Agrochemicals Market Report

Agrochemicals Market Analysis By Product (Fertilizers, Crop Protection Chemicals, Plant Growth Regulators), By Application (Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables), By Region, And Segment Forecasts, 2014 - 2025

Published: June 2017  |  90 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-935-7

Industry Insights

The global agrochemicals market size was valued at USD 215.18 billion in 2016. Fertilizers, crop protection chemicals, and plant growth regulators were some of the widely used agrochemicals in 2016. The industry is driven by the growing demand for crop protection chemicals due to frequent outbreaks of pest attacks on crops, which result in heavy losses. 

New food processing, manufacturing, and packaging techniques have resulted in a flourishing food & beverage sector globally. This has led to an increase in the demand for agricultural products such as food grains, oilseeds, vegetables, and fruits, which, in turn, is driving the agrochemicals market growth. The growing animal husbandry sector has increased the demand for animal feed, further triggering the demand for agrochemicals such as fertilizers and plant growth regulators.

U.S. Agrochemicals market revenue, by product, 2014 - 2025 (USD Billion)

U.S. Agrochemicals Market

As seen in the figure above, fertilizers accounted for the majority of the share in the U.S. in 2016. The growing demand for macronutrients, such as nitrogen, phosphorus, and potassium, has boosted the fertilizers market in the country. Low availability of arable land has also triggered the demand for fertilizers in the U.S. since 2005.

The U.S was among one of the countries with the highest agricultural output in 2016 with corn being its major product. The mechanization of agricultural activities, lower fund borrowing rates, and growing food processing industry are some of the key factors driving agricultural sector in the country, consequently propelling the demand.

Product Insights

Fertilizers, crop protection chemicals, plant growth regulators, and adjuvants were some of the majorly used agrochemicals in 2016. The growing awareness about the benefits of these chemicals which include high efficiency and ease of use has played a key role in the growth of this market. 

In terms of revenue, plant growth regulators are projected to grow at the highest CAGR of 6.3% from 2017 to 2025. Plant growth regulators such as cytokinins and auxins shorten the growth time of crops, thus reducing their harvesting time. The products received a major boost on account of the growing trend of organic farming, which includes the use of herbal medicines.

In terms of revenue, fertilizers accounted for 58.8% of the global market in 2016. Nitrogenous fertilizers, which are known to aid plant growth, were the most widely applied fertilizers in the same year. These products improve the quality of the soil by enhancing their nutritive content, which has made them indispensable in the agricultural sector. However, with the advent of biofertilizers, the demand for chemical fertilizers is expected to slow down over the forecast period.

Application Insights

Agrochemicals are widely used in cultivation of cereals & grains, oilseeds & pulses, and fruits & vegetables. Cereals & grains is the largest application segment of these chemicals. The growing demand for whole grain products as the source of carbohydrates and fiber is expected to be the biggest driver of this segment. 

Global agrochemicals market revenue, by application, 2016 (%)

Global Agrochemicals Market

In terms of revenue, cereals & grains accounted for 37.2% of the market share in 2016. The segment witnessed a steep rise in the demand owing to aggressive advertisements and branding from multinational players, such as Kellogg Co. and General Mills, which, in turn, has increased the penetration of agrochemicals. These crops are prone to frequent attacks from pests and insects, due to which, the demand for crop protection chemicals such as pesticides and fungicides has also gone up in this segment.  

The demand for pulses & oilseeds, in terms of revenue, is expected to grow at the highest CAGR of 4.9% from 2017 to 2025. Pulses, such as soybeans, lupin beans, and red lentils, are known to possess high amounts of proteins, which has increased their consumption in everyday meals. Similarly, the growing demand for edible oil has increased the market for oilseeds. These factors are expected to promote market growth in this segment.

Regional Insights

Asia Pacific witnessed the highest demand for agrochemicals in 2016. The region has seen a change in the consumption patterns on account of urbanization and rapid income growth. Processed food, meat, and dairy consumption have been witnessing growth in this region. Factors, such as trade liberalization, reduced costs of transport, and modernization of the food sector, have been the major market drivers. 

Europe, in terms of revenue, accounted for 14.6% of the market share in 2016. Western European countries, such as Spain, Germany, France, and Italy, dominated the region in 2016. However, countries in East Europe, such as Bulgaria and Romania, have witnessed rapid growth on account of increasing investments in the agricultural sector and better water preservation techniques. These factors have resulted in growing agricultural activities in this region, consequently boosting the demand for agrochemicals.

Competitive Insights

The global agrochemicals industry was dominated by major players, namely, Bayer CropScience, Agrium, BASF, and DuPont. These players, headquartered in different regions, are known for dense distribution networks and high R&D budgets. For instance, in 2016, BASF invested over USD 2 billion in R&D activities. 

Acquisition was one of the key strategies adopted by these players in the recent past in an attempt to maintain their market shares. In 2016, Bayer CropScience, Germany, acquired Monsanto, one of the largest agrochemical companies in the U.S., for USD 66 billion, making it the largest all-cash transaction in the industry. This acquisition strengthened Bayer’s position in North America.

Report Scope 

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                                

Volume in kilotons, revenue in USD billion and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Germany, Spain, China, India, Brazil

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global agrochemicals market on the basis of product, application, & region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Billion; 2014 - 2025)

    • Fertilizers

    • Crop Protection Chemicals

    • Plant Growth Regulators

    • Others  

  • Application Outlook (Volume, Kilotons; Revenue, USD Billion; 2014 - 2025)

    • Cereals & Grains

    • Oilseeds & Pulses

    • Fruits & Vegetables

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Billion; 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • Spain

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa
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