Agricultural Chemicals Market Research Reports, Analysis & Trends
Agricultural chemicals industry comprises companies that manufacture, produce, distribute and sell chemicals meant for agricultural purposes. They are part and are sub-industry of the large and highly regulated industry in the chemicals industry sector. The products and chemicals range from pesticides, herbicides, insecticides and fungicides, synthetic fertilizers, and many other varieties of chemicals used for protection or growing of plants and crops. The agricultural chemicals industry includes the numerous chemicals used for crop protection, mainly for getting rid of unwanted weeds, pests and insects that harm the crop. Apart from the protection, these chemicals also help improve crop growth effectively and efficiently and thus, bring better of their yield.
In the modern times, since almost all the industries are needed to be regulated, similarly the agricultural chemicals industry is an extremely regulated sub-industry within the chemicals industry as well. Agricultural chemicals are usually known as agrochemicals. Many agrochemicals are poisonous, and when stored in large quantities, they may possibly create major ecological and health hazards, particularly in the case of unintentional spillages, that is the reason, in many countries, the usage of agrochemicals is extremely regulated.
Agricultural Chemicals Market Current Trends
The agrochemical industry is at a rapid growth phase and it is going through an expansion throughout demographics. The demand for agrochemicals has depended and depends mainly on demand for various crops, that which in turn depends on crop prices. So, the profitability of individual companies is linked to efficient operations and marketing. In the competitive scenario and competitive world today, the big producers have large economies of scale in production. Usually, the smaller companies can compete effectively by making specialty chemicals or fertilizer mixtures for local markets. In the North American demographic, the US industry is highly concentrated as with the eight largest producers of fertilizers alone generate around 70% of segment revenue, and the eight largest producers of pesticides generate about 75% of revenue for that segment. In the agrochemicals, fertilizers account for about 70% of industry's total revenue, pesticides account for about 30%.
One of the major trends witnessed in agrochemicals industry is the steady demand of growth for fertilizers. If the fertilizer industry is to excel and be successful, its growth is entirely dependent heavily on the Agricultural industry itself. Farmers utilized less fertilizers to counteract price pressures during financial crisis. And after the recovery started from the global economic crisis, the demand for fertilizers increased all over again as there was a growing need to maximize the soil nutrient balance to that crop yields could be maximized as well. In addition, the technological advancements and developments have contributed immensely to agrochemicals industry. They have improved agricultural production and expansion of land base for every type of agricultural usage. The investments in the industry have paid off and returned good revenues and interests, thus generating growth prospects in many related industries.
Major Agricultural Chemicals Manufacturer
Major players in the agricultural chemicals industry include Bayer and BASF, Dow and Monsanto, Potash, and Syngenta.