The 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 refer to crop protection chemicals such as insecticides, herbicides, fungicides and others. They are essential for high crop yields as they protect crops from pests, diseases and weeds. With the growing global population and changing lifestyles, the demand for food is increasing rapidly which is boosting the need for agrochemicals to maximize crop production on existing arable land.
Market key trends:
One of the key trends boosting growth of the agrochemicals market is growing demand for food. According to the data from FAO, the global food demand is expected to increase by 60% by 2050 to feed the growing population which is anticipated to reach around 9.7 billion. In order to meet this rising food demand, crop protection through agrochemicals plays a vital role. Agrochemicals like pesticides, herbicides and fungicides help protect crops from diseases and increase yields thereby helping bridge the gap between food demand and supply. Moreover, rising organic food consumption is also propelling the demand for organic agrochemicals such as biopesticides and biofertilizers.
Porter's Analysis
1. Threat of new entrants: The agrochemicals market requires large capital investments and strict regulations which act as barriers for new companies. Strict compliance with environment and safety regulations also discourage new players.
2. Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and choices. However, brand loyalty and proprietary technologies moderate their influence.
3. Bargaining power of suppliers: Major suppliers include manufacturers of active ingredients and intermediaries. Suppliers possess some bargaining power due to consolidation and competition between agrochemical companies.
4. Threat of new substitutes: Substitutes include organic/bio based fertilizers and integrated pest management strategies. However, their uptake remains limited due to costs and application challenges.
5. Competitive rivalry: The market is consolidated with few global players. Intense competition exists on pricing, product differentiation and proprietary technologies.
SWOT Analysis
1. Strength: Wide product portfolio and penetration in different crop segments. Proprietary technologies and RD expertise reduce dependence on outsourcing.
2. Weakness: Price fluctuations of raw materials impact margins. Stringent regulations delay product launches and increase compliance costs.
3. Opportunity: Developing regions like Asia Pacific and Latin America offer high growth potential due to conducive policies. Adoption of digital and precision farming techniques open up new avenues.
4. Threats: Increased preference for organic alternatives reduces agrochemical usage. Trade disputes and climate change impact farming activities.
Key Takeaways
The global agrochemicals market is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing adoption of advanced farming techniques. Asia Pacific dominates currently due to large arable land and crop cultivation. The region is estimated to grow at fastest pace, expanding at over 7% CAGR between 2023-2030. Southern regions like Brazil and Argentina lead growth in Latin America on back of governmentpromoted mechanization programs.
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.
