AGROCHEMICALS MARKET

Agrochemicals market size was valued at USD 244.2 billion in 2024 and is forecast to touch USD 321.6 billion in 2032 and the market is expected to grow at a 3.5% CAGR from 2025-2032 fueled by population growth and rising food demand along with the increasing need for crop protection.

Major Drivers and Emerging Trends

Modern agriculture depends on agrochemicals to drive productivity by offering crop protection while supplying necessary nutrients. Agrochemicals are important in driving higher agricultural yields which contributes to global food security driven by rapid population growth.

Major market drivers are the increasing need for higher crop yields coupled with the decreasing arable land. Furthermore market growth is driven by the growing global population and the increasing need to ensure food security. The FAO projects the global population to reach nine billion by 2050 which is expected to significantly burden existing agricultural systems. Urban expansion along with improved income levels are also set to significantly increase food demand which makes efficient agrochemicals adoption essential for boosting agricultural output. Food security is further becoming a crucial global priority and the market is important in addressing this challenge by significantly boosting crop yields while protecting plants from pests.

The growing focus on farming horticultural crops is further projected to enhance the market demand. These chemicals are contributing to market growth by offering several benefits like improved crop yield. Rising sustainability concerns are driving the need for more efficient fertilizers along with crop protection. The increasing registered products support this trend with Australia having more than 8,000 pesticides officially registered with about 75% are particularly intended for agricultural use. The various products available also highlight the need in the agricultural industry for effective and tailored agrochemical solutions to overcome diverse crop protection challenges along with nutritional issues.

Furthermore many governments particularly across Asia are introducing various programs aimed at assisting farmers. Farmer welfare across India is a major government focus with several initiatives being introduced to revitalize agriculture and uplift the economic status. The government has implemented some programs like the Interest Subvention Scheme and Neem Coated Urea among others which ensure farmers receive substantial support.

Additionally the expanding focus on biopesticide research is expected to open major growth prospects within the global agrochemicals market. Innovations like controlled release technologies along with high efficiency fertilizers are meeting rising demand while also addressing environmental pressures for sustainable agriculture.

The push toward sustainability is gaining momentum with modern agrochemical developments helping to facilitate this shift. Corteva states that genetically improved wheat strains can deliver up to ten percent higher yields without consuming more resources which promotes more sustainable and efficient farming practices. These genetically modified seed strains are known to deliver up to twenty percent higher yields under drought conditions compared to elite varieties which makes them a robust solution to climate challenges. These organic fertilizers contribute significantly to achieving sustainable farming practices along with environmental goals. The EU Green Deal and similar government efforts have set a reduction target by half for pesticide use by 2030 which creates opportunities for green agricultural chemical options globally.

However the agrochemicals market may face challenges driven by the increasing concerns about the environmental damage caused by the heavy reliance on chemicals in farming. Excessive use along with improper application can lead to soil degradation and water pollution. Moreover coming into contact with specific agrochemicals may pose risks to human health which affects those working on farms and the consumers. Even though agrochemicals contribute greatly to farming efficiency but their application must be carefully regulated and aligned with safety standards to prevent environmental damage or health related issues.

Extended chemical pesticide use has also fostered rising pests or weeds resistance which significantly reduces the effectiveness in the existing control methods. Emerging solutions to address this challenge include novel active ingredients and environmentally degradable formulations along with strategic rotation practices to preserve pesticide effectiveness.

Tight regulations further make it difficult for new players to enter the market which drives up product development costs. Highly stringent regulatory frameworks require that each new agrochemical solution undergo comprehensive environmental and safety evaluations before approval which ensures their efficacy. While these regulations uphold high product standards but they also contribute to lengthy approval processes. This complex and intricate procedure hinders timely access to innovative agrochemical solutions and imposes high costs on producers that must invest heavily in trials and regulatory adherence.

Type Insights: Fertilizers segment is projected to lead the market share

The fertilizers segment is expected to maintain a leading position driven by the rising food demand and the necessity to enhance crop yields through precise nutrient application. This segment covers different fertilizer categories like nitrogenous along with various specialized ones. The segment growth is supported by the expanding precision farming practices and a rising focus on balanced fertilizer usage. Moreover the progress in controlled release fertilizers along with the growing emphasis on sustainability have ensured that fertilizers remain central to modern agricultural practices.

The pesticide segment is also growing driven largely by the rising need for biobased options like microbial or herbal pesticides in agriculture. Additionally the increased pesticides adoption to manage insects and fungal infestations is anticipated to drive further segment growth.

Pesticide Type Insights: Fungicide segment is expected to grow at the fastest growth rate

The need for fungicides is primarily fueled by the increasing fungal diseases which frequently pose a threat to crop yields and quality. The rising uncertainty in climate patterns and shifts in farming practices elevate the threat of fungal diseases which fuels the need for more effective crop protection methods. The agricultural sector is progressively adopting modern technologies to improve upon conventional pesticide formulations that are often less effective and have negative environmental footprints.

Herbicides are also experiencing growth mainly owing to their function in controlling weed growth while boosting crop yields. The segment demand stems from their ability to decrease manual labor requirements and reduce operational expenses particularly in extensive farming practices. Various formulations designed for particular weed species and different environmental conditions support their broad adoption. Innovations like precision spraying are making its use more efficient and environmentally friendly. Government initiatives supporting sustainable practices increasingly highlight integrated approaches to weed control which further drives the segment growth.

Fertilizers Type Insights: Nitrogenous Fertilizers segment holds the largest market share

This segment leads the market owing to their essential function in supporting high agricultural output and yield quality. Nitrogen is important primarily owing to its involvement during photosynthesis and building proteins. High nitrogen demand from widely grown cereals is significantly driving the segment dominance. Manufacturers often choose it because it is comparatively straightforward to produce. Urea provides 35 percent higher nitrogen levels in comparison to ammonium nitrate per ton. This has consequences for how nitrogen fertilizers are stored and transported. Urea is considered stable for storage and transport while it is more affordable to move than ammonium nitrate.

Crop Type Insights: Fruits & Vegetables segment is expected to experience a higher CAGR

The fruit and vegetables category is expected to witness a higher CAGR largely owing to the increasing trend among marginal farmers to cultivate short duration horticultural crops on small land areas. Furthermore the growing recognition about the health benefits that fruits and vegetables offer along with the rising preference for organic produce is fueling the segment growth.

The cereal and grains segment is also witnessing growth owing to the rising demand for grains like rice and oats among others in multiple regions. In North America and Asia Pacific agrochemicals are primarily applied to cereals owing to large scale corn and wheat production in places like the United States or China.

Regional Insights: Asia Pacific Region is expected to dominate the market

Regionally Asia Pacific is forecast to lead the market throughout the forecast period. This trend is largely attributed to the expanding population and the need to boost food output. Moreover growing fertilizers and pesticides applications to enhance soil quality while maximizing land productivity in developing countries like China and Japan is accelerating market growth across the region. China stands out in the global market for pesticide and fertilizers because it contributes heavily as a leading manufacturer along with end user. Its reliance on fertilizers stems from its need to sustain high agricultural output to feed its expanding population. Growing demand for food crops is fueling the rising agrochemical product adoption.

North America is likely to witness accelerated growth owing to strong economic progress and rising organic food consumption. North America is known for housing numerous agrochemicals producers. Market growth in this region is primarily driven by the increasing dairy industry along with the conducive climate for crops like corn.

Top Market Players

Various notable players operating in the global Agrochemicals market include BASF SE, The DOW Chemicals Company, E. I. Du Pont De Nemours and Company, Yara International ASA, Bayer AG, Israel Chemicals Limited, Crystal Group, Bionema Limited, Nippon Soda Co., Ltd., and Mitsui & Co., Ltd., among other companies. 

Key Developments:

• • In 2024 Corteva revealed a revolutionary development within hybrid wheat technology that provides a 10% yield increase and greater drought resilience. This breakthrough is a significant development for the agrochemical market because improved crop varieties could offer new prospects for precise applications like tailored fertilizers to increase yield and tackle food security concerns worldwide.
  • In 2024, a major global leader in crop protection Adama Ltd unveiled in Poland the EDAPTIS herbicide. It is a convenient solution that offers comprehensive control to grassy weeds and enhanced effectiveness against resistant populations.
  • In 2020 Crystal Crop Protection, one of the leading research and development based crop protection agro-chemical companies in India and a part of Crystal Group, acquired three insecticide companies namely, Dursban, Nurelle-D and Predator in India from US-based Company, Corteva, Inc. This acquisition helped the company to diversify the product portfolio and thus strengthening the market presence across India.
  • In 2020 Mitsui & Co and Nippon Soda acquired majority shares in Bharat Insecticide Limited (BIL), an Indian agrochemical company. Through this acquisition, Mitsui and Nisso are intended to contribute to the expansion of BIL’s business in India by integrating synergy with Mitsui’s global assets and Nisso’s competitive products into BIL’s business portfolio.
  • In 2020, Bionema Ltd., a biopesticide technology developer launched a biocompatible wetting agent NemaSpreader for biopesticides. The NemaSpreader helped to increase the efficacy of beneficial nematodes up to 30% for controlling soil and foliar insect pests
  • In 2020, Crystal Crop Protection, one of the leading research and development based crop protection agro-chemical companies in India and a part of Crystal Group, acquired three insecticide companies namely, Dursban, Nurelle-D and Predator in India from US-based Company, Corteva, Inc. This acquisition helped the company to diversify the product portfolio and thus strengthening the market presence across India.
  • In 2020, Mitsui & Co., Ltd. and Nippon Soda Co., Ltd., acquired majority shares in Bharat Insecticide Limited (BIL), an Indian agrochemical company. Through this acquisition, Mitsui and Nisso are intended to contribute to the expansion of BIL’s business in India by integrating synergy with Mitsui’s global assets and Nisso’s competitive products into BIL’s business portfolio.
  • In 2020, Bionema Ltd., a biopesticide technology developer launched a biocompatible wetting agent NemaSpreader for biopesticides. The NemaSpreader helped to increase the efficacy of beneficial nematodes up to 30% for controlling soil and foliar insect pests

Segments covered in the Report:

The Global Agrochemicals Market has been segmented on the basis of Type, Pesticide Type, Fertilizers Type, Crop Type and Regions. Based on the Type, the market is segmented into Fertilizers, Pesticides. Based on the Pesticide Type, the market is segmented into Insecticides, Herbicides, Fungicides, Nematicides, Other Pesticide Types. Based on the Fertilizers Type, the market is segmented into Nitrogenous Fertilizers. The Nitrogenous Fertilizers segment is further segmented into Urea, Ammonium Nitrate, Ammonium Sulfate, Ammonia, Calcium Ammonium Nitrate, Other Nitrogenous Fertilizers. The Phosphatic Fertilizers segment is further segmented into Diammonium Phosphate, Monoammonium Phosphate, Triple Superphosphate, Other Phosphatic Fertilizers. The Potassic Fertilizers segment is further segmented into Potassium Chloride, Potassium Sulfate, Other Potassic Fertilizers. Based on the Crop Type, the market is segmented into Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables and Other.

Market Segmentation

Global Agrochemicals Market by Type

• • Fertilizers
  • Pesticides

Global Agrochemicals Market by Pesticide Type

• • Insecticides
  • Herbicides
  • Fungicides
  • Nematicides
  • Other Pesticide Types

Global Agrochemicals Market by Fertilizers Type

• • Nitrogenous Fertilizers
    • Urea
    • Ammonium Nitrate
    • Ammonium Sulfate
    • Ammonia
    • Calcium Ammonium Nitrate
    • Other Nitrogenous Fertilizers
  • Phosphatic Fertilizers
    • Diammonium Phosphate
    • Monoammonium Phosphate
    • Triple Superphosphate
    • Other Phosphatic Fertilizers
  • Potassic Fertilizers
    • Potassium Chloride
    • Potassium Sulfate
    • Other Potassic Fertilizers

Global Agrochemicals Market by Crop Type

• • Cereals & Grains
  • Oilseeds & Pulses
  • Fruits & Vegetables
  • Other

Global Agrochemicals Market by Region

• • North America Agrochemicals Market (Option 1: As a part of the free 25% customization)

    • By Type
    • By Pesticide Type
    • By Fertilizers Type
    • By Crop Type
    • US Market All-Up
    • Canada Market All-Up

  • Europe Agrochemicals Market (Option 2: As a part of the free 25% customization)

    • By Type
    • By Pesticide Type
    • By Fertilizers Type
    • By Crop Type
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Agrochemicals Market (Option 3: As a part of the free 25% customization)

    • By Type
    • By Pesticide Type
    • By Fertilizers Type
    • By Crop Type
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Agrochemicals Market (Option 4: As a part of the free 25% customization)

    • By Type
    • By Pesticide Type
    • By Fertilizers Type
    • By Crop Type
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Global Agrochemicals Market Players (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • BASF SE
  • The DOW Chemicals Company
  • I. Du Pont De Nemours and Company
  • Yara International ASA
  • Bayer AG
  • Israel Chemicals Limited
  • Crystal Group
  • Bionema Limited
  • Nippon Soda Co., Ltd.,
  • Mitsui & Co., Ltd.