Agrochemicals Market Size (2024 - 2029)

Agrochemicals Market Analysis

The Agrochemicals Market size is estimated at USD 253.29 billion in 2024, and is expected to reach USD 308.17 billion by 2029, growing at a CAGR of 4% during the forecast period (2024-2029).

The rising population across the world, accompanied by rising affluence, is shifting consumption patterns. There is a need not just to increase production to meet demand but also to ensure that the nutritional needs of an increasingly affluent population are met. Moreover, the demand for healthy diets has increased the consumption of cereals, fruits, and vegetables across the world. This has resulted in integration among growers, federal governments, and industries to improve crop yield to meet global food supply requirements. While all this is done, proper care is applied so as not to cause any adverse effects on human safety and ecological balance.

For instance, according to the IMF, in 2021, the estimated total population in India amounted to approximately 1.39 billion people. According to the FAO, in 2021, 11.7% of the global population experienced severe food insecurity. Shrinking arable land and loss of crops due to pest attacks lead to wastage, posing a critical challenge to ensuring food and nutritional security. According to the US Department of Agriculture, from 2000 onwards, the total land area in the US farms has decreased annually. The total farmland area has decreased by almost 50 million acres, reaching 895.3 million acres as of 2021. Such factors are raising the demand for agrochemicals, which boosts agricultural output.

Agrochemical usage is mainly driven by the growing application of genetically modified crops, such as soybean, maize, and cotton. The increasing application of agrochemicals has increased the need for the availability and production of more inert ingredients in the world.

Moreover, insect pests, plant parasitic nematodes, and fungal diseases continuously evolve and attack plants, leading to decreased yields. Furthermore, the incidence of resistant pests and insects against the existing crop protection chemicals in recent years is leading to the development of new active ingredient agrochemicals, increasing disease incidences. For instance, clubroot is a serious soil-borne disease of cruciferous plants, such as canola. In canola, swellings or galls form on the roots, which can ultimately cause premature death of the plant. About 300 new fields a year in Alberta have been found to have clubroot, and cases have started to spring up in Manitoba and Saskatchewan, Canada’s largest canola growers. There are about 3,000 fields infected with clubroot in Canada, which could devastate the Canadian canola industry. However, there is rampant crop damage due to disease incidence, causing enormous losses to economically important crops. This created the need to develop new fungicides and compelled farmers to adopt an intensified application of agrochemicals such as fungicides and insecticides.

However, regulatory restrictions and environmental concerns are the major factors that can restrain the use of raw materials in agrochemicals. Government regulations and restrictions on using certain raw materials can limit their availability and use in crop protection. For instance, in December 2021, the Government of Mexico passed a decree to eliminate the use of glyphosate-based pesticide products in the country. More pesticides are projected to be eliminated in the coming years amid rising consumer awareness about the impact of pesticides on human and environmental health.

Agrochemicals Industry Segmentation

Agrochemicals are used to prevent the deterioration of crops from insects and pest infestation and disease. The agrochemicals market report offers the latest trends, growth factors, industry competitiveness, investment opportunities, and a detailed profile of the top players in the market.

 The agrochemicals market is segmented by product type (fertilizers, pesticides, adjuvants, and plant growth regulators), application (crop-based and non-crop-based), and geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers market size and forecasts for the market in terms of value in USD for all the above segments.