Mexican Agro Chemicals Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.37 Billion |
| Market Size (2029) | USD 1.68 Billion |
| CAGR (2024 - 2029) | 4.10 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Mexican Agro Chemicals Market Analysis
The Mexico Agrochemicals Market size is estimated at USD 1.37 billion in 2024, and is expected to reach USD 1.68 billion by 2029, growing at a CAGR of 4.10% during the forecast period (2024-2029).
- The agricultural agrochemicals industry in the country has been transforming over the years, with robust growth coupled with changing crop mix trends and environmental regulations, which play an essential role in this sector.usageAn increasing need to balance the judicious use of the best chemicals and minimize the impact of agrochemicals is becoming relevant to ensure safety and proper in all aspects by the adequate intervention of the government. Mexico, on December 2021, passed a decree to eliminate the use of glyphosate herbicide by 2024. This would create massive demand for bio-based sustainable products that protect and facilitate plant growth.
- There is a comprehensive regulatory framework that addresses the issues and controls the pesticide value chain in Mexico. But the significant challenges are using more than 3000 agrochemicals for different applications, including banned products, and the recurring delay in the registration process; they also require improvement in regulatory compliance and enforcement activities to boost the sector further.
- The imports of agrochemicals are regulated by state-owned Petroleos Mexicanos(Premex) to control the price hike and cater to the demand as the international supply has been down mainly from Russia and China. The growing global and regional population, accompanied by rising affluence, enables a shift in consumption patterns. There is a need to increase production to meet demand and ensure that the nutritional needs of an increasingly affluent population are met. With the arable land at 20 million hectares in 2021, with a drop from 2017, the demand and use of agrochemicals have become necessary to increase the yield to match the request from the increasing population.
Mexican Agro Chemicals Market Trends
This section covers the major market trends shaping the Mexico Agrochemicals Market according to our research experts:
Need for Increased Land Productivity
The focus of the agricultural sector is to increase productivity and food security in the country. However, the country's agricultural productivity has fluctuated over the years compared to neighboring regional economies. According to the Food and Agriculture Organization, in 2020, Mexico witnessed an increase in the cultivation and production of grains and cereals, accounting for most of the country's output. Such factors are anticipated to drive the demand for agrochemical products over the forecast period. According to FAO, the arable land has been increasing in recent years. It was estimated to be 20 million hectares in 2020, which is expected to increase the agrochemical use and demand.
As per studies, cereal crops, especially wheat and maize, have contributed the highest to the overall demand for agrochemicals. Maximum demand for agrochemical products, such as pesticides, is generated by cereal crop growers in the country. In the case of vegetable crops, both herbicides and insecticides are used to protect significant crops such as tomatoes, onions, chilis, peppers, etc., as they are the primary vegetables produced in the country. With the current arable land yet to reach the previous standards though it has been increasing, calls for the effective use of agrochemicals to enhance the growth and yield of the crops.
The pesticides are effective in combating pests and increasing the yield of fruits. The share of the application of such agrochemical products on fruit crops is anticipated to increase. Hence, it is expected that the agrochemicals market in Mexico will continue to grow over the coming years, majorly due to the growing population, increasing focus on food security, the increasing need to enhance land productivity, and the rise in farming income. The number of people in Mexico reached 132.2 million in 2022, a more than a 3% increase from 2020; as this trend continues, the demand for food is also skyrocketing. With these situations prevailing, the use and need for agrochemicals in an effective manner has become a necessity, and the market for such products is expected to increase.
Fertilizers Segment to Lead the Growth of the Market
Demand for food has been increasing globally, with the increasing population and drop in arable land the need for higher yield while limited resources are being a necessity and thereby pushing the demand for fertilizers
According to the World Bank data, fertilizer consumption in terms of kilograms per hectare of arable land in the country increased from 105.6 kg per hectare in 2017 to 106.6 kg per hectare in 2020. This increase indicates the increasing use of fertilizers in the country, thus, driving the market. As reported by the UN Comtrade data, an International Trade Statistics Database of the United Nations, the fertilizer import value was USD 1,345.2 million in 2017, which increased to USD 2,091.5 million in 2021. Thus, fertilizer imports to the country increased by almost 44.7% in 2021 from the previous year. The major exporting countries to Mexico are Russian Federation, the United States, and China. The increased imports of fertilizer suggest the increasing fertilizer demand in the country. The states with the most usage of chemical fertilizer are Veracruz, Tamaulipas, Chiapas, Michoacan, Chihuahua, Guanajuato, and Sinaloa.
The government and companies are encouraging and investing more in the development of better fertilizers to enhance the agriculture sector. Technical and scientific advances have made the application of fertilizers more efficient in recent years and have helped farmers maximize fertilizers' benefits while reducing risks. For instance, slow-release fertilizers and controlled-release fertilizers are widely used on turf, in nurseries in Mexico, and in broadacre crops like maize.
Mexican Agro Chemicals Industry Overview
The Mexican agrochemical market is consolidated, with prominent players occupying most of the market share. In 2021, the market was dominated by players like Bayer Mexico, BASF, Syngenta, FMC, and UPL. New product launches, partnerships, and acquisitions are the major strategies being adopted by leading companies in the market.
Mexican Agro Chemicals Market Leaders
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Bayer AG
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BASF SE
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Syngenta
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FMC Corporation
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UPL Limited
*Disclaimer: Major Players sorted in no particular order
Mexican Agro Chemicals Market News
- November 2022; In Mexico, a broad coalition of Mexican lawmakers is pushing the government to ban nearly 200 chemicals used in pesticides, showing that they are harmful to humans. This plan has already alarmed farmers as it will affect food production and agrochemical prices.
- August 2022; Futureco Bioscience, a Spanish manufacturer of sustainable plant bioprotectants and biostimulants, partnered with Innovak Global to distribute BESTCURE in Mexico. The product is registered for high-value crops such as courgette, squash, chayote, melon, watermelon, and cucumber in the Mexican market,
- March 2022: According to the Secretary of Agriculture and Rural Development of Mexico, regarding the expansion of the National Programme of Fertilizers with the support of Petroleos Mexicanos(Premex), it is mandated to produce all the fertilizers nationally and not crucial for all state-owned premix. This is due to the price increase and lack of international supply.
Mexican Agro Chemicals Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions 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/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
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 Grains and Cereals
5.2.2 Pulses and Oilseeds
5.2.3 Fruits and Vegetables
5.2.4 Turf and Ornamentals
5.2.5 Other Applications
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Bayer AG
6.3.2 Rovensa
6.3.3 Yara International ASA
6.3.4 BASF SE
6.3.5 Adama
6.3.6 Summit Agro México
6.3.7 Ibarquim Group
6.3.8 Syngenta
6.3.9 FMC Corporation
6.3.10 International Chemical Copper SA de CV
6.3.11 Velsimex
6.3.12 UPL Ltd.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Mexican Agro Chemicals Industry Segmentation
According to the Organization for Economic Co-operation and Development (OECD), agrochemicals are commercially produced, generally for use in farming as fertilizers, pesticides, or soil conditioners. The agrochemical industry operates in B2B and B2C business formats. To eliminate double-count errors in market estimations, bulk buyers procuring agrochemicals for retail sale after value addition through further processing are not considered part of the agrochemical market. The Mexican agrochemicals market is segmented by type (fertilizers, pesticides, adjuvants, and plant growth regulators) and application (grains and cereals, pulses and oilseeds, fruits and vegetables, turf and ornamentals, and other applications). The report offers market sizing and forecasts in value (USD million) for all the above segments.
| Type | |
| Fertilizers | |
| Pesticides | |
| Adjuvants | |
| Plant Growth Regulators |
| Application | |
| Grains and Cereals | |
| Pulses and Oilseeds | |
| Fruits and Vegetables | |
| Turf and Ornamentals | |
| Other Applications |
Mexican Agro Chemicals Market Research FAQs
How big is the Mexico Agrochemicals Market?
The Mexico Agrochemicals Market size is expected to reach USD 1.37 billion in 2024 and grow at a CAGR of 4.10% to reach USD 1.68 billion by 2029.
What is the current Mexico Agrochemicals Market size?
In 2024, the Mexico Agrochemicals Market size is expected to reach USD 1.37 billion.
Who are the key players in Mexico Agrochemicals Market?
Bayer AG, BASF SE, Syngenta, FMC Corporation and UPL Limited are the major companies operating in the Mexico Agrochemicals Market.
What years does this Mexico Agrochemicals Market cover, and what was the market size in 2023?
In 2023, the Mexico Agrochemicals Market size was estimated at USD 1.32 billion. The report covers the Mexico Agrochemicals Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mexico Agrochemicals Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
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