Case Study | 23 July 2025
How a Specialty Chemical Manufacturer Expanded into Agrochemicals to Meet Global Food Security Demands
Posted by : Abhishek Bhardwaj
Amid changing agricultural demands and heightened calls for sustainability, chemical manufacturers are under increasing pressure to innovate and diversify. This case study reveals how a leading specialty chemical company seized the opportunity to expand into the agrochemical sector to help tackle global food security challenges. Engaging with Research Nester, the company conducted a multi-faceted strategy, boosting R&D, forming strategic alliances, and targeting high-growth agricultural regions. The outcome was a successful market expansion and the creation of a resilient, sustainability-focused business arm positioned for long-term growth.
An overview:
Our client is a specialty chemical company that offers personalized chemical solutions for industries including consumer products, construction, energy, and agriculture. The company provides a vast portfolio of niche chemical products such as surfactants, defoamers, catalysts, formulation aids, and performance additives. With 45 manufacturing plants spread across America, Europe, and Asia Pacific, it serves customers in over 70 countries. As part of its strategic five-year roadmap, the company targeted to diversify into high-growth markets, including agrochemicals, to solve increasing concerns around global food security and sustainable agriculture. The objective was to scale R&D investments by 7% and push manufacturing capacity by 10% to create eco-friendly crop protection products and biologicals.
The Story
The agrochemical industry is experiencing a pivotal shift. Driven by increasing food demand, diminishing arable land, and developing resistance to traditional pesticides, the sector is witnessing remarkable growth in demand for more effective, environmentally sustainable crop protection solutions. Bio-based pesticides, advanced formulation technologies, and integrated pest management strategies are transforming the landscape.
Our client, a well-known name in specialty chemicals, had only limited exposure to agriculture, primarily through adjuvants and formulation additives. Meanwhile, key competitors had already begun to expand across the value chain, offering detailed solutions ranging from seed treatment to post-harvest protection. Realizing the urgency to be competitive and get into a $70 billion agrochemical market, the company decided to make large-scale investments in R&D, product innovation, and strategic partnerships. However, the company witnessed several challenges as follows:
- Capabilities gap: The company lacked in-house expertise in biological research and development and had minimal experience in handling the regulatory landscape for agrochemical approvals.
- Innovation lag: A restricted product pipeline limited only to formulation aids and solvents, with no active ingredients or proprietary bioformulations.
- Uneven market presence: Despite high performance in Europe and North America, the company had little to no visibility in fast-growing agricultural markets such as Latin America, Southeast Asia, and Sub-Saharan Africa.
- Sustainability pressures: There was rising pressure from key stakeholders to reduce environmental impact, mainly related to carbon emissions and toxic waste generation. To remain competitive in the market and unlock long-term benefits, the firm needed a strong approach to manage geographic expansion, product launches, and sustainability commitments in a strictly regulated and fast-changing market landscape.
Our Solution:
- Research Nester worked deeply with the client’s corporate strategy and innovation teams to discover specific gaps in their agrochemical capabilities and assess the global demand for bio-based crop protection solutions.
- Our consulting team executed a deep-dive market analysis, benchmarking against top global agrochemical leaders, and noted key growth drivers such as resistance management, biological control, and next-generation herbicide formulations.
- We helped to construct a targeted R&D investment plan focused on building in-house capabilities in microbial and botanical pesticide development. This involved setting up a full-fledged agro-biotech innovation center and hiring domain experts in fermentation and plant-derived compounds.
- We advised the client to get into strategic joint ventures with emerging biotech startups and university spin-offs working on biopesticides and sustainable agriculture solutions. This provided access to proprietary strains, testing data, and regulatory pathways.
- In parallel, we supported the redesign of manufacturing lines to allow flexible production of both synthetic and biological actives. A modular manufacturing architecture was proposed to support small-batch, high-value agrochemicals.
- Research Nester also facilitated the client’s entry into new geographical markets through distribution partnerships with regional agricultural input suppliers. Focus was given to India, Brazil, and Kenya regions with fast-growing agrochemical demand and favorable regulatory frameworks.
- On the digital evolution front, we introduced a go-to-market strategy built around precision agriculture tools and data analytics. The client introduced a pilot platform for predictive crop health monitoring, integrating chemical inputs with weather and soil analytics.
Results
- Within just 18 months of collaboration, the company launched a new product line under its agricultural segment, featuring environment-friendly fungicides, pest control agents, adjuvants, and microbial biostimulants. These products were well accepted in initial trials across Asia and South America, showcasing a 20–26% rise in maize, soybean, and rice crop yields.
- In 2024, the company attained a 56% stake in a French agri-biotech firm focused on endophyte-based crop solutions. This step provided access to proprietary technologies and also helped speed up the regulatory approval process within the European Union.
- The company declared its first agrochemical manufacturing plant in Latin America, which is slated to become operational by late 2025. The plant will be producing biopesticides, soil conditioners, and smart-release fertilizers for the regional market.
- The client also signed a multi-year agreement with an international seed company to co-develop seed coating technologies that combine nutritional and protective agents. These coatings are crafted to improve germination rates and early plant vigor under drought situations.
- On the sustainability front, the company reduced its production-related carbon emissions by 12% and implemented closed-loop solvent recovery systems in its new agrochemical facilities. A dedicated ESG reporting framework was formed to track environmental and community impact.
- From a commercial point of view, agrochemical revenues jumped by 9% in the first fiscal year post-diversification. Projections indicate a CAGR of 15% through 2029, positioning the client as a top mid-tier innovator in sustainable crop protection.
- In 2025, the company’s agricultural division won two international awards in innovation and sustainability category at the Global AgTech Summit and the Green Chemistry Challenge.
With Research Nester’s constant strategic inputs, the client targets to:
- Expand its agrochemical R&D center into a multi-disciplinary innovation hub.
- Increase operations to include controlled environment agriculture (CEA) inputs such as hydroponic nutrients and vertical farming bioactives.
- Explore digital twin modeling for crop management solutions in partnership with AgriTech partners.
- Secure registrations for its biopesticide range across 15+ countries over the next 3 years.
This successful transition into agrochemicals not only allowed the client to grab a high-growth, future-proof sector but also matched its operations with global priorities around food security, environmental health, and sustainable farming practices.
Copyright @ 2025 Research Nester. All Rights Reserved.
Submit Your Request for Proposal (RFP)