The global agrochemical market is projected to generate USD 301.5 billion revenue by 2030, advancing at a CAGR of 3.9% during 2022–2030. This can be ascribed to the rising population, which fuels food consumption globally and impels farmers to raise their productivity.
A range of chemicals are applied to protect crops against pests, insects, and weeds. Uncontrolled pestilence causes significant damage to crops, resulting in a loss of quality and quantity. It is believed that without the use of crop protection products, annual crop losses could double. Thus, since human nutrition is directly dependent on agriculture, agricultural chemicals are growing in consumption.
Due to the population growth globally, the consumption of food has increased; thus, the demand for agricultural products is also rising. This has led to an increase in the usage of a range of chemicals in order to boost crop yields and the develop the agriculture sector overall. In order to meet the growing demand for food, the use of pesticides and fertilizers has become necessary.
According to the International Monetary Fund, by 2050, the world’s population is projected to reach 9.8 billion.
Two of the key factors driving the consumption of such chemicals are water shortage and land scarcity, which impel farmers to use alternative ways to augment yield in certain areas. Furthermore, with the rise in farmers’ knowledge of advanced technologies, the demand for organic fertilizers and Nano fertilizers will rise.
The growing need for food crops, driven by the increase in the number of people, fuels the rise in pesticide use to enhance crop yield in the region. Moreover, there has been a rapid decrease in the arable land per person in countries such as India, China, and Southeast Asian countries. This is why fertilizers, micronutrients, and agricultural adjuvants play a major role in increasing crop quality and quantity.
India is the second-largest producer of rice and wheat, and more than 55% of its population is directly dependent on agriculture for its livelihood. The increasing population, rising need for food, and growing economy directly contribute to the market advance. On the other hand, arable land for cultivation is shrinking due to the increasing rate of urbanization, thus making it difficult to cater to the burgeoning food demands of the country. These factors are responsible for the usage of various agrochemicals in order to increase the land’s productivity and maintain the soil’s fertility. Furthermore, the government initiatives to support the agriculture sector, such as Aatmanirbhar Bharat, are likely to fuel the market.
Moreover, with the rising investment in the agriculture industry, various companies in the market are now focused on expanding their product portfolios. For instance, in June 2022, UPL Limited announced the launch of new Flupyrimin insecticides, to protect rice yield by reducing the likelihood of a pest attack and the diseases caused by them.
Further, agricultural product imports to the U.K. are the fifth-highest in the world, and the country is a key importer of products manufactured in the U.S.. With the increasing demand for food, the country is forced to produce large amounts of crops to fulfill the requirement. This need can be met by minimizing the crop losses caused by pests, which is expected to fuel the market growth.
The major players operating in the agrochemical market include BASF SE, Bayer AG, ADAMA Ltd., The Dow Chemical Company, Yara International ASA, Syngenta Crop Protection AG, UPL Limited, Zuari Agro Chemicals LTD., Evonik Industries AG, and Sumitomo Chemical Co. Ltd.