Agrochemicals Market by Type (Fertilizers, Pesticides), Crop Type (Cerelas & Grains, Oilseeds & Pulses, Fruits & Vegetables), Fertilizers Type, Pesticide Type (Insecticides, Herbicides, Fungicides, Nematicides) and Region - Global Forecast to 2028
Updated on : May 03, 2023
Agrochemicals Analysis & Report Summary, Global Size
The global agrochemicals market size was reasonably estimated to be approximately $235.2 billion in 2023 and is poised to generate revenue over $282.2 billion by the end of 2028, projecting a CAGR of around 3.7% from 2023 to 2028.The agrochemicals is a critical component of the agriculture industry, providing farmers with the necessary tools to protect crops from pests and diseases while increasing yields. Agrochemicals are chemical products used in agriculture to improve crop productivity and protect crops from pests, weeds, and diseases. The market for agrochemicals includes herbicides, insecticides, fungicides, and other chemicals used for soil treatment, plant growth, and fertility improvement.
Engineered chemical or biological compositions known as agrochemicals are used to increase the yield and quality of crops. Pesticides and fertilizers are two different categories of agrochemicals. In contrast to pesticides, which protect crops by killing or controlling pests and weeds that could harm them, fertilizers improve the quality of the crop by giving the crop and soil vital nutrients. It is crucial to boost agricultural output on the currently available arable land in order to feed the world's population in light of the existing population situation. Agrochemicals are crucial to the agriculture sector because they help farmers increase both the quality and quantity of their crops. The agrochemicals includes fertilizers, pesticides, herbicides, and other chemicals used to enhance crop yields and protect crops from pests and diseases. With the increasing need to produce more food with limited arable land and resources, the demand for agrochemicals is expected to remain strong in the coming years.
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The purpose of agrochemicals is to improve the quality and yield of crops by the use of chemical or biological components. The two categories of agrochemicals are insecticides and fertilizers. By preventing, eradicating, and repelling pests and weeds that could harm crops, insecticides safeguard them. Pesticides safeguard crops by weeding out, eliminating, and deterring pests and vermin that could harm them. Fertilizers enhance crop quality by giving crops and soil vital nutrients. In order to feed the world's population, it is essential to increase agricultural productivity on already-existing agricultural land. As a result, agrochemicals are essential to the agricultural industry and help farmers increase the amount and quality of their harvests. The impact of rapid westernization on the global agrochemicals market can be significant, as it can lead to changes in consumption patterns and agricultural practices. Westernization generally involves a shift towards more urbanized and industrialized lifestyles, which can result in changes in dietary preferences and a greater demand for processed foods. This can, in turn, lead to changes in the types of crops grown and the methods used to produce them.
Market Dynamics
Drivers: Increased demand for crop protection chemicals to increase productivity of crops.
The progress of agricultural chemistry has enabled farmers to engage in intensive crop management in most countries, such as India, China, Thailand, Vietnam, and South Korea. The increasing awareness about crop protection chemicals has not only resulted in increased use of pest control products but has also led to awareness about the potential for more profitable opportunities with minimum loss. The global agrochemicals industry has been experiencing an increase in the number of patents and product registrations, resulting in greater use in agriculture, which drives the market.
Restraints: Increasing resistance against agrochemicals in insect species
Over-reliance on pesticides leads to the evolution of pesticide resistance in insects, weeds, and diseases.
Farmers who use the same pesticides frequently eliminate most of the population who is vulnerable to the chemical. However, when the same pesticides are applied repeatedly and widely over time, the population becomes resistant to the pesticide due to the rapid population growth of these resistant individuals. Farmers who discover their fields overrun with weeds they lack the equipment and knowledge to eradicate face a serious threat from "superweeds," or weeds that have developed resistance to multiple herbicides. However, rather than addressing the root causes of resistance, agrichemical companies release new formulations of multiple herbicides. These new formulations occasionally include older, riskier substances like 2,4-D, dicamba, and atrazine. The quantity of chemicals sprayed on crops may significantly increase because of these reformulations.
Opportunities: Crop-specific nutrient management through precision farming
Precision agriculture focuses on growing crops efficiently in a site-specific manner with specialized application equipment, which can help retain water and nutrients in the root zone. The work scheme of precision agriculture can be summarized in three stages: geo-referenced remote area information using certain sensors, analysis of data obtained through an appropriate system of information processing and adjustment of the amount applied depending on the needs of each location. Precision farming can improve production and nutrient use efficiency, ensuring that nutrients do not leach from or accumulate in excessive concentrations in parts of the field. Precision farming has been gaining importance in developed countries for efficient usage of fertigation. The release patterns and coating technology of CRFs can be fed into the information system for an accurate analysis of the nutrient requirements of crops, the application rate, and the mixing ratio required within the fertigation system. Precision agriculture involves a growing range of digital technologies to make farming more efficient while increasing crop yields and quality.
Challenges: Rising costs of raw materials
According to the World Bank in 2022, fertilizer prices have risen since 2022 due to rising input costs, supply disruptions caused by sanctions (Belarus and Russia), and export restrictions (China). Urea prices have surpassed their 2008 (global food crises) highs, while phosphate and potash prices are approaching their 2008 highs. Fertilizer prices have eased from their early 2022 peaks, according to a World Bank commodity report in 2023, but remain at historically high levels. The price decrease is due in part to weak demand, as farmers reduce fertilizer field applications due to affordability and availability issues. Supply-side issues, such as a production shortage in Europe, disruptions caused by sanctions against Russia and Belarus, and trade restrictions in China, are also affecting the industry.
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Asia Pacific showed a significant growth in the agrochemicals market, with a value of USD 79.4 billion in 2023 ; it is projected to reach USD 96.2 billion by 2028, at a CAGR of 3.9% during the forecast period.
The fertilizer industry in most countries of the Asia Pacific region has shifted its emphasis from the development of fertilizer grades to technology up-gradation, management, and durability. The projected growth rate of the Japanese market is also high compared to other regions due to the precise and advanced farming systems and controlled-environment agriculture. More global players in the market are trying to enter the Asia Pacific region through mergers & acquisitions or partnerships. The Asia Pacific market is projected to grow at the highest rate due to increased demand from countries such as India and China. The restraining factor in the Asia Pacific market is the high cost of these fertilizers.
Key Market Players
The key players in this market include UPL (India), Nufarm (Australia), ADAMA (Israel), Bayer AG (Germany),
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Report Metric |
Details |
Market reach in 2023 |
USD 235.2 billion |
Revenue prediction in 2028 |
USD 282.2 billion |
Expansion rate |
CAGR of 3.7% |
Market size available for years |
2019-2028 |
Base year for estimation |
2022 |
Projected time frame |
2023-2028 |
Quantitative units |
Value (USD Million) and Volume (Thousand Units) |
Report Coverage & Deliverables |
Revenue forecast, company ranking, driving factors, Competitive benchmarking, and analysis |
Segments covered |
Application, Region, Crop Type |
Regional Insight |
Europe, North America, South America, Asia Pacific |
Prominent firms profiled |
The key players in this market include UPL (India), Nufarm (Australia), ADAMA (Israel), Bayer AG (Germany) |
Research Coverage |
The report segments the agrochemicals market based on core phase, shell material, application, method, technology and region. In terms of insights, this report has focused on various levels of analyses - the competitive landscape, end-use analysis, and company profiles, which together comprise and discuss views on the emerging & high-growth segments of the agrochemicals market, high-growth regions, countries, government initiatives, drivers, restraints, opportunities, and challenges. |
Target Audience:
- Raw material suppliers of chemicals
- Agrochemical manufacturers & suppliers
- Agrochemical traders, retailers, and distributors
- Commercial research & development (R&D) institutions
- Government, regulatory bodies, and research organizations
- Technology providers to pesticide & microbial companies
- Public hygiene organizations, government regulatory institutions, and food safety agencies
- Agricultural co-operative societies
- Farmers, wholesalers, retailers, agro-manufacturers, media, researchers, and NGOs
- Pesticide associations and industry bodies:
- Food and Agriculture Organization (FAO)
- European Crop Protection Agency (ECPA)
- Pesticides Manufacturers and Formulators Association (PMFAI)
- China Crop Protection Industry Association (CCPIA)
- Fertilizer associations and industry bodies:
- Food and Agriculture Organization (FAO)
- International Fertilizer Association (IFA)
- The Fertilizer Institute (TFI)
Report Segmentation
This research report categorizes the Agrochemicals market, based on Type, Fertilizer Type, Pesticide Type, Crop Type and Region.
By Type
- Fertilizers
- Pesticides
By Pesticide Type
- Insecticides
- Herbicides
- Fungicides
- Nematicides
- Other
- Pesticide Types
By Fertilizers Type
-
Nitrogenous Fertilizers
- Urea
- Ammonium Nitrate
- Ammonium Sulfate
- Ammonia
- Calcium Ammonium Nitrate
- Other Nitrogenous Fertilizers
-
Phosphatic Fertilizers
- Diammonium Phosphate
- Monoammonium Phosphate
- Triple Superphosphate
- Other Phosphatic Fertilizers
-
Potassic Fertilizers
- Potassium Chloride
- Potassium Sulfate
- Other Potassic Fertilizers
By Crop Type
-
Cereals & Grains
- Corn
- Wheat
- Rice
- Other Cereals & Grains
-
Oilseeds & Pulses
- Soybean
- Sunflower
- Other Oilseeds & Pulses
-
Fruits & Vegetables
- Apples
- Cucumbers
- Grapes
- Pears
- Potatoes
- Bananas
- Avocado
- Tomatoes
- Cucurbits
- Other Fruits & Vegetables
- Other Crop Types
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Recent Developments
- In November 2022, Bayer AG introduced Adengo, a pre-emergent herbicide that acts on both broad leaves and thin sheets and has two active principles with distinct modes of action: isoxaflutole and thiencarbazone. Bayer AG is catering to the needs of the corn growers by introducing Adengo herbicide and expanding the crop protection portfolio.
- In August 2022, UPL launched IMAGINE insecticide in India to help farmers control BPH. The product would be effective against jassids and stem borer buses. This launch helped UPL in combating pest attacks on paddy in India.
- In May 2021, ADAMA acquired Jiangsu Huifeng Bio Agriculture Co., Ltd. to incorporate Huifeng’s crop protection synthesis and formulation facilities in China and globally. With this strategy, ADAMA Ltd. expanded in China.
Frequently Asked Questions (FAQ):
What is the expected market size for the global agrochemicals market in the coming years?
The agrochemicals market is poised for steady growth, with an estimated value of USD 235.2 billion in 2023 and a projected CAGR of 3.7% over the next five years, leading to a value of USD 282.2 billion by 2028.
What is the estimated growth rate (CAGR) of the global agrochemicals market for the next five years?
The global agrochemicals market is set to grow at a moderate rate, representing a CAGR of 3.7% during the forecast period.
What are the major revenue pockets in the agrochemicals market currently?
Asia Pacific showed a significant growth in the agrochemicals market, with a value of USD 79.4 billion in 2023 ; it is projected to reach USD 96.2 billion by 2028, at a CAGR of 3.9% during the forecast period.
What was the size of the global agrochemicals market in 2023?
In 2023, the agrochemicals market achieved a global value of US$ 235.2 billion.
Which segment accounted for the largest agrochemicals market share?
Fertilizers segment accounted for largest market share in the by type segment in 2023 with a value of USD 160.5 billion in 2022.
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This research study involved the extensive use of secondary sources—directories and databases such as the Food and Agriculture Organization and World Health Organization—to identify and collect information useful for a technical, market-oriented, and commercial study of the agrochemical market. In-depth interviews were conducted with various primary respondents—such as key industry participants, subject matter experts (SMEs), C-level executives of key market players, and industry consultants—to obtain and verify critical qualitative and quantitative information and assess prospects. The following figure depicts the research design applied in drafting this report on the agrochemicals market.
Secondary Research
In the secondary research process, various sources such as website information, press releases & investor presentations of companies, white papers, food journals, certified publications, articles from recognized authors, gold & silver standard websites, directories, and databases, were referred to identify and collect information.
Secondary research was used to obtain key information about the industry’s supply chain, the total pool of key players, and market classification and segmentation as per the industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
In the primary research process, various sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information. The primary sources from the supply side included industry experts such as CEOs, marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the agrochemicals market.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
- Both the top-down and bottom-up approaches were used to estimate and validate the total size of the agrochemicals market. These methods were also used extensively to estimate the size of the various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research.
- All macroeconomic and microeconomic factors affecting the growth of the agrochemicals market were considered while estimating the market size.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, the data triangulation and market breakdown procedures were employed wherever applicable. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using the top-down and bottom-up approaches.
Report Objectives
- To define, segment, and project the global market for agrochemicals on the basis of type, fertilizer type, pesticide type, crop type and region
- To provide detailed information regarding the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To strategically analyse the micro markets with respect to individual growth trends, future prospects, and their contribution to the total market
- To analyse the opportunities in the market for stakeholders and provide a competitive landscape of the market leaders
- To project the size of the market and its submarkets, in terms of value, with respect to the regions (along with the key countries)
- To strategically profile the key players and comprehensively analyse their market position and core competencies.
- To analyse the competitive developments such as joint ventures, mergers & acquisitions, new product developments, and research & developments in the agrochemicals market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Geographic Analysis
- Further breakdown of the Rest of Europe agrochemicals market into Poland, Netherlands, Denmark, Belgium, Switzerland, Sweden, Greece, and other EU and non-EU countries.
- Further breakdown of the Rest of Asia Pacific agrochemicals market into Malaysia, Thailand, Singapore, Indonesia, Philippines, Vietnam, South Korea, and other ASEAN countries.
- Further breakdown of the Rest of South America agrochemicals market into Colombia, Peru, Paraguay, Chile, and Venezuela.
Company Information
- Detailed analyses and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Agrochemicals Market
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