Agrochemicals Market Size And Its Driving Factors

FAgrochemicalsarming has become an easy yet more producible mode due to the emergence of technology. Export and import are the add-on factor for the accessible commodity in almost every nation. The fertilizers and pesticides in farming have offered more options for the protection of crops. The advent of the rising economy worldwide due to the growing population has given a rise to agricultural chemicals such as fertilizers, herbicides, and pesticides. The global economy is being affected by the launch of new products and their demand in the global market. Today, the agrochemicals market is skyrocketing with a significant growth rate, and the market is further anticipated to continue gaining profits.

Agrochemicals Market Size And Its Driving Factors

According to Grand View Research Inc., the global agrochemicals market totaled USD 224.9 billion in 2021 and is expected to expand at a CAGR of 3.2% from 2022 to 2030. The growth of the market is attributed to the rising demand for fertilizers for crop protection and improvement products. Moreover, chemical fertilizers offer nutrients to the crops and develop the yielding of crops, which are key factors propelling the market growth.  The day-to-day life food products such as fruits and vegetables are essential for the health of the population. Agrochemicals are most important for the secure and good quality fruit and vegetable products production. Fertilizers offer an abundance of nutrients to the fruits and vegetables.

Different types of agrochemicals products

Agrochemicals is the name given to the chemicals which are used to aid plants and crops for their growth and safety. The different types of agrochemicals are pesticides, insecticides, herbicides, fungicides, Algaecides, Rodenticides, fertilizers soil conditioners.

  • Pesticides: These are used to destroy and control organisms known as pests. These pests are generally harmful to plants, and when eaten they are harmful to animals as well.
  • Insecticides: These chemicals destroy the insects that destroy plants. Insecticides kill the eggs of insects and kill larvae.
  • Fungicides: These chemicals prevail in the fungus subletting on the plants.
  • Fertilizers: Fertilizers aid in promoting plant growth and improve crop yield. They mitigate nutrient deficiency in the soil. They are applied to soils and plant tissues. There are 2 types of fertilizers, organic and inorganic fertilizers.
  • Soil conditioners: To maintain the conditioning of soil, a soil conditioner is used. Soil conditioners contain manure, compost, peat, livestock manures, and leaves. They improve the water holding capacity of the soil and enhance the aeration.

Which product of the agrochemicals is in high demand —Fertilizers

The agrochemicals market is being driven by the rising demand for fertilizers. Fertilizer is a crucial product in the agrochemicals market expansion. It develops crop production and enhances the quality of the products. It also assists in secure and safe crop production. It promotes plant growth and productivity when added to soil or plants. Fertilizers also add nutrients to the plants such as nitrogen, potassium, and phosphorous. It also improves water retention capacity and increases the fertility of the soil.

Fertilizers such as anhydrous ammonia, ammonium nitrate, and urea are most preferred to produce cereals and grains. Fertilizers can be used for crops in three different ways. They can be added to other fertilizers, used separately, or sprayed over the crops. The use of fertilizer with the proper amount improves the health of the cereal and grains yielding. It is proven that almost 60% of the global nitrogen is being used to produce rice, wheat, and maize.

Types of fertilizers and their use

Fertilizers are classified as organic and inorganic fertilizers. Organic fertilizers are made from naturally available substances and prepared through a natural process. Inorganic fertilizers are referred to as synthetic fertilizers. They are manufactured artificially using chemical processes using natural deposits.

  • Organic fertilizers: Organic fertilizers increases the organic matter in the soil and enhance microbial reproduction and change the composition of the soil. Organic fertilizers are essential to produce green food and veggies.
  • Inorganic fertilizers: Chemically processed and generated using chemical techniques are the inorganic fertilizers. Nitrogen, phosphorous, and potassium are the inorganic fertilizers. Nitrogen fertilizers include nitrogen-based components. Nitrogen fertilizers enhance production and agricultural product quality. Phosphorous fertilizers contain phosphorous as the main nutrient. Plants’ root growth is augmented by the phosphorous fertilizer.

To provide numerous nutrients at once, many farmers use a combination of nitrogen, phosphorus, and potassium (NPK) fertilizers.

Countries taking part in fertilizers production

The Asia Pacific region accounted for over 27.2% of the total market revenue share in 2020. Asia Pacific is the highest producer of agricultural goods, with India, China, and Japan being the top producers. According to the International Trade Centre (ITC), China is the largest exporter of pesticides and manufacturer of fertilizers. According to the FAO, after China and Japan, India is the fourth largest producer of agrochemicals. The agrochemicals industry is showing a significant impact on regional per capita income. It is estimated that the Asia Pacific is anticipated to produce 53% of the world’s seafood and agricultural foods.

Other countries such as Turkey, Bolivia, Romania, and Tunisia are taking part in fertilizers production. The market in these regions is growing at positive rates and is estimated to increase in future years. As per the study by the International Feed Industry Federation (IFIF), the feed commercial produces in almost 130 countries and provides revenue of over USD 400 billion every year.

Role of key players

The market is highly fragmented and contains all large- and small-scale firms. Market expansion is largely seen in the developed regions. While the manufacturers in the developing regions are focusing on increasing the production rate. As the demand is increasing, key players are enhancing research and development activities. Offering a wide variety of new range products is augmenting the new strategy of market players., anticipated to drive the demand during the forecast period.

The manufacturers compete based on the quality of products, their costs, and their services. Thus, innovative, sustainable products gain momentum in the market. Keeping light on these factors, manufacturers are taking measures to compete with mergers and acquisitions, distribution networks, and geographic expansions which are major strategies used by key players to increase their market revenues.

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Market trends and key opportunities

The major factors taking part in driving agrochemicals market growth are the increasing demand for food, soil degradation, limitation of land, and rising awareness among the population about the benefits of the use of fertilizers. However, when used in an excess amount the agrochemicals create surface water pollution and adversely affect the environment. Hence, the production of bio-based fertilizers and pesticides will create opportunities for market players.

Future scope

The market growth and the penetration of fertilizers in high demand are anticipated to continue to dominate the market during the forecast period. On account of the rising population, growing economy, and urbanization, the demand for food grains will explode in future years. Developing nations are creating opportunities for fertilizers to witness a high amount of demand over the coming years. Overall, fertilizers are estimated to help the agrochemicals market to reach a new level of market growth and gain enormous profits.

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