Agrochemicals is the generic name of chemical products used in the agricultural field. These include pesticides, insecticides, fungicides, herbicides, nematicides, synthetic fertilizers, bio fertilizer, and chemical growth agents, among others. Increasing population and surging urbanization in turn puts additional pressure on the already diminishing farmlands. Agrochemicals help to effectively cultivate and manage crops to increase production. Thus, these factors greatly support growth of the global agrochemicals market. Various government and non-governmental organizations are focusing on addressing this global concern by increasing funding for programs related to the agricultural sector. The World Bank implemented 146 projects during 2014–2016, which provided agricultural services and assets to 17 million farmers globally, in turn augmenting growth of the market. The U.S., China, and Japan are the largest producers of agrochemicals, while North America, followed by Asia Pacific are the largest consumers in the global agrochemicals market. Population explosion in countries such as India and China, along with rapid economic growth in these countries is expected to position Asia Pacific as the fastest growing market for agrochemicals in the near future.

Global Agrochemicals Market Taxonomy

On the basis of product type, the global agrochemicals market is classified into:

Fertilizer

Nitrogenous



Phosphatic



Potassic



Biofertilizers

Pesticides

Herbicides



Insecticides



Fungicides



Others

On the basis of application, the global agrochemicals market is classified into:

Agriculture

Horticulture

Floriculture

Others

On the basis of geography, the global agrochemicals market is classified into:

North America

U.S.



Canada

Europe

U.K.



Germany



Italy



France



Spain



Russia



Rest of Europe

Asia Pacific

China



India



Japan



ASEAN



Australia



South Korea



Rest of Asia Pacific

Latin America

Brazil



Mexico



Argentina



Rest of Latin America

Middle East

GCC Countries



Israel



Rest of Middle East

Africa

North Africa



Central Africa



South Africa

Global Agrochemicals Market Outlook – Surge in Food Grains Demand Augmenting the Market Growth

The global agrochemicals market is expected to be fueled by increasing global population and subsequent increasing demand for food grains. Moreover, rampant urbanization over the recent past has led to a steep decline in farmlands. According to 2017 Census of Agriculture, farm lands in the U.S. declined to 900,217,576 acres in 2017 from 914,527,657 acres in 2012. This increases adoption of duel cultivation, wherein various fertilizers are used to maintain the fertility of the soil and pesticides help improve crop yield. According to Food and Agriculture Organization (FAO) of the United Nations forecast, world cereal production in 2019, was pegged at around 2,708 million tons, higher from 55.4 million tons (2.1%) in 2018. This scenario is projected to generate higher demand for agrochemicals over the forthcoming years.

Global Agrochemicals Market Challenges – Environmental and Health Impact

Despite its numerous advantages, agrochemicals are also associated with certain environmental and health issues. Excessive use of fertilizers has led to ground water contamination with toxic chemicals such as nitrate. Drinking of nitrate-contaminated water causes certain diseases such as immobilization of hemoglobin in blood, reduced oxygen supply, among others. Moreover, the pesticides used for pest control such as DDT, dieldrin, aldrin, among others have significant impact on environment and living beings. In the U.S., numerous wild birds die every year due to the use of an agricultural pesticides carbofuran. Carbofuran granules resemble the size and shape of grain seeds, which are the staple diet of most birds. The detrimental impact of insecticides and pesticides on the environment is expected to be the key challenge in the global agrochemicals industry. This has in turn led to increasing efforts by manufacturers and regulatory bodies alike to develop non-toxic natural pesticides and herbicides. This trend is further supported with increasing consumer inclination towards organic food products, which necessitate use of organic pesticides and insecticides. This is a perceived threat to the market, as most natural pesticides are homemade.

Agrochemicals impact on soil:

Increases pH levels, thus increasing hydrolysis of pesticides

Kills helpful microorganisms

Decreases the fertility of the soil

Toxic to microbes

Agrochemicals impact on air:

Significantly hampers indoor air quality

Decomposes pesticides in presence of sunlight

Agrochemicals impact on water:

Pollutes ground water, lakes, and rivers

Disturbs aquatic life

Global Agrochemicals Market – Regulatory Scenario:

In September 1968, The Insecticides Act, 1968 and Insecticides Rules, 1971 in India was governed by The Central Insecticides Board and Registration Committee (CIBRC) and Food Safety and Standard Authority of India (FSSAI). The act is enforced to regulate the import, sale, transport, manufacture, distribution, and use of insecticides

Key players in the market include Agrium, BASF SE, BAYER AG, Dow AgroSciences, DuPont, Monsanto Company, Sumitomo Chemical Co., Syngenta AG, The Mosaic Co., Yara International, Gharda Chemicals Ltd., Drexel Chemical Company, Qatar Fertilizer Company, Cf Industries, Israel Chemicals Ltd., American Vanguard Corporation, Rotam Corpsciences, FMC Corporation, and Zuari Agro Chemicals Ltd.

Key Developments