July 21, 2024
Agrochemicals Market

Rising demand for crop protection to boost the growth of Agrochemicals Market

The global Agrochemicals Market is estimated to be valued at US$ 81.27 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Agrochemicals are agricultural chemicals used widely in the agricultural industry. They include pesticides, plant growth regulators, and fertilizers. Pesticides are used to kill harmful insects, fungi, weeds, and other microorganisms that damage crops. Fertilizers are used to replenish soils and increase fertility for better crop yields. They provide macro and micro nutrients essential for plant growth. Agrochemicals play a vital role in increasing and maximizing agricultural productivity by protecting crops from pests and diseases and by nourishing the soil. They help eliminate hunger and ensure global food security.

Market key trends:

One of the key trends in the agrochemicals market is the growing demand for sustainable and eco-friendly agrochemicals. Consumers are increasingly demanding food products that are pesticide residue-free. They prefer the use of naturally derived, organic, and reduced risk pesticides. As a result, manufacturers are focusing on developing biopesticides and biofertilizers that have minimal environmental impact. Furthermore, increasing population and reducing availability of cultivable land are compelling farmers to maximize crop yields, which is propelling the demand for agrochemicals globally.

Porter’s Analysis

  • Threat of new entrants: The agrochemicals market requires high R&D investment and stringent regulations pose entry barriers for new players.
  • Bargaining power of buyers: Large buyers such as government agencies and cooperatives have significant bargaining power over suppliers due to the oligopolistic market structure.
  • Bargaining power of suppliers: Major agrochemical producers have considerable bargaining power over buyers since it is difficult for buyers to shift to alternative suppliers due to product differentiation and switching costs.
  • Threat of new substitutes: Threat of substitutes is low as there are limited alternatives to agrochemicals that can provide similar crop protection and yield enhancement.
  • Competitive rivalry: The market is characterized by intense competition among the major players due to their significant global presence and market dominance.

Key Takeaways

The global agrochemicals market is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing global food demand driven by rising population. The market size for 2023 is US$ 81.27 Bn.

Regional analysis: Asia Pacific dominates the global agrochemicals market, accounting for over 35% of the overall demand, led by China, India, and Japan. These countries are densely populated with tremendous pressure to boost agricultural productivity through agrochemicals. North America and Europe are other major regions driven by rising demand for high-value and specialty crops.

Key players: Key players operating in the agrochemicals market includes ADAMA Ltd., Arysta Life Science, Bayer AG, Isagro Spa, K+S Aktiengesellschaft, Nufarm, Nutrien Ltd, OCI Nitrogen, Sociedad Quimica Y Minera De Chile, and The Mosaic Company among others. Major players are focusing on portfolio expansion and strengthening their presence across high-growth markets through acquisitions and partnerships.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it