The global agrochemicals market in terms of revenue was estimated to be worth $195,829.9 million in 2012 and is expected to reach $242,757.8 million by 2018, growing at a CAGR of 3.6% from 2013 to 2018, according to a new report from Research and Markets.
The global agrochemicals market is witnessing growth on account of increasing demand of grains for both edible and industrial applications. On the basis of use, agrochemicals are of two types: fertilizers and pesticides. Both of these can be used for agricultural and non-agricultural applications such as lawns and ornamental use.
The mode of action of both types differs from each other. The former provides nutrient to the plants by being absorbed by the plant roots. The use of fertilizers is essential to improve nutrient profile of the soil and increase per hectare production. On the other hand, pesticides control the growth of unwanted plants and diseases such as weeds, fungus, bacteria, insects, etc. It is used to protect the crops (whether standing or stored) from harmful pests. Thus, the use of both fertilizers and pesticides is very important to support the growing demand of crops.Asia-Pacific and Latin America dominate the global agrochemicals market demand in 2012.
Asia-Pacific is expected to remain the largest market in the near future owing to the increasing demand for food crops from its key countries-China and India.Asia-Pacific dominates the global agrochemicals market, accounting for major share in overall consumption in 2012. Latin and North America remained second and third largest markets for agrochemicals.
The nutrient demand for corn is highest among crops such as wheat, cotton, sugarcane, etc. Hence, its production in North America (for bio-ethanol production also) is expected to increase the demand of agrochemicals in the region. Tight environment regulations in Europe are making it difficult for the manufacturers to launch products that comply with the existing regulations. The use of agrochemicals in the region is mainly used for food application. As for other use such as bio-polymers and bio-fuel, high construction and un-favorable economic condition is creating complex situation for the manufacturers