According to a new report published by Allied Market Research, titled, "Agrochemicals Market - Global Opportunities Analysis and Industry Forecast, 2014 - 2022", the agrochemicals market was valued at $202 billion in 2015 and is expected to reach $276 billion by 2022, registering a CAGR of 4.6 percent. Asia-Pacific held more than half of the share in the global agrochemicals market in 2015, and is expected to continue its dominance during the forecast period.
The major factors driving the global agrochemicals market include high population and subsequent increase in the demand for food, soil degradation, limited agricultural land, and increase in awareness in the consumers regarding the benefits of agrochemicals. However, the market growth may be hampered by the potential harms of using synthetic pesticides such as 2, 4-D and atrazine herbicide. Agrochemicals when used in higher concentration result in surface water pollution and adversely affect the environment. Thus, the production of bio-based fertilizers and pesticides has created numerous opportunities for the key market players.
According to Eswara Prasad, Team Lead, Chemical Research at Allied Market Research, "LAMEA and Asia-Pacific are the most attractive market for the new entrants along with industry players, as the growth in number of industries and increased expenditure towards R&D is expected to provide significant opportunities to the entrants."
The fertilizers segment generated the maximum revenue and accounted for the highest volume share of the global agrochemicals market. This is attributed to the problems arising from high population and soil degradation. The major type of fertilizer used to enhance the crop productivity is nitrogenous fertilizers, accounting for around two-thirds of the total synthetic fertilizers market. Moreover, herbicides occupied over half of the synthetic pesticides market in 2015, and are expected to retain the share at the end of forecast period, growing at a CAGR of 4.6 percent.
Key Findings of the Study
- Asia-Pacific dominated the global agrochemicals market in 2015, accounting for over half of the share, both in terms of revenue and volume.
- In 2015, fertilizers accounted for majority of the share of the global agrochemical market, and is expected to maintain its lead throughout the forecast period.
- India is the fastest growing segment in the Asia-Pacific market, expected to grow at a CAGR of 9.1 percent in terms of revenue, during 2016-2022.
- In 2015, the pesticides market accounted for one-fourth of the share in the North America agrochemicals market and is expected to occupy one-third share of the market at the end of forecast period.
- LAMEA is expected to grow at the fastest rate, registering a CAGR of 5.8 percent, throughout the forecast period.
- The bio-pesticides segment is anticipated to grow at a rate of 16.9 percent in terms of revenue, increasing its share in the global pesticides market.
In 2015, Asia-Pacific dominated the global agrochemical market with more than half of the share, both in terms of revenue and volume. This was attributed to the high percentage of land available for agricultural activities and the high extent of agricultural activities in highly populated countries such as India, China, and others. The high population of these areas increase the demand for food crops, which in turn contributes to the growth of agrochemicals market.
