Agrochemicals Market Growth & Trends
The global agrochemicals market size is anticipated to reach USD 272.0 billion by 2028, according to a new report by Grand View Research, Inc., registering a CAGR of 2.8% over the forecast period. The global market is predominantly driven by the increasing demand for crop protection products in the agricultural field across the globe. Approximately 25% of the world crop output is lost every year due to diseases and attacks by pests & weeds. Hence, agrochemicals play a vital role in enhancing crop yield and production. Growing food demand, increasing adoption of precision farming methods, shrinking arable land due to increasing population, and rapid urbanization & industrialization across the globe are some also among the key factors driving the market.
Manufacturing companies are majorly focusing on acquisition to enhance their product portfolios and global reach. For instance, in October 2020, Syngenta Group through its Syngenta Crop Protection business division acquired Valagro, a leading biological company. This acquisition helped Syngenta in enhancing its position as one of the major global companies shaping the fast-growing biologicals market. In December 2019, Biopreparáty, spol. s r.o, a Czech company engaged in biological plant protection products, and the European division on UPL came into an exclusive distribution agreement for Polyversum WP biological fungicide. Due to the COVID-19 outbreak, there was a disruption in the domestic and international supply chain and global trading systems.
In response to concerns over food safety and food security across the globe, various nations imposed policy measures to curb adverse impacts on their agricultural markets. According to the Food and Agriculture Organization (FAO) and Secretariat of the Committee on Commodity Problems (CCP), agricultural trade has proved resilient to the pandemic despite disruptions. Asia Pacific is expected to grow at the fastest CAGR from 2021 to 2028, in terms of revenue, on account of the increasing production of agricultural commodities in countries, such as India, China, Japan, and Australia. China is one of the major consumers, exporters, and producers of pesticides in the world.
According to the University of Melbourne and Zhejiang researcher Baojing Gu, China is the major agricultural user of pesticides in the world. It uses approximately 30% of the global pesticides & fertilizers and supplies over 90% of the global technical raw material requirements. The key market players are adopting various strategies including acquisitions, mergers, geographical expansion, and product portfolio expansion to enhance their market position and to increase their customer base. For instance, in April 2020, Sumitomo Chemical completed the acquisition of four subsidiaries of Nufarm in South America. This acquisition helped Sumitomo in enhancing its sales network of agrochemical products in South America.
Agrochemicals Market Report Highlights
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook