CROP PROTECTION CHEMICALS MARKET ANALYSIS

The global crop protection chemicals market size was valued at US$ 66.44 Billion in 2023 and is anticipated to witness a compound annual growth rate (CAGR) of 6.7% from 2023 to 2030. Globally, there are over 800 different registered crop protection chemicals. Companies are highly involved in the 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.

Impact of COVID-19 on Global Crop Protection Market

The COVID-19 pandemic has had a significant impact on the global crop protection market. The pandemic has disrupted supply chains, caused labor shortages, and led to changes in consumer behavior, all of which have affected the demand for crop protection products. One of the major impacts of the pandemic has been on the availability of raw materials and production inputs. Many countries have implemented lockdowns and travel restrictions, which have disrupted the supply of key inputs such as pesticides and fertilizers. This has led to shortages and price increases, which have impacted the profitability of crop protection manufacturers.

Global Crop Protection Chemicals Market Drivers:

• Growing demand for food due to increasing population: Growing demand for food due to an increasing population is primarily fueling growth of the Global 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 increasing per capita income and a growing population, the demand for food is also estimated to grow globally. For instance, as per the FAO, food demand in the U.S is expected to increase by 50% to 90% by 2050.
• Growing organic farmland area: Increasing organic farmland area is again anticipated to propel growth of the market. According to Europstats, n 2020, the area of agricultural land under organic farming in the European Union (EU) continued to expand, reaching a total of 14.7 million hectares. Organic areas 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:

• Increased use of genetically modified (GM) crops: The increasing adoption of genetically modified (GM) crops is projected to offer significant growth opportunities over the forecast period. The growing use of these crops with pesticide resistance to augment the production of crop protection chemicals is again propelling market growth. Genetically modified (GM) crops were first introduced in the U.S. in 1996. Moreover, advancements 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.
• A growing number of pests are becoming resistant: A growing number of resistant pests is expected to provide potential growth opportunities in the near future. For instance, the United States Environmental Protection Agency (EPA) is working on slowing and combating pests’ resistance to pesticides. These pests have caused enormous losses in many economically important crops and have forced farmers to rely more on the use of chemicals.

Global Crop Protection Chemicals Market Trends:

• Growing demand for organically grown crops: The 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 partnerships and agreements

Companies are adopting partnerships 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), headquartered 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: Strict regulation regarding the use of pesticides is projected to hinder 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 pesticide regulatory authorities that set limits for the usage of specific crop protection chemicals in different countries. In 2020, the European Union (EU) implemented new regulations regarding the usage of pesticides. The new regulations, known as the Sustainable Use of Pesticides Directive, aim to reduce the risks and impacts of pesticide use on human health and the environment.
• High input costs: High input costs are another key factor expected to restrict market growth. For instance, in India, according to the data from the Agriculture Ministry’s own Directorate of Economics and Statistics, Crop protection chemicals can be expensive, which can limit their use by small-scale farmers and in developing countries. This can limit the potential market for these products.

Global Protection Chemicals Market Segmentation:

Figure 1: Global Protection Chemicals Market by Origin in 2023

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

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 US$ 56.06 billion in 2020, and it is projected to reach approximately US$ 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, owing to growing concerns regarding the food products they are consuming and their impact on their health and the environment. These factors are encouraging market players to shift from synthetic to bio-based chemicals.

Figure 2: Global Crop Protection Chemicals Market by Region in 2023

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Regionally, North America is expected to dominate the global crop protection chemicals market over the forecast period. The U.S. has 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 2022, corn dominated pesticide use with a share of approximately 39%, followed by soybeans with a 22% share.

Europe is projected to be the second-leading market in the global crop protection chemicals market due to the presence of developed countries such as the 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 US$ 2.55 billion in 2020, and it is projected to reach US$ 3.14 billion by 2026, witnessing a CAGR of 3.2% during the forecast period.

Global Crop Protection Chemicals Market: Key Developments

• In May 2021, China's two centrally administered, state-owned chemical manufacturers- Sinochem and ChemChina- were being restructured and merged to form a behemoth. Both 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.
• 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.
• In January 2020, Corteva Agriscience launched the Cerefit fungicide in Canada. Cerefit is a dual-mode- of-action fungicide that targets leaf diseases. It ultimately provides farmers with increased yield potential.
• For example, in 2020, Syngenta launched a new sustainability program called The Good Growth Plan, which aims to promote sustainable agriculture and reduce the environmental impact of crop production.

Global Crop Protection Chemicals Market: Key Companies Insights

The global crop protection chemicals market is highly competitive. This is attributed to the continuous launch of new technologies due to ongoing R&D(Research and Development)and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional and 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’s population. In addition, they reduce the costs of farming, allowing farmers to save more money. This means more food for the world.