North America Agrochemical Market Outlook to 2030

North America Agrochemical Market Overview

• The North America Agrochemical Market was valued at USD 35 billion in 2023. This growth has been driven by increasing demand for food due to population growth, advancements in agricultural technologies, and the rising adoption of genetically modified crops, which require higher inputs of agrochemicals. The market's expansion is also attributed to the growing awareness among farmers regarding the benefits of using agrochemicals to enhance crop yield and quality.

• The North America agrochemical market is dominated by several key players, including Bayer AG, Syngenta AG, Corteva Agriscience, BASF SE, and FMC Corporation. These companies are recognized for their extensive product portfolios, innovative R&D activities, and strong distribution networks across the region. They have a significant market share and are actively engaged in partnerships, mergers, and acquisitions to strengthen their market position.
• In March 2023, Corteva announced the introduction of several new crop protection products, including three herbicides specifically designed to address herbicide-resistant weed strains that farmers face in North America. These products aim to enhance crop protection and increase yields by providing effective solutions against tough weeds such as Palmer amaranth and waterhemp, which have become problematic for farmers in the United States and Canada.
• In 2023, California was dominating the market, primarily due to its extensive agricultural activities. The state's dominance is attributed to its diverse crop production, which includes high-value crops like fruits, vegetables, and nuts that require significant agrochemical inputs for optimal yield. Additionally, California's large farming area and favorable climate conditions contribute to its leading position in the market.

North America Agrochemical Market Segmentation

The North America Agrochemical Market is segmented into different factors like by product type, by crop type and region.

By Product Type: The market is segmented by product type into herbicides, insecticides, fungicides, and fertilizers. In 2023, herbicides held a dominant market share under the product type segmentation, due to the widespread adoption of herbicides in row crops such as corn and soybeans, which are extensively cultivated across the United States and Canada. Herbicides are crucial for managing weed resistance, which has become a significant issue in North American agriculture. The effectiveness of herbicides in increasing crop yields and reducing manual labor costs further reinforces their market dominance.

By Crop Type: The market is segmented by crop type into cereals & grains, fruits & vegetables, and oilseeds & pulses. In 2023, cereals & grains held a dominant market share, largely driven by the high demand for staple crops like corn and wheat in North America, which are essential for both domestic consumption and export. The extensive use of agrochemicals in cereals & grains to enhance yield and protect against pests and diseases is a key factor contributing to this segment's leading position.

By Region: The market is segmented by region, which includes the United States and Canada. In 2023, the United States held a dominant market share, due to the primarily attributed to its large agricultural sector, which is one of the most productive in the world. The U.S. has vast arable land, advanced farming practices, and a strong infrastructure for agrochemical distribution, all of which contribute to its leading position in the market. Furthermore, the country's significant investment in agricultural research and development supports the continuous improvement of agrochemical products and practices.

North America Agrochemical Market Competitive Landscape

North America Agrochemical Market Major Players

• Corteva Agriscience: Corteva Agriscience recently completed the acquisitions of Symborg and Stoller, strengthening its position as a global leader in the rapidly growing biologicals market. Symborg, based in Spain, specializes in microbiological technologies, while Stoller, based in the U.S., is one of the largest independent companies in the biologicals industry. These acquisitions are expected to be accretive to Cortevas EBITDA in 2023 and align with the companys commitment to providing sustainable agricultural solutions.
• FMC Corporation: FMC has launched a collaboration with Novonesis to distribute biological products in Canada, marking a strategic move to enhance its biologicals crop protection platform. This partnership will enable FMC to distribute Novonesis established biosolutions and collaborate on the development of new biological technologies for Canadian farmers, thereby integrating biologicals with traditional synthetic crop protection methods

North America Agrochemical Market Analysis

North America Agrochemical Market Growth Drivers

• Government Subsidies for Sustainable Farming: Governments across North America have increased subsidies for sustainable farming practices. A USDA report found the biobased products industry contributed $489 billion to the U.S. economy in 2021, up from $464 billion in 2020. This financial support is encouraging farmers to adopt newer, more sustainable products, driving market growth.
• Increasing Demand for Food Production: The U.S. farmers are planning a substantial increase in soybean planting while reducing corn acreage. This change is driven by favorable market conditions for soybeans and expected lower demand for corn. The increase in soybean acreage, expected to surpass 90 million acres, will likely drive the demand for specific agrochemicals tailored to soybean cultivation, such as herbicides and pesticides, to ensure high yield and crop protection.
• Expansion of Bio-based Agrochemicals: The bio-based agrochemical segment is witnessing significant growth due to increasing consumer demand for environmentally friendly products and stricter regulatory standards. Bio-based agrochemicals are preferred for their reduced environmental impact and alignment with sustainable agricultural practices. They offer a viable alternative to synthetic chemicals, particularly in organic farming, where there is a strong emphasis on maintaining soil health and minimizing ecological disruption.

North America Agrochemical Market Challenges

• Rising Costs of Raw Materials: The production of agrochemicals relies heavily on raw materials like ammonia and phosphate, which have seen significant price increases. These rising costs are putting pressure on the profitability of agrochemical manufacturers. As production becomes more expensive, companies may pass on these costs to end-users, leading to higher prices for farmers. This could potentially slow market growth as farmers seek to minimize expenses, particularly in a market already facing tight profit margins.
• Environmental Concerns and Public Perception: The agrochemical industry is facing growing environmental scrutiny, particularly regarding the long-term impact of chemical use on soil health and ecosystems. Public concern over issues such as soil degradation and water contamination has led to increased demand for more sustainable and environmentally friendly alternatives. This shift in public perception is challenging traditional agrochemical products, forcing manufacturers to innovate and adapt to a market that is increasingly prioritizing sustainability.

North America Agrochemical Market Government Initiatives

• Agriculture Innovation Mission for Climate (AIM for Climate): Launched in 2021 by the USDA and the UAE, AIM for Climate is a global initiative aimed at increasing investments in climate-smart agriculture and food systems innovation. By 2024, the initiative had garnered over 45 partners and mobilized billions in funding to drive sustainable practices in agriculture, including the development of innovative agrochemical solutions that reduce environmental impact.
• USDA's Investment in Sustainable Agriculture Research: In 2023, the USDA announced an investment of over $46 million to support sustainable agriculture research. This funding is allocated to projects that focus on climate-smart practices, including the development of innovative agrochemical solutions that minimize environmental impact. The initiative aims to enhance the resilience and sustainability of agricultural systems in the U.S., promoting the use of eco-friendly agrochemicals and encouraging farmers to adopt practices that contribute to long-term environmental health.

North America Agrochemical Market Future Outlook

The North America Agrochemical Market is projected to grow exponentially by 2028. The market will likely be driven by the ongoing advancements in biotechnology, the development of more sustainable agrochemical solutions, and increased investments in agricultural research and development. Additionally, the adoption of precision agriculture techniques, which optimize the use of agrochemicals, will further fuel market growth.

Market Trends

• Shift Towards Bio-Based Agrochemicals: In the coming five years, the agrochemical industry is expected to witness a pronounced shift towards bio-based products as sustainability becomes a top priority for both farmers and regulatory bodies. This shift will drive significant investment in research and development, leading to the creation of innovative, eco-friendly agrochemicals that offer effective pest and disease control while minimizing environmental impact.
• Expansion of Precision Agriculture: Precision agriculture is set to revolutionize farming practices over the next five years, with the adoption of advanced technologies like GPS-guided equipment, drones, and IoT sensors becoming more widespread. This expansion will significantly drive demand for specialized agrochemicals designed for precise application, ensuring that inputs are used efficiently and effectively. By enabling farmers to target specific areas of their fields with the right amounts of agrochemicals, these technologies will not only reduce waste but also optimize crop yields, leading to more sustainable and profitable farming operations.