The agriculture industry is constantly evolving leading to an increased demand for agrochemicals so as to meet the growing requirements from the farming sector. Agricultural productivity has risen due to the use of improved crop varieties, enhanced fertilizers, pesticides, and supplementary irrigation water. Population growth exceeds global food production and hence, better use of best fertilizers grades for agriculture will benefit growers and the economically backward population in developing countries, which will ultimately improve the standard of living. However, manufacturers face problems such as short supply and high cost of basic raw materials. The cost of production of agrochemicals is very high and cannot be carried by small producers. As a result, large-scale manufacturers from industrialized developed countries lead the production of agrochemicals.

The global agrochemicals market has grown exponentially over the last few years and its growth is expected to continue due to the increasing area under irrigation system and greenhouse crop production. Factors such as the increasing cost of agricultural production, ease of application, innovative production practices, new product offerings, increased availability, and the advent of micro irrigation, mechanized irrigation systems and the increasing demand for better yield owing to rising population, decreasing arable land, and the increasing demand of biofuels are driving the market for agrochemicals globally. However, increasing environmental concerns and availability of eco-friendly alternatives are restraining the market for agrochemicals market.

The global pesticides market has been divided into patented and generic pesticides. Almost 67% of the market is dominated by patented or proprietary active ingredients, while 33% is held by generic pesticides. The proprietary pesticides market strongly focuses on crop protection chemicals based on stringent regulations, driven by US and European standards. Increasingly stringent regulations have provided strong motivation for European multinationals to develop and bring the expensive patented alternatives in the market to replace low-priced generics.

The agrochemicals market has grown significantly in the last few years and this growth is projected to continue in the near future. Considering the growth in the usage of micro irrigation and sprinkler irrigation systems on crops, the use of agrochemicals, especially fertilizer products such as water-soluble fertilizers and foliar fertilizers are becoming increasingly popular. Apart from the factors stated above, the increasing demand for food products has also led to an increased demand for agrochemicals from all over the world.

Increased export demand for high value crops such as greenhouse grown vegetables and competition in the global market to supply good quality materials are expected to be the driving factors for the agrochemicals market. Increased participation of private players and their rigorous effort to improve agrochemical products and expand worldwide has supported growth in the agrochemicals market enormously.

The cost of agrochemicals is comparatively higher than that of conventional chemical fertilizers. Hence, conventional fertilizers are more affordable to farmers and are widely consumed in developed countries as they have large land holdings. Emerging economies such as Brazil, India, and China, which are the biggest consumers of conventional fertilizers, are still in the initial stage of this industry as these fertilizers and pesticides are beyond the purchasing power of Asian farmers. However, the Asia- Pacific market is growing at a higher rate due to rising awareness regarding the advantages of agrochemicals among farmers. A reduction in the cost of agrochemicals can lead to market expansion in South American and African countries.

The agriculture industry is constantly evolving leading to an increased demand for agrochemicals so as to meet the growing requirements from the farming sector. Agricultural productivity has risen due to the use of improved crop varieties, enhanced fertilizers, pesticides, and ....see more

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