Agrochemicals

Agrochemicals covers a broad range of chemicals that are used in agriculture. Crop protection is inclusive of several types of agrochemicals such as insecticides, pesticides, and herbicides among others. Rising population has led to a significant decline in arable land, due to which agrochemicals are used to effectively manage and cultivate crops in order to increase production, which in turn is greatly fuelling the market growth of agrochemicals. According to Insights and Reports, the global agrochemicals market is expected garner more than US$ 254.33 billion by the end of 2022.

Increasing population has led to a significant growth in the demand for food grains, which in turn has augmented the demand for agrochemicals. According to Insights and Reports, global cereal and grain production has witnessed a stark increase from 2,512 million tons in 2016 to more than 2,600 million tons in 2017. North America and Asia Pacific are the ley regions for the growth of the agrochemicals industry. Highly population countries such as India and China have a high demand for cereals and grains, which in turn has paved the way for high demand for agrochemicals in the countries.

According to the Insights and Reports, India recorded cereals and grains production of an excess of 270 million tons in 2017. Further, the country recorded oilseed production of approximately 30 million tons in the same year. In addition, the rice production accounted for more than 100 million tons, while wheat production accounted for approximately 96.4 million tons in the same year. High demand for cereals and grains has given rise to the rising demand for agrochemicals in the country. China is another lucrative market for agrochemicals owing to its high population count. According to Insights and Reports, the country produced more than 650 million tons of cereals and grains in 2016, which marks a 40% increase in the production from 2003.

Syngenta A.G., BASF S.E., Bayer A.G., DowDupont Inc. and Monsanto Company are some of the key players operating in the field of agrochemicals at present. The industry is marked by a series of mergers and acquisitions. In 2016, China National Chemical Corporation, a key players operating in the field of agrochemicals in China, acquired Syngenta A.G., in deal of US$ 43 billion.

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