The agrochemicals market was valued at US$258.486 billion in 2018 and is projected to expand at a CAGR of 3.83% over the forecast period to reach US$323.825 billion by 2024. The chemicals such as pesticides and fertilizers that aid in crop cultivation in order to meet the global food demand are known as agrochemicals. The growing global population and the steady reduction in the arable land are driving the agrochemical market. Simultaneously, the relative improvement in the farm income over the years along with the favorable agriculture policies is further supplementing the growth of the market. However, the growing awareness regarding the environmental concerns of excessive use of fertilizers is likely to impact market growth over the forecast period.
Fertilizers are a substance that added to the plant field to reduce nutritional deficiency, thus, promoting crop yields. Agriculture production is increasing globally in order to meet the food demand of the growing population. In fact, it is anticipated that the global population will increase to 8.6 billion by 2030 (Source: The World Population Prospects, United Nation) which will further drive the agriculture production activity. Simultaneously, the global trend of urbanization is steadily reducing the arable land available for cultivation. In fact, it is projected that the arable land in the European Union will fall from 106.5 million ha in 2017 to 104 million ha in 2030 (Source: EU Agriculture Outlook, European Commission). As a result, the use of fertilizers in agriculture has increased rapidly because of its ability to significantly improve the crop yield. This is indicated by the fact that fertilizer consumption as a percentage of fertilizer production has increased from 89.307% in 2013 to 94.013% in 2015 (Source: World Bank).
Geographically, the agrochemicals market is segmented as North America, South America, Europe, Middle East and Africa, and the Asia Pacific. North America held a significant market share of the agrochemicals market owing to increasing expenditure on agriculture activities and the rising use of herbicides in the region. The rising population in the Asia Pacific region will drive the demand for food products, which in turn will boost the demand for agrochemicals to increase the yield per hectare while protecting the food products during the crop lifecycle. Environmental regulations concerning the use of pesticides in the European region might impede on the growing demand for these chemicals over the forecast period. Agriculture has been an important part of the U.S. economy. As per the USDA ERS, the food, agriculture and related industries contributed more than US$990 billion to the U.S. GDP in 2015, a 5.5% share of the country’s GDP.
The agrochemicals market has been analyzed through the following segments:
By Crop Type
Fruits and Vegetables
Middle East and Africa