Agrochemicals Market Outlook
Agrochemicals are specially designed products used to enhance the productivity of crops and to protect them from insects, fungi, weeds, and pests. Agrochemicals include acidifying and liming agents, fertilizers, pesticides, and soil conditioners. Increasing pressure on farm yield improvement and declining farmlands is the major reason for the growth in consumption. Agrochemicals help farmers to fulfil demand from the rising population by increasing the amount of cultivation, which subsequently leads to higher returns on investment. Farmers are striving to achieve high quality and nutritive crop production as a result of which there has been a considerable increase in demand for agrochemicals. Growth of the population has led to higher demand for food grains which, in turn is expected to fuel growth of the agrochemicals market. However, the prolonged use of agrochemicals causes ecological and environmental damage, thus reducing its benefits. Agrochemicals can adversely affect the health of consumers, causing diseases such as cancer, autism, asthma, Alzheimer’s, and diabetes. Furthermore, these chemicals may contaminate ground water by accumulating on the land surface. Increasing agricultural and non-agricultural application of agrochemicals is propelling its demand from end-use industries. The key factors fueling growth of the market include the growing population, soil degradation, and high demand for food grains across the globe. The lower price of agrochemicals (pesticides and chemical fertilizers) compared to bio-pesticides and bio-fertilizers is a major reason for its increasing use among farmers. However, availability of various alternatives to agrochemicals such as organic pesticides made from minerals, low toxicity pesticides, bio-pesticides, and bio-fertilizers are is expected to hinder growth of the market.
According to the India Brand Equity Foundation (IBEF), a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India, the agrochemical market in India is expected to grow at 7.5% annually due to domestic demand, and reach US$ 6.3 billion by 2020. In India, the consumption of crop protection products in 2016 was below the global average of 3kg per hectare. However, the rapidly expanding population of the country is expected to propel demand for agriculture and create immense growth opportunities for players operating in the agrochemicals market. Asia Pacific is expected to hold a dominant position in the agrochemical market owing to the population growth, the rising demand for food production, as well as rapid economic growth in the region.
Application of Agrochemicals:
These chemicals are manufactured for agricultural and industrial use. Commodity chemicals are usually used in farming and have corrosion action on the exposed part of the human body. These chemicals include by-products and industrial waste such as acidic solutions or dilute caustic.
Pesticide is a substance used for destroying or controlling insects or other organisms that cause harm to cultivated plants. These include insecticides, herbicides, nematicides, rodenticides, insect repellants, animal repellants, and fungicides.
Fertilizers are any substance of natural or synthetic origin which are applied to plant tissues or soil to supply nutrients necessary for the growth of plants.
These products are used to nurture animals, which are applied to the skin or administered orally or through injection.
Key Challenges of the Global Agrochemicals Market
The Environmental Protection Agency (EPA) is responsible for regulating pesticides under the FQPA (Food Quality Protection Act) and FIFRA (Federal Insecticide, Fungicide and Rodenticide Act). Agrochemical products need to adhere to stringent regulatory standards to prevent any side effects on the environment and human health.
The farmers in remote areas still practice subsistence agriculture and sell their output in local markets. Availability of land for agriculture is decreasing due to growing urbanization and the increasing number of infrastructural projects. This has created awareness among farmers, regarding the use of agrochemicals to help in efficient farming.
The manufacturing plant location of agrochemicals is significant in reducing the transportation costs from the plants to clearing and forwarding agents. If the plants are strategically located, supply delays can be avoided and transportation costs of raw materials can be reduced.
The agrochemicals market in India has focused on manufacturing common agrochemicals instead of investing on research and development of new products. The demand for agrochemicals is increasing steadily and hence resulting in the need to manufacture products that benefit the local farmers.
Key Conferences on Agrochemicals:
The objective of these conferences is to offer high quality of education to the participants about latest research related to agrochemicals and newly developed products. The global conferences for agrochemicals held between 2016 and 2017 are listed below:
Key Players in the Agrochemicals Market:
Mergers, acquisitions, partnerships, collaborations, and joint ventures are the most commonly implemented strategies among manufacturers of agrochemicals. For instance, FMC Corporation, a chemical manufacturing company, acquired a significant portion of DuPont Crop Protection business to be divested with the European Commission’s ruling related to its merger with The Dow Chemical Company. In 2017, FMC Corporation generated a revenue of US$ 1.5 billion through this acquisition.
The manufacturers of agrochemicals are focusing on the development of products and implementing new innovations and technology to achieve a better position in the global agrochemical market. In 2016, Syngenta AG, a producer of agrochemicals and seeds, made an investment of US$ 1.3 billion in research and development and launched 16 new crop protection products.
Some of the key players in the global market for agrochemicals include Haifa Group, BASF SE, Syngenta AG, Yara International ASA, Bayer CropScience AG, Zuari Agro Chemicals Ltd., Gharda Chemicals Limited, and Dow Agro Sciences LLC.
Water soluble fertilizers are fertilizers that can be dissolved in water and added or leached out of the soil easily. Moreover, with water soluble fertilizers, it is easy to control the precise amount of nutrients available to the plants. The global water soluble NPK ... Read more
Magnesium Oxide Market 2017–2027 Magnesium oxide is a chemical compound with formula MgO and occurs naturally as periclase. It is a source of magnesium and has a wide range of applications such as it is used... Read more
Dicamba Market 2017–2027 Dicamba is a product that belongs to the herbicide group and widely used to destroy unwanted growth of broadleaf plants. It is available in the different salt and acid formulati... Read more
Soil Active Herbicides Market- 2019-2027 Definition of Market/Industry: Soil active herbicides are the herbicides which act on the roots, seeds and shoots of t... Read more
Biostimulant is a substance that is used to foster the plant growth by improving the metabolism of the plant and it finds application in agriculture and horticulture. It is derived from natural resources and some of the most common biostimulants used are humic&nb... Read more
Definition of Market/Industry: Chelated-iron micronutrients are mostly used in the soil with high pH value and soil with low organic matter content to reduce the iron deficiency in the soil. Chelated-iron micronutr... Read more
Global Native Grass Seeds Market – Insights Native grass seeds play an important role in prevention of erosion apart from restoring and maintaining natural landscapes such as wetlands, st... Read more
Global Organic Farming Market – Insights Organic farming is an agricultural system that uses biological fertilizers derived from plant and animal wastes. Organic farming enhances agro-eco... Read more
Global Cyromazine Market – Insights Cyromazine is an insect growth regulator (IGR) and is a cyclopropyl & an aminotriazine derivative of melamine. Cyromazine finds application in anim... Read more
Fipronil Market – Insights Fipronil is a broad-spectrum insecticide that is available in the market in powder and liquid formulations. It is used for controlling beetles, ants, mole crickets, rootworm... Read more
Global Complex Fertilizers - Insights Complex fertilizers (compound fertilizers) are prepared by mixing two or more type of macro-nutrient fertilizers. These fertilizers can be further blended with elements t... Read more
Floriculture Market – Insights Floriculture is a branch of horticulture associated with the cultivation of flowering and ornamental plants to be utilized in various applications such as decoration and a... Read more
Potash Fertilizers Market – Insights Potassium (K), which is often referred to as Potash, which is one of the essential nutrient used in the fertilizer industry. The increasing demand for food grains ... Read more
Seed treatment provides effective protection to the seed from insects, pathogens, and other pests. Moreover, seed treatment also contributes to the production of healthy and quality seed. It has emerged as a cost-effective solution as compared to the traditional spray... Read more
Global Agricultural Biological Market - Insight Agricultural biological is an ecological and organic agricultural system based on application of green and environment friendly fertilizers, stimulants and pest... Read more
Hydroponics Market Insights Hydroponics is the method of growing plants without using soil or soil-less gardening using important nutrients in a mineral rich water solution. A plant only needs sunlight, suffi... Read more
Seed Coating Materials – Insights Seed coating is the method of applying seed protection formulation over seed surface. The prime aim for seed coating is enhance protection of the seeds against pathogen... Read more
Pest Control Products and Services Market 2017–2027 Pest control is a technique of managing and destroying different species that are harmful to human lives and the environment. Pest control products are used ... Read more