Global Agrochemicals Market - Industry Trends, Outlook, Regulatory Bodies & Regulations and Key Market Players

Agrochemicals is the generic name of chemical products used in the agricultural field. These include pesticides, insecticides, fungicides, herbicides, nematicides, synthetic fertilizers, bio fertilizer, and chemical growth agents, among others. Increasing population and surging urbanization in turn puts additional pressure on the already diminishing farmlands. Agrochemicals help to effective cultivate and manage crop and increase production. Thus, these factors greatly support growth of the global agrochemicals market. Various government and non-governmental organizations are focusing on addressing this global concern by increasing funding for programs related to the agricultural sector. The World Bank implemented 146 projects during 2014–2016, which provide agricultural services and assets to 17 million farmers. This in turn augments growth of the market. The U.S., China and Japan are the largest producers of agrochemicals, while North America, followed by Asia Pacific are the largest consumers in the global agrochemicals market. Population explosion in countries such as India and China, along with rapid economic growth in these countries is expected to position Asia Pacific as the fastest growing market for agrochemicals in the foreseeable future.

Agrochemicals Market Taxonomy

On the basis of product type, the global market is classified into:

  • Fertilizer
    • Nitrogenous
    • Phosphatic
    • Potassic
    • Biofertilizers
  • Pesticides
    • Herbicides
    • Insecticides
    • Fungicides
    • Others

On the basis of application, the global market is classified into:

  • Agriculture
  • Horticulture
  • Floriculture
  • Others

On the basis of geography, the global market is classified into:

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • Italy
    • France
    • Spain
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • Northern Africa
    • Central Africa
    • South Africa

Agrochemicals Market Outlook – Surge in Food Grains Demand Augmenting Market Growth

The global agrochemicals market is expected to be mainly fueled by increasing global population and the subsequent increasing demand for food grains. Moreover, rampant urbanization over the last couple of decades has led to a steep decline in farmlands. For instance, total farmland in the U.S. decreased from 1,151 million acres in 1949 to 921 million acres in 2002 (Pfeffer et al. 2006). This increases adoption of duel cultivation, wherein various fertilizers are used to maintain the fertility of the soil and pesticides help improve crop yield. According to Food and Agriculture Organization (FAO) of the United Nations , forecasts world cereal production in 2016 was pegged at around 2,543 million tonnes, 0.6 percent higher than in 2015 and only 0.7 percent below the 2014 record high. At that level, production would was 17.3 million tonnes higher than that expected in May, reflecting upward revisions for wheat production in Argentina, the EU and the Russian Federation, as well as for maize in Argentina, Canada, the EU and the U.S. This creates a highly conducive environment for growth of the agrochemicals market.

Agrochemicals Market Challenges – Environmental and Health Impact

Despite its numerous advantages, agrochemicals are also associated with certain environmental and health issues. Excessive use of fertilizers can led to ground water contamination with toxic chemicals like nitrate. Drinking of nitrate contaminated water causes certain diseases such as immobilization of hemoglobin in blood, reduced oxygen supply, among others. Moreover, the pesticides used for pest control such as DDT, dieldrin, aldrin, among others, also have significant impact on environment and living beings. In the U.S., numerous wild birds die every year due to the use of an agricultural pesticides carbofuran. Carbofuran granules resemble the size and shape of grain seeds, which are the staple diet of most birds. The detrimental impact of insecticides and pesticides on the environment is expected to be the key challenge in the global agrochemicals industry. This has in turn led to increasing efforts by manufacturers and regulatory bodies alike to develop non-toxic natural pesticides and herbicides. This trend is further supported with increasing consumer inclination towards organic food products, which necessitate use of organic pesticides and insecticides. This is a perceived threat to the market, as most natural pesticides are homemade.

Agrochemicals impact on soil:

  • Increase in pH level increases hydrolysis of pesticides
  • Killing of helpful microorganisms
  • Decreases the fertility of the soil
  • Toxic to microbes

Agrochemicals impact on air:

  • Significantly hampers indoor air quality
  • Decomposition of pesticides in presence of sunlight

Agrochemicals impact on water:

  • Pollutes ground water, lakes and rivers
  • Disturbs aquatic life

Agrochemicals Market – Regulatory Scenario:

  • September 02, 1968, The Insecticides Act, 1968 and Insecticides Rules, 1971 in India is governed by The Central Insecticides Board and registration Committee (CIBRC) and Food Safety and Standard Authority of India (FSSAI), the act is enforce to regulate the import, sale, transport, manufacture, distribution and use of insecticides

Key players in the market include Agrium, BASF SE, BAYER AG, Dow AgroSciences, DuPont, Monsanto Company, Sumitomo Chemical Co., Syngenta AG, The Mosaic Co., Yara International, Gharda Chemicals Ltd., Drexel Chemical Company, Qatar Fertilizer Company, Cf Industries, Israel Chemicals Ltd., American Vanguard Corporation, Rotam Corpsciences, FMC Corporation, and Zuari Agro Chemicals Ltd.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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