Agrochemical Market Recovery Strengthens as Fertilizer Prices Fall 30-35% YoY and Demand Growth Continues Into 2025

The global agrochemical industry is transitioning into a critical new era, one that balances rising food demand with sustainability mandates. According to Makreo Research's newly published report, Global Agrochemical Market Size and Forecast (2020-2030), demand is rebounding as fertilizer supply stabilizes and biological crop protection gains stronger adoption across emerging agriculture economies.

Asia Pacific and North America remain the largest contributors to the agrochemical market, together making up around 66% of the total global share. Yet, future momentum is shifting toward developing nations where agricultural output is scaling rapidly to meet domestic consumption growth and export requirements.

Fertilizer Consumption Rebounds After Supply Chain Turbulence -
Global fertilizer use has returned to a growth trajectory following two years of contraction driven by geopolitical disruptions and pandemic-era logistics bottlenecks. Consumption increased by 4.3% in 2023, followed by 2.5% growth in 2024, and is projected to rise another 2.2% in 2025, supported by improved affordability. Key macronutrient fertilizer prices such as urea, phosphate, and potash decreased by nearly 30-35% YoY in 2024, providing relief to farmers worldwide.

Global production capacity is currently sufficient to meet nutrient requirements through 2027, though demand growth is likely to slow from recent highs. Nitrogen demand is benefiting from Russia's repositioning of export routes through the Baltic Sea, phosphorus demand is influenced by Belarus' search for alternative trade pathways due to continuing restrictions, and potassium supply is strengthening with new capacity additions across West Asia and Africa, along with a recovery in China.

For the overall fertilizer segment, the industry recorded a healthy CAGR of 4.07% between 2021 and 2024, primarily driven by the restoration of supply channels and price normalization.

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Global Agrochemical Market Size and Forecast (2020-2030)
https://www.makreo.com/report/global-agrochemical-market-size-and-forecast-2020-2030

Developing Regions Steer Long-Term Market Potential -
A major share of the global incremental nutrient demand between 2024 and 2028 is expected to originate from Latin America and South Asia, with each region likely to contribute 3-4 million tonnes of nutrient consumption. This expansion is led by higher-value crops such as soybeans, corn, and sugarcane in Latin America, and government-backed fertilizer subsidies and increasing application of phosphorus and potassium blends in South Asia.

Africa, although currently representing only 4% of the global agrochemical market, is projected to record the fastest percentage growth, expanding by nearly 25% in the near-term as cultivation areas expand and fertilizer access improves.

Slower consumption growth in mature markets such as Western Europe and North America highlights a global shift: future agrochemical demand will be driven by agrarian economies and middle-income nations where food security and yield dependency remain critical.

Biological Crop Protection Gains Strong Momentum -
As regulatory mandates tighten and the climate crisis intensifies pest and disease outbreaks, the pesticide segment is undergoing a notable transformation. The biopesticides market reached USD 4.5 billion in 2023, representing more than 7% of global crop protection consumption and expanding at 8.6% annual growth.

• Biological crop protection, especially microbe-based formulations, is becoming a preferred solution for controlling high-risk pests. Key developments strengthening this transition include:
‣ The FAO and WHO jointly issued a Manual on Microbial Pesticides in 2024, creating a standardized reference for global regulatory and quality processes.
‣ Kyrgyzstan successfully deployed the naturally derived fungus Metarhizium against locust infestations, achieving close to 100% pest mortality within just 11 days across large affected areas.
‣ In Cuba, enhancements to local biopesticide research and production facilities, supported by FAO and the European Union, aim to improve crop protection across over 5,000 hectares in the coming planting seasons.

China, the world's largest producer of agricultural chemicals, has committed to net-zero growth in pesticide usage by 2025 and targets producing 1 million tonnes of biopesticides by 2050, accelerating a structured shift away from hazard-class chemical molecules.

Makreo's analysts emphasize that chemicals will continue to dominate the crop protection space throughout the decade, but biologicals are the fastest-growing investment priority, especially in tropical and climate-sensitive crop zones across Asia, Africa, and Latin America.

Global Trade and Supply Modernization -
Major agrochemical trade corridors are experiencing realignment. China's strategy is advancing beyond cost-efficient high-volume production toward innovation-led, low-residue crop solutions aligned with stricter international safety standards. Meanwhile, the U.S. agrochemical supply system continues to modernize its multi-tier distribution network, integrating digital logistics, climate-adaptive advisory tools, and expanded sourcing options to mitigate vulnerability to geopolitical volatility.

Freight unpredictability, currency fluctuations, and energy inflation remain challenges for the fertilizer and chemical manufacturing ecosystem. Yet, rising investments in regional processing and more diversified sourcing strategies are gradually improving market stability.

Demand Drivers: Climate, Food Security & Agritech Adoption -
As 44% of the world's habitable land is already committed to agriculture and most grazing land requires comparatively modest input levels, sustainable yield enhancement on cropland remains the primary global food strategy.

The gross value of agricultural production is expected to reach USD 3.96 trillion by 2034, a 14% increase from current levels. Livestock production is forecast to grow the fastest at nearly 16%, followed by 14% growth in crop output and 12% in aquaculture.

• Climate stress, soil degradation, invasive pest mutation, and water scarcity are accelerating the adoption of:
‣ Precision nutrient management systems
‣ Digital farm analytics for targeted chemical use
‣ Eco-friendly bio-stimulates and biocontrols
‣ Blended fertilizers enriched with secondary and micro-nutrients

The "more yield with fewer emissions" policy mindset is shaping future adoption strategies globally.

Policy Shifts Supporting Sustainable Crop Inputs -
Fertilizer subsidy reforms in major developing markets , including India , are encouraging more efficient nutrient use. In parallel, export policy relaxations for key fertilizer-producing regions are expected to ease market tightness. Certification frameworks for sustainable agricultural inputs are also gaining traction, establishing a more transparent and traceable crop-to-consumer value chain.

The convergence of decarbonization, responsible chemical usage, and food chain transparency is resetting industry performance benchmarks.

Challenges Remain in Transition Phase -
While opportunities are significant, the sector faces several challenges:
‣ Compliance complexity due to stricter chemical regulations across global markets
‣ High cost and longer approval timelines for new molecules
‣ Uneven farmer education and awareness, particularly in developing regions
‣ Dependency on raw materials with volatile price cycles
‣ Capacity gaps in local manufacturing for affordable biological alternatives

Industry players must balance cost efficiency, environmental stewardship, and supply resilience to sustain their long-term competitiveness.

Sustainable Innovation to Drive Agrochemical Growth -
Global agrochemical market projections indicate a steady expansion through the decade, underpinned by several key structural and technological trends, supported by:
‣ Stabilized fertilizer pricing and strengthened supply availability that help balance market dynamics.
‣ Continued economic dependency of emerging markets on agricultural production, driving steady demand for crop inputs.
‣ Rapid growth of biologicals as preferred alternatives for climate-sensitive and sustainable farming practices.
‣ Deepening integration of digital agriculture and precision farming technologies to optimize input application and resource use.
‣ Innovation-led product portfolios that enable higher yields with reduced ecological impact, aligning with global sustainability goals.

The next phase of demand growth will be shaped by smart chemical usage, where innovation and sustainability are simultaneously achieved.

Global Agrochemical Market Size and Forecast (2020-2030)
The report delivers:
Global and regional market sizing and forecasts to 2030
Strategic analysis of fertilizer and pesticide segments
Regulatory, technological, and supply chain insights
Country-level demand assessment across major agricultural economies
Competitive mapping of leading industry participants
Key investment opportunities in biologicals and smart fertilizers

For report enquiries:
https://www.makreo.com/contact.php

Sample Report Request - https://www.makreo.com/report/global-agrochemical-market-size-and-forecast-2020-2030

Market Segmentation of Global Agro Chemical Market:
By Product Type
‣ Fertilizers
‣ Pesticides
‣ Others

By Fertilizer Type
‣ Nitrogen
‣ Phosphate
‣ Potash
‣ Specialty Fertilizers

By Pesticide Type
‣ Herbicides
‣ Insecticides
‣ Fungicides
‣ Biologicals
‣ Others

By Application
‣ Crop Protection
‣ Soil Fertility Management
‣ Others

By Crop Type
‣ Cereals & Grains
‣ Fruits & Vegetables
‣ Oilseeds & Pulses
‣ Plantation Crops
‣ Others

By Distribution Channel
‣ Direct Sales
‣ Distributor/Dealer Network
‣ Online Sales

By Region
‣ Asia Pacific: China, India, Japan, Australia, Indonesia
‣ North America: United States, Canada, Mexico
‣ Europe: Germany, France, Italy, Spain, UK, Russia
‣ South America: Brazil, Argentina, Chile, Peru
‣ Middle East & Africa: Saudi Arabia, South Africa, Egypt, UAE, Iran

Related Reports:
Africa Agritech Start-ups and Opportunities - Adoption of Sustainable Technology
https://www.makreo.com/report/africa-agritech-start-ups-and-opportunities-adoption-of-sustainable-technology

Argentina Agritech Market Size, Share, and Growth Forecast (2021-2030
https://www.makreo.com/report/argentina-agritech-market-size-share-and-growth-forecast-2021-2030

Brazil Agritech Market Size and Forecast (2021-2030)
https://www.makreo.com/report/brazil-agritech-market-size-and-forecast-2021-2030

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This release was published on openPR.