Fertilizers is the largest segment driving the growth of agrochemicals Market

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The global agrochemicals Market is estimated to be valued at US$ 81.27 Bn or Mn 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 chemicals such as pesticides, herbicides and fertilizers which are used to improve or protect agricultural production including cultivation of crops, enhancing qualities and yield of agricultural crops and protecting them against diseases and pests. They are essential for maintaining soil fertility and enhancing crop growth and protection.

Market key trends:

Growing demand for higher yield and quality of crops is a major trend positively impacting the agrochemicals market growth. With increasing world population, demand for food is rising significantly across the globe. Agrochemicals such as fertilizers and pesticides help farmers boost crop yields to meet the rising food demand. Use of fertilizers and pesticides results into higher crop yields, better crop qualities, long shelf life and higher resistance to diseases and pests. This is facilitating the market growth.

SWOT Analysis

  • Strength: The agrochemicals market is expected to have high demand over the forecast period due to the growing population and associated demand for food products globally. The market players are investing heavily in R&D to develop new and advanced agrochemical products.
  • Weakness: Stringent regulatory compliances associated with the agrochemicals products and emerging trend of organic farming across regions pose a threat to the overall growth of the market. Fluctuations in the prices of raw materials also affect the profit margins of agrochemical manufacturers.
  • Opportunity: Developing economies in Asia Pacific and Latin America offer lucrative growth opportunities for players due to the increasing adoption of modern agricultural practices in these regions. Growing demand for higher productivity and yield of crops will further drive the demand for agrochemicals.
  • Threats: Rising environmental concerns associated with the extensive use of agrochemicals and shifting consumer preference towards organic food products are the major threats faced by players in this market. Growing trend of integrated pest management also limits the dependence on agrochemicals.

Key Takeaways

The global agrochemicals market is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing population globally and rising demand for food products. This growing demand has triggered higher agricultural production and yield which drives the consumption of agrochemicals.

Regional analysis: Asia Pacific dominates the global agrochemicals market and is expected to grow at the fastest rate during the forecast period. This can be attributed to increasing cultivation practices and expansion of agricultural land in countries such as India and China. Europe and North America are also significant markets however the growth is projected to be slower due to stringent regulatory environment in these regions.

Key players operating in the agrochemicals market are 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. These players are focusing on new product launches, acquisitions, and expansions to strengthen their geographical footprint and product portfolio. For instance, in 2021, The Mosaic Company acquired Plant Nutrition business of Israel’s AdvanSix for US$240 million.

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

Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.