochemical manufacturers are increasingly developing biopesticides and adopting precision farming with the use of drones and sensors to spray pesticides only where needed. This helps reduce pesticide wastage as well as minimizes the risks to non-target areas. Furthermore, the focus on integrated pest management and organic farming worldwide will likely shape the agrochemical industry’s approach and product offerings in the coming years.
Porter’s Analysis
Threat of new entrants: New entrants face high costs to undertake research and development activities to build new products.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, established buyers can negotiate lower prices.
Bargaining power of suppliers: Suppliers have moderate bargaining power as there are substitute raw materials available in the market.
Threat of new substitutes: Substitute products pose medium threat as some substitute products are available but agrochemicals have distinct advantages.
Competitive rivalry: The market is dominated by a few major players.
Geographical Regions
The agrochemicals market in North America currently holds the largest share in terms of value. This is attributed to the large-scale agricultural practices and growing acceptance of organic and sustainable farming approaches in the region. Asia Pacific is expected to witness the fastest growth during the forecast period. Rapid population growth and rising demand for food are key factors driving the adoption of agrochemicals across developing nations such as China and India.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
