The global Agrochemicals Market was valued at USD 225.65 billion and is estimated to grow at a CAGR of 3.3% from 2018 to 2026. Agrochemicals are the chemicals used in the agricultural fields to protect crops, fertilize, and regulate plant growth. These are also used in non-crop-based applications such as in turf & ornamental grass.
Agricultural industry is strongly driven by the rising agricultural income in emerging nations, environmental policies, international trade patterns, and increasing end-user demand. Growing population along with the rising rural and urban incomes have substantially aided the growth of agrochemicals in the developing countries such as India, which is currently the fourth largest producer of agrochemicals in the world.
North America Agrochemicals Market Share by Application, 2017-2026
Note: Inside circle depicts data for 2017 & outside circle depicts data for 2026
The external demand in few developing countries, especially India is also driven by the large imports from regions such as the Middle East. Increase in the demand for processed food with rising personal disposable income, urbanization, nuclear families, and young population are some of the prominent trends of the developing countries, that have significantly contributed to the demand of agricultural products and agrochemicals.
Some of the attractive opportunities in the agrochemicals market include growing demand for agricultural inputs such as fertilizers & hybrid seeds, storage facilities expansions, and investment prospects in food infrastructure, contract farming, and agriculture. The government support has also been a key growth factor for the market. An instance includes the expansion of 35 million tons of the potential storage capacity under the 12th five-year plan for India, launched in 2017.
North America Agrochemicals Market Share by Pesticide Products, 2017 - 2026
The global agrochemicals sector has seen the forefront of consolidation in the past three years due to few mega deals. Agrochemicals along with the industrial gasses sector were the most impacted chemical mergers & acquisitions by deal value between 2011-2016. Such trends led to decrease in competitive rivalry but increased the barriers to entry for new players due to presence of large market players.
The M&A trends were also followed by few disadvantages such as increase in competition from local layers in case of cross-border deals. Global agrochemicals market is also subjected to stringent regulatory framework on account of few products such as pesticides constituting of harmful chemicals that are known to have huge environmental impact.
Agrochemicals are manufactured in the form of different products such as fertilizers, insecticides, pesticides, and plant growth regulators. Nitrogenous fertilizers are anticipated to be the dominant product category on account of nitrogen being an extremely significant nutrient for the growth and development of crops. Herbicides, that is a type of pesticide is also expected to witness considerable growth.
On the basis of applications, agrochemicals are segmented into crop-based and non-crop-based applications. Crop-based applications hold the major share of the global agrochemicals market. Some of the crop-based applications include oil seeds, grains & cereals, and fruits & vegetables. Non-crop-based applications include ornamental grasses, turfs, and applications which consume agrochemicals but are not meant for human consumption.
Asia Pacific is anticipated to be the dominant regional player for agrochemicals. This region constitutes of emerging countries with high proportion of agricultural land, favorable climatic conditions, increasing farm mechanization, rising consumption expenditure, and global standing in terms of production. The Indian subcontinent and the Southeast Asian region is the most lucrative for the agrochemicals market.
Western Europe and North America are also the established markets for agrochemicals. The major contributing countries from these regions include Germany, France, and the United States. Central & South America is also expected to witness considerable growth during the forecast period.
The global agrochemicals market is highly competitive and constitutes of numerous vertically integrated major players from the raw material to distribution stage of the values chain. Some of the major agrochemicals market players include BASF, Bayer CropScience, Dow Agrosciences LLC, Agrium, Syngenta AG, and Monsanto Company.