The global Agrochemicals Market is estimated to be valued at US$ 81274.23 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 include fertilizers and crop protection chemicals that are used to boost agricultural productivity. Fertilizers provide essential macro and micronutrients to crops while crop protection chemicals such as herbicides, insecticides and fungicides protect crops from weeds, pests and diseases. The increasing global demand for food due to rising population has augmented the need for higher agricultural yields which is driving the growth of the agrochemicals market. Agrochemicals help farmers to increase their farm output significantly through higher crop yields and quality.
Market key trends:
One of the key trends in the agrochemicals market is the increasing adoption of bio-based agrochemicals. Conventional synthetic agrochemicals pose environment and health hazards. Hence, farmers and regulators are promoting the use of biopesticides and biofertilizers which are derived from natural materials such as plants, bacteria and certain minerals. They are considered safer options for soil, water and non-target organisms. Their demand is expected to grow at a higher pace in coming years owing to surging organic farming practices and environment sustainability initiatives taken up globally.
Porter’s Analysis
Threat of new entrants: The agrochemicals market requires high R&D investment and access to distribution channels which poses a barrier for new entrants. Specialized knowledge and expertise is also required to comply with various regulations which favors existing large players.
Bargaining power of buyers: Large agrochemical manufacturers and traders have significant bargaining power over buyers due to their dominant market share and product differentiation. However, alternative options encourage competitive pricing.
Bargaining power of suppliers: Leading players have high bargaining power over key raw material suppliers due to their large procurement volumes and stringent quality standards. Supply availability impacts production costs.
Threat of new substitutes: New substitutes pose low threat as agrochemicals have few alternatives for crop protection and fertilizing purposes. Intensive R&D promotes product innovation to address changing agriculture needs.
Competitive rivalry: The market is moderately competitive with large multinational companies dominating global supply. Players differentiate through innovative products and acquisition strategies to gain market share in different geographies.
Key Takeaways
The Global Agrochemicals Market Size is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period 2023 to 2030, due to increasing global food demand driven by rising population. The market size for 2023 is estimated at US$ 81274.23 Mn.
Regional analysis: Asia Pacific dominates the market currently owing to large agricultural output from countries like China and India. North America and Europe are also significant markets driven by advanced agricultural practices. Developing nations are expected to drive future growth by increasing crop yields to feed their burgeoning population.
Key players: Key players operating in the agrochemicals market are ADAMA Ltd., Arysta Life Science, Bayer AG, Isagro Spa, Nufarm, Nutrien Ltd, OCI Nitrogen, Sociedad Quimica Y Minera De Chile, and The Mosaic Company. Players are focusing on expanding in high growth regions through mergers and acquisitions to leverage opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it