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

The Malaysia 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)).

Market Snapshot

Agrochemicals Market- Malaysia
Study Period: 2016-2026
Base Year: 2020
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 (2021-2026).

The 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 as well. In terms of supply, a short-term shortage of migrant laborers amidst 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 pandemic, COVID-19, 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 including insecticides, herbicides, fungicides, and nematicides which are used in agriculture in order to enhance crop productivity and protect the crops from pests, insects, weeds, fungi, and others. 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)).

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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 will 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. This growth can be 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, in order to increase their market share.

Recent Developments

In September 2020, Agricultural Chemicals (M) Sdn. Bhd. (ACM) entered into 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 2016 - 2026.

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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