Global Agrochemicals Market - Strategic Insights and Forecasts (2026-2031)

The agrochemicals market is forecast to grow at a CAGR of 4.3%, reaching USD 404.84 billion in 2031 from USD 327.99 billion in 2026.

Agrochemicals Market Trends:

Agrochemicals refer to the chemicals, such as pesticides and fertilizers, that aid in crop cultivation to meet the global food demand. They provide crops from various organisms, which can potentially damage or slow the growth of the crops. The growing global population and the steady reduction in arable land are anticipated to drive the agrochemicals market in the coming years.

Furthermore, farm income has improved relatively over the years, along with favorable agricultural policies by governments worldwide. This, in turn, further propels the market players' business growth opportunities over the forecast period. The rising focus on bio-based agrochemicals is anticipated to offer multiple new opportunities for the market players to expand their footprints, thus further leading to bolstering the agrochemicals market growth in the coming years.

Agrochemicals Market Growth Drivers:

• The growing population and a reduction in arable land will boost the market growth

One of the key factors supplementing the agrochemicals market growth includes the growing global population. Agricultural production is increasing globally to meet the rising food demand of the growing population. The global population of 7.6 million is anticipated to increase to 8.6 billion by 2030 and 11.2 billion by 2100, according to a new United Nations Report launched in 2024 (Source: The World Population Prospects, United Nations), which will further drive agricultural production activity. Simultaneously, the global trend of urbanization is steadily reducing the arable land available for cultivation. The arable land in the European Union is projected to fall from 106.5 million hectares in 2017 to 104 million hectares in 2030 (Source: EU Agriculture Outlook, European Commission).

As a result, the use of fertilizers in agriculture has increased rapidly because of their ability to significantly improve crop yield. This is indicated by the fact that fertilizer consumption as a percentage of fertilizer production has increased from 87.6% in 2019 to 91.1% in 2021, as per the statistical data provided by the World Bank (% of fertilizer production). These factors positively impact the agrochemicals market’s growth and will continue to bolster the market growth in the coming years.

• Support Provided by the Governments of Various Countries for Agrochemicals

The Ministry of Chemicals and Fertilizers, Government of India, announced in November 2020 that the government will launch a production-linked incentive (PLI) scheme to aid the domestic production of agrochemicals. This PLI scheme will also focus on the food processing sector for a total value of Rs. 10,900 crore, and this scheme will be implemented over six years, from 2021-22 to 2026-27. Furthermore, implementing the PLI scheme would efficiently facilitate the expansion of the processing capacity to generate processed food output of Rs 33,494 crore and create employment for nearly 2.5 lakh persons by 2026-27.

According to an article published by the International Fund for Agricultural Development, the United Nations, and the National Bureau of Economic Research, the governments in Africa spend a huge amount on fertilizer subsidy programs, accounting for over US$1 billion per year. It also stated that 30% of all the government expenditure in the agricultural sector comprises fertilizer subsidies in the ten nations that represent most of the fertilizer spending.

According to the Fertilizer Association of India, the total fertilizer nutrient consumption was estimated to be 29.84 million metric tons (million MT) IN 2022-23 in comparison to the total fertilizer nutrient consumption of the previous year, which was estimated at 29.80 million metric tons, registering a growth of 0.2%. Furthermore, the government of India provided a Rs 37,000 crore fertilizer subsidy this fiscal year of 2024 to ensure an adequate supply of crop nutrients.  This increase in agrochemical subsidies and government support is impacting the agrochemicals market positively and is anticipated to propel market growth during the forecast period.

Agrochemicals Market Geographical Outlook:

• The North American region will dominate the agrochemicals market during the forecast period.

Geographically, the North American region is anticipated to hold a significant market share in the agrochemicals market, owing to the increasing expenditure on agricultural activities and the rising use of fertilizers.

The fertilizer industry in the United States is affected by various factors, such as crop demand and output requirements, that might depend on the current rules and subsidies of the local government. In addition, producers' fertilizer purchasing decisions are affected by fluctuations in the global prices that accompany specific crops, particularly maize and soybeans. Growth-enabling precision agricultural technological developments are also fueling the demand for fertilizers in the nation, further driving the agrochemicals market growth.

According to USDA, crop area harvested per 1,000 acres in the United States increased from 2,91,429 thousand acres in 2020 to 2,98,863 thousand acres in 2021, The list included crops like corn, sorghum, oats, barley, rye, winter wheat, Durum wheat, rice, soybeans, peanuts, sunflower, cotton, dry edible beans, chickpeas, potatoes, canola, proso millet, and sugarbeets, with harvested acreage for hay, tobacco, and sugarcane, including double cropped acres and unharvested small grains.

Furthermore, the 2021 USDA report shows that among the fruit and vegetable agricultural businesses, there are around 3,000 that use CEA-type protection. This 2-3% is a significant sector in the US regarding total crop value. CEA-grown crops are characterized by high-value herbs, leafy greens, microgreens, berries, vine vegetables (like cucumbers, tomatoes, and peppers), flowers, mushrooms, and nursery crops. As per the estimates, more than 2,000 vertical farming operations in the US utilize fertilizers on a large scale. All of these together, in turn, are boosting the demand for agrochemicals to increase yield per hectare while protecting food products during the crop lifecycle with the support of fertilizers and pesticides.

• The APAC region is also growing significantly in the market

China and India are the major markets for agrochemicals in the Asia Pacific due to the population of over 2.5 billion and rapid economic growth. This increases the demand for food products that require an improved agricultural output, creating opportunities for Agrochemical manufacturers and increasing competition. Rapid urbanization, rising disposable income, and changing consumption trends are driving the regional market growth. The growing demand for processed foods and increased consumption of meat and dairy products is propelling the need for animal feed, which is anticipated to boost the growth of the regional agrochemicals market over the next five years. Factors such as improved logistics and greater adoption of new technologies will significantly contribute to market expansion.

Agrochemicals Market Segment Analysis:

• The agrochemicals market by type is segmented into fertilizers and pesticides

The agrochemicals are further segmented by type: fertilizers are further segmented into nitrogenous fertilizers, phosphatic fertilizers, and potassic fertilizers, and pesticides are further segmented into organophosphates, pyrethroids, biopesticides, neonicotinoids, and others. Fertilizers account for a major market share due to their contribution to transforming the global agriculture sector. It has enabled countries that relied on food grain imports to achieve self-sufficiency. Government policies and initiatives by fertilizer manufacturing enterprises to create awareness and drive technological innovation have increased the global demand for fertilizers.

Among these fertilizers, nitrogenous ones, particularly urea, are more commonly used. Urea (carbamide or carbonyl diamide) is manufactured by reacting carbon dioxide with ammonia. Around 85% of this urea solution is used in fertilizer solutions, with 12% used for plastics, 3% for animal feed supplements, and other uses. This water-soluble fertilizer is rich in nitrogen, promoting leafy growth in plants and enhancing photosynthesis.

Phosphate fertilizers provide plants with phosphorus, which is required for plant processes such as energy and nutrient transport, cell division, and photosynthesis. This fertilizer enriches the phosphorus content in the soil, thereby improving crop yields and enhancing agricultural productivity.

Potassic fertilizers are the source of potassium (K), mainly for large-scale farming, improving soil productivity and crop yield. Potassium is essential for plants as they are involved in the transportation of water, carbohydrates, and other nutrients in plant tissues. It is also associated with enzyme activation that affects adenosine triphosphate (ATP), starch, and protein production. Potassium plays a crucial role in regulating the opening and closing of stomata, which control the exchange of oxygen, water vapor, and carbon dioxide. Its deficiency can lead to stunted growth and reduced crop yield.

Among the pesticides, the neonicotinoids are widely used in agriculture as insecticides. This is mainly due to its high toxicity to insects and relatively low toxicity to humans, making it safer for consumption. It is sprayed onto seeds or crops to protect plants from pests. In pests, neonicotinoids disrupt their nervous system. On the other hand, it has a rapid oral absorption and is completely eliminated from the human body within 48 hours. Hence, it is not accumulated in humans.

• By crop type, the market is segmented into oilseeds, cereals, fruits & vegetables, and others

Among the crop types, cereals is expected to hold a major market share due to their rising consumption. This growth is further increasing owing to the expanding global population. As such, there is an extensive cultivation of these staple crops and a need to improve crop quality and yield. Major cereals widely consumed include rice, wheat, maize, and barley. These are mainly consumed in Asian countries like India, China, South Korea, and other Southeast Asian countries.

Agrochemicals are mainly used for cereal production due to their high sensitivity to diseases and pests, and to ensure maximum possible yield in response to the large food demand. While used properly, these chemicals can manage and protect the crops against pests and diseases, control weed growth that may compete with cereals for resources, and improve nutrient content in the soil.

Agrochemicals Market Key Developments:

• March 2026: UPL Ltd. launched new specialty agrochemical formulations and biosolutions focused on climate-resilient farming, crop-yield enhancement, and improved resource-efficiency across global agricultural markets.

• January 2026: UPL Ltd. launched next-generation bio-solutions under its OpenAg® portfolio, integrating biological crop protection and nutrient technologies to enhance sustainable farming and reduce synthetic agrochemical dependence.

• September 2025: Corteva Agriscience received Brazilian regulatory approval for Loyant® herbicide in new crop applications, expanding weed-control solutions designed to improve productivity and sustainability in Latin American agriculture.

• June 2025: Corteva Agriscience introduced next-generation herbicide and biological crop-protection solutions designed to combat resistant weeds while enhancing yield performance and sustainability for large-scale agricultural production systems.

• June 2025: BASF Agricultural Solutions introduced Cimegra® insecticide powered by Broflanilide in additional global markets, delivering broad-spectrum pest control and supporting resistance management programs in high-value crops.

• April 2025: Syngenta Group launched advanced crop-protection technologies integrating precision-application capabilities and resistance-management features to improve agricultural productivity and sustainable agrochemical usage in key global markets.

List of Top Agrochemical Companies:

• BASF SE

• Corteva

• Yara International ASA

• Bayer AG

• Syngenta Group

Agrochemicals Market Scope: 

Agrochemicals Market Segmentation:

• By Type

  • Fertilizers

    • Nitrogenous Fertilizers

    • Phosphatic Fertilizers

    • Potassic Fertilizers

  • Pesticides

    • Organophosphates

    • Pyrethroids

    • Biopesticides

    • Neonicotinoids

    • Others

• By Crop Type

  • Oilseeds

  • Cereals

  • Fruits and Vegetables

  • Others

• By Geography

  • North America

    • USA

    • Canada

    • Mexico

  • South America

    • Brazil

    • Argentina

    • Rest of South America

  • Europe

    • United Kingdom

    • Germany

    • France

    • Italy

    • Spain

    • Rest of Europe

  • Middle East and Africa

    • Saudi Arabia

    • UAE

    • Rest of the Middle East and Africa

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Taiwan

    • Thailand

    • Indonesia

    • Rest of Asia-Pacific