The global crop protection chemical market size is estimated to reach USD 73.94 billion till 2027. This information is provided by Fortune Business Insights™, in its report, titled, “Crop Protection Chemical Market, 2020-2027.” As per the report, the market stood at USD 55.73 billion in 2019 and is further expected to showcase a stellar CAGR of 4.50% in the upcoming years. The key producers in the market are mainly focusing on the R&D of upgraded molecular chemicals for plants, as the already available ones are suspected to be outdated.
As per the Royal Society of Chemicals, new segments of chemicals are introduced under the category of herbicides, pesticides, insecticides, and fungicides. Approximately, 800 active chemical ingredients are recorded as solutions for crop protection around the globe.
The unfortunate event of the global pandemic hit the world and every industry faced some collateral damage. Due to the strict government norms imposed on the national movement of vehicles be it commercial or passenger, the demand-supply chain cycle was seen disrupted.
The agriculture sector suffered when the pandemic hit the world. It has majorly affected the processes that involved producing and distributing agrochemicals, importing raw materials, and manufacturing end products. As China is the prominent producer of pesticides and active ingredients, the lockdown affected the production in Chinese factories and resulted in an enormous shortage of crop protection chemicals in the global market.
The report provides a thorough study of the market segments and a detailed analysis of the market overview. A profound evaluation of the current market trends as well as the future opportunities is presented in the report. It further shares an in-depth analysis of the regional insights and how they shape the market growth. The COVID-19 impacts have been added to the report to help investors and business owners understand the threats better. The report sheds light on the key players and their prominent strategies to stay in the leading position.
Based on type, the global crop protection chemical market is segmented into herbicides, insecticides, and fungicides. The herbicides accounted for 39.7% of global market share in 2019. On the basis of crop type, the market is divided into cereals, oilseeds and pulses, and fruits & vegetables. By source, the market is bifurcated into synthetic chemicals and biologicals. In terms of region, the global market is further classified into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
By mode of application, the market is segregated into foliar spray, soil treatment and seed treatment. Among the above, seed treatment has appeared to be the most trending application for crop protection chemicals since the past few years. This treatment is cost effective and safe and people are quickly adopting this method to replace the other conventional methods to prevent pests.
Drivers and Restraints
Rising Usage of Crop Protection Chemicals for Gaining High Yield to Promote Growth
Crop protection chemicals are vastly used in the agricultural sector to prevent crops from gaining pest infection. This further ensures high yield and guaranteed food security for the rapidly growing population. As per Food and Agriculture Organization (FAO), the major consumers of crop protection chemicals are nations such as the U.S, Brazil and China. The surging usage of pesticides in these countries among others is expected to drive market growth in the upcoming years.
Asia Pacific to Ace the Market Backed by Awareness Regarding Usage of Pesticides
Asia Pacific generated USD 16.11 billion in the year 2019. It is expected to hold major shares in the market and continue to dominate during the forecast period. Rising awareness about using crop protection chemicals in small as well as marginal crop producers has resulted in strong growth support of insecticides in this region.
South America is the second-largest user of crop protection chemicals and is estimated to hold an impressive amount of shares in the market. It is anticipated that the usage of fertilizers will surpass the current utilization by the year 2024.
North America and Europe are likely to witness substantial growth owing to the steady focus of key players in these regions on biologically obtained yield. This is estimated to promote market growth in the near future.
New Launches and Acquisitions Set to Propel Market Growth
Prominent players in the market often come up with efficient strategies that include partnerships, acquisitions and mergers, product launches, etc. These strategies bolster their position as leading players and also benefit the other involved companies as well.
For instance, in January 2020, Crystal Crop Protection Ltd. initiated an acquisition of three brands from Corteva Agriscience. These brands include Dursban, Predator and Nurelle-D. This is expected to boost the market growth and help the involved companies gain monetary benefits from this acquisition.
May 2020: BASF, a key player in the market, launched Seltima, which is a fungicide innovated especially to protect rice crops in Thailand. The fungicide consists of advanced technology to make sure that active ingredients are sprayed directly on desired surfaces.
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