Agrochemicals: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

Agrochemicals, sometimes known as agrichemicals, are chemical products used in agriculture for crop protection and/or crop nourishment. The worldwide geopolitical environment has had a considerable impact on the supply and demand for chemical fertilizers and pesticides over the last two years.

Market Insights

Due to geopolitical factors, increased fertilizer prices, decreased availability, and poor affordability lowered demand in 2021 and 2022. Though demand is predicted to recover in 2023 as prices fall, demand will remain lower than in 2020. The current prediction suggests an optimistic outcome. Other reasons that have contributed to falling demand, in addition to geopolitical conditions, include: Extreme weather phenomena, such as La Nia, drought in Latin America, excessive rains, and floods in South Asian countries; and Limited government assistance and subsidies (varies by location). Certain countries’ economic difficulties: for example, several countries, including Sri Lanka, lack foreign reserves to import fertilizers and reduction in the area planted to fertilizer-intensive crops such as cereals, as well as application rates.

According to FAO projections, worldwide cereal production will fall in 2022 compared to 2021. Environmental rules will have a medium-to-long-term impact on fertilizer demand. Though it is difficult to forecast fertilizer consumption because to the current geopolitical environment, global demand is predicted to expand in 2023 and beyond, at a CAGR of 3.4% from 2023 to 2030. Latin America and APAC will drive growth due to their increased emphasis on agriculture.

Because of countries’ greater reliance on imported inputs such as natural gas and ammonia, the nitrogen-based fertilizers business is the most vulnerable to geopolitical disturbances. However, compared to phosphate and potash fertilizers, demand for nitrogen-based fertilizers fell less in 2021 and 2022, owing to the following factors:

• Most regions and countries are self-sufficient and less reliant on imports, unlike phosphate and potash fertilizers.
• In the event of supply and pricing interruptions, farmers prioritize nitrogen fertilizers above phosphate and potash fertilizers.

Demand for nitrogen-based fertilizers is predicted to rebound as prices begin to stabilize in 2023, expanding moderately at 0.8% year on year after falling 1.0% in 2021 and 3.0% in 2022. Demand for nitrogen-based fertilizers will likely exceed 2020 levels by the end of the forecast period, assuming an optimistic scenario. Because of its ease of use, accessible availability, and cheaper cost, urea held the majority share of the total nitrogen-based fertilizers market and would continue to do so during the forecast period. Other significant types of nitrogen-based fertilizers that are favoured because to their ease of handling and safety are CAN and UAN. Because the manufacture of nitrogen-based fertilizers is an energy-intensive operation, environmental restrictions may limit their use in the medium- to long-term.

Despite their high production capability, the United States and Canada rely on imports, particularly potassium fertilizers. According to the FAO, the US imports around 20% of all fertilizers, whereas Canada imports more than 60%. Fertilizer affordability has been influenced by a supply shortage and rising prices (2021-2022), prompting farmers in North America to reduce application rates, particularly for phosphate and potash fertilizers. Demand is predicted to recover in 2023, followed by stable growth, driven by increased demand for fertilizers for cash crops such as cotton and cereal crops such as wheat and maize.

Long-term demand will fall due to the region’s adoption of precision and sustainable agriculture practices. Variable-rate fertilizer application systems, for example, can improve application efficiency. Furthermore, the use of sustainable biological alternatives will restrict mineral fertilizer penetration.

The competitive ecosystem is still centralized, with huge international corporations controlling the majority of production capacity, volume sales, and revenue. However, many small-to-medium-sized regional players exist to fulfill domestic demand, particularly in developing countries like as India and China. Private, public, and huge cooperatives make up the Indian market. Geopolitical events such as the COVID-19 epidemic and the Russo-Ukrainian War had a significant impact on manufacturers’ supply chains. However, most worldwide corporations have increased capacity, and while most companies’ sales volumes decreased in 2022, revenue sales were high due to much higher pricing.

Market Dynamics: Drivers

Reduced arable land and rising global population continue to be major drivers of agrochemical usage.

The major considerations for farmers to employ chemical crop input, particularly in developing nations, are yield enhancement and production cost reduction to ensure profitability.  Despite a shift toward organic and biological alternatives, their adoption remains modest, particularly in emerging economies.

 Market Dynamics: Challenges

 Rising raw material and energy prices, as well as pandemic-related supply chain problems, will continue to impact agrochemical availability and pricing, limiting demand in the immediate term.

The increased adoption of sustainable agricultural practices will reduce crop input utilization overall. Furthermore, growing awareness of and skepticism about the use of GM crops and resistant strains due to their negative impact on soil and the environment will reduce the abuse of broad-spectrum pesticides.

Market Segmentation

• Based on Product Type, the Global Agrochemicals market is segmented into
  • Fertilizers
    • Ammonia
    • Urea
    • CAN
    • MAP
    • DAP
    • TSP
    • SSP
    • MOP
    • SOP
    • Acid-based Biostimulants
    • Seaweed and Plant Extracts
    • Amino Acid and Protein Hydrolysates
    • Microbial Inoculants/Biofertilizers
    • Others
  • Micronutrients
  • Plant Growth Regulators
  • Synthetic Pesticides
    • Herbicides
      • Phenoxy Hormone products
      • Triazines
      • Amides
      • Carbamates
      • Dinitroanilines
      • Urea Derivates
      • Sulfonyl Urea
      • Bipiridils
      • Uracil
      • Others
    • Insecticides
      • Botanical products and biologicals
      • Carbamates
      • Chlorinated Hydrocarbons
      • Organophosphates
      • Pyrethroids
      • Others
    • Fungicides
    • Benzimidazoles
    • Diazines, morpholines
    • Dithiocarbamates
    • Inorganics
    • Triazoles, diazoles
    • Others
  • Biopesticides
    • Bio-Herbicides
    • Bio-Insecticides
    • Bio-Fungicides
• Based on Application, the Global Agrochemicals market is segmented into
  • Vegetable and Fruits
  • Oilseeds and Pulses
  • Cereals and Gains
  • Commercial Crops
  • Others
• Based on Source, the Global Biopesticides market is segmented into
  • Microbial
    • Bacterial
    • Fungal
    • Viral
  • Biochemical
  • Plant-Incorporated Protectants (PIPs)
• Based on Formulation, the Global Biopesticides market is segmented into
  • Liquid-based Formulation
  • Water-dispersible granules
  • Wettable powder
  • Pellets
• Based on Geography, the Global Agrochemicals market is segmented into
  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa

• All market revenue has been given in US Dollar, while the market volumes are given in tons.

Historical Year: 2020-2021
Base Year: 2022
Estimated: 2023
Forecast- 2024-2030

 Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Agrochemicals Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Agrochemicals Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Agrochemicals Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Agrochemicals Market study?