Geopolitical Conditions and the Growing Adoption of Sustainable Farming Practices will Continue to Pressurize Growth
Agrochemicals, or agrichemicals, are chemical products used for crop protection and/or crop nutrition in agriculture. Over the past 2 years, the global geopolitical situation has significantly impacted the supply and demand of chemical fertilizers and pesticides. This study discusses industry trends, drivers, and challenges and their impact on the demand for chemical fertilizers and pesticides during the short term. The study also highlights the top 5 predictions for 2023 and beyond.
The study's scope covers chemical fertilizers, including nitrogenous, phosphatic, and potassium fertilizers, and crop protection chemicals, such as insecticides, herbicides, fungicides, and others (rodenticides and nematicides).
Yield enhancement and production cost reduction to ensure profitability are the key factors leading farmers to use chemical crop input. Though the industry is shifting to organic and biological alternatives, their penetration remains low, especially in emerging economies. However, the adoption of stringent environmental regulations and sustainable farming practices is expected to limit the use of chemical crop input in the medium-to-long term.
Geographically, Asia-Pacific and Latin America are high-growth markets and are forecast to witness significant growth in agrochemicals demand during the forecast period.
