Agrochemicals Market Size (2025 – 2030)

The Agrochemicals Market was valued at USD 278 Billion and is projected to reach a Market size of USD 338 Billion by the end of 2030. Over the forecast period of 2025-2030, the Market is projected to grow at a CAGR of 3.31%.

Agrochemicals are the products under the category of agricultural chemicals, used to boost crop production while protecting plants against diseases and other harmful insects that could damage plants. Modern agriculture highly relies on chemicals such as fertilizers, pesticides, herbicides, and fungicide commodities. The market is very crucial in increasing productivity in agriculture, promoting food security, and developing the agricultural economy within the world. In addition to responding to evolving consumer preference with the advent of more sophisticated agricultural technology, the agrochemicals industry looks to embrace new and improved environmentally friendly and sustainable products with consistent research and development. Moreover, standards and regulatory frameworks are being pushed to cater to the rising demands of agricultural productivity due to increasing populations across the world, which is very crucial in this market.

Key Market Insights:

• Agrochemical demand is increasing worldwide as crops are produced to increase food security and availability for growing populations. Every year, 25% of global crop production is lost due to diseases, pests, and weeds. These agrochemicals are employed to safeguard crops and enhance crop yields.

• The agrochemicals industry relies heavily on fertilizers. Inorganic fertilizers, including nitrogen and potassium, are preferred by approximately 50% of the global population due to their ability to produce instant results. This is a significant factor in their improved productivity.

• GPS technology helps to target agrochemicals with the right application through the use of precision farming techniques such as satellite imagery and GPS-guided equipment. The reduction of waste and reduction in environmental impact is achieved by enhancing crop productivity.

• GMOs and hybrid seeds have led to the development of crops that are more resilient against pest-borne diseases and increase their ability to withstand environmental stresses. This is partly due in part to technological advancements.

• Heavy use of agrochemicals has led to the creation of greener and more sustainable alternatives, which are being driven by concerns about health and environmental impact. Integrated Pest Management (IPM) is being promoted as a means to decrease environmental harm.

Agrochemicals Market Drivers:

Rising population and demand for food.

By 2050, the Earth is expected to be inhabited by 9.7 billion people. The increasing population also demands food directly. This has highlighted the necessity of agrochemicals in augmenting agricultural productivity and ensuring food security. Farmers opt to use fertilizers and insecticides since they have more mouths to feed and also to increase crop yields while providing protection against pests and diseases. Maintaining a competitive and economic edge in such a high-demand scenario is very difficult and thus chemicals are preferred.

Shrinkage of available land.

Due to Consistent shrinkage into arable lands, The competition for getting sufficient and high-quality produce from available land is increasing. In 2022, it was found that total arable land was just limited to 1.4 billion hectares, which is consistently reducing due to several reasons, such as soil erosion, salinization, desertification, urbanization, climate change, and intensive farming. Therefore, farmers always try to replenish soil nutrients and pesticides to protect crops from pests, ensuring optimal use of the available land. For this task, they prefer agrochemicals. In a study, it was found that the use of nitrogen-based fertilizers can significantly increase crop yields, with yield improvements of up to 50% when used appropriately.

Agrochemicals Market Restraints and Challenges:

Environmental concerns arising from the usage of agrochemicals.

Agrochemicals are actually beneficial for their intended use if used appropriately. However, their overuse or inappropriate use is rising, which is causing several environmental issues including degradation, water pollution, and harm to non-target organisms. For instance, excessive use of nitrogen fertilizers can lead to soil acidification and water eutrophication, affecting aquatic ecosystems. These environmental impacts have led to stricter regulations and standards with a preference for sustainable alternatives. This is the greatest challenge that agrochem companies are facing.

Resistance against chemicals can be seen in some regions of the world.

Agrochemicals are very efficient and quick in their result and therefore are much preferred than any natural pest control method or biofertilizers. But, they also have side effects. These effects include the danger of the development of resistance among different species of pests and fungi. Even weeds can develop resistance against weedicides and in some regions, the resistance against these chemicals is almost 50%, which is seriously concerning. Increasing the concentration of chemicals is again dangerous to both farmers and people handling these chemicals. Also, much stronger resistance can be developed by pests. Therefore finding alternative ways of damaging cell membranes is much necessary. Research in this domain is expensive and time-consuming and this poses a challenge to manufacturers.

AGROCHEMICALS MARKET REPORT COVERAGE:

Agrochemicals Market Segmentation: by Type

• Fertilizers

• Pesticides

In these segments, fertilizers are extremely essential chemicals as they provide nutrients to crops and hence are frequently used to improve soil, and overall crop yield. They have the tendency to make crops resistant to common diseases by providing sufficient nutrition. Overuse of fertilizers pollutes soil and hence it's a double edge sword. This segment shares about 60% to 65% percent of total agrochemicals.

Pesticides are used to control pests and infections in crops that can destroy yield. These include insecticides, herbicides, and fungicides, which account for about 30-35% of the market share. These chemicals are vital for protecting crops from pests, diseases, and weeds, ensuring higher yields and better crop quality.

Agrochemicals Market Segmentation: by Crop Type

• Cereals & Grains

• Oilseeds & Pulses

• Fruits & Vegetables

Cereals and grains are the largest segment when it comes to agrochemicals. These crops are always high in demand globally. They include crops like wheat, rice, maize, barley, and oats. The agrochemicals concerning this segment share about 40% to 45% of the market.

Oilseeds & Pulses segment includes crops such as soybeans, peanuts, sunflower, canola, lentils, and chickpeas. Oilseeds and pulses are always in great demand for food products, animal feed, and industrial applications. They share 25% to 30% of the market.

The Fruits and Vegetables segment has a wide variety of crops like apples, oranges, tomatoes, lettuce, carrots, grapes etc. Agrochemicals focused on them share about 15% to 20% of the market.

Agrochemicals Market Segmentation: by Pesticide Type

• Insecticides

• Herbicides

• Fungicides

• Nematicides

In all of the types of pesticides, the insecticide category is the most dominating one. These chemicals help to control the infection of several insects on the crop and also help to prevent further damage to the crop. Mainly They focus on protection from types of aphids, beetles, and caterpillars. This segment shares 30% to 35% of the market.

Herbicides help to control and prevent the growth of weeds which can inhibit the growth of crops by absorbing nutrition and water from the soil. The market share for herbicides is approximately 25% to 30%.

Fungicides are chemicals that prevent the growth of fungi on the crop and also facilitate active control of them. Fungicides are essential for protecting crops like wheat, barley, and grapes from diseases such as rust and mildew. 20% to 25% of the market is captured by fungicides.

Lastly, the nematicide segment is the specialized one, particularly focusing on the control of nematodes (microscopic, worm-like organisms) that can cause significant damage to plant roots. They share 5% to 10% of the total market.

Agrochemicals Market Segmentation: Regional Analysis

• North America

• Europe

• Asia-Pacific

• South America

• Middle East and Africa

The second largest market for agrochemicals globally is North America, with a farming culture of developed agricultural practices and high crop productivity. The North American market shares about 25-30% of the total market.

Europe is also a big market for agrochemicals, particularly focused on sustainable farming practices and modern agricultural equipment with integrated pest management. The European market share is estimated to be around 20% to 25% of the total market.

Asia-Pacific region is the top region globally, when it comes to agrochemicals. It is the fastest-growing market, mainly because of the increase in agricultural activities and food demand. The market share for Asia-Pacific is around 30% to 35%.

Latin America is still a growing agrochemical market, because of the expansion of agricultural land and the need for higher crop yields. The market share for Latin America is about 10% to 15%.

Lastly, the Middle East & Africa It has a relatively smaller but increasing agrochemical market, focusing on crop productivity in arid and semi-arid regions. Market share for the Middle East & Africa is about 5% to 10%.

COVID-19 Impact Analysis on the Agrochemicals Market:

The COVID-19 pandemic caused tremendous disruption in the agrochemical industry, especially in supply chains, labor shortages, and fluctuations in demand. The production and sales of agrochemicals in the year 2020 witnessed severe reduction due to lockdowns and restrictions imposed by governments globally, resulting in a decline of approximately 5% to 10% in the market. However, there was a stable or rather increasing demand for specific types of agrochemicals used in food production, as countries were striving to secure their food supply. The agrochemical industry started to recover in 2021, with a slow growth in production and exports, although challenges such as increased raw material costs and logistical issues were still present. The pandemic highlighted the importance and need for resilient supply chains and the need for digital transformation within the industry.

Latest Trends/ Developments:

The latest trends in the agrochemical industry are being driven by data science and sustainable chemical engineering. This market is expanding significantly due to data analytics, digitization, and technological improvements. By maximizing the use of these technologies farming is enhanced, becoming more sustainable and efficient. The newer trend of precision agriculture, which makes use of technology like GPS, drones, IoT sensors, and artificial intelligence, is completely changing how agrochemicals are used. Also, as they tackle the problems of soil erosion and water pollution, biological agro products, and greener substitutes for synthetic chemicals, are becoming promoted and becoming more and more popular. These developments are influencing the agrochemical sector's future by making it more environmentally sensitive and data-driven.

Key Players:

1. BASF

2. Syngenta

3. Bayer CropScience

4. Dow AgroSciences

5. Monsanto

6. Corteva

7. UPL

8. PI Industries

9. Sumitomo Chemical

10. Adama