Global Agrochemicals Market
Agrochemicals are created chemical or biological formulations used to increase crop productivity and quality. Fertilizers and insecticides are two subcategories of Agrochemicals. Pesticides protect crops and prevent pests and weeds that could harm them from growing, whereas fertilizers improve crop quality by giving the crop and soil vital nutrients. In light of the current state of the world population, it is crucial to boost food production on the available arable land into the world’s population.
Our recent report predicts that in the next years, the recession will substantially influence the global market for Agrochemicals. While price inflation is anticipated to moderate in 2023, an increase in interest rates would likely cause a considerable slowdown in economic development. According to IMF predictions, global inflation will decline from 8.8% in 2022 to 6.5% in 2019. Developing economies are predicted to get less relief as inflation is only projected to drop to 8.1% in 2023. Prices for raw materials and energy will continue to be high for a while. Inflation is also fueled by the partial reversal of globalization, labor shortages in many Western countries that raise manufacturing costs, and the transition to a shared economy in response to the largest threat to our species.
The change results from the global agricultural sector’s increased demand for fertilizers and crop protection goods. Farmers’ increased use of chemical fertilizers to feed crops and boost yields is the main factor driving the demand for Agrochemicals. The market size and penetration of fertilizers are expected to remain high during the forecast period due to the increasing need for food grains and the fast-growing population. Expanding markets in the Asia Pacific area from countries like China and India were the main drivers of this demand. Because of the rise in rodent and pest attacks on crops, it is projected that the market penetration of crop protection chemicals such as fungicides and herbicides will increase. The growing need for crop protection chemicals is expected to propel Agrochemicals. Also anticipated is a positive impact on the growth of the Global Agrochemicals business from the rising animal husbandry and feed sectors. However, the market growth for Agrochemicals over the evaluation period might be constrained by rising environmental dangers related to pesticides and fertilizers. The growing demand for organic food items and the increased usage of biofertilizers, replacing chemical fertilizers, impede market expansion.
The Asia Pacific region dominates the Global Agrochemicals Market. Major crop-producing nations account for this large portion. Greatest agricultural producer in the world. Japan, China, and India all contribute to the regional market. Fertilizers and insecticides are key products, exports, and consumers in China. Pesticide use in agriculture is highest in China.
On the other hand, the second-largest market for Global Agrochemicals is in North America. Agrochemicals are created, used, and exported by the United States. Higher grain prices, good weather, and easing trade tensions with China also fuel the market. The drought in the western US has increased miticide use as well. The United States has dominated the North American Agrochemicals Market thanks to rising demand for commodities like blueberries, sorghum, soybeans, and maize.
The well-known players of the Global Agrochemicals Market include Clariant AG (Switzerland), BASF SE (Germany), Huntsman International LLC (US), Bayer AG (Germany), The DOW Chemical Company (US), Solvay (Belgium), Nufarm (Australia), Evonik Industries AG (Germany), Croda International PLC (UK), Helena Agri-Enterprises LLC (US), Ashland Inc. (US) and others.