GVR Report cover Agrochemicals Market Size, Share & Trends Report

Agrochemicals Market Size, Share & Trends Analysis Report By Product (Fertilizers, Plant Growth Regulators), By Application (Cereal & Grains, Fruits & Vegetables), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jan 2022
  • Report ID: GVR-1-68038-935-7
  • Number of Pages: 100
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019

Report Overview

The global agrochemicals market size was valued at USD 218.5 billion in 2020 and is anticipated to grow at a compound annual growth rate (CAGR) of 2.8% from 2021 to 2028. The market growth is dependent on pest attacks, crop yields, and agriculturists’ awareness levels & capacity to buy products depending on their availability of credit. Increasing demand for insecticides across the globe is also a major factor driving the market growth. Agrochemicals production has been impacted to some extent owing to the COVID-19 pandemic. Before the pandemic, some countries were dependent on China for raw material supply. Restrictions imposed on transportation and imports across borders in various nations have resulted in a shortage of raw materials.

U.S. agrochemicals market size, by product, 2018 - 2028 (USD Billion)

However, the market has recovered quickly as the governments of various nations have control over the essential business market. Agrochemicals are made of chemical substances and undergo various processes that release toxic gases and fumes, which can be harmful to the environment. Although beneficial for the crops, agrochemicals can have harmful effects on humans and animals. Thus, various regulatory authorities, such as Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH), and the Environmental Protection Agency (EPA), address them by mapping and monitoring the toxicity emission within permissible levels. Thus, regulations on the usage of agrochemicals by various authorities in different nations are the major restraining factors for the market.

For instance, in Brazil, regulation for agrochemicals lies under Law 7,802 regulated by Decree 4,074. In India, pesticides are regulated through the Insecticides Act 1968 and Insecticides Act 1971. Similarly, various other regulations are there for different agrochemicals to limit their toxicity in the environment. Increasing regulations and growing demand for green products have influenced manufacturers to develop eco-friendly bio-based products. Thus, various companies are focusing on manufacturing bio-based agricultural products. For instance, Marrone Bio Innovation utilizes naturally occurring microorganisms and plants to develop high-performance eco-friendly bio-based agricultural products that promote crop health and manage pests, weeds, and crop diseases.

Product Insights

The fertilizer segment led the market and accounted for 66.9% of the global revenue share in 2020. Fertilizers are widely used to increase crop yield in a short period. The growing crop/food demand across the globe is increasing the pressure on the agricultural land, thus, farmers are utilizing more fertilizers to increase the productivity and yield of different crops. The fertilizer segment is further divided into nitrogenous, phosphatic, potassic, and secondary fertilizers among others. The nitrogenous fertilizer segment is expected to witness the fastest CAGR over the forecast period.

Nitrogenous fertilizers are readily available and help in fast plant growth & enhance yields. However, increasing usage of nitrogenous fertilizers has bad effects on the surrounding environment including water bodies. The crop protection chemicals segment is expected to grow at a considerable CAGR over the forecast period, in terms of revenue. Crop protection chemicals include insecticides, fungicides, herbicides, and other products, such as rodenticides, bactericides, etc. Herbicide is expected to dominate the crop protection chemical segment. Herbicides are extensively used pesticides in the agricultural sector. They are used to control various types of unwanted plants in the crops, such as weeds.

According to the FAO, in 2019, over 2 million tons of herbicides were consumed globally. This is twice the number of insecticides used in 2019. The demand for insecticides is expected to be high in the Indian market. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), insecticides account for the largest market share in the Indian agrochemical market. This growth can be attributed to the increasing demand for the product for various crops, such as cotton, paddy (rice crop), and fruits & vegetables among others. They are found effective in preventing early germination pest attacks in various crops. Insecticides are the second-largest application segment for agrochemicals.

Application Insights

The cereal & grains segment dominated the market with a revenue share of 47.2% in 2020. Cereal & grains are the largest consumed class of crops, mostly in Asia Pacific. Moreover, cereals and grains cover a vast area of cultivation in the world. It has become almost compulsory to use fertilizers for cereals and grains production. The increasing consumption of cereals and grains, such as rice, wheat, rye, corn, oats, sorghum, and barley, in various other regions is driving the demand for fertilizers. The use of agrochemicals is highest for rice, wheat, and other cereals and grains.

Soil nutrient deficiency can result in less bioavailable nutrients in crops, such as wheat and rice, and can cause decreased yields. The fruits & vegetable segment is expected to grow at the fastest CAGR over the forecast period. This growth can be attributed to the growing demand for fresh fruits and vegetables across the globe owing to the increasing health consciousness among consumers. According to the Horticultural Statistic at A Glance 2018, the production of fruits increased from 74.9 million tons to 97.4 million tons from 2010-11 to 2017-18.

Global agrochemicals market share, by application, 2020 (%)

Similarly, the production of vegetables increased from 133.7 million tons to 184.4 million tons from 2010-11 to 2017-18. Agrochemicals play important role in the growth of fruits and vegetables. Pesticides help agriculturists to produce safe, high-quality fruits and vegetables at affordable prices. Fertilizers help in providing an abundance of nutrients to fruits and vegetables. Many farmers use a combination of Nitrogen-Phosphorous-Potassium (NPK) fertilizers to provide multiple nutrients at the same time.

Regional Insights

Asia Pacific was the leading regional market with a revenue share of 27.2% in 2020. The region is the major producer of agricultural products in the world. Countries, such as India, China, and Japan, are the key contributors to the regional market. According to the International Trade Center (ITC) and FAO, China is the top exporter and producer of pesticides in the world. According to the Organization for Economic Co-operation and Development (OECD) and FAO, India is the fourth-largest producer of agrochemicals in the world after China, Japan, and the U.S. The region’s per capita income is majorly dependent on the agricultural sector.

The region is expected to account for 53% of the global output of agricultural products and fish by 2030. The population in the region is growing at a CAGR of 0.6% and is expected to add 322 million people to the current 4.3 billion population by 2030. Due to increasing population and rapid urbanization & industrialization, the total arable land is shrinking in the region. Thus, agriculturists opt for agrochemicals that help in increasing productivity and yield. The U.S. is one of the major food-producing countries and also ranks among the top 10 countries by geography.

The U.S. ranks first in the production of some of the crops, such as maize, sorghum, blueberry, and almonds. According to the FAO, the U.S. is one of the major producers, consumers, and exporters of agrochemicals. Some other factors driving the market in the country are better prices for grain commodities, positive weather patterns, and easing trade tensions with China. Also, the drought conditions in the western U.S. have propelled the demand for miticides.

Key Companies & Market Share Insights

The global market is highly competitive due to the presence of a large number of tier I, tier II, and local players. Manufacturers in the market offer a wide range of products including fertilizers with improved effectiveness, and pesticides, such as herbicides, rodenticides, fumigants, insecticides, fungicides, and plant growth regulators. The competition among players is based on numerous parameters including product quality, prices, offerings, innovation, sustainability, and corporate reputation. New product launches, distribution networks & geographical expansions, joint ventures, and M&As are the key strategies adopted by companies to gain a higher market share.

For instance, in December 2019, Solvay and Anthea, a leading specialty chemical manufacturer in India, established a joint venture i.e., “CATàSYNTH Speciality Chemicals”. Through this, the two-company aimed to start the production of catechol derivatives. Also, it is dedicated to manufacturing and supplying a variety of products, such as helional, heliotropin (piperonal), and methylenedioxybenzene, which are extensively used in agrochemicals, pharmaceuticals, and flavors & fragrances industries. Some prominent players in the global agrochemicals market include:

  • Clariant AG

  • BASF SE

  • Huntsman International LLC

  • Bayer AG

  • The DOW Chemical Company

  • Solvay

  • Nufarm

  • Evonik Industries AG

  • Croda International Plc

  • Helena Agri-Enterprises, LLC

  • Ashland, Inc.

  • Land O’ Lakes, Inc.

  • FMC Corp.

  • ADAMA Ltd.

  • Stepan Company

Agrochemicals Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 224.9 billion

Revenue forecast in 2028

USD 272.0 billion

Growth rate

CAGR of 2.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million, volume in thousand tons, and CAGR from 2021 to 2028

Report coverage

Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

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

Country Scope

U.S.; Canada; Mexico; Germany; France; U.K.; Italy; China; Japan; India; Australia; Brazil; Argentina; Colombia; Saudi Arabia; UAE; South Africa

Key companies profiled

Clariant AG; BASF SE; Huntsman International LLC; Bayer AG; The DOW Chemical Company; Solvay; Nufarm; Evonik Industries AG; Croda International Plc; Helena Agri-Enterprises, LLC; Ashland Inc.; Land O’ Lakes Inc.; FMC Corp.; ADAMA Ltd.; Stepan Company.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global agrochemicals market report based on product, application, and region:

  • Product Outlook (Volume, Thousand Tons; Revenue, USD Million, 2017 - 2028)

    • Fertilizer

      • Nitrogenous

      • Phosphatic

      • Potassic

      • Secondary Fertilizers (Calcium, Magnesium, and Sulfur Fertilizers)

      • Others

    • Crop Protection Chemicals

      • Herbicides

      • Insecticides

      • Fungicides

      • Others

    • Plant Growth Regulators

    • Others

  • Application Outlook (Volume, Thousand Tons; Revenue, USD Million, 2017 - 2028)

    • Cereal & Grains

    • Oilseeds & Pulses

    • Fruits & Vegetables

    • Others

  • Regional Outlook (Volume, Thousand Tons; Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • U.K.

      • Italy

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

    • Central & South America

      • Brazil

      • Argentina

      • Colombia

    • Middle East & Africa

      • Saudi Arabia

      • UAE

      • South Africa

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