Indonesia Agrochemical Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.09 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Agrochemical Market Analysis
The Indonesian agrochemicals market is projected to register a CAGR of 4.09% during the forecast period.
- There is a need for increased land productivity as the country cannot satiate the growing food demand. To achieve food self-sufficiency and increase yield, agrochemicals are used at a higher rate as a crop protection practice. The government of Indonesia has enforced a policy to improve food security by developing the sustainability of competitive agribusiness.
- The government wants to increase agricultural production to increase the share of self-sufficiency in food and increase agriculture yields. This requires greater use of fertilizers because the productivity of agriculture, which is still largely small-scale, is too low. Indonesian fertilizer production has continuously expanded in recent years. In the case of primary and widely available fertilizers such as urea-based fertilizers (urea), production capacities have recently increased significantly in the country.
- In 2022, PT Bank Rakyat Indonesia (Persero) collaborated with PT Syngenta Indonesia to provide financial services for farmers through the CENTRIGO Farming Ecosystem to support farmers' needs and increase productivity and profitability by advancing agriculture in Indonesia and ensuring sufficiency as well as quality in a sustainable manner. Through cutting-edge technologies, worldwide experience, and partnerships across the value chain, PT Syngenta Indonesia can accelerate the growth of the agricultural sector in Indonesia.
- Agrochemicals are primarily used in Grain and cereals farming in the country, which is increasing yearly to meet the growing demand. And for this, the farmers are practicing intensive cultivation practices in which agrochemicals are used on a large scale. Rice and maize are the majorly grown cereals in the country and are prone to pest and disease incidence.
Indonesia Agrochemical Market Trends
This section covers the major market trends shaping the Indonesia Agrochemicals Market according to our research experts:
The Need for Increased Land Productivity is Driving the Market
Indonesia is a nation troubled by the significant slowing down of productivity gains of most food crops due to most farmers operating less than a one-half hectare. Adding to that, the agriculture segment is facing threats from many factors like changes in climatic conditions, reducing soil fertility, an increase in the number of plant diseases, and others resulting in low yields. To increase the product, the government of Indonesia is trying to improve the usage of agrochemicals. For instance, according to the Food and Agriculture Organization (FAO), in 2020, the average yield of vegetables was 105,996 kg per ha, slightly increasing to 108,591 kg per ha in 2021. Thus, to enhance productivity, agrochemicals have become essential to protect the crop against adversities.
The government has successfully increased the use of mechanized agricultural technology, invested in infrastructure, and expanded the total area of farming land, leading to increased use of agrochemicals. Furthermore, the government wants to improve agricultural production to increase food self-sufficiency and enhance agricultural yields. It has to depend on imports of staple foods such as rice and soybean from other countries to cater to the growing population. Therefore, there is a greater need to use agrochemicals to boost productivity as, currently, agriculture is still largely small-scale in the country.
Cereals Segment Dominates the Market
Cereals are a staple food and an important source of nutrients in the country. Cereal products are an important source of energy, carbohydrates, protein, and fiber, as well as containing a range of micronutrients such as vitamin E, some of the B vitamins, magnesium, and zinc.
These crops suffer seriously due to the infestation caused by various insect pests. Moreover, the factors such as aberrant weather, changing cropping pattern, and global warming has led to the problems of emerging insect pests that are causing low yield for the crops. Hence, the use of insecticides and herbicides is high in the grains and cereals in the country.
Furthermore, According to the FAO, cereal production accounting for 74,425,294 metric ton was at the top among the list of crops production namely Oilcrops, Fruits, Vegetables, and Pulses accounting for 58,374,017, 23,607,790, 13,009,595, and 200,455 metric ton respectively in 2021.
Moreover, to meet the growing demand from consumers, and the need for Indonesian farmers to enhance rice productivity and to meet food self-sufficiency, Indonesia's rice farming system has been pushed 3 times to plant rice in a year with the full use of crop protection chemicals. In the province of Java, brown planthopper is a major rice pest and vector of viruses among Javanese rice farms, leading to the higher use of crop protection chemicals in the province.
The main focus of the agricultural sector in Indonesia is to increase the productivity and food security in the country by increasing the production of cereals and this can be achieved by using agrochemicals that protect the crops from pests thereby increasing the yield.
Indonesia Agrochemical Industry Overview
The Indonesia Agrochemicals Market is consolidated. The major players in the market are BASF, Yara International, Syngenta AG., Bayer Crop Science, and Dow Agrosciences. Mergers & acquisitions, partnerships, expansion, and product launches are the business strategies adopted by the major players in the market.
Indonesia Agrochemical Market Leaders
Dow Agrosciences
BASF
Yara International
Syngenta AG.
Bayer Crop Science
*Disclaimer: Major Players sorted in no particular order
Indonesia Agrochemical Market News
- March 2022: Provivi and Syngenta Crop Protection commercialized the Nelvium, a new mating disruption solution, to effectively and more safely control detrimental pests in rice. While pheromones have been utilized in agriculture for more than 30 years as a pest control method, this will be the first time this innovation has been applied to rice in Indonesia.
- October 2021: BASF has launched BASF Sahabat Planters, the new mobile app from BASF that allows plantation managers and staff to easily find solutions to common agronomic problems, access multimedia-based learning materials, weather prediction, and more efficiently deliver and document staff training and development required by relevant certification groups such as the Roundtable on Sustainable Palm Oil (RSPO) and Forest Stewardship Council (FSC).
Indonesia Agrochemical Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Fertilizers
5.1.2 Pesticides
5.1.3 Adjuvants
5.1.4 Plant Growth Regulators
5.2 Application
5.2.1 Cereals
5.2.2 Oilseeds
5.2.3 Fruits and Vegetables
5.2.4 Other Crops
6. COMPETITIVE LANDSCAPE
6.1 Market Share Analysis
6.2 Most Adopted Strategies
6.3 Company Profiles
6.3.1 Bayer Crop Science
6.3.2 BASF
6.3.3 Corteva Agriscience
6.3.4 Syngenta AG.
6.3.5 Yara International
6.3.6 Dow Agrosciences
6.3.7 Archer-Daniels-Midland (ADM)
6.3.8 FMC Corporation
6.3.9 PT. Pupuk Iskandar Muda (PIM)
6.3.10 Arysta LifeScience (Japan)
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indonesia Agrochemical Industry Segmentation
Agrochemicals are commercially manufactured chemicals that enhance crop performance and prevent crop destruction by pests, diseases, and weeds, thereby improving crop yield and quality. The Indonesia Agrochemicals Market is segmented by Type (Fertilizers, Pesticides, Adjuvants, and Plant Growth Regulators) and Application (Cereals, Oilseed, Fruits and Vegetables, and Other Crops). The report offers market sizing and forecasts regarding value (USD million) for all the above segments.
| Type | |
| Fertilizers | |
| Pesticides | |
| Adjuvants | |
| Plant Growth Regulators |
| Application | |
| Cereals | |
| Oilseeds | |
| Fruits and Vegetables | |
| Other Crops |
Indonesia Agrochemical Market Research FAQs
What is the current Indonesia Agrochemicals Market size?
The Indonesia Agrochemicals Market is projected to register a CAGR of 4.09% during the forecast period (2024-2029)
Who are the key players in Indonesia Agrochemicals Market?
Dow Agrosciences, BASF, Yara International , Syngenta AG. and Bayer Crop Science are the major companies operating in the Indonesia Agrochemicals Market.
What years does this Indonesia Agrochemicals Market cover?
The report covers the Indonesia Agrochemicals Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Agrochemicals Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Indonesia Agrochemical Industry Report
Statistics for the 2024 Indonesia Agrochemical market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Agrochemical analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
