Global Crop protection chemicals (Pesticides) Market - Growth, Trends And Forecasts (2017 - 2022)
Worldwide, the pesticides industry has been witnessing a relatively steady growth, which has been primarily attributed to the demand for biopesticides and the adoption of herbicide resistant crops by farmers. While the prevalence of chemical or synthetic pesticides in crop protection would continue, human, animal and environmental health concerns would play a key role in driving the growth of biopesticides market. Emerging economies in Asia-Pacific and Latin America are likely to lead the adoption of both, synthetic pesticides and biopesticides.
The global market for pesticides is expected to register a CAGR of 5.79% between 2016 and 2021. By 2021, Asia-Pacific is projected to grow at the fastest pace, followed by South America. The demand and growth of synthetic pesticides in Europe and North America are likely to be the slowest, due to market saturation and pesticides ban in the regions.
Globally, the market for synthetic pesticides has been witnessing unprecedented changes during the last decade. One of the main reasons is the enhanced efficiency in utilization of pesticides, due to significant advancements in pest management procedures and technology. Factors that drive the growing use of synthetic pesticides include the increasing food demand and shrinking land, greater adoption of genetically modified (GM) crops and increasing market share of biopesticides and the adoption of new farming practices.
The major restraints for the use of synthetic pesticides include high R&D costs and the extensive research required to generate new pesticides, major regions banning the use of pesticides, low per capita use of pesticides in several regions and the growing demand for food safety and quality.
The global consumption of pesticides is on a steady rise; however, trends by region have changed dramatically. The global market trends, demand, production, and import and export of pesticides are driven by some controlled and uncontrolled factors. The most common factors include weather, change in cropping acreage, input cost, pesticides regulation and deregulation, adoption of GM crops and the emergence of new species of pests.
The pesticide market is segmented by chemical type, application, and geography. By chemical type, the market is further segmented into herbicides, insecticides, fungicides, and other crop protection chemicals. Herbicides segment is the fastest growing, with a CAGR of 5.88%, followed by fungicides.
By application, the market is segmented into crop-based and non-crop-based. Crop-based, which occupies the largest market share of XX%, is further divided into grains & cereals, oilseeds, and fruits & vegetables. Oilseeds segment is the fastest growing, with a CAGR of XX%. Non-crop-based is segmented into turf & ornamental grass, and others.
By geography, the pesticide market is further segmented into North America, Europe, Asia-Pacific, South America, and Africa; with Asia Pacific being the fastest growing region during the forecast period, followed by South America. China, India and Brazil are the key growth markets for all types of pesticides. As per FAO, Asia-Pacific remained the largest producer of rice, wheat, and vegetables, from 1996 to 2013, accounting for 90.9%, 43.6% and 85.3% of the global production, respectively. Hence, the demand for pesticides would be the highest in the region, and grain-based pesticides are expected to drive the growth of the market in the region.
Major companies in the sector include:
Recent Industry Insights
In May 2016, Pesticide Action Network Europe together with 38 European health and environmental organizations, sent an open letter to the decision-makers of the 28 EU Member States advocating them to vote against the cancer-causing pesticide ingredient glyphosate. This comes as the largest ban of consumer and agricultural use of Monsantoâ€™s glyphosate.
Important patents of top companies namely BASF, Bayer, LG Life Sciences, Sumitomo Chemical Co., Ltd. and Syngenta are going to expire in the coming years. Industry players are keeping a close watch on their patent status to spot new opportunities in the business.
China National Chemical Corp. purchased Swiss chemical and seeds company Syngenta for USD 43 billion.
Key Deliverables in the Study
Market analysis for the global pesticide market, with region specific assessments and competition analysis.
Market overview and identification and analysis of the macro and micro factors that affect the global pesticide market and also instrumental in changing the market scenario, on both, global and regional scales.
Extensively researched competitive landscape section with profiles of major companies and their market share, along with an analysis of their current strategic interests and financial information and strategies adopted by them to sustain and grow in the studied market.
The report holds importance for the following stakeholders-
Producers and manufacturers
Agricultural input companies
Enterprises operating in the industry
Traders and stakeholders operating in the sector
Investors/research institutions interested in the market
Supply chain analysis