Agrochemicals Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028

Agrochemicals Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028

The global agrochemicals market size reached US$ 277.6 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 347.3 Billion by 2028, exhibiting a growth rate (CAGR) of 3.80% during 2022-2028. The expansion of large-scale commercial farming operations, shifting dietary preferences and increasing consumption of fruits and vegetables, and the growing popularity of flowers and ornamental plants are some of the major factors propelling the market.

Agrochemicals are chemical substances used to enhance crop production and protect plants from pests, diseases, and weeds. They play a significant role in modern farming practices by promoting higher yields and ensuring crop quality. They encompass various products, such as fertilizers, pesticides, herbicides, and fungicides. They have developed to optimize agricultural output while addressing the challenges posed by pests and environmental factors. They aid in managing plant growth and development, which allows farmers to schedule harvests more effectively and ensure the produce reaches the market at the right time.

The expansion of large-scale commercial farming operations requires efficient pest and disease management, which is strengthening the growth of the market around the world. Moreover, initiatives undertaken and subsidies and incentives offered by governing agencies of numerous countries for agricultural productivity encourage farmers to invest in agrochemicals to improve yields, which is favoring the growth of the market. In addition, the increasing consumption of fruits and vegetables is contributing to the market growth. Apart from this, the rising popularity of flowers and ornamental plants is catalyzing the demand for agrochemicals that support the specific needs of these crops worldwide.

Agrochemicals Market Trends/Drivers:
Increasing concerns about food security

With the growing global population, which ensures food security has become a critical concern. Agrochemicals, including fertilizers and pesticides, help boost crop yields and protect crops from pests and diseases, which ensures a steady and abundant food supply. They enable farmers to produce more food on limited arable land, which meets the rising demand for agricultural products. Agrochemicals have become indispensable tools in modern agriculture, supporting sustainable and efficient farming practices to feed an expanding population.

Rise in adoption of high-yielding crop varieties

As global agricultural demands are rising, farmers are seeking ways to optimize their yields. High-yielding crop varieties have become an essential strategy to meet this goal. However, these intensive crop varieties are often more susceptible to pests and diseases. Agrochemicals, such as insecticides, fungicides, and herbicides, play a crucial role in protecting these high-yielding crops from potential threats, which ensures their productivity and viability. As farmers strive for increased output and profitability, the demand for agrochemicals will continue to rise alongside the adoption of high-yielding crop varieties.

Growing need for sustainable farming practices

Sustainability is becoming a central focus in agriculture, driven by concerns about environmental impact and resource conservation. Agrochemical manufacturers are responding to this need by developing eco-friendly and bio-based products. Biopesticides, organic fertilizers, and biostimulants have gained popularity as alternatives to conventional agrochemicals, which promotes more sustainable farming practices. These environmentally friendly solutions provide effective pest and disease management while reducing the harmful effects on ecosystems and human health. As consumers and regulatory bodies are emphasizing on sustainable agriculture, the demand for such agrochemical products is rising worldwide.

Agrochemicals Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global agrochemicals market report, along with forecasts at the global, regional and country levels from 2023-2028. Our report has categorized the market based on fertilizer type, pesticide type and crop type.

Breakup by Fertilizer Type:

Nitrogen Fertilizer
Phosphatic Fertilizer
Potassic Fertilizer
Others

Nitrogen fertilizer dominates the market

The report has provided a detailed breakup and analysis of the market based on the fertilizer type. This includes nitrogen fertilizer, phosphatic fertilizer, potassic fertilizer, and others. According to the report, nitrogen fertilizer represented the largest segment. Nitrogen is an essential nutrient for plant growth, and nitrogen fertilizers provide plants with this essential element. They are commonly used to promote leafy green growth and enhance overall plant development. Some of the nitrogen fertilizers, include ammonium nitrate, urea, and ammonium sulfate.

Phosphorus is another essential nutrient required for plant growth, particularly in root development, energy transfer, and overall metabolism. Phosphatic fertilizers supply plants with phosphorus to support strong root systems, seed formation, and early plant growth. Some of the common phosphatic fertilizers include single superphosphate and triple superphosphate.

Potassium is crucial for the overall health of plants and plays a significant role in strengthening their resistance to diseases and environmental stresses. Potassic fertilizers provide plants with potassium, which promotes strong root systems and improves their ability to absorb water.

Breakup by Pesticide Type:

Fungicides
Herbicides
Insecticides
Others

Herbicides hold the largest share in the market

A detailed breakup and analysis of the market based on the pesticide type has also been provided in the report. This includes fungicides, herbicides, insecticides, and others. According to the report, herbicides accounted for the largest market share. Herbicides are pesticides used to control unwanted weeds and other unwanted plants. They are essential for weed management as weeds can compete with crops for resources like water, nutrients, and sunlight. They target specific types of plants or broad-spectrum weeds, effectively suppressing their growth and preventing them from hindering crop growth.

Fungicides are chemicals designed to target and control fungal diseases that can affect plants. These diseases can cause various issues, such as wilting, leaf spots, and rot. They work by inhibiting the growth and reproduction of fungi, which helps to protect the plants from fungal infections.

Insecticides are pesticides used to combat insect pests that can damage crops by feeding on leaves, stems, fruits, or roots. They are available in various forms, including contact insecticides that directly kill the insects on contact and systemic insecticides and are absorbed by the plant and kill insects when they feed on the treated plant.

Breakup by Crop Type:

Cereals and Grains
Oilseeds and Pulses
Fruits and Vegetables
Others

Cereals and grains dominate the market

The report has provided a detailed breakup and analysis of the market based on the crop type. This includes cereals and grains, oilseeds and pulses, fruits and vegetables, and others. According to the report, cereals and grains represented the largest segment. Cereals and grains include crops like rice, wheat, maize, barley, oats, and sorghum. They are primarily grown for their edible seeds, which serve as staple foods for a large part of the world's population. Agrochemicals used in this category to enhance crop yield and quality, which controls pests and diseases that can affect these crops, and ensure proper nutrient supply to support their growth.

Oilseeds encompass crops like soybeans, sunflowers, canola, sesame, which are cultivated for their oil-rich seeds. Pulses include crops like lentils, chickpeas, peas, and beans, which are rich in protein and other nutrients. Agrochemicals used for oilseeds and pulses are tailored to promote oil production or enhance protein content, and address challenges related to pest management and nutrient requirements.

Breakup by Region:

North America
United States
Canada
Asia-Pacific
China
Japan
India
South Korea
Australia
Indonesia
Others
Europe
Germany
France
United Kingdom
Italy
Spain
Russia
Others
Latin America
Brazil
Mexico
Others
Middle East and Africa

Asia Pacific exhibits a clear dominance, accounting for the largest agrochemicals market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The increasing farming activities represents one of the primary factors driving the demand for agrochemicals in the Asia Pacific region. Moreover, rising food security concerns and the growing awareness about the harmful effects of chemical-based pesticides are influencing the market positively in the region. Besides this, the surging prevalence of soil-borne diseases is bolstering the market growth.

North America is estimated to witness stable growth, owing to the integration of advanced technologies and product innovations.

Competitive Landscape:
The leading companies are utilizing technologies like a global positioning system (GPS), drones and remote sensing to create detailed maps of fields, which allows farmers to apply agrochemicals with precision. This targeted approach reduces waste, optimizes resource utilization, and minimizes the impact on non-target areas. They are also incorporating smart spraying systems that are integrated with sensors and artificial intelligence (AI) algorithms to detect weeds, pests, or diseases and adjust the spray application accordingly. These technologies ensure that agrochemicals are used only where needed, which reduces overall chemical use and minimizes environmental contamination. Besides this, key players are developing biopesticides and biologicals derived from natural sources like beneficial microbes, fungi, or plant extracts that offer effective pest and disease management while being less harmful to non-target organisms and reducing chemical residues in produce.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

BASF SE
Bayer AG
Corteva Inc.
Dow Inc.
FMC Corporation
Nufarm Ltd
Nutrien Ltd
Syngenta Group
The Archer-Daniels-Midland Company
Yara International ASA

Recent Developments:
In 2022, Corteva Inc. launched the new postemergence corn herbicide by the name Kyro. Kyro herbicide is the first product on the market to combine the active ingredients acetochlor, topramezone, and clopyralid into one premix. It combines effective modes of action to control more than 65 of the most difficult, resistant weed species and can provide extended residual control at a higher use rate.
In January 2022, Yara International ASA and Lantmännen signed a commercial agreement to bring fossil-free fertilizers to the market. The collaboration resulted in a commercial contract for green fertilizers, which will be produced by Yara and marketed by Lantmännen in Sweden.
In 2020, Syngenta Group purchased one of the leading biologicals companies Valagro by their business unit Syngenta crop protection.

Key Questions Answered in This Report

1. How big is the global agrochemicals market?
2. What is the expected growth rate of the global agrochemicals market during 2023-2028?
3. What are the key factors driving the global agrochemicals market?
4. What has been the impact of COVID-19 on the global agrochemicals market?
5. What is the breakup of the global agrochemicals market based on the fertilizer type?
6. What is the breakup of the global agrochemicals market based on the pesticide type?
7. What is the breakup of the global agrochemicals market based on the crop type?
8. What are the key regions in the global agrochemicals market?
9. Who are the key players/companies in the global agrochemicals market?