Specialty chemical products, for example, chemical growth agents, pesticides, synthetic fertilizers, that are used in agriculture, floriculture, and horticulture are collectively called agrochemicals. The primary functions of agrochemicals comprise the sustenance of food and solid quality, crop yield enhancement, and crop protection. Through the function of crop yields enhancement, the farmers can meet the food demand of the growing population by driving the per hectare cultivation, simultaneously leading to a higher return on investment.
The broad categorization of the agrochemicals market is made into fertilizers and pesticides. The fertilizers are further divided into categories like nitrogenous, phosphatic and potassic. On the other hand, pesticides are categorized in bio-pesticides, herbicides, and general pesticides. Agrochemicals are an integral part of the agriculture because of their contribution towards facilitating commercial cultivation, and its sustenance thereof. Moreover, the usage of agrochemicals aids in fulfilling the varied demand for food around the world. The agrochemicals are available in three forms, namely as liquid, as powder and in granular form. Nitrogenous fertilizers are projected as the fastest-growing segment since they are equipped to balance the nitrogen content of the soil.
Besides due to the growing population and scarcity of land and water, there has been a renewed interest in boosting the yield of the crop across the globe. All the stakeholders associated with agriculture are putting their best effort to produce high-quality crops wherein the number of nutrients will not be compromised by the proportion of produce. Rather the quantum of nutrition would be higher than that of the previous yield. Furthermore, the limited availability of arable land due to growing urbanization is also poised to boost the agrochemicals market during the forecast period and beyond.
However, there are quite a few considerations that are required to be made as far as its growth are concerned, the increasing interest and the subsequent development of safe and organic alternatives like organic fertilizers, and pesticides, as well as organic farming practices, are being considered as the deterrent to the market. Further, there are shreds of evidence that prolonged use of agriculture has led to terminal illness as well as adverse environmental problems that have led to a perennial alteration of solid and water chemistry. Effects like acidification and eutrophication and subsequent groundwater contamination too have been brought about by the heavy usage of agrochemicals. Moreover, there are initiatives to integrate technology in agriculture to reduce the usage of agrochemicals.
Further, governments and local administration around the world have institutionalized various regulatory measures to limit the detrimental effects of agrochemicals and have, in turn, moderated the growth of global agrochemical markets. Nevertheless, there is a high growth potential for emerging and developing markets. Furthermore, there are regions that still untapped with regards to the realization of its crop yield potential, post agrochemical usage, which would also increase the growth of the agrochemicals market.
From the perspective of various regions in the geography, the APAC is expected to portray a substantial growth in the market due to the high demand for agrochemicals from China, Japan, and India. Contrarily, North America and Europe are expected to witness relatively less growth during the forecast period.
Latest Developments in the Agrochemicals Sector
Northwest China that has been characterized by less economic development is becoming the base of the Chinese pesticide industry due to relatively low labor and transportation cost. Additionally, its proximity to resources also has made it possible for the agrochemical companies to shift vases to this region. Located in Ningdong Energy and Chemical Industry Base, in Northwest China, Ningxia Surongda Chemical Co., Ltd., is poised to develop 3-trifluoropyrazole fungicides in its next phase. It already has a wide portfolio of products like fungicides, that includes azoxystrobin, cyproconazole, metconazole, paclobutrazol, pyraclostrobin, tebuconazole, and triadimenol, among others. Herbicides like bentazone and metribuzin. Insecticides like thiamethoxam and a few other proprietary products. Besides the aforesaid organizations like Inner Mongolia Benxing Chemical Co., Ltd., Inner Mongolia Brother Chemical Co., Ltd., Inner Mongolia Chuan’er Technology Co., Ltd., Inner Mongolia Dazhong. are all set to expand their production capacities of agrochemicals BayinObao Industrial Park, Wuhai, Inner Mongolia, of Northwest China. Further, an organization called Yongtai Fine Chemical Industry is all set in Low Carbon Industrial Park, Wuhai Economic Development Zone, Inner Mongolia.
Zhejiang Xinan Chemical Industrial Group based Hangzhou, Eastern China and listed on the Shanghai Stock Exchange, will be selling herbicides to Brazil which is the largest market of glyphosate in the world. Further, the ban on another herbicide called paraquat will increase herbicide sales.
A Spanish company called Seipasa, that specializes in development and formulation of biopesticides, biostimulants, and fertilizers for agriculture has signed an agreement with a French multinational company called Suez, that has more than 160 years of experience in the efficient and sustainable management of natural resources to distribute biostimulant in Chile.
Terramera, a Vancouver Agtech startup focused on reducing synthetic pesticides globally by 80 percent by the year 2030., has raised an additional CAD 4.6 million (USD 3.5 million) from Toronto-based cleantech venture fund ArcTern Ventures and other undisclosed investors. This 10-year-old startup has developed a platform that uses AI to aid in the number in which the food is grown and enhance the economics of agriculture in the forthcoming decade.
Another such raising of capital happened in the case of Agrofy, which is to the tune of 23 million in Series B funding. It is an online agribusiness marketplace that matches buyers and sellers of a wide range of agriculture products that are inclusive of but not limited to machinery, crop inputs as well as farmland and financial services.
Thus, with so many developments in the agrochemical market worldwide, it is evident that all stakeholders engaged in this space are actively partaking in all sort so development and usher in a future in agriculture that would be not only environmentally sustainable but all will provide to economically viable and sustainable at the same time. The initiatives are also set to improve livelihood as evidenced by various chinse initiatives in Northwest china simultaneously maintain and later increase the supply of agrichemicals to the world market.