Crop Protection Chemicals Market

The global crop protection chemicals market is projected to reach USD 101.0 billion by 2029 from USD 79.3 billion by 2024, at a CAGR of 5.0% during the forecast period in terms of value. According to the FAO, between 20% and 40% of global crop production is lost to pests each year, with plant diseases costing the global economy approximately USD 220 billion annually and invasive insects around USD 70 billion. Additionally, weeds present a major biotic constraint on food production worldwide. These significant economic impacts highlight the critical need for effective crop protection strategies, fuelling demand in the crop protection chemicals market. As farmers and agricultural stakeholders strive to mitigate these losses and ensure food security, the market for herbicides, fungicides, insecticides, and other crop protection chemicals continues to grow, driving advancements and investments in pest control solutions. Governments worldwide are implementing policies and providing subsidies to support the agricultural sector. For instance, the Indian government’s Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme offers insurance to farmers against crop loss due to pests and diseases, indirectly promoting the use of crop protection chemicals. Additionally, regulatory frameworks guide the safe and effective use of these chemicals, boosting their adoption.

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Market Dynamics

Driver: Advancements in farming practices and technology

According to the USDA (2024), technological advancements in agriculture have been crucial in maintaining output growth without significantly increasing inputs. Innovations in the field of animal and crop genetics, chemicals, equipment, and farm organization have almost tripled the total agricultural output from 1948 to 2021. Over the same period of time, there is a slight decrease in the quantum of input use in farming, which essentially means that long-term growth in agricultural output depends upon gains in total factor productivity. TFP is a measure of the efficiency with which inputs—like land, labor, capital, and intermediate inputs—are converted into agricultural output. It is an indicator of improved production process efficiency and technical improvement.

Examples of technologies and their impact on the crop protection chemicals market:

• Genetically Modified Crops: Crops engineered for resistance to pests and disease reduce the need for chemical intervention, but they also create demand for specific crop-protection chemicals that support these GM crops.
• Precision Agriculture: The precise application of crop protection chemicals can be managed with various technologies: GPS precision guidance equipment, drones for spraying, and sensors that can utilize the proportion of the inputs that have actually been taken up by the crop. This makes the application more precise, hence more efficient, and wastes less of the used CPCs—which should certainly appeal to farmers.
• Automated Machinery: Advanced farm machinery is incorporated with artificial intelligence and machine learning, as well as the capacity to detect infestation by pests; it applies crop protection chemicals only where required. This increases the productivity of the land while at the same time reducing the usage of chemicals.
• Biopesticides: The innovations in this area bring forth biopesticides as alternatives to chemicals and are compliant with enhanced market demand for environmentally safe crop protection solutions.
• Digital Farming Platforms: Such platforms use data emanating from multiple sources to provide agricultural producers with field-specific prescription advice for crop protection chemicals. In a way, the improved decision process avoids unwarranted applications.

By integrating these technological advancements, the crop protection chemicals market can offer more sophisticated, efficient, and sustainable solutions that align with modern agricultural demands and trends.

Restraint: Health, environmental, and regulatory implications of pesticide residue problems

Pesticide residue problems present a significant challenge to the crop protection chemicals (CPC) market because of health, environmental, and regulatory implications concerns associated with them. Consumers are becoming very concerned about health issues and environmental harm resulting from pesticide residues in food and demanding safer agricultural practices. Since pesticide residues on crops can persist post-harvest, they are subject to stringent regulatory requirements and MRLs ordained by governments and international organizations.  The European Food Safety Authority (EFSA) highlighted that the overall rate of pesticide residues exceeding the Maximum Residue Limits (MRLs) increased from 1.4% in 2018 to 2.1% in 2021, indicating rising regulatory scrutiny. Non-compliance may trigger trade barriers, product withdrawal, and consumer backlashes and can hence affect the marketability of agricultural produce.

These issues compel crop protection chemicals manufacturers to develop safer and more effective products that can adhere to strict regulations. However, this shift can be costly and time-consuming, impacting market dynamics. The need for continuous adaptation to regulatory changes and consumer preferences puts pressure on the industry, driving up research and development costs.

Opportunity: Integrated pest management (IPM)

Integrated Pest Management (IPM) is the integration of various management practices and control in such a way that it minimizes the dependence on pesticides, thereby enabling sustainable agriculture. With IPM, different mixtures of biological, cultural, mechanical, and chemical procedures have been proposed to manage pests. This opens up new markets for biopesticides, pheromone traps, beneficial insects, and other instructions related to non-chemical control. Manufacturers are diversifying their product lines to include these alternative solutions, meeting the growing demand for IPM-compatible products.

IPM generally provides a responsible use of crop protection chemicals by their application only when necessary and often combines them with other control techniques to reduce environmental impact and prevent the buildup of resistance in pests. It would suffice to say that such an approach would justify the case for developing and using more selective, environmentally friendly chemical products that fall within an IPM framework. This, in turn, opens up innovation to formulate new chemical formulations with small quantities, specific modes of action, and fast degradation in the environment. The companies are investing in such innovations, thereby seeking to meet the ever-growing standards set by regulators and respective markets and hence at the very frontier of sustainable agriculture due to increased demand for safer products.

Challenge: Resistance management

The long-term application of chemical pesticides has led to the development of resistance by pests and weeds to these pesticides, greatly reducing the effectiveness of conventional control measures. A practical way forward includes innovative solutions in new active ingredients, formulation novelties, and well-planned, strategic rotation plans that will enhance the sustainability of pesticides and extend the life of products. In furtherance of the fight against weeds that are resistant to glyphosate, Syngenta AG came up with Acuron, an herbicide composed of multiple active ingredients having different modes of action. Bayer invested in the development of the insecticide Sivanto, featuring a new active ingredient flupyradifurone.

Resistance management is complex, time-consuming, and costly, entailing huge R&D investments. Because of resource constraints, smaller companies might fall behind such developments, thus reducing the number of market players and eventually leading to less competition. Despite the challenges, continuous innovation and adherence to best practices in resistance management are vital for sustaining the long-term viability and effectiveness of crop protection chemicals.

CROP PROTECTION CHEMICALS MARKET ECOSYSTEM

Key players within this market consist of reputable and financially robust crop protection product manufacturers. Major companies boast extensive industry tenure, offering diversified product portfolios, cutting-edge technologies, and robust global sales and marketing networks. These companies are investing heavily in research and development to innovate new formulations that are effective yet environmentally sustainable. Prominent companies in this market are BASF SE (Germany), Bayer AG (Germany), FMC Corporation (US), Syngenta Group (Switzerland), Corteva (US), UPL (India), Nufarm (Australia), Sumitomo Chemical Co., Ltd (Japan), Albaugh LLC (US), Koppert (Netherlands), Gowan Company (US), American Vanguard Corporation (US), Kumiai Chemical Industry Co., Ltd (Japan), PI Industries (India), and Chr. Hansen A/S (Denmark).

By type, the herbicides segment will continue to hold the largest market share during the forecast period.

As the largest segment, the demand for herbicides is mainly driven by the limited availability of arable land, high-profit margins, acceptance of modern farming, protected agriculture, and changing farming practices and technology. They are crucial in keeping crops at high yields without the invasion of unwanted weeds that may introduce selected diseases to plants. Herbicides are essential, especially because of their versatility in applications over other methods of weed control. They can be applied well in advance of weed emergence, permitting crops to grow and develop without any competition in a purely weed-free environment. Herbicides are more flexible than mechanical methods of weed control because they work with broadcast-sown and narrow-spaced crops and even intra-row weeds.

By crop type, the cereals & grains segment holds the largest market share in the crop protection chemicals market.

Increasing demand for crop protection chemicals in cereal & grain is driven by rising output of staple crops such as wheat, rice, and corn to cater to food and feed industries. These crops are highly susceptible to various pests, diseases, and weeds, which demands their widespread usage of herbicides, insecticides, and fungicides. Furthermore, extensive cultivation and the high economic value of cereals and grains raise the demand for crop protection chemicals, as any loss in yield affects food supply chains and market stability. According to USDA's National Agricultural Statistics Service, NASS, 2022 Agricultural Chemical Use Program, the cereal and grains segment was dominated by herbicides; among herbicides, the most widely used was atrazine globally.

By origin, the biopesticides segment is expected to grow at the highest CAGR during the forecast period.

Consumers are increasingly demanding organic and pesticide-free food products. This trend is forcing farmers to adopt biopesticides in order to answer the market demand for organic produce since most of the certification bodies approve of biopesticides in organic farming. The high growth in biopesticides can also be attributed to increased demand from consumers for effective and environmentally friendly solutions to pest management. Biopesticides are largely safer than conventional pesticides due to their lower inherent toxicity. They work effectively in small quantities and break down quickly, minimizing environmental exposure and reducing pollution associated with conventional pesticides.

The Asia Pacific region is expected to dominate the crop protection chemicals market during the forecast period.

The dominance & rapid growth of crop protection chemicals is fuelled by the Asia Pacific region's substantial agricultural base and the rising requirements for yield maximization to feed an increasingly large population. The diverse climatic conditions exert strong pest and disease pressures on crops in the region, hence increasing the demand for crop protection chemicals. For instance, the prevalence of pests like the Fall armyworm has led to substantial crop losses, prompting governments and farmers to invest in robust pest management solutions. According to CABI, 2023, rice field rats cause a lot of damage to rice crops, with some average losses ranging from 10–20% in Malaysia and Indonesia to even up to 30–50% in areas adjacent to refuge habitats like canals. Certainly, the growing adoption of modern farming practices and technologies in Japan, Australia, and China is boosting the market for advanced crop protection products. As the major regional market, the chinese crop protection chemicals market is highly fragmented, with the presence of several multinational as well as local players.

Top Crop Protection Chemicals Companies

The key players in the market include BASF SE (Germany), Bayer AG (Germany), FMC Corporation (US), Syngenta Group (Switzerland), Corteva (US), UPL (India), Nufarm (Australia), Sumitomo Chemical Co., Ltd (Japan), Albaugh LLC (US), Koppert (Netherlands), Gowan Company (US), American Vanguard Corporation (US), Kumiai Chemical Industry Co., Ltd (Japan), PI Industries (India), and Chr. Hansen A/S (Denmark). These market participants are emphasizing the expansion of their footprint via agreements and partnerships. They maintain a robust presence in North America, Asia Pacific, South America, RoW, and Europe, and they are supported by manufacturing facilities and well-established distribution networks spanning these regions.

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Scope of the Report

Crop Protection Chemicals Market Segmentation:

This research report categorizes the crop protection chemicals market based on Crop Type, Mode of Application, Form, Origin, Type, and Region.

By Type

• Herbicides
• Insecticides
• Fungicides & Bactericides
• Other Types

By Origin

• Synthetic
• Biopesticides

By Form

• Liquid
• Solid

By Mode of Application

• Foliar Spray
• Seed Treatment
• Soil Treatment
• Other Modes of Application

By Crop Type

• Cereals & Grains
• Oilseeds & Pulses
• Fruits & Vegetables
• Other Crop Types

By Region:

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Target Audience

• Crop protection chemicals traders, retailers, and distributors.
• Crop protection chemicals manufacturers & suppliers.
• Related government authorities, commercial research & development (R&D) institutions. 
• Regulatory bodies, including government agencies and NGOs.
• Commercial research & development (R&D) institutions and financial institutions.
• Government and research organizations.
• Venture capitalists and investors. 
• Technology providers to Crop protection chemicals and Crop protection chemicals companies.
• Associations and industry bodies.   

Crop Protection Chemicals Market Recent Developments

• In May 2024, BASF launched a new bug killer called Cimegra for Australian farmers. This insect spray uses a brand-new ingredient called Broflanilide, made with BASF's own technology.
• In May 2024, FMC Corporation and Optibrium made an agreement to accelerate the discovery of novel crop protection technologies using machine learning and artificial intelligence. The agreement was part of FMC's strategic plan to expedite the discovery and commercialization of its pipeline.
• In April 2024, ADAMA launched Avastel, Maganic, Maxentis, and Forapro fungicides. This product launch broadened ADAMA's product portfolio, potentially strengthening its position in the crop protection chemicals market by offering a more comprehensive range of solutions.
• In April 2024, UPL announced the completion of the acquisition of Corteva Agriscience's global Mancozeb fungicide business outside of China, Japan, South Korea, the UK, Switzerland, and EU member countries. Mancozeb, a highly effective fungicide used to prevent plant diseases across various crops, was part of the acquired business. 

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