Global Agrochemicals Market Overview
The agrochemicals market, estimated at USD 336.9 billion in 2022, is poised for significant growth, projecting an increase from USD 352.06 billion in 2023 to USD 458.47 billion by 2030. This trajectory reflects a Compound Annual Growth Rate (CAGR) of 4.50% over the forecast period from 2023 to 2030. The driving forces behind this growth are the escalating demand for fertilizers and the expanding necessity for crop protection, fueled by evolving consumption habits and the imperative to meet the nutritional needs of a growing and more affluent global population.
In response to the shifting dynamics of global population growth and rising incomes, there is an increasing demand for enhanced agricultural output to cater to dietary requirements. For instance, with India’s population projected to reach 1.39 billion in 2021, there is a pressing need to address the nutritional needs of this growing population. The Food and Agriculture Organization (FAO) estimates that 11.7% of the global population experienced acute food insecurity in 2021. However, this challenge is compounded by significant barriers such as food waste, diminishing arable land, and crop destruction by pests. Arable land in the United States, for example, has been declining annually since 2000, reaching 895.3 million acres in 2021, down by over 50 million acres. These factors contribute to an increased demand for agrochemicals, thereby boosting agricultural productivity.
Furthermore, the growth of the animal husbandry and animal feed sectors, particularly in the United States, the world’s largest feed industry, positively influences the global agrochemicals market. According to the American Feed Industry Association (AFIA), the United States exported 32.4 thousand tonnes of animal feed worth USD 13 billion in 2020, contributing to an enhanced Compound Annual Growth Rate (CAGR) for the global agrochemicals market.
Segment Analysis
The agrochemicals market is segmented into pesticides and fertilizers, with the fertilizers segment dominating in 2022, accounting for 65-67% of the market’s revenue. Within the fertilizer segment, potassic, nitrogenous, and phosphatic products play pivotal roles, with the nitrogenous segment leading in 2022 and expected to grow at the fastest rate from 2022 to 2030.
The market also categorizes crops into food grains, cash crops, plantation crops, and horticulture crops. In 2022, the food grains category dominated the market, projecting the fastest growth in the coming years.
Regional Analysis
Regional segmentation includes North America, Europe, Asia-Pacific, and the rest of the world. The Asia-Pacific region, with a predicted market value of USD 154.3 billion in 2022, is anticipated to experience substantial growth with notable contributions from China, Japan, and India. China, recognized as the top global producer and exporter of pesticides by the International Trade Centre (ITC) and FAO, holds a prominent position. India, the world’s fourth-largest producer of agrochemicals, has experienced the fastest growth rate in the Asia-Pacific region and commands the greatest market share.
Key players in the agrochemicals market include:
- The Mosaic Company (US)
- Bayer CropScience Limited (Germany)
- The Dow Chemical Company (US)
- BASF SE (Germany)
- Monsanto Company (US)
- Syngenta AG (Switzerland)
- Adama Agricultural Solutions Ltd (Israel)
- Nufarm Limited (Australia)
- Arysta Lifescience Corporation (Japan)
- Crystal Crop Protection Pvt. Ltd. (India)
These companies play pivotal roles in shaping the trajectory of the agrochemicals market, contributing to its growth and evolution. The Agrochemicals market’s Share positive outlook is driven by a confluence of factors, including increasing global population, changing consumption patterns, and the imperative to address food and nutritional security challenges through enhanced agricultural productivity.
