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Global Agrochemicals Market- By Type, Application and Geography-Market Shares, Forecasts And Trends (2015 - 2020)


News provided by

ReportBuyer

Oct 20, 2015, 03:06 ET

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LONDON, Oct. 20, 2015 /PRNewswire/ -- Agrochemicals are profoundly used in the agricultural land to improve the overall productivity. This is achieved through improving the crop soil condition or protecting it from various pest and disease infestations. Agrochemicals widely involve fertilizers, pesticides, hormones and plant growth regulators (PGR) enabling plant and soil protection, improved yield, maintenance and improved growth process of plants. Fertilizers and pesticides form the major segments of global agrochemical consumption. The global agrochemicals market is estimated to grow at a CAGR of 3.7% during the forecast period of 2015-2020.

The prospect for the industry is seen bright; in 2013, the total revenue for global agrochemicals industry recorded at $203.6 billion. One of the main reasons for the growth in consumption is increased pressure on dwindling farmlands as a result of growing population and urbanization. The ambitious project of global food security is expected to generate steady demand for the chemicals. It is also expected to bring innovations such as improved product performance and reduction in production cost and final product.. While the benefit of agrochemicals is commendable and people are getting aware of it, the toxicity of synthetic products forms the major challenge for this industry.

The global agrochemical industry is segmented product wise and region wise. Agrochemicals market consists of all the chemical inputs plant needs for proper growth like- fertilizer, pesticides, adjuvants and plant growth regulators. In product segment, nitrogenous fertilizers form the largest share of fertilizer market. Increased awareness among farming community, need for high global production combined with economic growth in countries are helping in more fertilizer applications in the fields. The demand for pesticides is growing at a higher rate given the increased occurrence of various pests and diseases. Pesticides market is currently lead by herbicides products (covering 41.5%) followed by fungicides and insecticides. Further, the market is segmented by crop and non crop basis; grains and cereals tend to consume most of the agrochemical products followed by oil seed crops. Plant growth regulators provide a more natural way of managing and enhancing the growth process of agricultural plants. Increasing popularity of GM crops and high regulatory constraints pertaining to the usages of agrochemicals act as major constraints for the industry.

China, France, Germany, India, Japan, US represents the largest agrochemicals markets. Markets in Western Europe and North America are the established consumption points for agrochemicals and are expected to show below average growth because of market maturity and regulatory constraints. Currently China is leading the market with its developing agricultural sector along with the need of its ever growing population. Globally, China is only the largest producer but also the largest consumer of fertilizers. South America, particularly Brazil is the world leader in pesticide consumption. Africa is also going to register good potential.

Given to the large operational area and never ending need of the agrochemical industry, many market players and companies have entered the industry lately. The industry is concentrated within six major manufacturers covering 70-75% of market share; Bayer AG is the largest agrochemical producer in the world. Some of the key players include include-Yara International ASA, BASF, Bayer Crop Science, Makhteshim Agan Industries Ltd, Dow Agro Sciences, Monsanto, Syngenta, Agrium etc. The key strategies used by companies in agrochemicals market are new product registrations, merger and acquisitions to enter new markets.

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