Market Challenges And Opportunities
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 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.