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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.
Published Date : Oct 2023
Agrochemicals are used to manage the agriculture ecosystem and increase the crop yield by decreasing the growth of fungi, weeds, and insects that hinder the growth of agricultural produce. Agrochemical refers to pesticides including insecticides, herbicides, fungicide... View more
Published Date : Sep 2023
A variety of crop protection chemicals is available to control pests and diseases. These chemicals are highly selective and have been designed to cause minimal impact on non-target organisms. For example, they can be used to suppress the growth of weeds and control th... View more
Published Date : Sep 2023
Agricultural testing involves the analysis of soil and water to assess their suitability for crops and other uses. It measures the level of various elements such as potassium, magnesium, copper, manganese, zinc, and salts. It can help identify contaminants that are pr... View more
Published Date : Aug 2023
The global water soluble NPK fertilizers market is expected to exhibit a CAGR of 7.2% during the forecast period, owing to limited availability of arable lands. The forest areas have been turned into arable croplands to satisfy the demand of increasing population, whi... View more
Published Date : Jul 2023
Aquaculture is the cultivation of freshwater aquatic organisms for food and other purposes. This rapidly growing field is focused on harvesting fish in water systems. Aquaculture has been able to meet the needs of a less than adequately served market, with less ... View more
Published Date : Jul 2023
High end greenhouse uses advanced technologies to monitor and control the climate inside the greenhouse, monitor water and energy outputs, and ensure reliable and accurate management of all resources. The growing demand for fresh, healthy, and safe food, the need to s... View more
Published Date : Jul 2023
Chainsaws can be used for more than just cutting down trees. Growing demand from farm and lawn owners, as well as increased use of chainsaws in building activities, drive rising market demand. Many industry participants are creating high-power electrical chainsaws to ... View more
Published Date : Jun 2023
Commercial greenhouses are high-tech facilities outfitted specifically for the type of crops to be grown inside. They are often used for people who want to cultivate plants on a large scale for business purposes. They offer a variety of advantages like more yield per ... View more
Published Date : May 2023
Magnesium oxide is a chemical compound with formula MgO and occurs naturally as periclase. It is a chemical compound, also known as magnesia and has a wide range of applications. Moreover, magnesium oxide is mainly used across refractory bricks for ceramic, steel, and... View more
Published Date : Apr 2023
Pests and insects contaminate the environment, and spread deadly diseases such as hantavirus, rat bite fever, and plague. The most commonly used techniques for controlling the pests include chemical based repellents, poisoned baits, and traps. Government and non-gover... View more
Published Date : Apr 2023
Based on active ingredient, global biostimulants market is segregated into acid-based, extract-based, and others. In 2022, acid-based segment accounted for the largest revenue share of 59.4% in the global biostimulants market. However, extract-based segment ... View more
Published Date : Mar 2023
Native grasses either individually or in combination with native forbs or wildflowers can be planted to reduce soil erosion and sedimentation, to improve water quality, and to provide wildlife habitat. Native grasses offer advantages such as less maintenance, require ... View more
Published Date : Mar 2023
Organic farming is a production system, which avoids or excludes the use of synthetic inputs such as fertilizers, pesticides, feed additives, and hormones and maximizes using animal manures, crop rotation, crop residues, and off farm organic waste. Organic farming mai... View more
Published Date : Mar 2023
Floriculture is a branch of horticulture and includes the cultivation of flowering plants, bedding plants, house plants, and ornamental plants for nurseries, gardens, and green houses. The term also includes the production of flowering plants through budding, cutting,... View more
Published Date : Feb 2023
Biological seed treatment is the process of applying microorganisms to seeds to protect them against soil-borne diseases and insects that affect crop productivity. This method is more effective than the conventional chemical treatments, which are harmful to seeds and ... View more
Published Date : Dec 2022
Seed coating is the method of protecting seed by covering it with protective material such as polymers, binders, colorants etc. The main purpose of seed coating is to improve performance of seed and timely supply of seeds at reasonable prices. Increasing population ac... View more
Published Date : Jul 2022
Pesticides are chemicals used in industrial agriculture. The pesticides are improves soil fertility, making crops more productive, also protects crops by controlling weeds (herbicides), insect and animal infestation (insecticides and rodenticides), and fungal/mold dis... View more
Published Date : Jul 2022
Cyromazine is an insect growth regulator (IGR) or ectoparasiticide that disrupts the development of insects and is effective against leaf miners and fly larvae. Increasing population and rising disposable income of the population is resulting in huge demand for food i... View more