Agrochemicals Market Size, Share, Growth Analysis, By Crop Type, Fertilizer Type, Pesticide Type, Mode of Application, and Region - Industry Forecast 2024-2031

Global Agrochemicals Market size was valued at USD 224.90 billion in 2022 and is poised to grow from USD 231.20 billion in 2023 to USD 288.36 billion by 2031, at a CAGR of 2.80% during the forecast period (2024-2031).

Agrochemicals, including pesticides, herbicides, and fertilizers, are essential for managing agricultural ecosystems. These substances have been used for centuries to enhance crop yields and manage pest populations. Agrochemicals fall into two primary categories: fertilizers, which improve crop quality by supplying essential nutrients to both crops and soil, and pesticides, which protect crops by controlling, killing, or repelling pests and weeds. Given the current global population and the need to maximize food production on available arable land, agrochemicals play a crucial role in the agriculture sector. They assist farmers in boosting both the quality and quantity of their crops. Key drivers of the global agrochemicals market include the rising global population and the corresponding increase in food demand, soil degradation, shrinking agricultural land, and heightened consumer awareness of agrochemical benefits. However, market growth may face challenges due to the potential risks associated with synthetic pesticides, such as 2,4-D and atrazine herbicide. On the positive side, the expanding animal husbandry and feed sectors are expected to contribute to market growth. The U.S. feed industry, the largest globally, reported an export value of USD 13 billion and a volume of 32.4 thousand tons according to the American Feed Industry Association (AFIA). Countries like Turkey, Bolivia, Romania, and Tunisia have also shown positive growth in recent years. The International Feed Industry Federation (IFIF) indicates that commercial feed production occurs in over 130 countries, generating an annual turnover of USD 400 billion.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Agrochemicals market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Agrochemicals Market Segmental Analysis

Global agrochemicals market is segmented based on Crop Type, Fertilizer Type, Pesticide Type, Type, and Region. Based on Crop Type, the market is segmented into Cereals & Grains (Corn, Wheat, Rice, Other), Oilseeds & Pulses (Soybean, Sunflower, Other), Fruits & Vegetables (Apples, Cucumber, Grapes, Pears, Potatoes, Banana, Avocado, Tomatoes, Cucurbits, Other), and Other. Based on Fertilizer Type, the market is segmented into Nitrogenous Fertilizers (Urea, Ammonium Nitrate Ammonium Sulfate, Ammonia, Calcium Ammonium Nitrate, Other), Phosphatic Fertilizers (Diammonium Phosphate, Monoammonium Phosphate (MAP), Triple Superphosphate (TSP), Other), Potassic Fertilizers (Potassium Chloride, Potassium Sulfate, Other). Based on Pesticide Type, the market is segmented into Pesticides, Insecticides, Herbicides, Fungicides, Nematicides, and Other. Based on Type, the market is segmented into Fertilizers, and Pesticides. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.

Drivers of the Global Agrochemicals Market

Ongoing technological advancements in agriculture are transforming farming practices. As agricultural trade expands across different regions, particularly in developing countries, new harmful organisms have emerged, driving the demand for innovative agrochemical products to protect crops. The globalization of the agrochemical industry significantly impacts crop protection markets in Asia. With Asia experiencing the highest population growth rates, there is a growing need for increased food production. This, combined with economic development, has led to rising demand for agrochemicals such as herbicides and pesticides. Despite the growing demand for food in the Asia-Pacific region, urbanization is reducing available agricultural land, compelling farmers to rely more on agrochemicals to maintain soil health and boost land productivity.

Restraints in the Global Agrochemicals Market

The organic fertilizer sector is expanding rapidly, driven by growing awareness of health, food safety, environmental protection, and animal welfare. This surge in popularity for organic food, particularly in developing countries, is spurred by increasing demand for healthy and safe food options and rising per capita income. As the organic food market grows, the use of biofertilizers is expected to increase, impacting the composition of chemical fertilizers. Consequently, the rise of the organic fertilizer sector is expected to hinder the growth of the global agrochemicals market during the forecast period.

Market Trends of the Global Agrochemicals Market

Agrochemicals play a crucial role in achieving high crop yields by managing pests and diseases. According to a FAO report, approximately 40% of global agricultural crops are lost annually due to pests and diseases. To ensure healthy plant growth and maximize production, providing adequate nutrients is essential. The nutrient needs vary based on the type of crop and soil conditions. Agrochemicals effectively meet these demands; for example, urea supplies 46% nitrogen to the soil, while organic fertilizers like neem cake provide only 2-5% nitrogen, which is vital for plant development.