Malaysia Agrochemicals Market Size (2024 - 2029)

Malaysia Agrochemicals Market Analysis

The Malaysia Agrochemicals Market size is estimated at USD 679.59 million in 2024, and is expected to reach USD 849.33 million by 2029, growing at a CAGR of 4.56% during the forecast period (2024-2029).

Malaysia is one of the most developed markets in Southeast Asia. In 2022, the agriculture industry in Malaysia contributed 6.6% to the country's gross domestic product (GDP). In Malaysia, agriculture is an important industry, as it ensures food security and increases income levels in rural areas. Increasing population statistics and declining arable land are responsible for maintaining adequacy in agricultural practices, ensuring more significant utilization of agrochemical products in the areas that were ignored in the past.

Moreover, rice is a staple food among Malaysians and one of the most important food crops in the country. According to the Food and Agricultural Organization, in 2021, Malaysia produced 1.68 million metric tons of rice, an increase of around 180 thousand metric tons compared to the previous year. This growing production trend resulted in extensive pesticide usage to minimize pests and maximize profit.

The use of agrochemicals has been growing significantly in the country, particularly for pesticides and fertilizer consumption, as modern practices are being utilized in fields. The growth of the agrochemical industry also depends on the rapid expansion of areas under oil palm and rubber plantations. Malaysia's oil palm industry was the country's primary agricultural sector and contributed 2.4% to its overall gross domestic product (GDP) in 2022. According to the FAO, in 2021, 45,670 metric tons of pesticides were used in Malaysia for agricultural purposes, an increase from around 36,000 metric tons the year before.

Many local enterprises in Malaysia are expanding into the agricultural sector. The nation is also evolving into a regional hub for pesticide exports, as active chemicals are transferred here to be transformed into fresh goods before being reexported to surrounding countries. Additionally, the increasing government initiatives are becoming a driving factor for market growth. For instance, in 2022, the Malaysian Ministry of Agriculture and Food Industries (MAFI) was requested by Pesticide Action Network Asia Pacific (PANAP) to consider providing paddy farmers with help for safer, non-chemical pesticide alternatives that can benefit farmers' health. Therefore, the increase in consumption of highly economical crops, food demand, and government support is expected to aid market growth during the forecast period.

Malaysia Agrochemicals Industry Segmentation

Agrochemicals are chemical products, including fertilizers, adjuvants, pesticides (insecticides, herbicides, fungicides, and nematicides), and plant growth regulators, which are used in agriculture to enhance crop productivity and protect crops from pests, insects, weeds, and fungi. The Malaysian agrochemicals market is segmented by product type (fertilizers, pesticides, adjuvants, and plant growth regulators) and application (crop-based [grains and cereals, fruits and vegetables, and oilseeds and pulses] and non-crop-based [oil palm, rubber, turf ornamental grass, and other crops]). The report offers market size and forecasts in terms of value (USD) and volume (metric tons).