Agro-chemical Market

Global Agro-chemical Market is segmented by Product Type (Fertilizer (Synthetic fertilizers, Phosphate, Urea, Potassic, Bio-fertilizers, Others), Pesticides (Herbicides, Insecticides, Fungicides, Others), Adjuvants (Surfactants, Spreader, stickers, Crop oils, Others), Plant growth regulators(Auxin, Gibberellin (GA), Cytokinin, Ethylene), Soil Conditioners (Bio char, Bone meal, Blood meal) By Nature Type(Synthetic, Biological) By Applications (Crop Based, Non Crop Based) ), by region (North America, Europe, Asia Pacific, South America, Middle East And Africa) _: Global Industry perspective Comprehensive analysis and Forecasts, 2022 - 2030 

Globally, Agro-chemical market is estimated to be valued at USD 227.9 billion in 2023.It is projected to reach $ 302.59 Billion dollar by 2030, growing at a 3.2% CAGR during the forecasted period.

Agro-chemical Market Overview

Agrochemicals are chemical products which comprises of fertilizers, plant-protection chemicals or pesticides, and plant growing hormones used in agriculture. Pesticides defends the crops by destroying, disabling or avoiding pests or insects which may cause harm to the crops while the fertilizers enhances the natural fertility of the soil or replaces the chemical elements taken from the soil by the previous crops .The high population growth has resulted in increasing usage of agricultural chemicals to improve the quality of the crops and productivity of the crops indirectly leading to agricultural development. Usage of agro-chemical products helps to increase productivity with the same arable land. It is useful to the farmers as it helps not only to improve the quality as well as the quantity of the crops. As the population grows the demand for food crops will increase but the land area for farming remains the same, so to cater the growing demand for food farmers will need more agro chemical products

COVID-19 Impact

The production and the supply chain of the agro-chemicals have been affected due to the Covid-19.The pandemic affected the proper functioning of various industries and one of them was the agro-chemical industry. As the availability of labors was impacted which resulted to shortage of laborer for agriculture production decreasing the demand for agro-chemicals and also production of the agro chemical products.

Growth factors

The world’s population is predicted to be around 9 billion by 2050.The rising population of the world and its increasing demand needs to be catered with increasing the food production. In a report from FAO(Food and Agriculture Organization), the cropland per capita was reduced to 0.20 hector per capita from 0.23 hector per capita, the world is seeing a significant drop in farming lands as urbanization increases. The total farming land area has decreased by almost 55 million acres, reaching a total of 890.3 million acres as of 2022. Nearly 35% of the production are lost to insects and pests such factors are raising the demand for agrochemicals which boosts agriculture output. According to an article written in 2006 by FAO ( Food and Agriculture Organization), maximum achievable yield in rice, wheat, maize and soya bean may decrease to 20-50% without use of agro-chemicals. On the other hand, using agrochemicals can lead to a growth of 60-70%. Thus it is clear that current level of crop production is achievable only with the use of appropriate agro-chemicals.

Restraints

The government is coming up with regulations in the agro-chemical sector for sustainable growth. This is to ensure their proper use and sales, thus contributing to conservation to our living environment as well as the protection of human health and stable agricultural production. Many crop protection ingredients, such as sulfonylurea herbicides, are moisture sensitive. Sulfonylureas inhibit the plant enzyme, acetoacetate synthase, resulting in impaired branch chain amino acid synthesis. Moving to OD (Oil-Dispersion) helps them to be more stable, however this comes with a challenge.

Chemists are working on to translate existing water based formulation into OD formulations to improve stability and sustainability

Opportunity

Creating USP’s through innovations, expanding geographical presence through M&A, and capturing additional value by deepening farmer engagements will likely remain the key strategic themes going forward. As the arable land deficit grows and agricultural practices grows more efficient, the narrative is shifting towards “achieving more with less”. With a view of longevity of the arable land without harming the environment. With the rise in sale of GM i.e. Genome Edited seeds in combination of agrochemicals which has proved to be working for the companies. Genome editing is a cutting-edge “genetic recombination” technology that has been applied for generating GM crop species. The big agrochemical companies acquired GM companies and developed seeds. Business expansion and merger and acquisitions has a opportunities

Agro-chemical Market Segment Analysis

The Agro-Chemical industry is segmented into Fertilizers, Pesticides, Adjuvants and Plant growth regulators. The Fertilizer market is the most demanded and hold the maximum share of the total sales recorded in the Agro-Chemical industry which is whopping 70.30 %.The reason is the demand of food across the world that needs to be fulfilled.

Agro-chemical Market Regional Analysis

The majority of the world’s cereals and grains consumption occurs mainly in the Asia –Pacific Region also there is significant area under cultivation for grains and cereals thus use of fertilizers and pesticides has become a need. There is a huge demand for rice, wheat, and other cereals and grains in the region. The crops such as Rice, wheat requires agro-chemicals for better production. The Asia-Pacific region has accounted to 28 %share of total sales around the world. China is a major producer, consumer and exporter of Fertilizers and pesticides in the world followed by India, USA and Japan. The use of agro-chemicals are rising significantly in India this is proved by the rising revenues of the Indian companies in the sector

Agro-chemical Market Report Scope

Key Market Segmentation

By Product Type

1. Fertilizer

o   Synthetic fertilizers

o   Phosphate

o   Urea

o   Potassic

o   Bio-fertilizers

o   Others

1. Pesticides

o   Herbicides

o   Insecticides

o   Fungicides

o   Others

1. Adjuvants

o   Surfactants

o   Spreader stickers

o   Crop oils

o   Others

1. Plant growth regulators

o   Auxin

o   Gibberellin (GA),

o   Cytokinin

o   Ethylene

1. Soil Conditioners

o   Bio char

o   Bone meal

o   Blood meal

1. By Nature Type

o   Synthetic

o   Biological

1. By Applications 

o   Crop Based

o   Non Crop Based

Global Agro-chemical Market- By Region

North America

o   US

o   Canada

o   Mexico

Europe

o    Germany

o    UK

o    France

o    Italy

o    Spain

o    Russia

o    Benelux

o    Nordics

o    Rest of Europe

Asia-Pacific

o    China

o    India

o    Japan

o    South Korea

o    Rest of Asia-Pacific

Middle East and Africa

South America

Agro-chemical Market Key Players

The agro-chemical market globally is quite competitive, there are lots of players locally which makes it more competitive. The players compete on the basis of innovation, product quality, prices and their services. There has been also a trend of mergers and acquisitions in the agro-chemical industry. The key players in the industry are

o   SYNGENTA

o   BAYERS CROP SCIENCE

o   BASF

o   DOWDUPONT

o   MONSANTO

o   ADAMA AGRICULTURAL SOLUTIONS

o   FMC

o   SUMITOMO CHEMICAL

o   UPL

o   NUFARM

o   ARYSTA LIFESCIENCE

o   NUTRICHEM

o   SHANDONG WEIFANG RAINBOW CHEMICAL

o   NANJING REDSUN

o   KUMIAI CHEMICAL

o   Others