The demand for agricultural crops depends on several factors such as climatic conditions and soil fertility. The soil, if not suitable for farming, is made fertile using agrochemicals like fertilizers and pesticides. Agrochemicals are also used to increase the yield of the crop by improving soil quality. However, the overuse of agrochemicals may be harmful to the soil as well as farmers and should, therefore, be used in moderation. Based on the end-products, the global agrochemicals market is segmented into the following:
- Synthetic fertilizers
In terms of growth prospects, the demand for agrochemicals will rise since many governments across economies have passed regulations for the use of agrochemicals through permits and license to buy and use authorized agrochemicals.
The Business Challenge
- The client– A leading player in the chemical industry, specializing in the manufacture of agrochemicals
The chemical industry client, specializing in the manufacture of agrochemicals, wanted to gain detailed insights into the current market scenario. The client was also looking at acquiring an early and sustainable competitive advantage before concept development and product build-out. They were also interested in estimating the overall market’s size to ascertain the earnings potential of their products.
Additionally, the agrochemicals manufacturer was looking at enhancing their marketing strategy to improve product reach. The chemical firm also wanted a detailed report of the entry barriers, new opportunities, risks, and competition in the agrochemicals market.
Results– Offered detailed insights into the current market condition and performed a quick sizing of the proposed market.
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The Journey[spacer height=”20px”]
The market assessment experts at Infiniti carried out extensive research comprising of interviews and discussions with leading stakeholders across the agrochemicals manufacturing market space to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the competitive scenario prevalent in the agrochemicals market.
The Solution and the Business Impact[spacer height=”20px”]
The market assessment solution offered was based on an analysis of market trends and some primary research into a propensity to purchase a product that fulfills specific requirements. The solution enabled the client to gain a better understanding of the market needs.
This engagement also enabled the agrochemicals manufacturer to identify the product’s market potential and develop products that meet the demands of its users. Moreover, the market assessment solution offered by our experts helped the chemical company in determining a scalable approach to discover new growth opportunities, assess market trends, and potential risks in the agrochemicals market.
The Future[spacer height=”20px”]
With growing technological advancements, agrochemical manufacturers will no longer be able to ignore developments in the field of agricultural robotics. The use of such advanced systems will completely change the agricultural landscape. It will also impact the type and number of agrochemicals used in framing. The adoption of agricultural robots will also bring about a change in the business model of crop protection chemical suppliers. This is because a significant part of the overall value of protecting crops will shift towards robotics.
Consequently, chemical suppliers will have to consider re-inventing themselves as providers of crop protection. Moreover, the advent of ultra-precision farming will result in the optimized use of chemicals; thereby, reducing the overall consumption.
Trends in the agrochemicals market:
- The emergence of precision farming techniques– Precision farming is a farming technique that makes use of information technology to ensure that the crops receive what they need to maintain optimum health and productivity.
- Rise in restructuring efforts– There is an increase in restructuring efforts in the global agrochemicals industry as leading players strive to expand their product portfolios. The rise in regulatory complexities, severe market conditions, and other similar factors support such efforts.
- The demand for bio-agrochemicals– There is a growth in demand for bio-agrochemicals derived from fungi, plants, and bacteria. They are eco-friendly and do not cause harm to the local flora and fauna.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the chemical industry.