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  • Published On : Oct 2022
  • Code : CMI5288
  • Industry : Agrochemicals
  • Pages : 159
  • Formats :

The global crop protection chemicals market size was valued at USD 63.26 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 4.10% from 2022 to 2030. Globally, there are over 800 different registered crop protection chemicals. Companies are highly involved in research and development of new products. The chemicals undergo rigorous safety tests and other processes to ensure their safety. The global crop protection chemicals market is expected to grow at a healthy rate during the next five years. The growing population worldwide is a major driver of the market.

Global Crop Protection Chemicals Market: Regional Insights

Regionally, North America is expected to dominate the global crop protection chemicals market over the forecast period. The United States constitutes the largest market share of 69.2% in the North American region. According to a study conducted by the United States Department of Agriculture (USDA), in accordance with Environmental Protection Agency (EPA), chlorpyrifos and acephate are the most commonly used pesticide active ingredients in the country's agricultural sector. Currently, corn, soybeans, wheat, and cotton account for the largest use of insecticides in the US market. In 2018, corn dominated pesticide use, with a share of approximately 39%, followed by soybeans with a 22% share.

Europe is projected to be second leading market in the global crop protection chemicals market due to presence of developed countries such as UK, Spain, and France. According to the Coherent Market Insights analysis, France is the largest market for crop protection chemicals in Europe. France's crop protection chemical market was valued at USD 2.55 billion in 2020, and it is projected to reach USD 3.14 billion by 2026, witnessing a CAGR of 3.2% during the forecast period.

Figure 1. Global Crop Protection Chemicals Market Value Share (%), By Region, 2021

Crop Protection Chemicals  | Coherent Market Insights

Global Crop Protection Chemicals Market Drivers:

Growing demand for food due to increasing population is primarily fueling growth of the crop protection chemical market. According to the Food and Agriculture Organization (FAO), the world population is expected to grow by over a third, or 2.3 billion, between 2009 and 2050. At the same time, per capita income is also projected to grow across the world. With the increasing per capita income and growing population, the demand for food is also estimated to grow, globally. For instance, as per FAO, the food demand in the United States is expected to increase by 50% to 90% by 2050.

Increasing organic farmland area is again anticipated to propel growth of the market. According to the Europstats, the total area under organic farming in the EU continues to increase, and in 2020 covered 14.7 million hectares of agricultural land. Organic area made up 9.1 % of total EU agricultural land in 2020. In 2020, Sweden had the highest shares of organic cereals (7.1 %) and fresh vegetables (17.8 %) in its total production, while Greece had the highest share of organic bovine animals (30.3 %).

Global Crop Protection Chemicals Market Opportunities:

Increasing adoption of genetically modified (GM) crops is projected to offer significant growth opportunities over the forecast period. Growing use of these crops with pesticide resistance augment the production of crop protection chemicals is again propelling market growth. Genetically modified (GM) crops were first introduced in the United States in 1996. Moreover, advancement in biotechnology continue to increase the development of a wide range of herbicide-tolerant, insect-protected, stress-tolerant, and nutritionally improved genetically modified (GM) crops.

Growing number of resistant pests is expected to serve potential growth opportunities in the near future. For instance, the United States Environmental Protection Agency (EPA) is working on slowing and combating the pests’ resistance to pesticides.  These pests have caused enormous loss of many economically important crops and have forced farmers to rely more on the usage of chemicals.

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Crop Protection Chemicals Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 63.26 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 4.00% 2030 Value Projection: US$ 98 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Origin: Synthetic, Bio-Based
  • By Type: Fungicide, Insecticide, Nematicide, Herbicide, Other types
  • By Application: Grains and cereals, Pulses and Oilseeds, Fruits and Vegetables, Commercial Crops, Other crop types
Companies covered:

Bayer CropScience, ChemChina Corporation, BASF SE, Corteva Agriscience, UPL Limited, FMC Corporation, Nufarm Ltd, Sumitomo Chemicals, American Vanguard Corporation, ISAGRO SpA, Bioworks Inc., Ishihara Sangyo Kaisha Ltd, Marrone Bio Innovations Inc., and Syngenta International AG

Growth Drivers:
  • Growing demand for food due to increasing population
  • Growing organic farmland area
Restraints & Challenges:
  • Strict regulation regarding the usage of pesticides
  • high input cost

Global Crop Protection Chemicals Market Trends:

Growing demand for organic based crop protection products is a growing trend in the market. For instance, the imposition of stringent regulations by countries in the European Union and North America has accelerated the demand for bio-based products. The increased usage of bio-based crop protection products in the global arena will lead the market in the future.

Companies are adopting partnership and agreements as a business growth strategy for geographical expansion. For instance, in June 2021, Aragen Life Sciences (formerly, GVK BIO), a Contract Research and Development Organization (CRDO), head quartered out of Hyderabad, India, announced a strategic partnership with FMC Corporation, a global marketer in innovative agricultural science, that provides solutions towards crop protection, plant health, and professional pest and turf management.

Global Crop Protection Chemicals Market Restraints:

Strict regulation regarding the usage of pesticides is projected to hinder the market growth. For instance, The Organization for Economic Co-operation and Development (OECD), the US Environmental Protection Agency (EPA), and the Food and Agricultural Organization of the United Nations (FAO) are some prominent global pesticides regulatory authorities that set limits for the usage of specific crop protection chemicals in different countries.

High input cost is another key factor expected to restrict the market growth. For instance, in India, according to the Data from the Agriculture Ministry’s own Directorate of Economics & Statistics, out of the estimated operational cost of cultivation of Rs 58,031 per hectare for cotton in Maharashtra during 2017, the share of insecticides was Rs 2,399, which accounts for 4.2% of the total operational cost. Similarly, for paddy in Andhra Pradesh, insecticides accounted for Rs 2,722 out of the total operational cost of Rs 48,932 per hectare, which is 5.6% of the operational cost.

Figure 2. Global Protection Chemicals Market Value Share (%), By Origin, 2021

Crop Protection Chemicals  | Coherent Market Insights

Global Protection Chemicals Market Segmentation:

The global crop protection chemicals market report is segmented into origin, type, application, and geography

Based on origin, the market is segmented into Synthetic and Bio-Based. Out of which, Synthetic is expected to dominate the global market over the forecast period. The synthetic sub-segment of the market was valued at USD 56.06 billion in 2020, and it is projected to reach approximately USD 65.29 billion by 2026, witnessing a CAGR of 2.6% during the forecast period.

Bio-Based segment is also expected to witness significant growth in the near future and this is owing to the growing concerns regarding the food products they are consuming and impact on their health and the environment. These factors are encouraging the market players to shift from synthetic to bio-based chemicals.

Based on type, the market is segmented into Fungicide, Insecticide, Nematicide, Herbicide, and Other types. Out of which, Herbicide is expected to dominate the global market over the forecast period and this is attributed to the ease of usage over mechanical weed control methods. Herbicides also helps save labor costs. Herbicides is the largest type-based sub-segment of the market studied. It was valued at USD 26.22 billion in 2020, and it is expected to reach USD 33.73 billion by 2026, witnessing a CAGR of 4.5% during the forecast period.

Fungicides segment is also expected to witness significant growth in the near future and this is owing to the growing demand for fungicides by cereals and vegetables across the world. The fungicides sub-segment of the market studied was valued at USD 17.29 billion in 2020, and it is expected to reach a value of USD 21.26 billion by 2026, witnessing a CAGR of 3.4% during the forecast period.

Based on application, the market is segmented into Grains and cereals, Pulses and Oilseeds, Fruits and Vegetables, Commercial Crops, and Other crop types. Out of which, Grains and cereals is expected to dominate the global market over the forecast period. The grains and cereals segment of the market accounts for the largest share of 37% of the pesticide's usage. According to the FAO, more than 50% of the cultivated land was used to grow cereals; thus, the demand for crop protection chemicals majorly depends on cereal production. The growing global population is pressuring farmers to improve the cereal production worldwide, hence leading to the use of pesticides in this segment.

Fruits and Vegetables segment is also expected to witness significant growth in the near future and this is owing to the growing demand for fruits and vegetables worldwide. The fruits and vegetables segment of the market studied was valued at USD 15.03 billion in 2020, and it is expected to reach USD 20.60 billion by 2026, witnessing a CAGR of 5.6% during the forecast period.

Global Crop Protection Chemicals Market: Key Developments

  1. In September 2019, Bayer CropScience AG launched the latest fungicide innovation, Iblo technology. This technology is based on the active ingredient, Isoflucypram, a member of a new subclass in the family of the highly valued SDHIs.
  2. In June 2019, Bayer CropScience AG and AlphaBio Control partnered for the distribution of the innovative biological pest control product, Flipper. Under the terms of this agreement, AlphaBio granted Bayer a worldwide exclusive right (except in France) to commercialize Flipper for agricultural and non-agricultural uses.
  3. In June 2018, Bayer CropScience AG completed the biggest acquisition with Monsanto, which was the largest one in its history. The acquisition of Monsanto accompanied two big and highly complementary businesses of   Bayer’s innovative chemical and biological  crop protection portfolio.
  4. In May 2021, China's two centrally-administered, state-owned chemical manufacturers -  Sinochem and ChemChina - were beingrestructured and merged to form a behemoth.  Both the companies are based in Beijing, with each holding several subsidiaries across industry segments. The new chemical giant will operate in a wide array of sectors, like life sciences, material science, basic chemicals, environmental science, rubber and tires, machinery and equipment, and industrial finance.
  5. In September 2020, BASF SE acquired proprietary technology for L- glufosinate ammonium from AgriMetis. The company was acquired for developing highly- improved concentrated weed control products. This is likely to help strengthen the position of BASF SE in the crop protection market by developing new products for protection against weeds.
  6. In June 2018, BASF SE expanded its global insecticide portfolio. The company’s Inscalis insecticide received registration in prominent markets throughout the world. It received the first global registrations in Australia and India. This insecticide will be used for controlling piercing- sucking pests, including hemiptera, such as aphids, whiteflies, psyllids, scales, and leafhoppers.
  7. In June 2017, BASF SE and Sumitomo Chemical entered into a collaboration for the development of a new fungicide. The agreement brings together Sumitomo Chemical’s and BASF’s innovation skills to deliver a novel fungicidal compound to farmers around the world.

Global Crop Protection Chemicals Market: Key Companies Insights

The global crop protection chemicals market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global crop protection chemicals market are Bayer CropScience, ChemChina Corporation, BASF SE, Corteva Agriscience, UPL Limited, FMC Corporation, Nufarm Ltd, Sumitomo Chemicals, American Vanguard Corporation, ISAGRO SpA, Bioworks Inc., Ishihara Sangyo Kaisha Ltd, Marrone Bio Innovations Inc., and Syngenta International AG

*Definition: As the world population grows, crop protection chemicals become increasingly important. They keep pests and weeds away from crops and help boost crop yields. These chemicals also help ensure food security for the world population. In addition, they reduce the costs of farming, allowing farmers to save more money. This means more food for the world.

A variety of crop protection chemicals is available to control pests and diseases. These chemicals are highly selective and have been designed to cause minimal impact on non-target organisms. For example, they can be used to suppress the growth of weeds and control the growth of fungi on plants. They also exhibit low toxicity and rapidly degrade in the soil.

Market Dynamics:

Growing demand for food due to increasing population is a prime factor driving growth of the crop protection chemicals market. According to the Food and Agriculture Organization (FAO), the world population is expected to grow by over a third, or 2.3 billion, between 2009 and 2050. At the same time, per capita income is also projected to grow across the world. With the increasing per capita income and growing population, the demand for food is also estimated to grow, globally. For instance, as per FAO, the food demand in the United States is expected to increase by 50% to 90% by 2050.  Moreover, increasing use of genetically modified crops is again augmenting market growth.

On the other hand, strict regulation regarding the usage of pesticides is projected to hinder the market growth.

Key features of the study:

  • This report provides in-depth analysis of the global crop protection chemicals market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2022–2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global crop protection chemicals market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include Bayer CropScience, ChemChina Corporation, BASF SE, Corteva Agriscience, UPL Limited, FMC Corporation, Nufarm Ltd, Sumitomo Chemicals, American Vanguard Corporation, ISAGRO SpA, Bioworks Inc., Ishihara Sangyo Kaisha Ltd, Marrone Bio Innovations Inc., and Syngenta International AG
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global crop protection chemicals market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global crop protection chemicals market

Detailed Segmentation:

  • Global Crop Protection Chemicals Market, By Origin:
    • Synthetic
    • Bio-Based
  • Global Crop Protection Chemicals Market, By Type:
    • Fungicide
    • Insecticide
    • Nematicide
    • Herbicide
    • Other types
  • Global Crop Protection Chemicals Market, By Application:
    • Grains and cereals
    • Pulses and Oilseeds
    • Fruits and Vegetables
    • Commercial Crops
    • Other crop types
  • Global Crop Protection Chemicals Market, By Geography:
    • North America
    • Europe
    • Asia-Pacific
    • South America
    • Middle East & Africa
  • Company Profiles:
    • Bayer CropScience
    • ChemChina Corporation
    • BASF SE
    • Corteva Agriscience
    • UPL Limited
    • FMC Corporation
    • Nufarm Ltd
    • Sumitomo Chemicals
    • American Vanguard Corporation
    • ISAGRO SpA
    • Bioworks Inc.
    • Ishihara Sangyo Kaisha Ltd
    • Marrone Bio Innovations Inc.
    • Syngenta International AG

Frequently Asked Questions

The global crop protection chemicals market size is estimated to be valued at US$ 63.26 Million in 2021 and is expected to exhibit a CAGR of 4.00% between 2022 and 2030.
Growing demand for food due to increasing population and growing organic farmland area are fuelling the growth of the market.
The Synthetic origin segment is the leading component segment in the market.
Strict regulation regarding the usage of pesticides and high input cost are the major factors restraining growth of the market.
Bayer CropScience, ChemChina Corporation, BASF SE, Corteva Agriscience, UPL Limited, FMC Corporation, Nufarm Ltd, Sumitomo Chemicals, American Vanguard Corporation, ISAGRO SpA, Bioworks Inc., Ishihara Sangyo Kaisha Ltd, Marrone Bio Innovations Inc., and Syngenta International AG

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