Agrochemical Industry: Market Research Reports, Statistics and Analysis

Key Market Segments

• World fertilizer demand is set to grow 3% yearly through 2014, reports Freedonia. Phosphate and potash are leading products. Fertilizer market growth is quite dependent on the agricultural industry. When raw material costs rose and crop prices lost stability amidst the global financial crisis, farmers used less fertilizer or suspended fertilizer applications to offset price pressures elsewhere. Increased concern regarding the optimal soil nutrient balance will fuel demand for phosphate, potash, organic and multi-nutrient fertilizers. The US housing market dictates the state of commercial and consumer fertilizer markets to some degree. Fertilizer demand will also grow as the US housing market rebounds, and homeowners have more disposable income for gardening and lawn care. However, commercial and consumer fertilizer markets will remain less than 5% of the global market. The fertilizer market will see most rapid growth in Central and South America through 2014. Brazil has become a major player in the global agricultural industry, using fertilizers to boost agricultural production. Other countries in the region have followed suit, fuelling fertilizer demand. The Africa-Middle East region represents the smallest regional market and will remain at the lower end despite above-average growth.

• The world pesticide industry is worth $45 billion, according to Freedonia. Revenue is restricted by market maturity and a tough pricing environment. In established markets such as Western Europe and North America, growth is expected to be below average in the years to come as commercial outfits and consumers try to restrict unnecessary pesticide use. Japanese market growth will also be quite slow. Asia-Pacific is expected to see strong growth, with above-average agricultural growth in Thailand, Indonesia and China fuelling crop-protection chemical demand. India is also introducing pesticide usage where traditionally it has been absent. Central and South America are expected to see the greatest growth in pesticide demand, particularly in Brazil.

• US demand for lawn and garden consumables is set to grow at almost 3.5% yearly through 2014 to exceed $9 billion, according to Freedonia. The market includes seeds, growing media, mulch, pesticides and fertilizers. Home gardening activity is fuelled by unstable economic conditions, concerns over food safety and a rebound in the housing sector, which means new homeowners need landscaping for newly built houses. Gains in the sector will be negatively impacted by nonresidential construction and slowing growth in the golf industry. Fertilizers and other growth products will show the biggest increase through 2014, fuelled by demand for products such as premium soils and fast-acting fertilizers. Better product quality, wider product ranges and lower prices will boost sales of organics.

Market Outlook

Technological advances and new ownership of land for crop cultivation will continue to boost agricultural production. Investment in the sector will intensify, creating growth opportunities across most sectors. Because arable land is limited and food demand is growing due to rising population, the agriculture sector is looking to agrochemical solutions to yield healthy crops and increase productivity. New products and technological innovation will attract the farming industry, under pressure to increase output.

Pest and nutrient management systems are making agrochemical use safer, which continues to encourage demand not only in developed markets but also in emerging countries, such as India, where their use is relatively recent. As the US housing sector continues to rebound, lawn and garden consumables will continue to benefit from growing demand. 

Leading Industry Associations

• Crop Protection Association www.cropprotection.org.uk
• Association of Pesticide Control Officials aapco.ceris.purdue.edu
• European Crop Protection Association www.ecpa.eu
• CropLife America www.croplifeamerica.org
• International Fertilizer Industry Association www.fertilizer.org