According to MarketsandMarkets, the global agrochemicals market is expected to grow from USD 235.2 billion in 2023 to USD 282.2 billion by 2028, reflecting a compound annual growth rate (CAGR) of 3.7% in terms of value. Agrochemicals, which encompass fertilizers, pesticides, adjuvants, and plant regulators, play a critical role in reducing crop losses by protecting against diseases, increasing crop yields, and maintaining crop quality. Rising global food demand driven by population growth has intensified agricultural production over recent decades. The United Nations' World Population Prospects 2022 report indicates that the global population reached 8 billion, underscoring the growing need for robust food supply systems.
Favorable government policies, subsidies, and regulations further support agrochemicals market expansion. In particular, countries like the United States and those in Europe have adopted strict labeling and manufacturing guidelines for specialty fertilizers, promoting quality standards and environmental safety by reducing nutrient loss. For example, China's 13th Five-Year Plan (2016–2020) promoted controlled-release fertilizers (CRFs) to curb excessive pesticide and fertilizer use while enhancing water and food safety. Additionally, the European fertilizer industry, through the European Green Deal, has advanced ammonia production with a focus on achieving near-zero carbon emissions. India also promotes market growth by allowing unrestricted imports of muriate of potash (MOP), a key fertilizer ingredient.
Global agrochemical demand is accelerating due to the need to maximize crop productivity and adapt to technological advancements in agriculture. Expanded agricultural trade has introduced novel pest threats, necessitating new active ingredients to protect crops, particularly in developing regions. Asia's crop protection markets are influenced by agrochemical globalization, population growth, and rising food production demand. Herbicides and pesticides, in particular, are in high demand in this region to ensure food security.
South America’s global agrochemical market is projected to reach USD 73.2 billion by 2028, driven primarily by growth in Brazil and Argentina, two leading soybean producers with significant contributions to global oilseed production. Trade policies in these countries have fostered growth in the sector. According to FAOSTAT (2022), Brazil ranks among the top four global agricultural producers, supported by extensive land and labor resources, with Argentina also playing a significant role. Agrochemical adoption and advanced farming techniques have expanded in both countries, aided by distribution channels established by global agrochemical firms.
Among pesticides, the fungicide segment is anticipated to experience the highest growth, driven by rising fungal threats that impact crop yield and quality. Climate variability and changing agricultural practices have increased the risk of fungal infections, prompting the adoption of advanced fungicide solutions. Innovations in microencapsulation and nanotechnology are enhancing fungicide efficacy while reducing environmental impact. For example, companies like Vive Crop Protection and Aqua-Yield utilize nanoparticle-based systems, while Syngenta continues to lead with its ADEPIDYN and TYMIRIUM technologies, pushing forward the fungicide sector’s evolution.
Recent developments within the agrochemicals market include:
- ADAMA's launch of new fungicides—Avastel, Maganic, Maxentis, and Forapro—in April 2024, expanding their product portfolio.
- UPL’s acquisition of Corteva Agriscience’s global Mancozeb fungicide business in April 2024, extending UPL’s reach in fungicides across key regions.
- Bayer’s USD 231.3 million investment in a new R&D facility at its Monheim site in August 2023, aimed at pioneering the next generation of safe and sustainable crop protection products.
Nitrogenous fertilizers remain a dominant segment within the agrochemical market, supporting essential plant growth and photosynthesis. Urea, with its high nitrogen content (46%), is widely used globally due to its efficiency and cost-effectiveness in storage and transport. According to the World Economic Forum, ammonia is a critical component in fertilizer production, with 70% of ammonia produced for agriculture. As a key agricultural input, ammonia directly influences global food security and crop productivity.
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