Australia Agrochemicals Market Size and Share - Outlook Report, Forecast Trends and Growth Analysis (2025-2034)

Australia Agrochemicals Market Trends

The growth of the Australia agrochemicals market is driven by the role agrochemicals play in boosting crop yields by protecting plants from pests, diseases, and weeds. Pesticides control insect populations, herbicides manage weeds, and fungicides prevent diseases, all contributing to higher agricultural productivity and better food security for Australia. The Australian Government has pledged USD 33.8 million over 15 years (2014-2029) to improve farmers' access to safe and effective agricultural and veterinary (agvet) chemicals, helping them produce food for Australia and globally.

The agrochemicals sector contributes to economic growth by creating jobs and increasing agricultural exports, thereby impacting Australia agrochemicals market revenue. Agrochemicals also enhance land use efficiency, maximise productivity, and improve produce quality by reducing defects and enhancing visual appeal, benefiting both farmers and consumers.

Australia Agrochemicals Market Growth

The demand for the Australia agrochemicals market is driven by agrochemicals that reduce harvest cycles, enhance productivity, and provide cost-effective solutions by minimising manual labour. They also support organic farming through integrated pest management and encourage innovation in farming practices, enabling farmers to adopt more effective agrochemical solutions. The department granted USD 218,182 (GST excluded) to the Rural Industries Research and Development Corporation (RIRDC, now Agrifutures Australia) to create a self-sustaining collaborative forum for growers, research and development corporations (RDCs), and the chemical industry, aiming to share priorities and foster collaboration.

Agrochemicals promote sustainable farming practices, improve soil health, and prevent overuse of land, driving growth opportunities in the Australia agrochemicals market. They also support export potential for Australian crops, reduce environmental impact when used responsibly, and help farmers adapt to climate change by enhancing crop resilience.

Australia Agrochemicals Market Insights

• Australia's agricultural exports reached a record high of $80.4 billion in the 2022–23 financial year, marking a 17% increase from the previous year, according to the Australian Bureau of Statistics (ABS). This growth drives the demand for agrochemicals to support production.
• Agriculture represented 2.7% of Australia's GDP and 2.2% of total employment in the 2022–23 period, according to industry reports. The significant contribution highlights the importance of agrochemicals in maintaining agricultural productivity and economic stability.
• As of December 2023, 55% of Australia's land was designated for agricultural use, as reported by the Department of Agriculture, Fisheries, and Forestry. This extensive land use highlights the crucial role of agrochemicals in optimising crop production and land management.

Australia Agrochemicals Market Drivers

Increased Adoption of Biopesticides

The Australia agrochemicals market has experienced a notable increase in the demand for biopesticides, driven by growing environmental awareness and a shift towards sustainable farming. Biopesticides offer an eco-friendlier alternative to traditional chemical pesticides, providing effective pest management while minimising environmental impact. This aligns with the global move towards organic and environmentally conscious farming practices. In August 2024, ADAMA collaborated with Elemental Enzymes to launch an innovative bio-fungicide in 2026. The product uses peptide technology to target foliar diseases in winter crops and spring turf, enhancing plant immunity and supporting sustainable farming methods.

Shift Towards Integrated Pest Management (IPM)

Integrated Pest Management (IPM) is becoming a key trend in the Australia agrochemicals market, blending chemical and biological control techniques to manage pest populations more efficiently. This shift reflects the increasing demand for sustainable farming practices and the reduction of chemical pesticide use. IPM strategies incorporate natural predators, crop rotation, and resistant crop varieties alongside targeted agrochemical applications. In January 2023, BASF introduced Axalion™ Active in Australia, its first global market launch. This insecticide targets pests like whiteflies and aphids, supporting IPM by combating resistance and enhancing pest control, with further expansions planned globally.

Opportunities in the Australia Agrochemicals Market

The growth of the Australia agrochemicals market is increasingly shaped by stringent regulatory and safety standards, aimed at safeguarding human health and the environment. These regulations encourage manufacturers to create safer, more precise agrochemicals, lowering residue levels and enhancing transparency in chemical composition and application. The new agrochemical regulation, enacted on 1 December 2021, streamlines processes for low-risk chemicals and establishes a Governance Board for the Australian Pesticides and Veterinary Medicines Authority (APVMA). This reform also includes extended protection periods and incentives for new product uses, boosting industry efficiency and accountability.

Market Restraints

Key restraints in the Australia agrochemicals market include environmental concerns such as soil degradation and water contamination, strict regulations, and health risks associated with pesticides. Market saturation, the rise of organic farming, and climate change also impact demand.

Additionally, the high cost of agrochemicals strains farmers, particularly small-scale producers, while negative public perception and media scrutiny further hinder market growth. These factors, combined with increasing demand for natural alternatives, limit the agrochemicals sector's potential.

Australia Agrochemicals Market Share

Market Breakup by Type

According to the Australia agrochemicals market analysis, fertilisers play a key role in enhancing soil fertility and promoting crop growth by providing essential nutrients such as nitrogen, phosphorus, and potassium. They boost agricultural productivity, ensuring higher yields and improved food security. Fertiliser use also supports sustainable farming practices, optimising crop quality and farm profitability in Australia. In October 2022, the University of Melbourne launched a new research hub focused on improving fertiliser efficiency, reducing costs for farmers, and minimising environmental impact. This partnership aims to develop smarter fertilisers and better nitrogen use, driving farm sustainability.

Crop protection chemicals, including pesticides, herbicides, and fungicides, are essential for managing pests, diseases, and weeds, thus protecting crop health. These chemicals improve yields, reduce post-harvest losses, and ensure the efficiency of farming practices. In Australia, crop protection products help produce safe, high-quality, affordable food and fibre, increasing crop yields by 40% and boosting food production value by USD 13 billion annually.

Opportunities in the Australia agrochemicals market are strengthened as plant growth regulators (PGRs) optimise plant growth and development, enhancing both crop yield and quality. By regulating plant height, promoting flowering, and increasing fruit setting, PGRs drive higher productivity, minimise waste, and boost crop resilience to environmental stress, presenting valuable prospects for Australia's agricultural sector.

Market Breakup by Application

According to the Australia agrochemicals market report, agrochemicals play a crucial role in protecting cereal and grain crops such as wheat, barley, and oats from pests, diseases, and weeds, ensuring higher yields and improved quality. These chemicals boost productivity, reduce crop loss, and support the stability of Australia’s cereal and grain supply, contributing to food security and export growth. The USDA estimates Australia’s oat production for 2023/2024 at 1.1 million metric tonnes.

Agrochemicals used in oilseeds and pulses, including canola, soybeans, and chickpeas, safeguard crops from pests and diseases, ensuring better yields and quality. They aid in efficient weed control and pest management, leading to higher productivity, profitability, and global competitiveness in Australia’s oilseed and pulse production. The USDA reports that Australia’s wheat production for MY2023/24 has reached 26 million metric tonnes.

For fruits and vegetables, agrochemicals protect crops from pests, diseases, and weeds, improving yield, quality, and shelf life, driving the Australia agrochemicals market growth. These chemicals help farmers maximise productivity, reduce post-harvest losses, and enhance the visual appeal of produce, boosting both domestic consumption and export potential for Australian agriculture.

Australia Agrochemicals Market Regional Insights

New South Wales Agrochemicals Market Overview

New South Wales has a strong agrochemicals market, driven by its significant agricultural output, especially in crops like wheat and cotton. This ensures high demand for crop protection, fostering productivity and economic growth. In 2023, the Department of Primary Industries (DPI) encouraged nutrient-efficient fertilizers to reduce environmental impact and enhance crop quality.

Queensland Agrochemicals Market Trends

The agrochemicals market in Queensland is driven by high demand for pest and weed control, particularly in sugarcane and tropical crops. This increases the use of herbicides and pesticides, improving crop quality and yields. In 2023, the Department of Agriculture and Fisheries (DAF) advocated sustainable nutrient management to support local farming.

Western Australia Agrochemicals Market Dynamics

Western Australia's agrochemicals market is influenced by wheat and barley production, increasing demand for fungicides and herbicides to protect crops. This boosts agricultural productivity and export potential. The Australian Government projected a 24% rise in winter crop production in 2024–25, reaching 18.4 million tonnes, surpassing the 10-year average of 17.2 million tonnes.

Competitive Landscape

The Australia agrochemicals market key players offer a broad range of agricultural solutions, including herbicides, fungicides, and insecticides, designed to boost crop productivity and sustainability. These companies focus on providing sustainable products that enhance agricultural efficiency and food security while promoting environmental sustainability through innovative crop protection solutions.

Key Industry Players

BASF Australia Ltd.: Headquartered in Melbourne, Australia, BASF Australia Ltd. was established in 1969. It is a leading provider of agricultural solutions, offering a wide range of agrochemicals, including herbicides, fungicides, and insecticides, aimed at enhancing crop productivity and sustainability in Australian agriculture.

Bayer CropScience Pty Ltd.: Bayer CropScience Pty Ltd., based in Melbourne, Australia, and founded in 2002, is a global leader in crop protection, offering innovative solutions for pest, weed, and disease control. The company focuses on providing sustainable products to improve agricultural productivity and food security.

Syngenta Crop Protection AG: Syngenta Crop Protection AG, established in 2000 and headquartered in Switzerland, is a leading agrochemical company in Australia. It specializes in innovative crop protection products, including herbicides, fungicides, and insecticides, to enhance agricultural efficiency and environmental sustainability.

Corteva Agriscience™: Corteva Agriscience™ was founded in 2019 and is headquartered in Delaware, United States. The company is a key player in the Australian agrochemical market, offering integrated solutions in crop protection, seeds, and digital agriculture, focused on increasing farm productivity and promoting sustainable practices.

Other key players in the Australia agrochemicals market report are FMC Australasia Pty Ltd., Adama Agricultural Solutions Ltd., Nufarm Limited, Yara Australia Pty. Ltd., and Nutrien Ltd., among others.

Recent Developments

May 2024

BASF launched its new insecticide, Cimegra®, in Australia, offering effective, long-lasting protection against tough pests like Diamondback moth. Powered by Broflanilide®, it provides a novel mode of action, no known resistance issues, and supports integrated pest management, enhancing pest control across various crops.

November 2023

Azelis agreed to acquire 100% of Agspec Australia, a distributor of crop nutrition and protection products. This acquisition expanded Azelis' product offerings and strengthened its position in the agricultural and horticultural markets, enhancing its portfolio in Australia and supporting further innovation and growth.