Indonesia Agrochemical Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 609.70 Million |
| Market Size (2029) | USD 718.20 Million |
| CAGR (2024 - 2029) | 3.30 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Agrochemical Market Analysis
The Indonesia Agrochemicals Market size is estimated at USD 609.70 million in 2024, and is expected to reach USD 718.20 million by 2029, growing at a CAGR of 3.30% during the forecast period (2024-2029).
- Indonesia's agrochemical market plays a pivotal role in the nation's expansive agricultural landscape, which includes the cultivation of staples like rice, palm oil, rubber, cocoa, coffee, and tea. As a leading global agricultural producer, Indonesia's demand for agrochemicals encompassing fertilizers, pesticides, herbicides, and fungicides continues to surge, bolstering both crop productivity and food security. With an ever-growing food demand, the country grapples with the challenge of enhancing land productivity. A study by the Center for Indonesian Policy Study (CIPS) projects per capita rice consumption to rise from 97.6 kg in 2021 to 99.5 kg by 2045, suggesting a population growth of 300 million by that year. To meet these demands and bolster food self-sufficiency, the country is increasingly relying on agrochemicals for crop protection.
- Moreover, agriculture stands as a cornerstone of Indonesia's economy, being the second-largest sector and a livelihood for millions of farmers. Recognizing the significance of fertilizers in boosting productivity, the government has been proactive in offering subsidies. For instance, in 2024, the Indonesian government hiked its fertilizer subsidy by a substantial 70% year-on-year, elevating the budget from Rp 26.68 trillion (USD 0.0017 trillion) in 2023 to Rp 40.68 trillion (USD 0.0026 trillion).
- In Indonesia, agrochemicals find their primary application in grain and cereal farming, which is ramping up production to cater to rising demands. According to FAOSTAT, Indonesia's cereal production jumped from 71.4 million metric tons in 2021 to 78.3 million metric tons in 2022. Such increases are largely attributed to intensive cultivation practices, heavily reliant on agrochemicals. With rice and maize being the predominant cereals, both are notably susceptible to pests and diseases.
Indonesia Agrochemical Market Trends
Fertilizer is the Significant Segment by Type
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 including fertilizer. For instance, according to the Food and Agriculture Organization (FAO), in 2020, the average yield of vegetables was 104.67 thousand per hectare, slightly increasing to 109.02 thousand per hectare in 2022. Thus, to enhance productivity, fertilizers have become essential to protect the crop against adversities.
The government has successfully boosted the adoption of mechanized agricultural technology, invested in infrastructure, provided subsidies, and expanded the total area of farmland, all of which have led to a heightened use of agrochemicals. For instance, in 2024, the government allocated an additional Rp 14 trillion (USD 890 million) to fertilizer subsidies, aiming to benefit a larger number of farmers. Moreover, while the government seeks to bolster agricultural production for enhanced food self-sufficiency and improved yields, it still relies on imports of staple foods like rice and soybeans to meet the demands of its growing population. Hence, there is a greater need to use fertilizer to boost productivity as, currently, agriculture is still largely small-scale in the country.
Besides, cereals like rice fertilizers frequently use ammonium sulfate in flooded fields, because nitrogen is present in the ammonium form, and it is the preferred option over using nitrate fertilizers to avoid denitrification losses. According to the FAO database, the production of rice has increased from 54.4 million metric tons in 2020 to 54.7 million metric tons in 2022. With rice being one of the major staple foods in the country and the goal to achieve self-sufficiency, production is anticipated to increase, which drives the demand for ammonium sulfate fertilizers during the forecast period.
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, factors such as aberrant weather, changing cropping patterns, and global warming have led to the problems of emerging insect pests that are causing low yields for the crops. Hence, the use of insecticides and herbicides is high in the grains and cereals in the country which increases the production of cereals. According to the FAOSTAT, in 2021, Indonesia's cereals production was 71.4 million metric tons which increased by 78.3 million metric tons in 2022.
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 characterized by consolidation. Key players include BASF, Yara International, Syngenta AG, Bayer Crop Science, and Corteva Agriscience. These industry leaders primarily adopt strategies such as new product launches, mergers and acquisitions, and partnerships. Furthermore, they are channeling investments into innovations, collaborations, and expansions to bolster their market share.
Indonesia Agrochemical Market Leaders
-
BASF
-
Yara International
-
Syngenta AG.
-
Bayer Crop Science
-
Corteva Agriscience
*Disclaimer: Major Players sorted in no particular order
Indonesia Agrochemical Market News
- March 2023: BASF launched several pesticide products in Indonesia, focusing on innovative solutions for crop protection. One key product introduced was Seltima Plus, a fungicide designed for rice, which includes built-in resistance management and aims to increase yield and seed quality.
- 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.
Indonesia Agrochemicals 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
4.2.1 Growth in the Agricultural Sector
4.2.2 Rising Food Demand and Arable Land
4.2.3 Rising Government Subsidies
4.3 Market Restraints
4.3.1 Rising Concern Among Farmers and Consumers on The Impact of Chemical Pesticide Usage
4.3.2 Adaptation of Genetically Modified Crops
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 SE
6.3.3 Corteva Agriscience
6.3.4 Syngenta AG.
6.3.5 Yara International
6.3.6 FMC Corporation
6.3.7 PT. Pupuk Iskandar Muda (PIM)
6.3.8 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) for all the above segments.
| Type | |
| Fertilizers | |
| Pesticides | |
| Adjuvants | |
| Plant Growth Regulators |
| Application | |
| Cereals | |
| Oilseeds | |
| Fruits and Vegetables | |
| Other Crops |
Indonesia Agrochemicals Market Research Faqs
How big is the Indonesia Agrochemicals Market?
The Indonesia Agrochemicals Market size is expected to reach USD 609.70 million in 2024 and grow at a CAGR of 3.30% to reach USD 718.20 million by 2029.
What is the current Indonesia Agrochemicals Market size?
In 2024, the Indonesia Agrochemicals Market size is expected to reach USD 609.70 million.
Who are the key players in Indonesia Agrochemicals Market?
BASF, Yara International, Syngenta AG., Bayer Crop Science and Corteva Agriscience are the major companies operating in the Indonesia Agrochemicals Market.
What years does this Indonesia Agrochemicals Market cover, and what was the market size in 2023?
In 2023, the Indonesia Agrochemicals Market size was estimated at USD 589.58 million. 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 Agrochemicals 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.
