Long term Crisis like Population growth, decreasing arable land and Food security fuelling the Crop protection chemical market. : Bonafide Research
Sep, 23

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Long term Crisis like Population growth, decreasing arable land and Food security fuelling the Crop protection chemical market. : Bonafide Research



“Global Crop Protection Chemical Market Outlook, 2027”, published by Bonafide Research gives a brief of the market, segmented by product type, by application, and by country. The segmental analyses have been detailed in terms of products, and in terms of application. These segments are analysed country-wise and the report also covers a detailed discussion about the trends, rules, and regulations across the world.

With the help of crop protection chemicals, the farmers are now able to produce more on less land and also achieve a better yield quantity. The use of pesticides has been said to have increased the production capacity by 20-50%, globally. The use of crop protection chemicals has diminished the manual labour of hand weeding. Historically, the global crop protection chemical market witnessed a growth of almost 4%. Apart from this, the use of pesticides has become an indispensable part of the sustainable production of high-quality crops. At the end of the year 2027, the global market is expected to attain a market value of over USD 78 Billion. The study is classified on type and segmented into four categories of Herbicides, Insecticides, Fungicides & Bactericides, and others. Pesticides are known to be aiding in the reduction of diseases that are waterborne or transmitted through insects. The outspread of diseases like malaria, Lyme diseases, West Nile Virus, etc. have been controlled with the proper use of pesticides. In 2021, the segments of insecticides, and fungicides & bactericides amounted to nearly the same market value of over USD 16 Billion each. However, the fungicides & bactericides segment is likely to be growing with a higher growth rate in the forecasted period, and hold more market share. This is due to the higher cases of plant and crops infestation across the globe due to changing climatic conditions and global warming. In terms of application, the report has classified the crop protection chemical use into four major crop segments of cereals & grains, oilseed & pulses, fruits & vegetables, and others. Of the classified segments, the market is dominated by the oilseed & pulse segment. One of the most underrated uses of crop protection chemicals is their use in securing storage. Post the harvest, even when the crops are stored with the utmost care, they can be vulnerable to pest attacks by bugs, moulds, etc. The use of pesticides in stored crops can prolong the viable life, prevent huge post-harvest losses from pests and diseases and protect the grain so it is safe to eat. Furthermore, to decrease the activities of deforestations, different institutions like the government are promoting the use of chmiecal crop protection methods. In response to the growing need to meet food sufficiency and importance of safe farming practices, the global organic food industry has recorded exponential double-digit growth rates. Over the last three decades, organic food and farming have continued to grow across globe. Since biopesticides are chemical–free, they are used in a large scale in organic farming. Hence, the market demand for biopesticides is increasing with the growing popularity of organic food & beverage products across the globe.

The Asia Pacific is a land of agriculture and also the highest contributor to the crop protection chemical market. The use of crop protection chemicals has made it possible for the developing countries to grow a range of crops with a short span and also enabled them to export the same. However, these developing countries fall behind in meeting the MRL of the developed countries and thus even with high production, fall short in export quality products. The key countries in the region are China, Japan & India. The market contribution of the Asian countries in the crop protection chemical industry differs highly from each other. This is because the agricultural system and the practices involved vary even within the national borders. Considering the potential advantage the region holds, many global companies are now not only expanding their supply chain to the region but are also setting up their manufacturing base here. Rice, being the staple food of the majority of the countries in the region, holds dominance in the amount of cultivation. Yet, in terms of application, the oilseed & pulse segment tops the market share, which is followed by the fruits & vegetable segment with a slight difference. The demand for food and non-food has increased with the growing population. 

North America and Middle East & Africa are the two least contributing regions, which in the year 2021 accounted for quite less than 18% and 5% of the global market share. Even though the excessive use of crop protection chemicals is a big threat to nature, there are few indirect advantages to nature. As the farmers are now able to yield more crops per unit area, it has resulted in less deforestation for agriculture. The use of pesticides in the control of invasive weeds and other species is crucial. More than 90% of corn, soybeans, and cotton in the US are now, genetically modified to be resistant to herbicides. The region is a high consumer of crop protection chemicals, with the highly stringent regulatory framework controlled by the EPA and USDA. In the North America Crop Protection Chemical Market, more than half of the market share is contributed by the herbicides segment. The demand is likely to incline in the coming years, due to the climatic changes which might boost the fungal growth. The major hurdle expected in the region is the growing demand for organic farming, attributed to the increasing awareness about the health hazards of pesticides. The toxicity of crop protection chemicals towards the environment and stringent regulations from the FDA lead to regulatory issues in the region. The Middle East countries are one of the early settled agricultural sites, with a diversity of several major legumes and cereals. The region has unequal access to land and the increasing urbanization has led to the degradation of arable land too. In terms of application, the Middle East & Africa region is led by fruits & vegetable cultivation, with more than 40% of the share. Even though the region is home to many exotic fruits and vegetables which are in demand in western countries, the export is hurdled by the pesticides used. The irony of the misery is that the majority of the companies which sell in the region are based in western countries.

Agriculture is considered one of the most important contributors to the overall economy of the European Union. The region is the third-largest contributor in the global crop protection market. The crop protection chemical market in the region is hampered by the unpredictable environment and the stringent rules against agricultural chemicals. The increasing population in the region is driving the need to increase crop yield. This is a primary reason for the farmers to incorporate the use of chemical pesticides. However, many pesticides are banned in the region, and the cost of registering a new pesticide is also high. The fruits & vegetable cultivation in the region accounted for the highest share of crop protection consumption. While the usage limit is restricted in the region, the imports fail to meet the same. Imports from Turkey, do show traces of Carbendazim, which was banned by the EU in 2015. This common fungicide was proven a threat to human fertility, hormones, and the nervous system.

It is important to remember that the Latin America region is a major exporter of different agricultural products. Thus it becomes extremely important to know the residue limits of the importing countries. Major products that are exported include soybeans, corn, cotton, sugar, orange, coffee, bananas, ornamentals, cocoa, grapes, apples, and other fruits. The market is led by the herbicides segment which held more than 50% of the market share. The region has also incorporated genetically modified organisms, which are engineered to be resistant to pesticides. This has changed the agricultural model to be more dependent on the high use of chemicals. Also, the agricultural sector of the region has undergone considerable growth with an expansion of the agricultural land. The region is considered as one of the expanding markets, with high opportunities. The high opportunities in the crop protection chemical market are in the high diversification of the crops, which allows for different biological targets. Such diversification would allow the manufactures to have a better distribution throughout different agricultural cycles and thus reducing their risks.

The global crop protection chemical market is highly consolidated, with major players accounting for major share of the market. The majority of the companies in the global landscape of this market are enjoying great potential in this million-dollar industry, even though they face a lawsuit now and then. A few of the most prominent companies in the market which are profiled in this report are: Basf SE, Bayer AG, Dow AgroSciences, FMC Corporation, Huapont Life Sciences, Nufarm, Sumitomo Chemical, Syngenta AG, UPL