Agrochemicals Market Size, Share & Trends Analysis Report By Product (Fertilizers, Crop Protection Chemicals), By Application (Cereal & Grains, Oilseeds & Pulses, Fruits & Vegetables), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global agrochemicals market size was valued at USD 227.9 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.0% from 2023 to 2030. The growth is attributed by increasing demand for fertilizers and crop protection products in the field of agriculture across the globe. Increasing use of fertilizers by the farmers to supply nutrients to the crops and enhance their yield is a key factor driving the agrochemicals demand.

The market size and penetration of fertilizers are expected to remain high over the forecast period on account of growing demand for food grains and the population explosion. This demand was mainly driven by the growing market in the Asia Pacific region, with countries such as India and China. For instance, in 2019-20, the consumption of fertilizers in India stood at 57.35 million tons, with urea being the most widely used fertilizer. Crop protection chemicals such as herbicides and fungicides are expected to witness increased penetration in the market owing to the growing frequency of rodent and pest attacks on crops.

The growing consumption of crop protection chemicals is expected to drive the agrochemicals market. According to the Food and Agriculture Organization (FAO), the global consumption of pesticides was recorded at 4.2 million thousand tons in 2019-11.6% higher compared to the consumption in 2009. This signifies that an increment of 436 thousand tons in the consumption of pesticides has been seen in ten years. This growth in global pesticide consumption is propelling the agrochemicals market.

Additionally, the growing animal husbandry and animal feed sectors are expected to have a positive impact on the growth of the global agrochemicals market opportunity.The feed industry in the U.S. is the largest in the world. According to the American Feed Industry Association (AFIA), in 2020, the export value of animal feed in the U.S. was USD 13 billion and the volume was 32.4 thousand tons.

Among other countries, Turkey, Bolivia, Romania, and Tunisia grew at positive rates over the last few years. According to the International Feed Industry Federation (IFIF), commercial production of feed takes place in over 130 countries and generates an annual turnover of USD 400 billion every year.

Product Insights

The fertilizer segment dominated the market with a revenue share of 66.8% in 2022.This is attributed to increasing demand of fertilizers such as anhydrous ammonia, ammonium nitrate, and urea. The high consumption of fertilizers to improve crop production is driving the agrochemicals market growth. Fertilizers can be applied in three possible ways to cereals and grains. They can be mixed with other fertilizers, which are applied to seedlings, these fertilizers can be also top-dressed separately, or sprayed. The use of an appropriate amount of fertilizers at an appropriate rate is key for improving cereal and grain yields. Approximately 60% of the global nitrogen is used for producing three major cereal crops, namely, rice, wheat, and maize.

Nitrogenous fertilizers are widely accessible, aid in accelerating plant growth, and increase crop yields. However, the use of nitrogenous fertilizers is increasing, and this has negative consequences on the surrounding area, especially water bodies. In terms of revenue, the crop protection chemicals market is anticipated to expand at a sizable CAGR during the forecast period.

Chemicals used for crop protection include insecticides, fungicides, herbicides, and other items including rodenticides and bactericides. The market for crop protection chemicals is predicted to be dominated by herbicide. Pesticides that target plants are frequently employed in agriculture. They are employed to eradicate weeds and other undesirable plants from crops.

Application Insights

The cereal and grains application segment dominated the market with a revenue share of 47.0% in 2022. This is attributed to the fact that majority of the world's cereal and grain consumption occurs in Asia and the Pacific. Additionally, there is a significant global area under cultivation for grains and cereals. The use of fertilizers in the cultivation of grains and cereals has almost become a need. The demand for fertilizers is being driven by the rising consumption of cereals and grains in different other regions, including rice, wheat, rye, corn, oats, sorghum, and barley. With regard to rice, wheat, and other cereals and grains, agrochemical use is at its greatest.

Agrochemicals are crucial to the development of fruits and vegetables. Pesticides assist farmers in growing fruit and vegetable crops that are secure, of good quality, and cost-effective. Fertilizers assist in giving fruits and vegetables an abundance of nutrients. To give numerous nutrients at once, many farmers employ a combination of nitrogen, phosphorus, and potassium (NPK) fertilizers.

Lack of soil nutrients can reduce the bioavailability of nutrients in crops like wheat and rice and can lower yields. Over the projection period, the category for fruits and vegetables is anticipated to increase at the quickest CAGR. Due to rising health consciousness among consumers, there is a growing global demand for fresh fruits and vegetables, which can be attributed to this growth.

Regional Insights

Asia Pacific region dominated the market with a revenue share of 27.7% in 2022. This is attributed to the fact that Asia Pacific is the world's top producer of agricultural goods. India, China, and Japan are among the primary contributors to the regional market. China is the world's biggest exporter and manufacturer of pesticides, according to the International Trade Center (ITC) and FAO. India, behind China, Japan, and the United States, is the world's fourth-largest producer of agrochemicals, according to the Organization for Economic Co-operation and Development (OECD) and FAO. The agricultural industry has a significant impact on the regional per capita income.

The existence of significant nations that produce a lot of crops explains the high percentage share of the Asia Pacific region. China is a major consumer, exporter, and manufacturer of fertilizers and insecticides worldwide. According to Baojing Gu of the Universities of Melbourne and Zhejiang, China is the country that uses the most pesticides in agriculture globally. Over 30% of the world's pesticides and fertilizers are consumed there, while over 90% of the world's technical raw material needs are met.

By 2030, the region is anticipated to produce 29% of the world's seafood and agricultural goods. By 2030, the region's population, which currently numbers 4.3 billion, will increase by 322 million people at a CAGR of 0.6%. The total amount of arable land in the area is decreasing as a result of the rising population, and fast urbanization and industrialization. As a result, farmers use agrochemicals that aid in boosting productivity and production. The United States is one of the largest producers of food and is also one of the top 10 countries in terms of geography.

Due to the rising demand for commodities including blueberries, sorghum, soy, and maize, the U.S. had the lion's share of the North American agrochemicals industry. In addition, the United States is the biggest producer of blueberries, almonds, sorghum, and maize. It is also, after Brazil, the country that produces the most soybean. These are the main drivers of market expansion in the nation. According to the FAO, the United States is a significant producer, consumer, and exporter of agrochemicals. The country's agrochemical industry is expanding as a result of better weather patterns, higher pricing for grain commodities, and fewer trade tensions with China, among other factors.

Key Companies & Market Share Insights

Agrochemicals market share consist of tier I, tier II, and local players, which makes the worldwide market quite competitive. The market is flooded with items from manufacturers, such as fertilizers with increased potency and pesticides like herbicides, rodenticides, fumigants, insecticides, fungicides, and plant growth regulators. Players compete against one another based on a variety of factors, such as product quality, costs, and services, as well as on innovation, sustainability, and corporate reputation. The main approaches used by businesses to increase their market share include joint ventures, M&As, distribution network and geographic expansions, and the introduction of new products.

For instance, in March 2023, BASF presented latest advancements in its agricultural pipeline of seeds and traits, crop protection, and digital solutions. This step will help the company to become an integrated provider of agricultural solutions and help farmers by offering different options. 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

Global Agrochemicals Market Report Segmentation

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 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global agrochemicals market report on the basis of product, application, and region:

• Product Outlook (Volume, Thousand Tons; Revenue, USD Billion, 2018 - 2030)

  • 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 Billion, 2018 - 2030)

  • Cereal & Grains

  • Oilseeds & Pulses

  • Fruits & Vegetables

  • Others

• Regional Outlook (Volume, Thousand Tons; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

  • Central & South America

    • Brazil

    • Argentina

    • Colombia

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa