Agrochemicals Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

• Global agrochemicals market revenue is expected to increase by USD 306.1 billion by 2032, with a 3.2% CAGR from 2023 to 2032
• Asia-Pacific region led with more than 28% of agrochemicals market share in 2022
• North America agrochemicals market growth will record a CAGR of more than 3.5% from 2023 to 2032
• By product, the fertilizers are the largest segment of the market, accounting for over 65% of the global market share
• By application, the cereals & grains are one of the largest and fastest-growing segments of the agrochemicals industry
• Increasing global population and food demand, drives the agrochemicals market value

Agrochemicals refer to a broad category of chemical products used in agriculture to enhance crop productivity and protect plants from pests, diseases, and weeds. This category encompasses fertilizers, pesticides, herbicides, fungicides, and other chemical substances essential for modern agricultural practices. Agrochemicals play a crucial role in ensuring food security and meeting the increasing global demand for agricultural products.

The market for agrochemicals has experienced significant growth over the past few decades, driven by several factors including population growth, the expansion of agricultural lands, and advancements in farming technologies. For example, farmers can utilize drones equipped with sensors to monitor plant growth, detect disease stress, keep track of field temperature, and precisely spray pesticides or fertilizers at targeted locations in the field. Additionally, the growing need for higher crop yields to feed the burgeoning population has led to increased adoption of agrochemicals by farmers worldwide. Emerging economies, particularly in Asia and Africa, have become key markets for agrochemicals as agricultural practices evolve and modernize in these regions. For instance, according to the Asian Development Outlook (ADO) December 2023, the regional economy is now expected to grow by 4.9% in 2023, an increase from the previous forecast of 4.7% made in September. 

Global Agrochemicals Market Trends

Market Drivers

Agrochemicals Market Report Coverage

Agrochemicals encompass a diverse range of chemical substances utilized in agriculture to enhance crop production and protect plants from pests, diseases, and weeds. These chemicals play a vital role in modern agricultural practices, ensuring higher yields and improved quality of agricultural products. Agrochemicals are broadly categorized into fertilizers, pesticides, herbicides, fungicides, and plant growth regulators, each serving specific purposes in optimizing crop growth and health. Fertilizers are one of the primary types of agrochemicals, providing essential nutrients such as nitrogen, phosphorus, and potassium to plants for healthy growth and development. Pesticides, including insecticides, fungicides, and herbicides, are crucial for controlling pests, fungal diseases, and weeds that can significantly impact crop yield and quality. Herbicides specifically target unwanted plant species, while fungicides protect crops from fungal infections. Additionally, plant growth regulators are used to regulate plant growth processes such as flowering, fruit set, and ripening, thereby optimizing crop production and harvest quality.

The agrochemicals market has been experiencing steady growth driven by several factors. One significant driver is the increasing global population, which necessitates higher food production. For instance, in 2023, China achieved a record-breaking grain output of 695.41 million tonnes, marking a 1.3 percent increase compared to the previous year. As a result, farmers are under pressure to maximize crop yields, leading to greater adoption of agrochemicals such as fertilizers, pesticides, and herbicides. Additionally, the expansion of agricultural lands and the adoption of modern farming practices further contribute to the demand for agrochemicals. These practices often involve the use of advanced technologies and genetically modified crops, which require specialized agrochemical inputs for optimal growth and protection against pests and diseases.

Moreover, technological advancements in agrochemicals have played a crucial role in driving market growth. For instance, in February 2022, Adama introduced Timeline® FX, an advanced foliar herbicide for cereals with a broad application window. This spring herbicide features three active ingredients with complementary modes of action, along with a built-in adjuvant, to effectively control both broadleaf and grass weeds in cereal crops. Companies in the agrochemical sector continually innovate to develop new formulations with improved efficacy and environmental sustainability. For instance, there has been a growing emphasis on the development of organic pesticides and specialty fertilizers to meet the increasing demand for eco-friendly agricultural solutions.

Agrochemicals Market Segmentation

The global agrochemicals market segmentation is based on product, application, and geography.

Agrochemicals Market By Product

In terms of products, the fertilizers segment accounted for the largest market share in 2022. One of the primary drivers of this segment is the increasing demand for food globally, driven by population growth and changing dietary preferences. Fertilizers play a crucial role in enhancing crop yields by providing essential nutrients to plants, thereby improving soil fertility and productivity. With the expansion of agricultural lands and the need to maximize output per hectare, farmers are increasingly relying on fertilizers to meet the growing demand for food and feed crops.

Moreover, advancements in fertilizer technologies have contributed to the segment's growth. Companies in the agrochemical industry have been investing in research and development and collaborating to develop innovative fertilizer formulations that offer improved nutrient uptake efficiency and environmental sustainability. For instance, in January 2022, Yara and Lantmännen entered into a commercial agreement to introduce fossil-free fertilizers to the market. This collaboration led to a contract for green fertilizers, produced by Yara and distributed by Lantmännen in Sweden starting in 2023. Additionally, the adoption of precision agriculture techniques, such as soil testing and nutrient mapping, has further fueled the demand for fertilizers as farmers seek to optimize nutrient management practices and minimize input wastage.

Agrochemicals Market By Application

According to the agrochemicals market forecast, the cereals & grains segment is expected to witness significant growth in the coming years. One of the primary drivers of this segment isthe increasing demand for cereals and grains globally, fueled by population growth, and changing dietary patterns particularly in emerging economies. Cereals and grains are staple food crops that form the foundation of the human diet, making them critical for food security. As a result, farmers are under pressure to maximize yields and protect crops from pests, diseases, and weeds, leading to a higher demand for agrochemical inputs. Furthermore, advancements in agricultural technologies and farming practices have contributed to the growth of the cereals and grains segment. Modern agricultural techniques, including the use of genetically modified crops, precision farming, and integrated pest management strategies, have increased the efficiency and productivity of cereal and grain production. Agrochemicals such as fertilizers, pesticides, herbicides, and fungicides play a vital role in supporting these practices by providing essential nutrients, controlling pests and diseases, and managing weed competition, thereby optimizing crop yields and quality.

Agrochemicals Market Regional Outlook

North America

Agrochemicals Market Regional Analysis