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Agrochemical Market Reports: Find Statistics and Industry Data

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Major sectors under Agrochemical

Global Agrochemical Industry

The world agrochemical market drivers, part of the agricultural input business, include growing population, declining availability of arable land, and agrochemical use in biofuel production.

Fertilizers provide nutrients needed for optimal crop growth, essentially making up for nutrients that the soil may be lacking. Nitrogenous fertilizers represent close to half the market but segment growth is relatively low. Phosphatic fertilizers represent a smaller market share but the segment shows more rapid growth. Organophosphate pesticides are predicted to gain increasing market share due to its many chemicals, including chlorpyrifos and glyphosate.

Programs such as Integrated Pest Management and Integrated Nutrient Management limit potential health, economic and environmental risks from using agrochemicals. The former puts practices in place to limit economic damage due to pests by preventing infestation and intervening when necessary. Integrated Nutrient Management seeks to conserve plant nutrient supply and soil fertility at appropriate levels to optimize productivity.

Agrochemical Industry Key Market Segments

In the world fertilizer demand, 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. 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 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. Better product quality, wider product ranges and lower prices will boost sales of organics.

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Parent industry: Agricultural Input
Related industries: Agricultural Machinery, Animal Feed

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