Agrochemical market to expand by a fifth over next five years

The agrochemical market is set to experience growth of 19 per cent by 2018, according to a report by research and consultancy organisation Markets and Markets.

Over the next five years, a compound annual growth rate of 3.58 per cent is projected, which would take the overall value of the market from $203.6 billion (£121.5 billion) in 2013 to $242.8 billion in 2018.

Agrochemicals are used to boost the productivity of crops by supplying much-needed nutrients and ensuring protection against various diseases, without harming the environment. This category includes fertilizers and pesticides.

Environmental regulations in developed regions such as North America and Europe are tightening, and this makes it increasingly likely that manufacturers will find their conventional products can no longer be sold in these areas, forcing them to develop new alternatives that are more environmentally viable.

The market is expected to expand as companies seek to discover the correct balance between the performance of their products and the ingredients comprising them.

Estimates suggest the Asia-Pacific region is the largest contributory factor in agrochemical demand, accounting for a 41.3 per cent share of the global market. This is closely followed by Latin America (17 per cent), North American (15.4 per cent) and Europe (7.8 per cent), with the rest of the world responsible for 18.5 per cent.

The predictions relating to the future growth of the market are based on thorough analysis of the major factors driving demand and one of the main ones is the increasing demand for food as the global population rises.

However, experts at Purdue University estimate global malnutrition could decline by as much as 84 per cent by 2050, but only if research, development and innovation across the agrochemical market continues.

According to study author professor Thomas Hertel, it is vital agriculture becomes more efficient - and this could well depend on the manufacture of new fertilizers and pesticides.

"Boosting productivity tends to lower food prices and declines in the cost of food in turn can allow for better nutrition," he explained.