[210 Pages Report] The global agrochemical additive market is expected to reach a valuation of USD 1.7 Billion in 2022. Sales of agrochemical additves is expected to increase at a CAGR of 4.6% and are expected to top a valuation of USD 2.7 Billion by 2032. Substantial production volume of agrochemicals are expected to boost the consumption of additives in fertilizer and pesticide over the coming assessment period.
| Attribute | Details |
|---|---|
| Agrochemical Additive Market Base Year Value (2021A) | USD 1.6 Billion |
| Estimated Market Size (2022E) | USD 1.7 Billion |
| Projected Market Valuation (2032F) | USD 2.7 Billion |
| Value-based CAGR (2022 to 2032) | 4.6% |
| Collective Value Share: Top 3 Countries (2022E) | 46.9 % |
Increasing focus on improving crop productivity and yield are fueling the demand for agrochemical additives. The global consumption of agrochemical additive is estimated to be around 3 - 4% of the overall additives market.
Demand for agrochemical additves increased at a CAGR of 4.3% between 2017 and 2021 and is projected to grow at 4.6% CAGR over the forecast period.
Growth in the manufacturing industry, development in the agriculture sector and increasing usage of fertilizers and Pesticides are anticipated to spur demand in the market. Besides this, technological advancements in the food and agrochemical industries, along with growing demand for agricultural products will boost the markt.
Despite these growth drivers, there are certain challenges for the market including stringency in legislative constraints and standards regarding the production of agrochemicals, an increase in the pricing of raw materials, and rising demand for organic formulations and organic farming.
Pesticides are compounds produced through chemical or biochemical processes that include active components in a certain concentration and are intended to protect crops against weeds, diseases, and insects, as well as to reduce crop losses. Chelating agents, building blocks, pH regulators, and salification agents are all used as agrochemical additives.
To avoid pests, weeds, and illnesses, agrochemicals are diluted in specified dosages and applied to seeds, soil, irrigation water, and crops. Over the last few decades, high-purity compounds are sold in bulk to formulators, who derive formulations by adding inert carriers, solvents, surface-active agents, and deodorants. Increasing need for food production and population growth are creating opporutnities for growth for manufacturers in the market.
Furthermore, one of the primary drivers for the usageof agrochemicals additives is institutional credit to give financing to farmers in rural areas. High availability and low interest rates on farm loans will encourage farmers to use more fertilizers and pesticides to increase agricultural yields which is anticipated to fuel sales.
Production and utilization of chemicals including pseudo-biological products laced with agrochemicals are classified as non-genuine pesticides. These products are phony, adulterated, sub-standard, or illegally imported, and they impact the harvest, soil, and environment more than the pests.
Stringency in government standards and regulations and regulatory intervention are limiting the utilization of several chemicals and materials. In line with these regulations, manufacturers are also minimizing the consumption and production of non-water-soluble agrochemicals, which is limiting sales to an extent.
Water pollution caused by agrochemicals in large water bodies causes growth of algae and promotes eutrophication, which remains a key environmental challenge. Rodenticides, POPs (Persistent Organic Pollutants), OPs (organophosphates), and carbamate compounds are among the agrochemicals that have caused severe conservation concerns for species at the top of food webs.
Manufacturers are developing slow-release formulations for reducing environmental impact by minimizing agrochemical volatilization, leaching, and degradation. Furthermore, toxicity of certain types of additves are also restricting the usage of agrochemical additives.
Expansion in the Agricultural Sector in India Will Drive Sales of Agrochemical Additives
India is expected to remain one of the fastest growing market for the consumption and production of agrochemical additives. Pests and illnesses affect approximately 20-25% of the entire food produced in India.
According to the Ministry of Agriculture, India loses INR 1.48 Lakh Crores in agricultural productivity each year owing to pests, weeds, and plant diseases. As a result, agrochemicals serve as a critical input for crop protection and increased yiel.
Moreover, India's low-cost manufacturing capability, availability of a technically skilled workforce, superior worldwide price realization, and strong presence in generic pesticide manufacturers are expected to augment the growth in the market.
High Focus on Crop Health in China Will Spur Demand for Agrochemical Additives
China is expected to account for about 73% of the additves demand in East Asia over the forecast period. Due to substantial development in the chemical sector in China and urbanization, the accessible landmass for agriculture is reducing, prompting farmers to utilize various agrochemicals to maintain soil health and boost land productivity.
Rising production of active components used in the formulation of agrochemical products and ready-to-use pesticides supplied in several countries along with a higher volume of crop protection chemicals production will augment grow th in the market.
Demand for Agrochemical Additives for Fertilizers to Remain High
Owing to substantial production volume of fertlizers, sales of additives are expected to increase at a considerable pace over the forecast period. Population growth will likely result in high demand for food and agricultural products, which will drive fertlizers consumption in the agriculture sector.
Fertlizerssegment is anticipated to remain one of the key end use in the market, which is further enhanced by government subsidies on certain fertlizers. As a result, the need for biopesticides is anticipated to increase in the forthcoming years. The segment is expected to account for 64% of the total market share over the forecast period.
Sales of Agrochemical Additives for Cereals and Grains to Gain Traction
Cereals and grains use the most agrochemicals because crops such as rice can have lower yields and less accessible nutrients due to nutritional shortages in the soil. Rice crop production and grain nutrient content are increased by adding critical minerals through fertilizers, which is expected to propel the demand for agrochemical additives.
The production of cereal crops will rise by 60% between 2000 and 2050, according to the Food and Agriculture Organization of the United Nations. The food and agriculture sector is also expected to remain one of the key consumer of agrochemicals owing to high demand for agrochemicals for food production and genetically modified crop production.
Through acquisitions, mergers, and joint ventures, key players are aiming to expand their production facilities. Additionally, through research and development initiatives, certain manufacturers are creating fresh, cutting-edge products. For instance:
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 1.7 Billion |
| Projected Market Valutaion (2032) | USD 2.7 Billion |
| Value-based CAGR (2022-2032) | 4.6% |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | USD Million for Value and Tons for Volume |
| Key Countries Covered | The USA, Canada, Brazil, Mexico, Germany, Italy, France, The UK, Spain, BENELUX, Russia, China, Japan, South Korea, India, ASEAN, ANZ, GCC Countries, Turkey, Northern Africa, South Africa |
| Key Segments Covered | End Use, Application, Crop Type, and Region |
| Key Companies Profiled | Syngenta AG; Bayer Crop Science; Dow Agro Sciences; Adama Ltd; FMC; BASF SE; Sumitomo Chemical Co., Ltd; UPL Limited; Nutrichem Company Limited; Nufarm Ltd; Israel Chemicals Limited (ICL); Saudi Arabia Fertilizer Company (SAFCO); S.A OCPJordan Abyad Fertilizers and Chemicals Company; Yara International ASA; Heringer; PhosAgro; DuSolo Fertilizers; WinHarvest Pty Ltd; OCI N.V.; The Mosaic Company; Nutrient Ltd.; K+S KALI GmbH |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The global market of agrochmeical additive is estimated to reach a valuation of USD 1.7 Billion in 2022.
The agrochemical additives demand is anticipated to witness a growth rate of 4.6% over the forecast period of 2022 and 2032 in terms of value.
The increase in the production of agricultural goods represents one of the major opportunities. By doing soil remediation, bio-based goods like bio-pesticides and bio-fertilizer can be widely used to enhance agricultural soil quality. These biomolecules potentially take the place of the harsh chemicals currently utilized in pesticide industries worth millions of dollars.
According to FMI analysis, Syngenta AG, BASF SE, UPL, Bayers Crop Science, Dow Agro Science and others are identified as the key manufacturers in the agrochemical additive market.
For the manufacturing, labeling, and marketing of additives, there exist regulatory bodies that have established strict guidelines. This might lead the manufacturer to concentrate on production in a way that would satisfy the regulatory environment in the location of import.
The top countries driving the global agrochemical additive demand are China, India, and Japan
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