Agrochemicals: an Emerging Market With Promising Growth Potential
The global agrochemicals market size is estimated to grow from USD 208.6 billion in 2020 and is projected to reach USD 246.1 billion by 2025, at a CAGR of 3.4% during the forecast.
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Factors such as increasing demand for food supply due to the rapid growth in the human population has triggered agricultural intensification during the last few decades. For addressing the growing food demands, agrochemicals (fertilizers and diverse pesticides) are rigorously used in agriculture, which accomplishes the gap between food production and consumption, all these are driving the market for agrochemicals during the forecast period.
Increase in population and the consequent rise in demand for food materials to increase the demand for agrochemicals.
Agrochemicals play a vital role in crop growth, showing improved performance and noticeable results. Pesticides enable farmers to produce safe, quality foods at affordable prices. They also help farmers provide an abundance of nutritious, all-year-round foods, which are necessary for human health. Fruits and vegetables, which provide essential nutrients, are more abundant and affordable. Grains, milk, and proteins, which are vital to childhood development, are more widely available because of lower costs to produce food and animal feed. The kind of fertilizer needed depends on the crop grown and the nutrient deficits in each specific soil. Different crops remove different amounts of nutrients from the soil.
Key players in this market include Bayer (Germany), BASF (Germany), Yara International (Norway), Compass Minerals (US), and Syngenta (Switzerland). Some of the other dominant players in the market include Adama Ltd (Israel), Sumitomo Chemicals (Japan), Nufarm Limited (Australia), UPL (India), K+S Group (Germany), and Israel Chemical Company (Israel). These players have focused on strategies such as new product launches and expansions to gain a larger market share in the agrochemicals market.
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Asia Pacific is the fastest-growing market during the forecast period in the global agrochemicals market
Being the largest as well as the most populous region in the world, Asia Pacific is one of the key markets for agrochemicals. However, it continues to remain untapped by major market players. The region accounted for almost 30% of the land available on Earth and nearly 60% of the human population, according to the World Bank. To meet the food requirement of this huge population, the use of pesticides has increased significantly in the region. India, Japan, Australia, and Thailand are the highest pesticide- consuming countries 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.