The agrochemicals market is driven by the limited availability of arable land, rising environmental concerns, adoption of technology driven farming practices, high efficiency of chemicals, and increased resistance among pests. Advances in plant breeding and management expertise have resulted in crops with a higher yield potential, which need efficient agrochemicals for more productivity. The growth in the population and the consequent rise in demand for food and increased demand for enhanced aesthetics involving plants have led to an increase in the demand for agrochemicals globally. Another factor that drives the market for agrochemicals in a particular region is based on the types of crops that are grown.
The global agrochemicals market consists two broader segments namely fertilizers and pesticides. Increasing population and decreasing land availability have necessitated the use of agrochemicals. These are also used for the farming of crops that are used to produce bio-fuels, which are rapidly gaining importance over traditional petroleum-based fuel. The agrochemicals market is also expected to gain benefits from programs such as Integrated Nutrient Management (INM) and Integrated Pest Management (IPM), which use biological, mechanical, and chemical tools to minimize health-, economical-, and environment-related risks from agrochemicals. The agrochemicals market in the Asia-Pacific region accounted for a market share of 36.8%, in terms of value, in 2014. Several global players are trying to enter the Asia-Pacific market by means of mergers & acquisitions or partnerships. The Asia-Pacific market is projected to grow at the highest rate due to the increasing demand from countries such as India and China. The European market accounted for the third largest share in the world in 2014, and is also projected to be the fastest-growing market for the next five years. The increasing demand for high-value crop products from growing population is projected to drive the agrochemicals market in globally for the period under consideration.
The global Agrochemicals Market was valued at USD 207.5 Billion in 2014. It is projected to reach USD 250.5 Billion by 2020, at a CAGR of 3.2% from 2015 to 2020. The market was dominated by Asia-Pacific, which accounted largest of the total share, in 2014.
The agrochemicals market in North America and Europe is the most developed and widespread, compared to other regions. Also, the distribution network of agrochemicals is well-established in many North American and European countries. The high growth potential in emerging markets and increasing end-use applications provide new growth opportunities to the players.
The Asia-Pacific region, especially South-East Asian countries, is much desired for business expansion plans by the major players due to the readily availability of raw materials, wide distribution of commercial crops grown, and high adoption rate by farmers.
Major players such as Israel Chemicals Ltd. (Israel), Yara International ASA (Norway), The Mosaic Co. (U.S.), BASF SE (Germany), and Dow Chemical Limited (U.S.) account for around 70% of the global agrochemicals market, with respect to the developments in the market from the last five years.
