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

Market Overview

The Australian agrochemicals market is anticipated to grow at a rate of 3.5% during the forecast period (2021-2026). Post the COVID-19 health emergency, the nationwide shutdown was imposed in Australia to slow down the spread of the virus. However, the Federal Minister for Agriculture deemed Australia's food production and supply chain as an essential service, with assurances that there will be no stoppage in agricultural supply lines, transportation, and logistics, hence pesticides will continue to be delivered to farms despite state-imposed border shutdowns. Therefore, the agrochemicals market in Australia is expected to have a low impact of the COVID-19 outbreak in 2021.

Over the medium term, the technological innovations in the industry, pest pressures, rising use of bio-based crop solutions are expected to drive the market growth. New farming practices are being adopted by Australian farmers to increase crop yields. Additionally, the adoption of biopesticides is also emerging in the country. The growing awareness of environmental health has made these bio-based solutions increasingly popular among Australian farmers. The demand for such products is likely to drive the agrochemicals market in the country during the forecast period.​ 

The fertilizer industry in the country has been transforming over the years, with robust growth coupled with changing crop mix trends and environmental regulations to monitor the appropriate rate of application. Urea is the widely used nitrogenous fertilizer in the country. According to Food and Agricultural organization, agricultural use of urea increased from 1,548.25 thousand metric ton to 1678.3 thousand metric ton during 2016 and 2017.​

Scope of the report

Agrochemicals or Agriculture chemicals, refers to the chemicals(fertilizers, pesticides, adjuvants, plant growth regulators), which are used in agriculture to control insects and weeds, prevent diseases as well as promote plant growth. The market under study is segmented By Product Type (Fertilizers, Pesticides, Adjuvants, Plant Growth Regulators), by Application (Grains and Cereals, Pulses and Oilseeds, Fruits and Vegetables, Commercial Crops and Others).

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Key Market Trends

Increasing Demand for Biopesticides

Although the Biopesticide segment generated only a small fraction of the revenue generated by the chemical industry, it is likely to witness a significant CAGR during the forecast period in Australia. Given that biopesticides tend to pose fewer risks than chemical pesticides, the EPA generally requires fewer data to register a biopesticide than to register a chemical pesticide. Additionally, area under organic cultivation is also incresing in the country from 571.58 thousand hectares in 2016 to 669.92 thousand hectares in 2019. This indicates the rising demand for bio based solutions.

As a result, new biopesticides are often registered in less than a year, compared to an average of more than three years for chemical pesticides. The developing countries have simplified the requirement for the registration of biopesticides to promote the use of biopesticides. The country is also providing grants for R&D and production unit setups. All these activities are creating an opportunity for the development of the biopesticide market.

With the rising demand for biopesticides, most major crop protection companies are developing and marketing products containing non-synthetic ingredients derived from plants, microbes, or minerals.

<For instance, in 2019, Velifer, a new biological insecticide, was launched by BASF SE for pest control in vegetable crops, registered for use in Australia. The Australian Pesticides and Veterinary Medicines Authority (APVMA) also approved BASF's Serifel Biofungicide with Bacillus amyloliquefaciens strain MBI 600 for the control of Botrytis cinerea in grapes and strawberries in the same year.

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