The report published by Bonafide Research, under the title, “North America Crop Protection Chemical Market Outlook, 2027” gives a brief of the market, segmented by product type, by application, and by country. The segmental analyses have been detailed into herbicide, insecticide, fungicides & bactericides, and others, in terms of products, and in terms of application, the market is classified into Cereals & grains, Oilseeds & pulses, fruits & vegetables, and others. These segments are analysed country-wise and the report also covers a detailed discussion about the trends, rules, and regulations in the region. The agricultural crop protection chemicals industry in the region has been transforming over the years, with robust growth, coupled with changing crop mix trends and environmental regulations. The countries in the region are primarily focusing on the growing population, the decline in the total arable land, and food security, to achieve higher agricultural output and boost the market studied.
Even though the North America market holds a high potential towards the use of crop protection chemicals, aided with the advanced technological uses and integrated farming practices, it accounted for the lowest historic CAGR in the global market. One of the major reasons is that in this world-economic leading region, agriculture is no longer seen as principal economic activity. The agriculture in this region is now highly mechanized and dependent on the integrated system which supports the commercialization of agribusiness. Restricted by the strict government rules and bans of certain chemicals, the overall regional market for crop protection chemicals is likely to cross a market value of more than USD 14 Billion by the end of the forecasted period. The past decade witnessed a reduction in the new pesticide active ingredients. This paved the way for an increase in off-patent pesticides, in recent years. By the end of 2020, around 28 kinds of pesticide active ingredients are expected to come off-patent. At the same time, biological pesticides emerged as an important trend for crop protection chemicals, as they register minimal environmental footprint and are ecologically sustainable. More than 7.0 million ha of cropland in the United States has been treated with biopesticides since 2012, while a rapidly growing organic farmland area further assures an expeditious growth of the segment in the industry. Moreover, the current pesticide industry is majorly characterized by the continuity in R&D activities for new product developments. In 2019, BASF launched Ventigra, aiming at precision-targeted pest management of piercing and sucking insects. In 2018, Marrone Bio Inventions introduced the product, Zelto, for the control of foliar and soil dwelling pests on turf.
In terms of product type, the market is dominated by the herbicides segment which held more than half of the market share. The demand for the fungicides & bactericides segment is likely to incline in the coming years, aided by the climactic changes which catalysts fungal growth. In order to control the destruction caused by insects, insecticides are used which either kill them or form a protective layer to avoid the interaction. However, the use of insecticides is to experience a decline in the coming years which is to be reflected as the lowest CAGR below 1.5%, through the forecasted period.
The major crop cultivated in North America includes grains, fruits, and vegetables, legumes, plantation for other non-food uses. The regional market for crop protection is led by the use in oilseed & pulse protection. The use of liquid pesticides is high than the solid-formed ones in the region. Wheat, rice, sorghum, oats, and barley growers are also regular users of the protection chemicals. The use of insecticides has declined gradually, given the fact that most acres of agricultural land were already treated since the 1980s. The major hurdle in the market is the increasing awareness about the bio-pesticides, which are less toxic in nature and also less hazardous to human and soil health.
The framers in the US & Canada are highly inclined towards technology and automation, Mexican farmers still prefer traditional practices. Canada has extreme climatic conditions which act as a hurdle in the market, while the US faces challenges like drought and decreasing arable land. The USA leads the regional market, while in the global market it holds the second position. Through the forecasted period, Canada is likely to be growing with the highest CAGR of over 3%. The prominent companies like the BASF SE, Bayer CropScience, Syngenta AG, Corteva Agriscience, Nufarm Ltd, and FMC Corporation, held more than 60% of the market share. The declining arable land in the region is acting as a double-sided coin, aiding as well as hampering the market growth.
Covid-19 Impact
The covid-19 pandemic affected the crop protection chemical market in the region with a moderate intensity. The activities of agriculture were considered essential and their production sustained the demand for crop protection. On the other hand the market observed decline in demand from the consumer due to the economic uncertainty created by the virus.
Major companies mentioned: Basf SE, Bayer AG, Corteva AgriSciences, FMC Corporation, Huapont Life Sciences, Nufarm, Sumitomo Chemicals, Syngenta AG, UPL
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