Global Agrochemicals Market is estimated to Surpass US$ 103,383.4 Mn by 2027

 

Agrochemicals Market

Agrochemicals are chemical products designed specifically for use in agriculture to increase crop yield and protect crops from pests, insects, weeds, fungi, and other pests. Agrochemicals can be manufactured using both chemical and biological methods. Synthetic agrochemicals are harmful to the environment and are gradually being phased out in favour of bio-based pesticides and fertilisers. Pesticide processes have vastly improved as synthetic chemical manufacturing has evolved to accommodate the enormously growing global population and the resulting increases in food demand. Despite the effective use of pesticides, it is estimated that up to 40% of the world's crops are ruined by plant pests and diseases.

Increased agrochemical adoption in developing countries such as India, Egypt, and others will help boost the market during the forecast period. Agricultural technology advancements have resulted in a shift in farming techniques. As a result of increased export and import of agricultural commodities across various geographies, particularly in developing regions such as Asia, new types of harmful organisms have emerged, increasing demand for novel active ingredient products to protect crops.

The global Agrochemicals Market is expected to exceed US$ 103,383.4 Mn in revenue by the end of 2027, with a CAGR of 6.2% during the forecast period (2021 to 2027).

Global population growth, combined with rising affluence, is causing a shift in consumption patterns. There is a need to not only increase production to meet demand, but also to ensure that the nutritional needs of an increasingly affluent population are met. Shrinking arable land and crop loss due to pest attacks result in waste, posing a critical challenge to ensuring food and nutritional security. The agrochemical market is an important agriculture support industry that boosts agricultural output. These factors are boosting the growth of the agrochemicals market.

Asia Pacific dominated the global Agrochemicals Market in 2020, accounting for 31.7% of the market in terms of revenue, followed by Europe and North America. Asia Pacific, as the world's largest and most populous region, is one of the most important markets for agrochemicals. However, it remains untapped by major market players. According to the World Bank, the region accounted for nearly 30% of available land on Earth and nearly 60% of human population. Pesticide use in Asia has increased significantly in order to meet the food needs of this massive population. India, Japan, Australia, and Thailand are the countries with the highest pesticide consumption rates in the world. In addition to this, a decrease in arable land per person in India, China, and Southeast Asia countries is a very serious concern.

With increased awareness about health, environmental protection, food safety, and animal welfare reforms, the organic food industry has seen rapid growth in emerging countries such as India, Mexico, Russia, China, and Brazil. The demand for organic food products is growing, and according to the Organic Trade Association, nearly 81% of American families purchase organic food products at least once a week. Growing market demand for safe and healthy food products, as well as rising per capita income, are expected to drive the organic food industry and increase the use of bio fertilisers, affecting the consumption of chemical fertilisers.