Also known as agriculture chemical is a term used for various chemical substances used in agriculture. These chemicals are broadly categorised as fertilizers, pesticides etc which helps in managing the agricultural ecosystem. These chemicals are majorly used in crops in order to protect them from various organisms that might infect or slows down the potential growth of the crops and increases the yield. It is widely used in all forms of farming sector. As it improves the productivity, farmers rely more on agrochemicals to cultivate more crops which aren’t damaged by pests. In spite of many technical advancements in agriculture like pump sets, tractors, etc, agrochemical is considered more fruitful in terms of crop productivity.
The global agrochemical market size was valued at USD 250.29 billion in 2021 and projected to reach USD 295.83 billion by 2027, growing at a CAGR of 3.40% during the forecast period, 2021-2027. The significant factor is the burgeoning increase in the percentage of population worldwide. To cater the need of this vast population, there must be more than sufficient amount of food to be produced, where the agrochemicals help in maximising the crop yield. Crop demand as animal fodder and for the textile industry has increased the demand for agrochemicals. Added to it, there is an increase in the investment of research and development for producing more new agrochemicals where a small quantity is used to cover a large land and increase in the production of green house vegetables.
Increased industrialisation and urbanization, reduced the per capita farm land. With low availability of arable land and raising scarcity of water, there has been a gap in the food produced and consumed. Agrochemicals are the key solution to farmers to produce the expected quantity of food with the available resources. Developing counties which are focusing more on the agricultural sector hugely rely on agrochemicals for catering the needs of people as well as for imports and exports.
As people nowadays are more organic-centric and health cautious and knowing people preference, the manufacturers have now shifted towards bio-based agrochemicals from the synthetic ones. The bio-based agrochemical not only kills the pests, weeds, parasites, but also improves the health of plant and soil. The increase in soil fertility can improve the quality as well as the quantity of food produced. These bio chemicals are basically microbes, plant extracts and bacteria that are occurred naturally and are not toxic to the environment.
Fertilizer Type Segmental Analysis:
Based on the fertilizer type, the global agrochemicals market can be segmented into Synthetic, Phosphatic, Potassic, Others. The synthetic fertilizer segment dominates the market during the year 2021. The main reason is the enhancement of yield which acts fast in saving the damaged plants compared to the organic fertilizers. Using synthetic fertilizers, the plant can grow full in a short period of time and makes the farmers harvest more.
Phosphatic fertilizers also holds a good market share as they help the plants in improving resilience and helps them grow without the environmental stress affecting the. It improves the growth of roots and also considered as the key nutrient for the formation of flower and production of seed.
Based on the pesticide type, the global agrochemicals market can be segmented into herbicides, insecticides, fungicides, others. The herbicide segment is witnessed to have the highest share in the market during the forecasted period. The reason for the growth is because it helps in removing the undesired plants in the farms, lawns, forests, etc. Killing out the unwanted plants or weeds and leaving the desired plants to grow is the major function of herbicides. It is easily available and the cost is low compared to the wage given for removing the undesired plants.
The market for fungicides also has significant growth as they help in preventing the growth of fungus. It is widely used to protect the seeds from fungus that are stored and helps in killing the growth of toxic ones.
Based on the application, the global agrochemicals market can be bifurcated into crop based and non-crop-based segment. The crop-based segment holds the maximum revenue share in the market for the period 2021 because of the wide application of agrochemicals in fruits & vegetables, cereal & grains, oilseed, etc. The usage of agrochemicals is comparatively more in cereals and grains because when here is a lack of soil nutrition, it reduces the yield of the grains and cereals which in turn reduces the total availability. It is also used in killing pests in turf and ornamental glass plants. The increase in demand for wholegrain products plays a key role in expanding the agrochemical market.
Based on the region, the global agrochemicals market can be segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific region holds the highest revenue in the market as the region holds 60% of population as reported by the World Bank. India and China are big agricultural countries with the resources to do agriculture. Because of the high growing population in both the countries, the quantity manufactured is also high and are also the key players in exporting food.
Companies like Dow, Syngenta Crop Protection AG, ADAMA India Private Limited, K+S Minerals and Agriculture GmbH, PhosAgro Group of Companies, Zuari Agro Chemicals, Monsanto and Dupont, Bayer, Israel Chemicals Limited, Others are the key players in the global agrochemicals market.