Agrochemicals Industry Will Hit Big Revenues In Future
Agrochemicals are chemical products used in agriculture to enhance crop yield and protect crops from pests, diseases, and weeds. They include fertilizers, pesticides (such as herbicides, insecticides, and fungicides), plant growth regulators, adjuvants, and others. The primary goal of agrochemicals is to improve the productivity and quality of crops.
The agrochemicals market has been growing steadily due to the rising demand for food, population growth, and the need for higher agricultural productivity. The agrochemicals market has been influenced by some of the macroeconomic and microeconomic factors occurring in some of the key countries around the globe. This would prove potential enough to drive the market significantly in terms of value sales during the forecast period. The agrochemicals market size is estimated to be valued at USD 235.2 billion in 2023. It is projected to reach USD 282.2 billion by 2028, recording a CAGR of 3.7% during the forecast period. With the rise in demand and preference for organic food products, agrochemical manufacturers have been strategizing to develop organic farm-friendly natural plant growth promoters. These products are supervised and certified by regulatory bodies, such as the US Department of Agriculture (USDA) and the European Food Safety Authority, among others, in respective regions.
How do the principles of the 4Rs (right source, right rate, right time, right place) enhance the integration of agrochemicals in precision farming?
Various precision agriculture tools help farmers assess and manage the nutrient requirements of their crops. These tools include the 4Rs principle—right source, right rate, right time, and right place—along with soil sensors, variable rate prescriptions, yield maps, decision support software, soil mapping, multispectral imaging, auto-guidance systems, and leaf color charts. Precision farming also integrates data analytics, artificial intelligence (AI), and sensor systems to accurately determine the specific amounts of fertilizer and water needed by crops at any given moment. Autonomous vehicles are then used to apply these nutrients in precise quantities and locations.
Know about the assumptions considered for the study
While applying fertilizers is essential for enhancing soil productivity, excessive use can severely harm soil health. To address this, researchers at Imperial College London developed a predictive testing kit in 2022. This kit enables farmers to measure current levels of ammonia and nitrate in the soil and predict future levels based on climatic conditions. This innovation allows for more customized and efficient fertilizer application, tailored to the specific needs of each soil type and crop.
Agrochemicals Market Growth Drivers
- Increasing Food Demand: With a growing global population, there is a rising demand for food production, driving the need for agrochemicals to enhance crop yield.
- Technological Advancements: Innovations in agrochemical formulations and delivery methods, such as controlled-release fertilizers and bio-based pesticides, are contributing to market growth.
- Government Support: Many governments worldwide support agricultural practices and provide subsidies for agrochemical use to ensure food security.
- Rising Awareness of Crop Protection: Increased awareness of the benefits of using pesticides and fertilizers to protect crops from diseases and pests.
Global Quest for Higher Crop Yields Accelerates Agrochemicals Market Expansion
Ongoing advancements in agricultural technology have transformed farming practices. As agricultural commodities are increasingly exported and imported across diverse regions, particularly in developing areas, new harmful organisms have emerged, heightening the demand for innovative active ingredients to protect crops. The globalization of the agrochemical industry has a significant impact on the crop protection markets in Asia. With the highest population growth rate, rising food production needs, and robust economic development, there is a growing demand for various agrochemicals, including herbicides and pesticides.
South America's Agrochemical Market Set to Reach USD 73.2 Billion: The Role of Brazil and Argentina
Growth in South America is largely driven by Brazil and Argentina, two of the world's leading agricultural producers, whose expansion is expected to surpass the regional average. Both countries are major soybean producers, making significant contributions to global oilseed production. Favorable trade policies in South America have further supported the growth of oilseeds. According to FAOSTAT's 2022 report, Brazil ranks among the top four largest agricultural producers due to its vast land and labor resources, with Argentina following closely. The region's growth is also fueled by increased adoption of agrochemicals and advancements in farming techniques, supported by global agrochemical companies establishing robust distribution networks in Brazil and Argentina.
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Cereals & Grains Hold a Significant Agrochemicals Market Share
The consumption of cereals and grains is essential to meet the dietary needs of an expanding global population. To keep up with this increasing demand, it is necessary to boost the yield of cereals and grains. The use of agrochemicals plays a significant role in achieving this by enhancing crop productivity. According to FAO reports, global cereal utilization is expected to rise in 2023/24 compared to previous years, with higher global cereal stocks projected by 2024. This indicates a stable supply of cereals to satisfy demand. The rising demand for cereals underscores the need to improve agricultural productivity, which may drive increased use of agrochemicals to maximize yields and meet global food requirements.
Innovative Breakthroughs: What’s New in the Global Agrochemicals Market?
- In August 2023, Bayer AG invested USD 231.3 million in the construction and development of a new R&D facility at its Monheim site. This was the largest single financial investment in crop protection made in Germany within the past forty years. The R&D facility was meant to accommodate some 200 employees. Bayer was well on the way to developing the next generation of safe and sustainable crop protection products, with a number of advanced safety measures, including early safety screens and artificial intelligence.
- In April 2024, UPL announced the completion of the acquisition of Corteva Agriscience's global Mancozeb fungicide business ex-China, Japan, South Korea, the UK, Switzerland, and the countries in the EU. Mancozeb is a highly effective fungicide used for preventing plant diseases across various crops and was part of the acquired business.
- ADAMA announced the launch of Avastel, Maganic, Maxentis, and Forapro fungicides in April 2024. This expansion broadened ADAMA's product portfolio.
- Bio-based Agrochemicals: There is a growing trend towards organic farming and sustainable agricultural practices, leading to increased demand for bio-based agrochemicals.
- Precision Agriculture: The adoption of precision farming techniques is boosting the demand for efficient and targeted agrochemical application.
- Integrated Pest Management (IPM): IPM strategies are gaining popularity as they combine biological, mechanical, and chemical methods to control pests, reducing the excessive use of chemical pesticides.
- Digital Agriculture: The use of digital tools and platforms for monitoring and managing crops and agrochemical usage is an emerging trend.
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