|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
4140.52 Million
|
|
CAGR
(2023-2028)
|
2.24%
|
|
Fastest
Growing Segment
|
Herbicides
|
|
Largest
Market
|
Brazil
|
Market Overview
The
South America Agrochemical Intermediates Market was valued at USD 4140.52 Million
in 2022 and is anticipated to project robust growth in the forecast period with
a CAGR of 2.24% through 2028. Agrochemical intermediates are pivotal components
in the production of agricultural chemicals, including pesticides, herbicides,
fungicides, and fertilizers. These specialized chemicals serve as the building
blocks for the formulation of end-use agrochemical products. The demand for
agrochemical intermediates is driven by several key factors that are reshaping
the global agriculture industry. Additionally, the emergence of resistant pests
and diseases is driving the need for innovative agrochemical solutions.
Agrochemical intermediates are at the forefront of research and development
efforts to create new, more potent pesticides and herbicides that can combat
these evolving threats effectively. The convergence of these factors
collectively contributes to the growth of the South America Agrochemical
Intermediates Market within the forecast period.
Key Market Drivers
Rising
Demand in Agriculture Sector
The
agricultural sector is the backbone of our global food supply, and its
efficiency and productivity are crucial for sustaining a growing population. In
this quest for increased agricultural output and food security, agrochemicals
play a pivotal role. Agrochemicals, including pesticides, herbicides, and
fertilizers, have become essential tools for modern farming. However, the
production of these agrochemicals involves a complex process that relies
heavily on agrochemical intermediates. These intermediates are the building
blocks, precursors, and essential components in the manufacturing of various
agrochemical products. Agrochemicals, such as fertilizers, provide essential
nutrients to crops, enhancing their growth and yield. Agrochemical
intermediates are the essential components in the production of these
fertilizers. They enable the synthesis of nitrogen, phosphorus, and
potassium-based fertilizers, which are crucial for replenishing soil nutrients
and ensuring healthy plant growth. The demand for agrochemical intermediates in
fertilizer production is expected to surge as farmers seek to maximize crop
yields to meet the food demands of a growing population.
Moreover,
in addition to fertilizers, pesticides and herbicides are vital tools for pest
and weed control in agriculture. These chemicals help protect crops from
diseases, pests, and invasive plants, ensuring higher crop yields and reduced
post-harvest losses. Agrochemical intermediates are indispensable in the
synthesis of these pest control agents. The development of new and more
effective pesticides and herbicides relies on advanced intermediates that can
provide better pest and weed control while minimizing environmental impact. As
farmers face evolving challenges, such as the spread of resistant pests and
changing climate conditions, the demand for innovative agrochemical
intermediates will continue to grow to address these issues effectively.
Furthermore,
the agricultural sector's growing awareness of sustainability and environmental
responsibility is influencing the demand for agrochemical intermediates. Modern
agriculture faces increasing scrutiny regarding its environmental impact,
including the contamination of water bodies, soil degradation, and harm to
non-target organisms. Agrochemical manufacturers are under pressure to develop
environmentally friendly and biodegradable products. Agrochemical intermediates
play a crucial role in this endeavor by enabling the synthesis of more
eco-friendly agrochemicals. For example, the development of biopesticides and
biologically derived fertilizers requires specialized intermediates that are
both effective and environmentally safe. As sustainable agriculture practices
gain momentum, the demand for such intermediates will rise significantly. Moreover,
the food markets and changing dietary preferences are driving the demand for
agrochemical intermediates in the agricultural sector. As more countries engage
in international trade to meet their food demands, farmers are under pressure
to produce high-quality crops that meet international standards. Agrochemicals
and their intermediates are essential for achieving the desired crop quality.
For example, fungicides and growth regulators are used to enhance the
appearance and shelf life of fruits and vegetables. Agrochemical intermediates
enable the production of these quality-enhancing chemicals, ensuring that
agricultural products meet the stringent requirements of markets. The demand
for agrochemical intermediates is not limited to crop protection and nutrition;
it also extends to the production of genetically modified (GM) crops. GM crops,
engineered to possess desirable traits such as resistance to pests or tolerance
to herbicides, have gained widespread adoption in agriculture. These crops rely
on specific agrochemicals, including intermediates, for their successful
cultivation. For instance, the production of GM crops with herbicide tolerance
requires the synthesis of specialized herbicides and their intermediates. As
biotechnology continues to play a crucial role in agriculture, the demand for
agrochemical intermediates tailored to GM crop cultivation will remain strong.
Additionally,
the increasing adoption of precision agriculture practices is driving the
demand for agrochemical intermediates that can be used in conjunction with
advanced technologies. Precision agriculture leverages data, sensors, and
automation to optimize crop management, allowing farmers to apply agrochemicals
with greater precision and efficiency. Agrochemical intermediates are needed to
formulate products that can be precisely calibrated for specific field
conditions. For example, agrochemicals with controlled-release properties, made
possible by advanced intermediates, ensure that nutrients are delivered to
crops when and where they are needed, minimizing waste and environmental
impact. As precision agriculture becomes more prevalent, the demand for
tailored agrochemical intermediates will continue to rise. Therefore,
increasing demand in agriculture sector dominates the growth of the market in
the upcoming years.
Growing
Demand of Agrochemical Intermediates in Herbicides
In
the agriculture sector, herbicides are invaluable tools for controlling
unwanted weeds that can compete with crops for vital resources like water, nutrients,
and sunlight. These chemicals play a crucial role in ensuring healthy crop
growth, maximizing yields, and minimizing post-harvest losses. However, the
production of effective herbicides is a complex process that relies heavily on
specialized agrochemical intermediates. These intermediates are essential
components in the synthesis of herbicides, allowing for the creation of
innovative and efficient weed control solutions. As the demand for food and
agricultural products continues to rise, so does the demand for herbicides and,
consequently, the agrochemical intermediates that enable their production. One
of the primary drivers of the demand for herbicides is the growing need for
increased agricultural productivity. With a world population projected to reach
9.7 billion by 2050, farmers are under immense pressure to produce more food
with limited arable land. Weeds are among the most significant threats to crop
yields, often outcompeting desirable plants for resources. Herbicides provide a
solution to this problem by selectively targeting and eliminating weeds,
allowing crops to thrive. Agrochemical intermediates are critical in the
formulation of herbicides that are both effective against a wide range of weed
species and safe for crops. The demand for herbicides and their intermediates
is expected to surge as farmers seek to maximize crop yields to meet the food
demands of a growing population. Furthermore, changes in agricultural practices
and cropping patterns are influencing the demand for herbicides and their
intermediates. The adoption of conservation tillage and no-till farming
practices has led to increased weed pressure in some regions. These practices
reduce soil disturbance, which can promote weed growth. In response, farmers
are turning to herbicides with innovative formulations and modes of action to
combat herbicide-resistant weeds effectively. Agrochemical intermediates enable
the development of these next-generation herbicides, which are essential for
sustainable weed management in modern agriculture.
Moreover,
the globalization of food markets and changing dietary preferences are driving
the demand for herbicides in the agricultural sector. As more countries engage
in international trade to meet their food demands, farmers are under pressure
to produce high-quality crops that meet international standards. Herbicides are
essential for ensuring crop quality by controlling weeds that can reduce crop
marketability and value. For example, herbicides can be used to eliminate weeds
with thorny structures or undesirable flavors. Agrochemical intermediates
facilitate the production of herbicides tailored to specific crop quality
requirements, ensuring that agricultural products meet the stringent
requirements of markets. The rising importance of sustainable and
environmentally friendly agriculture is also influencing the demand for
herbicides and their intermediates. Modern agriculture faces increasing
scrutiny regarding its environmental impact, including issues such as water
pollution and soil degradation. Agrochemical manufacturers are under pressure
to develop herbicides that are not only effective but also environmentally
safe. Agrochemical intermediates play a crucial role in this endeavor by
enabling the synthesis of more eco-friendly herbicides that can control weeds
while minimizing harm to non-target organisms and the environment. As
sustainable agriculture practices gain momentum, the demand for herbicides with
reduced environmental impact will continue to grow. All these factors dominate
the demand of agrochemicals intermediates in the forecast period.
Rising
Implementation of Advanced Farming Techniques
Modern
agriculture is in the midst of a transformative revolution, driven by a
convergence of cutting-edge technologies and innovative farming practices. This
revolution is collectively referred to as "advanced farming
techniques," and it is fundamentally changing the way we grow and manage
crops. At the heart of this transformation lie agrochemical intermediates, the
chemical compounds that serve as building blocks for the production of various
agrochemicals such as pesticides, herbicides, and fertilizers. These
intermediates play a pivotal role in enabling the development and application
of advanced farming techniques that are essential for sustainable and efficient
agriculture. Precision agriculture is one of the most prominent advancements in
modern farming, and it relies heavily on agrochemical intermediates to achieve
its goals. This technique involves the use of various technologies such as GPS
guidance systems, drones, and sensors to collect real-time data on soil
conditions, weather patterns, and crop health. Farmers can then use this data
to make informed decisions about when, where, and how to apply agrochemicals.
Agrochemical intermediates are essential in the formulation of
precision-targeted pesticides and fertilizers that can be precisely applied to
specific areas of a field, reducing waste and minimizing environmental impact.
Moreover,
integrated pest management is an approach that focuses on preventing and
managing pests in a holistic and environmentally responsible manner. It
combines various pest control strategies, including biological control, crop
rotation, and the targeted use of pesticides. Agrochemical intermediates play a
crucial role in the production of biopesticides, which are derived from living
organisms such as beneficial insects, bacteria, and fungi. These biopesticides
are effective in controlling pests while minimizing harm to non-target
organisms and the environment. The demand for agrochemical intermediates used
in the production of biopesticides is on the rise as farmers increasingly
embrace IPM practices. Organic farming is gaining popularity as consumers seek
food produced without synthetic chemicals. Agrochemical intermediates have a
role to play in organic farming as well. While organic farming primarily relies
on natural and non-synthetic inputs, there are cases where the use of approved
organic pesticides and fertilizers is necessary. Agrochemical intermediates are
involved in the formulation of these organic-approved inputs, ensuring that
organic farmers have access to effective tools while adhering to organic
certification standards. Thus, the large number of benefits of agrochemical intermediates
is anticipated to drive the demand of South America Agrochemical Intermediates
Market in the forecast period.
Download Free Sample Report
Key Market
Challenges
Stringent
Regulatory Landscape
One
of the foremost challenges confronting the agrochemical intermediates market is
the increasingly stringent regulatory landscape. Governments worldwide are
imposing stricter regulations on the use of agrochemicals, including the
intermediates used in their production. Compliance with these regulations
requires extensive testing, documentation, and adherence to safety standards.
The registration and approval process for new agrochemical intermediates can be
arduous and time-consuming, leading to significant delays and costs. Navigating
this regulatory maze demands substantial financial resources and technical
expertise, often posing barriers to entry for smaller players and hindering
innovation in the industry.
Moreover,
changing consumer preferences and a growing demand for organic and sustainably
grown produce have a trickle-down effect on the agrochemical intermediates
market. Consumers increasingly favor food products free from pesticide residues
and prefer environmentally responsible farming practices. As a result, farmers
may opt for organic-certified agrochemicals or reduce their reliance on
chemical inputs altogether. This shift in demand requires the agrochemical
intermediates market to adapt by offering more sustainable and
organic-compatible solutions.
Environmental
Concerns and Sustainability
Agriculture's
environmental footprint has come under scrutiny, and agrochemical intermediates
are no exception. The environmental impact of chemical-intensive farming,
including pesticide and fertilizer runoff, soil degradation, and harm to
non-target organisms, has prompted calls for more sustainable agricultural
practices. Agrochemical intermediates that give rise to eco-friendly and
biodegradable agrochemicals are increasingly sought after. There is a growing
emphasis on developing intermediates that enable precision application,
reducing overuse and minimizing environmental contamination. Meeting these
sustainability goals while maintaining the efficacy of agrochemicals presents a
significant challenge for the industry.
Moreover,
pests, diseases, and weeds continually evolve, developing resistance to
commonly used agrochemicals. This necessitates the development of novel
agrochemical intermediates and formulations that can combat resistance
effectively. Resistance management strategies demand ongoing research and
innovation, as well as the ability to bring new solutions to market swiftly.
Moreover, farmers must adopt integrated pest management (IPM) practices that
combine various control methods, including the judicious use of agrochemicals,
to mitigate resistance development.
Key Market Trends
Sustainability
Perhaps
the most profound trend shaping the agrochemical intermediates market is the
heightened emphasis on sustainability. Environmental consciousness and concerns
about the ecological impact of chemical-intensive farming practices have
prompted a reevaluation of agrochemical products. Manufacturers are
increasingly investing in the development of more sustainable and eco-friendly
intermediates that lead to the production of greener pesticides, herbicides,
and fertilizers. These intermediates aim to reduce the environmental footprint
of agriculture, including minimizing soil and water contamination, while
maintaining or enhancing crop yields.
Furthermore,
the advent of precision agriculture technologies is driving the need for more
precise and tailored agrochemical solutions. Intermediates are being formulated
to work in concert with precision farming techniques, enabling farmers to apply
pesticides and fertilizers with pinpoint accuracy. This not only reduces
chemical wastage but also minimizes the environmental impact and improves
overall farm efficiency. Agrochemical intermediates are evolving to support the
goals of precision agriculture, including variable rate applications and
data-driven decision-making.
Regulatory
bodies are tightening their oversight of agrochemical products, including
intermediates. Stricter regulations, registration requirements, and safety
standards are driving innovation in the sector. Agrochemical intermediates must
meet stringent criteria for safety, efficacy, and environmental impact.
Manufacturers are investing in research and development to ensure compliance
with evolving regulatory frameworks.
Bio-Based
Intermediates and Consumer Preferences
The
demand for bio-based agrochemical intermediates is on the rise. Biopesticides,
biofertilizers, and biologically derived intermediates are gaining traction as
safer and more sustainable alternatives to conventional chemical counterparts.
These intermediates harness the power of beneficial microorganisms, natural
compounds, and organic materials to combat pests and enhance soil health. The
trend towards bio-based intermediates aligns with the growing popularity of
organic farming and sustainable agriculture practices.
Additionally,
consumer preferences are exerting indirect pressure on the agrochemical
intermediates market. Consumers are increasingly concerned about pesticide
residues on food products and the environmental impact of farming practices. As
a result, there is a growing demand for transparency in the supply chain, from
intermediates to end products. Manufacturers are responding by adopting
sustainable and traceable sourcing practices.
Furthermore,
integrated pest management (IPM) is gaining prominence as a holistic approach
to crop protection. IPM emphasizes the judicious and strategic use of
agrochemicals in combination with other pest control methods, such as
biological controls, crop rotation, and monitoring. Agrochemical intermediates
are being designed to complement IPM strategies, allowing farmers to reduce
reliance on chemicals while maintaining effective pest and disease control.
Segmental Insights
Product Type Insights
Based on the product
type, the amines segment is expected to register the highest growth of 2.65%
during the forecast period 2024-2028. The market for agrochemical intermediates
is expanding because of the products' wide variety of uses, affordability, high
level of environmental sustainability, and low regulatory compliance
requirements. The manufacture of several agrochemicals, including insecticides,
fungicides, and plant growth regulators, uses amines as flexible intermediates.
Amines are a top choice for businesses in the agrochemical intermediates market
due to their wide range of uses. Aside from that, amines are attractive to
businesses in this sector since they adhere to legal standards. For instance,
amines are frequently used in the synthesis of agrochemicals that are approved
for use in the region by regulatory bodies. This adherence to legal
requirements aids in the expansion of the South America Agrochemical
Intermediates market.
Application Insights
Based on the application,
the herbicides segment is expected to register the highest growth of 2.72%
during the forecast period, 2024-2028. The growth of agricultural operations,
the potential for novel solutions, and helpful government policies are all
factors contributing to this development. Herbicides are essential for weed
management because they increase agricultural yields and increase food
security. Herbicide use makes it possible to create specialized solutions for
various crops and geographical areas. Because of their ability to adapt,
businesses may set themselves apart from the competition by offering customized
solutions that meet the unique needs of their clients. The expansion of the
South America Agrochemical Intermediates Market is being driven by the increase
in herbicide demand, which is being driven by rising food demands and the
emphasis on sustainable agriculture methods during the forecast period.
Download Free Sample Report
Country Insights
Brazil
will witness largest growth during the forecast period, 2024-2028. Brazil, with
its vast agricultural expanse and diverse crop portfolio, stands as a
significant player in the global agrochemical intermediates market. The demand
for these intermediates in Brazil is shaped by several key factors. Firstly,
the country's agricultural sector is under constant pressure to meet the food
demands of both its domestic population and international export markets. This
necessitates the use of agrochemicals, including intermediates, to optimize
crop yields and ensure crop protection.
Moreover,
Brazil's shift toward sustainable and environmentally responsible agriculture
has fueled the demand for agrochemical intermediates that align with these
principles. With increasing global awareness of the environmental impact of
farming practices, Brazilian farmers are seeking intermediates that minimize
soil and water contamination, reduce chemical residues on crops, and promote
biodiversity. This trend is particularly evident in the growing adoption of
bio-based intermediates and integrated pest management strategies.
Furthermore,
the Brazilian government's support for agriculture through various policies and
incentives has boosted the agrochemical sector's growth. These policies
encourage innovation in the development of intermediates that address specific
challenges faced by Brazilian farmers, such as pest and disease management in
tropical climates. Brazil's prominence as a producer of commodities like
soybeans, sugarcane, and coffee also drives demand for agrochemical
intermediates. These crops require efficient pest control and nutrient
management, making intermediates indispensable for ensuring high-quality
yields.
Recent Developments
- In September
2022, Yara International ASA acquired the fertilizer unit put on sale by
state-controlled oil company Petroleo Brasileiro SA.
- In April 2021, Syngenta
Crop Protection announced the registration of VIRANTRA with PLINAZOLIN
technology in Argentina that help producers protect their crops from a wide
variety of pests and provide an effective solution in pest management
strategies.
Key Market Players
- Bayer
SA
- Yara
Brasil SA
- Sumitomo
Corporation do Brasil S.A.
- Syngenta
Agro S.A.
- Corteva
Agriscience Argentina S.R.L.
|
By Product Type
|
By Application
|
By Country
|
- Amines
- Alkyl Amines
- Aldehydes
- Acids
- Others
|
- Herbicides
- Insecticides
- Fungicides
- Nematicides
- Others
|
- Brazil
- Argentina
- Colombia
- Bolivia
- Chile
- Ecuador
- Paraguay
- Peru
- Uruguay
- Venezuela
|
Report
Scope:
In
this report, the South America Agrochemical Intermediates Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- South America Agrochemical
Intermediates Market,
By Product Type:
o Amines
o Alkyl Amines
o Aldehydes
o Acids
o Others
- South America Agrochemical
Intermediates Market,
By Application:
o
Herbicides
o
Insecticides
o
Fungicides
o
Nematicides
o
Others
- South America Agrochemical
Intermediates Market, By Country:
o Brazil
o Argentina
o Colombia
o Bolivia
o Chile
o Ecuador
o Paraguay
o Peru
o Uruguay
o Venezuela
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the South America Agrochemical
Intermediates Market.
Available
Customizations:
The
South America Agrochemical Intermediates Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
South America Agrochemical
Intermediates Market is an upcoming report to be released soon. If you wish an
early delivery of this report or want to confirm the date of release, please
contact us at [email protected]