Global Agrochemicals Market Future Outlook to 2027-COVID-19 Impact Assessment and Growth Opportunities

Overview

Executive Summary 

Scope of the Study
Makreo Research has published research report titled "Global Agrochemicals Market Future Outlook to 2027-COVID-19 Impact Assessment and Growth Opportunities". The report is a detailed study that offers market assessment and expected future forecast. It evaluates agrochemicals demand based on several macro-economic and industry factors and delves deeply into various parameters such as market revenue, key segmentation, and industry cause and effect analysis. Market performance by fertilizers and crop protection chemicals has also been assessed in detail. The study is further segmented by regional level performance to understand the factors responsible for the shifts happening in the global level. It also includes key players performance and business development who are contributing in the industry growth.

Market Performance
Global Agrochemicals Market revenue is expected to grow at a CAGR of 8% during 2022-2027 to cross USD 300.0 billion mark in next five years. Rising concerns over the application of synthetic fertilizers and pesticides in agriculture has led to an increase in the need for bio-based agrochemicals, such as bio-fungicides and bio-fertilizers, to protect crops and the environment. As a result, agrochemical manufacturers are constantly introducing new products and technologies to meet shifting demand. Unbalanced agrochemical usage further degrades the environment and poses serious threats to marine and terrestrial ecosystems.
The Global Agrochemicals Market has been evolving over time and the market has witnessed a positive growth during the year 2020 despite the outbreak of the virus, owing to the increasing demand for food. In 2021, the market was valued at USD ~ billion registering a growth rate of 3.7% from 2020. There was a minor uptake in growth in 2020 due to the sudden rise in food demand, overstocking of food and fear of further lockdowns that resulted in 4.11% growth in agrochemicals revenue in the year as compared to previous year.

Global Economy Performance: In 2021, the global economy witnessed growth of 5.5%. According to the United Nations World Economic Situation and Prospects, the global output has been projected to expand by only 4% and 3.5% in 2022 and 2023 respectively.  Strong consumer spending, investment growth, and trade in goods have all contributed to the global economy's rapid recovery in 2021, which has experienced the fastest growth rate in the last four decades. In 2021, global GDP was 1.9% higher than in 2019, but it was still 3.3% below the amount of output projected before the pandemic.

COVID-19 Impact: COVID-19 spread had a substantial influence on the world economy, disrupting production in a number of commercial sectors. The agricultural industry was also affected by the disturbances. Agricultural production is projected to drop in some areas due to the passage of planting season and the implementation of restrictions, placing field workers at risk of poor salaries. As a result, farmers are bearing the brunt of the economic consequences of the pandemic. COVID-19 has had a tremendous influence on the agricultural labour and has jeopardised food security due to the restrictions placed on its distribution. As a result of global trade disruptions, farmers are experiencing a shortage of agricultural inputs such as seed, fertiliser, and pesticides.

Market Segmentation
By Product Type: The Global Agrochemicals Market is divided into Fertilizers and Crop protection. Fertilizer accounts for the major market share of Global Agrochemical Revenue followed by Crop protection: The demand for Crop protection segment has grown owing to greater emphasis on high agricultural productivity to combat food security. In 2021, Crop protection market witnessed positive growth, with the increasing food demand has prompted agrochemical-based companies to invest in research to improve their product and transition to greener crop protection alternatives and it is expected to reach USD ~ Billion, registering a CAGR growth of 13% from 2022-27. With regard to the regulatory interventions for safe farming and general farming culture and practices, the agricultural sector has made significant progress around the world. Companies have been seen in the business commercializing bio-based compounds derived from plant, mineral, bacterium, and animal sources.

Fertilizers: The fertilizer segment is getting a lot of traction since it helps to increase crop output by giving critical nutrients to crops including nitrogen, phosphate, potassium, and other nutrients that promote soil fertility. Fertilizer consumption is growing rapidly, particularly in the agriculture sector, in 2021 the fertilizer market registered a growth of 3.72% Y-o-Y and expected to reach to USD ~ billion by 2027 and the Global fertilizer market is expected to grow at a double digit CAGR of 14.8% from 2022-2027.

Regional Performance: Asia-Pacific holds the largest Fertilizer and Crop protection market in world. Southeast Asia is the largest fertilizer consumer in Asia-Pacific, which holds more that 30% of total consumption, with China accounting for roughly half for both the markets. The pesticide industry in China has a massive export surplus, with exports ten times higher than imports. In 2019, China's pesticide exports totaled 1.85 million tones, worth USD 10.2 billion, while imports totaled only 59,112 tones, worth USD 656 million. In Asia, there is high demand for nitrogenous fertilizers. The market for potassium fertilizers, on the other hand, is predicted to expand dramatically in the future years. With the increased usage of neem coated urea, upscaling of Direct Benefit Transfer to farmers, and quick adoption of water-soluble fertilizers, demand in Southeast Asia is likely to expand even more. 

Global Agrochemicals Market Structure
By Product Type
    Fertilizers
By Type
    Nitrogen
    Phosphorus Pentoxide (P₂O)
    Potassium oxide (K₂O)
Crop protection
    By Type
    Herbicides
    Insecticides
    Fungicides
    Others
By Chemicals
    Synthetic
    Bio-Based
    Others

Companies covered in the Global Agrochemicals Market Report