Malaysia Agrochemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Malaysian Agrochemicals Market is segmented by Product Type (Fertilizers, Pesticides, Adjuvants, and Plant Growth Regulators) and Application (Crop-based (Grains and Cereals, Fruits and Vegetables, and Oilseeds and Pulses), and Non-crop-based (Oil Palm, Rubber, Turf Ornamental Grass, and Other Crops)). The report offers the market size and forecasts in terms of value in USD thousand for all the above segments.

Market Snapshot

Agrochemicals Market- Malaysia
Study Period: 2017-2027
Base Year: 2021
CAGR: 4.5 %

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Market Overview

The Malaysian agrochemicals market is projected to register a CAGR of 4.5% during the forecast period (2022-2027).

COVID-19 has affected the production and supply of the agrochemicals market. The global pandemic has impacted the proper functioning of various industries across the world, and it also affected the functioning of the agrochemicals market. In terms of supply, a short-term shortage of migrant laborers amid distribution bottlenecks created a wide gap between the number of workers required to produce agrochemicals and the ones available, leading to a decrease in production efficiency and disruption of supply chains in the country. Thus, the global COVID-19 pandemic caused a negative impact on the Malaysian agrochemicals market.

In Malaysia, agriculture is an important industry, as it ensures food security and increases income levels in rural areas. The gradual decline of arable land can be attributed to urbanization. Population statistics and declining arable land are responsible for maintaining adequacy in agricultural practices, ensuring greater utilization of agrochemical products in the areas that were ignored in the past. In Malaysia, the use of agrochemicals has been growing at a significant pace, particularly for pesticides and fertilizer consumption, as modern practices are being utilized in fields. The growth of the agrochemical industry also depends on the rapid expansion of areas under oil palm and rubber plantations.

Scope of the Report

Agrochemicals are chemical products, including fertilizer, adjuvants, pesticides, insecticides, herbicides, fungicides, and nematicides, which are used in agriculture to enhance crop productivity and protect the crops from pests, insects, weeds, and fungi. Agrochemicals can be produced in both chemical and biological methods. The Malaysian agrochemicals market is segmented by product type (fertilizers, pesticides, adjuvants, and plant growth regulators), application (crop-based (grains and cereals, fruits and vegetables, and oilseeds and pulses), and non-crop-based (oil palm, rubber, turf ornamental grass, and other crops)).

Product Type
Fertilizers
Pesticides
Adjuvants
Plant Growth Regulators
Application
Crop-based
Grains and Cereals
Oil Seeds and Pulses
Fruits and Vegetables
Non-crop-based
Oil Palm
Rubber
Turf and Ornamental Grass
Other Crops

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Key Market Trends

Decreasing Per Capita Arable Land and Increasing Demand for Food

Population in the region is increasing at a rapid rate. This growing population is adding to the food demand. Supplying food to this growing population has become a threat. On the other hand, arable land is declining due to industrialization and urbanization. Fertilizers have been used for a long time to increase the productivity of crops.​ Adequate and balanced use of agrochemicals will help in feeding the growing population from the available cultivable land.​ This is expected to boost the demand for agrochemicals such as fertilizers and pesticides in Malaysia. The strongest forces driving the demand for agrochemicals include the need for crop intensification (to increase yields per acre) while pursuing increasingly sustainable practices, seeking biological alternatives to boost production with decreased pressure on the environment, or adding to integrated practices to close the yield gap.​

arable land in Malaysia

Increasing Demand for Chemical Fertilizers in Plantation Crops

The potassic fertilizers segment occupies the largest share of the fertilizer market. According to the World Bank database, the fertilizer consumption in kilograms per hectare of arable land in Malaysia was 2,105.0 Kg/Ha in 2015, which increased to 2,169.4 Kg/Ha in 2017. This growth was attributed to the continued expansion of oil-palm cultivation, which requires a significant amount of potassic fertilizers. Plantation crops, like oil palm and rubber, consume the majority of agrochemicals in the country, followed by cereals and vegetables. The oil palm industry in Malaysia is the prominent agricultural sector in the country and plays a key role in world and fat trade. The cultivation of oil palm requires a high use of chemical fertilizers to achieve significant yields, which, in turn, drives the growth of the agrochemical industry in the country.

Fertilizer use in Malaysia

Competitive Landscape

The agrochemicals market is fragmented, with major players including Agricultural Chemicals (M) Sdn Bhd (ACM), Crop Protection (M) Sdn Bhd, Hextar Group, Advansia Sdn Bhd, Sin Seng Huat, and Nufarm. New product launches, mergers and acquisitions, and partnerships are the major strategies adopted by the leading companies in the market. These companies are also focusing on making an investment in innovations, collaborations, and expansions to increase their market share.

Recent Developments

In October 2021, PolaDrone, a Malaysian startup offering pesticide spraying services to the farmers in the country, raised USD 4.29 funding in the seed round led by Wavemaker Partners.

In September 2020, Agricultural Chemicals (M) Sdn Bhd (ACM) entered an exclusive distributorship agreement with Rainbow Malaysia MAFINO 75WG, which is a broad-spectrum fungicide to offer a sustainable way to maximize yield for its customers.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Fertilizers

      2. 5.1.2 Pesticides

      3. 5.1.3 Adjuvants

      4. 5.1.4 Plant Growth Regulators

    2. 5.2 Application

      1. 5.2.1 Crop-based

        1. 5.2.1.1 Grains and Cereals

        2. 5.2.1.2 Oil Seeds and Pulses

        3. 5.2.1.3 Fruits and Vegetables

      2. 5.2.2 Non-crop-based

        1. 5.2.2.1 Oil Palm

        2. 5.2.2.2 Rubber

        3. 5.2.2.3 Turf and Ornamental Grass

        4. 5.2.2.4 Other Crops

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Straregies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Agricultural Chemicals (M) Sdn Bhd (ACM)

      2. 6.3.2 Crop Protection (M) Sdn Bhd

      3. 6.3.3 Nufarm Ltd

      4. 6.3.4 Hextar Group

      5. 6.3.5 Advansia Sdn Bhd

      6. 6.3.6 Sin Seng Huat

      7. 6.3.7 Halex Group

      8. 6.3.8 Biovista Lifesciences Sdn Bhd

      9. 6.3.9 Kenso Corporation

      10. 6.3.10 Farmcochem Group

      11. 6.3.11 PK Fertilizers

      12. 6.3.12 Central Minerals & Chemicals Sdn Bhd (CMC)

      13. 6.3.13 Agri Fert

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. AN ASSESSMENT OF THE COVID -19 IMPACT ON THE MARKET

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Frequently Asked Questions

The Malaysia Agrochemicals Market market is studied from 2017 - 2027.

The Malaysia Agrochemicals Market is growing at a CAGR of 4.5% over the next 5 years.

Crop Protection (M) Sdn. Bhd., Nufarm Ltd, Hextar Group, Agricultural Chemicals (M) Sdn. Bhd. (ACM), Advansia Sdn Bhd are the major companies operating in Malaysia Agrochemicals Market.

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