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

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.​

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