Agrochemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Being essentially less harmful compared to regular synthetic pesticides, biopesticides typically affect only the target pest and other organisms that are closely related to it, therefore, biopesticides are gaining popularity. Although the biopesticide segment generated only a small fraction of the revenue generated by the crop protection chemical industry in 2018, the segment is likely to witness a significant growth rate in the forecast period. This kind of growth is supported by the fact that most countries amended their policies to minimize the use of chemical pesticides and instead promote the use of biopesticides. Owing to a smaller number of regulations on product approvals and low cost of product development, biopesticides are being largely adopted by the agriculture industry. It takes nearly USD 250 million and 10 years to develop new pesticide products. In addition, it takes 12-13 years and roughly USD 130 million for the development of GM crops. However, a biopesticide or biological can enter the market in 3-5 years, with roughly USD 3-5 million development cost

China accounts for the largest share among other countries in the global fertilizer market. Chinese consumption of inorganic N, P, K fertilizers is reducing, owing to the reduction in cropland area. The cropland area under fruits and vegetables is increasing, while the area under cereals is decreasing. The Chinese fertilizer market is growing at a very slow and steady rate, owing to the government regulation of zero residues of inorganic fertilizer in the food crops since 2013. The large production of cereal crops, like rice and wheat in India, is the major factor supporting market growth. Consumption of pesticides is rising steadily in India. In 2018-19, 72,515 metric tons of pesticides were used by farmers all over the country. Data reveals that only eight states consume more than 70 % of the total pesticide. With a growing emphasis on environment and sustainability, the government in the region is enforcing the clean production and environment-friendly agriculture policies, which led to a decline in pesticide usage in the country. The government has encouraged the use of microbial pesticides, which is expected to grow at a rapid rate in the coming years.