Agrochemicals market to grow at a CAGR of 3.86% through 2019-2025
−− The global Agrochemicals Market size was evaluated at around $220 billion by the end of 2018
Sep. 12, 2019
Agrochemicals Market Analysis: Key Application
Agrochemicals are making a mark across the global agricultural industry, as the growing population demands varied flavors of food. However, the significant utilization of agrochemicals can be found in the cultivation of wheat and maize.
Recently, in August 2018, KingAgroot acquired full registration of its newly patented products Cypyrafluone and Bipyrazone and attracted vendors of the wheat pesticide application sector. Also, the company expanded and established its Jiangsu Huai’an factory in August 2019, in the Huai’an Salt Chemical New Material Industrial Park. Moreover, China has been developing wheat seed treatment hormones for a long time.
Sinochem Group has invented binary and ternary insecticidal and fungicidal mixtures that would act as plant growth regulators. Fenaminstrobin, a strobilurin fungicidal compound, was used to develop Tengshou, by combining it neonicotinoid insecticide thiamethoxam and triazole fungicide difenoconazole. This Tengshou is the first fenaminstrobin-based seed treatment agent, which acts as a ternary wheat seed treatment agent, giving an advantage over other conventional wheat seed treatment agents. Such fungicides are making a mark on preventing diseases and insect pests in China.
Also, several research and studies are highlighting the usage of biologically-based Integrated Pest Management (IPM) for fighting maize crop pests in the Greater Mekong Subregion. These innovations will attract several market players to invest in agrochemicals for a higher production yield in a harmless way. Hence, the agrochemicals market will flourish further in the upcoming years. The usage of agrochemicals in the wheat and maize cultivation is going to escalate at a CAGR of 5.2% during the forecast period 2019-2025.
APAC Agrochemicals Market Overview:
As per the report of the Federation of Indian Chambers of Commerce and Industry (FICCI), India is the second-largest food grain producer in the world after China. Both countries have been relying on agrochemicals for crop protection and better yield. These two countries along with Indonesia, Bangladesh, and others are contributing to the growth of the APAC agrochemicals market. Here are the trends and drivers that are creating demand influx in the agrochemicals market of the region
Kiwa Bio-Tech Products Group Corp. (KWBT) to Boost APAC Agrochemicals Market with its New Fertilizer Processing Technology
KWBT has been investing in the development and manufacture of bio-fertilizers and supporting the expansion of China agriculture. The company has disrupted the China agrochemicals market by developing a new fertilizer processing technology, in collaboration with Environmental Group of the Harbin University of Technology, the Institute of Bio-Agriculture of Shaanxi Academy of Sciences, and the Research Center of Ultrasound Technology of the Harbin University of Technology. This unique concept shows solubility of solid fertilizers increasing its usage capacity. This will benefit several farmers, creating tremendous opportunities for agrochemicals market players.
Cynda Chemical Launches Innovative Compounds supporting APAC Agrochemicals Market Growth
Cynda Chemical recently announced possession of two new compounds named quinotrione and methyl quinotrione that can be used in the production of sorghum herbicide, a kind of agrichemical. The company also plans to launch 3-4 more innovative compounds in 2019. All these new chemicals will create lucrative opportunities for agrochemicals market players in the region in the upcoming years.
Indian Governmental Policies to Create an Upsurge in the Agrochemicals Market of the Region
To achieve sustainable farming, the Indian government has declared that the agrochemical sector is one of the most important sections that the Department of Agriculture and Farmers Welfare should look after.
In the mission of Prime Minister’s vision of India achieving a $5 trillion economy, the chemical sector has an equal part to play. The government in the 8th Agrochemicals Conference 2019 announced innovative fund for agritech and agriculture sector. The government also plans to rationalize in GST rate regarding agricultural elements including agrichemicals. Indian government plans to curtail loss post-harvest by using agrochemicals and increase oilseed production using the same.
Also, as per the reports of the Federation of Indian Chambers of Commerce and Industry (FICCI), India is the fourth-largest producer of agrochemicals and it has been increasing a CAGR of 3.8% throughout 2019. All these are going to increase the agrochemicals market demand in India, thriving the APAC agrochemicals market.
Agrochemicals Market Trends and Growth Drivers:
Innovations such as target drones, America’s crop agriculture, expansion of horticulture, and nematicides industries are immensely influencing the global agrochemicals market outlook. Here are the trends and drivers that are supporting the expansion of the agrochemicals market across the globe
Target Drones to Create an Impact on the Global Agrochemicals Market Scope
Drones were earlier used to shoot or as the surveillance camera when it was first invented. However, it has slowly paved its way to agriculture. Several target drones are used across the world to spray agrochemicals, pesticides, herbicides, fertilizers, water, adjuvants, and others for a better, relaxing, and accurate agricultural harvest. The target drones market size was estimated to be $4.05 billion in 2017 and is expected to grow with CAGR of 8.51% during the forecast period 2019-2014. With the increasing demand for target drones, it can be deduced that a part of it will be implemented in agriculture for distribution of agrochemicals. Hence, the agrochemicals market will expand exponentially in the upcoming years.
Nematode Outbreak to Heighten the Agrochemicals Market Growth across the World
As per the data of the Organisan Corporation, Nematode outbreak causes almost $10 billion worth of damage for farmers across the globe. Researchers have come up with innovative nematicides, a type of agrochemical to lessen the threat. The global nematicides market collected revenue avenue of around 1.2 billion in 2018, which is expected to increase at a CAGR of 3.5% during the forecast period 2019-2025. Hence, with the growing demand of this agrochemical, the marketplace is going to experience immense boost.
Pilarquim and Agricenter’s Association to Spurr the Global Agrochemicals Market Growth
Recently, Pilarquim and Agricenter, S.R.L. announced that as a part of their new partnership they will distribute their new agrochemicals, namely Pilartep and Pilarxanil, which are fungicides, across the Central American and Caribbean countries. As per the data of The National Academies of Sciences Engineering Medicine, the US farmers produce around 35.5% of world’s corn, 34.1% of world’s soybean, 7.6% of world’s wheat, and 13.4% of world’s cotton. The domestic agricultural export of the crops estimated around $108 billion in 2016 and made an approximately $171.3 billion in additional economic activity. With the distribution of these fungicides, the success story of America’s agriculture is going to be enhanced. Hence, the agrochemicals market is going to witness a demand influx in the upcoming years.
Growing Malnutrition to Support the Growth of the Agrochemicals Market
According to the World Health Organization, 45% of deaths among the children under 5 years happen due to undernutrition. This is creating an upsurge in the global horticulture industry which uses agrochemicals for better yield. The horticulture chemical market witnessed a valuation of $21,156 million as of 2018, which is expected to escalate at a CAGR of 4.2% during the forecast period 2019-2025. With the expanding chemical horticulture industry, the agrochemical market is set to create opportunities for several market vendors.
Agrochemicals Market: Competitive Landscape
The principal business leaders who are currently holding maximum agrochemicals market shares in the world and are focusing on the expansion of their manufacturing capacity to gain an edge over other market players are Israel Chemicals Ltd., Agrium Inc., BASF SE, Bayer AG, DuPont de Nemours, Inc., The Monsanto Company, Sumitomo Chemical Co., Ltd., Syngenta AG, The Mosaic Company, Yara International ASA, and others.
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