Global Specialty Pesticides Market Is Estimated To Witness Robust Growth Due To Increasing Demand For High Value Crops And Growing Adoption Of Integrated Pest Management
The Global Specialty Pesticides Market is estimated to be valued at USD 22.35 Bn in 2024 and with CAGR of 5.3% over the forecast period 2023-2031. The market is witnessing robust growth owing to the increasing demand for high value crops including fruits and vegetables along with growing adoption of integrated pest management practices. Furthermore, advances in formulation technologies are expanding applications of specialty pesticides.
Market Dynamics:
The Global Specialty Pesticides Market is driven by the increasing demand for high value crops globally. Specialty pesticides play a critical role in protecting high value crops including fruits and vegetables from pests and diseases. They help increase crop yields as well as the quality of produce. Moreover, the growing adoption of integrated pest management (IPM) practices by farmers worldwide is also fueling the demand for specialty pesticides. IPM promotes the use of pest control methods other than heavy reliance on synthetic pesticides. Specialty biopesticides and other reduced risk products are often recommended under IPM as they are more targeted and cause less harm to the environment.
Rapid Growth in Demand for Quality Food and Reduction in Crop Loss is Driving the Market
The growing global population and rising disposable incomes have led to an increasing demand for high-quality and abundant food supplies. Specialty pesticides play a crucial role in ensuring maximum crop yields by protecting crops from pests and diseases. They help farmers reduce crop losses substantially. As per estimates, crop losses due to pests can be as high as 40% without the use of effective pest control measures. Specialty pesticides containing novel active ingredients are more targeted towards specific pests and have minimal effects on beneficial insects and the environment. This allows farmers to spray them closer to harvest without worrying about chemical residues. Their precision and sustainability attributes are prompting more farmers to adopt specialty pesticides for major crops including fruits & vegetables, cereals & grains, and oilseeds & pulses.
Stringent Government Regulations on Conventional Pesticides is Fueling Market Growth
Governments across countries are imposing stricter Maximum Residue Limits (MRLs) on pesticide residues in food. They are also banning the use of certain hazardous conventional pesticides. This is creating demand for newer, more environment-friendly specialty pesticides. Various environmental agencies and regulations such as REACH in Europe encourage the development of pest control solutions with improved eco-profiles. Specialty pesticides based on biopesticides and other organic formulations conform to the stringent regulatory standards. The need for compliance is driving R&D investments into specialty pesticide variants by major agrochemical firms. Additionally, programs promoting integrated pest management and sustainable agriculture practices create opportunities for specialty products.
High Cost of Development Hurts Market Expansion
Specialty pesticides feature novel modes of action targeting specific pests. Their discovery and development process from conceptualization to registration is highly complex and capital-intensive. It normally takes over a decade and costs over $250 million to develop a new specialty pesticide molecule. The risks of failure are also high during clinical trials due to stringent safety standards. These high costs are passed on to the end-users in the form of relatively higher product prices. This makes specialty pesticides less affordable for many smallholder farmers in developing nations, limiting the scope for market growth. Additionally, the lack of funding support from governments further raises product costs for companies.
Patent Expiries of Blockbuster Products Restrain Revenues
Major specialty pesticide patents go off the table after approximately 20 years. This opens up opportunities for generic manufacturers to introduce proprietary formulations. The stiff competition from these lower-priced generics considerably reduces revenues from blockbuster product families for innovator firms. It adversely impacts their investments into the R&D pipeline. Loss of patent protection on key molecules is a significant market restraint, especially for large specialty pesticide companies. They find it difficult to compensate for the loss with new launches due to long development cycles. Measures to extend patents through additional applications are challenging and expensive to implement.
Market Consolidation through M&As Offers Opportunity
In the maturity phase, most specialty pesticide markets in developed nations experience consolidation as large firms seek to expand through mergers and acquisitions. These M&A deals help companies achieve synergies, penetrate new geographies and diversify product portfolios. The acquisition of smaller innovative firms enables access to exciting pipeline candidates and technologies. For example, in 2020, Corteva Agriscience acquired Arysta Lifescience to complement its portfolio and capabilities in Japan, Brazil, and Europe. Similarly, major acquisitions such as Bayer-Monsanto and ChemChina-Syngenta have concentrated market shares in the hands of a few giants. The ongoing trend of market consolidation through strategic partnerships and takeovers is a key opportunity area in the specialty pesticides industry.
Link - https://www.coherentmarketinsights.com/market-insight/specialty-pesticides-market-5117
Key Developments:
- In 2024, Bayer AG launched a new line of bio-based herbicides aimed at promoting sustainable farming practices. These herbicides, derived from natural sources, are designed to provide effective weed control while minimizing the environmental impact compared to traditional synthetic herbicides. By introducing this bio-based herbicide line, Bayer AG demonstrates its commitment to developing innovative solutions that support sustainable agriculture. The use of natural ingredients in these herbicides aligns with the growing demand for eco-friendly agricultural products and the need to reduce the reliance on harsh chemicals in farming.
- In 2023, Corteva Agriscience expanded its product portfolio by introducing innovative insecticides specifically designed for integrated pest management (IPM). These new insecticides aim to provide effective pest control while minimizing the impact on beneficial insects and the environment.
- In 2023, BASF SE announced a strategic partnership with a leading biotech firm to develop advanced biopesticides. This collaboration aims to leverage the expertise and resources of both companies to create innovative biological pest control solutions that are effective, sustainable, and environmentally friendly.
- In 2023, Syngenta AG introduced a new fungicide specifically designed to target resistant strains of crop diseases. This innovative product aims to provide effective protection against fungal pathogens that have developed resistance to existing fungicides, thereby helping farmers safeguard their yields and maintain crop health.
Key Player:
Bayer AG, Syngenta AG, Corteva Agriscience, BASF SE, FMC Corporation, Adama Agricultural Solutions Ltd., Nufarm Limited, Sumitomo Chemical, Monsanto Company (part of Bayer), UPL Limited, Lanxess AG, Nippon Soda Co., Ltd., Zhejiang Jianfeng Chemical Co., Ltd., Hanfeng Evergreen Inc., American Vanguard Corporation, Arysta LifeScience Corporation, Mitsui Chemicals, Inc., SABIC, Kumiai Chemical Industry Co., Ltd., Rallis India Ltd.
