Crop Protection Chemicals Market Size, Share & COVID-19 Impact Analysis, By Type (Herbicides, Insecticides, Fungicides, and Others), By Source (Synthetic Chemicals and Biologicals), By Mode of Application (Foliar Spray, Soil Treatment, Seed Treatment, and Others), By Crop Type, and Regional Forecast, 2021-2028

The global crop protection chemicals market size was USD 57.13 billion in 2020 and is projected to grow from USD 59.41 billion in 2021 to USD 81.74 billion in 2028 at a CAGR of 4.66% during the analysis period from 2021 to 2028. The global impact of COVID-19 has been unprecedented and staggering, with these protection chemicals witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a growth of 2.50% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth rate, returning to pre-pandemic levels once the pandemic is over.

Crop protection products, such as crop pesticides, reduce yield losses caused by pests and diseases. According to the Royal Society of Chemicals, about 800 chemically active ingredients are registered for use as crop protection solutions worldwide. These chemicals are broadly categorized into herbicides, fungicides, and insecticide groups.

The focus of research in recent years in the crop protection type of products domain has been on developing compounds safer than older counterparts to meet the demand for new molecular solutions for control of pests that have developed resistance to the older compounds. Other key research and development (R&D) interest areas include selectivity to control target pests, per hectare low application rate requirement, broad-spectrum control to cover a diverse group of pests and diseases, and meet regulatory mandates regional and local markets.

The impact of COVID-19 led to Disruption in the Supply Chain of Crop Protection Products

The outbreak of COVID-19 has affected public health as well as the global economy. The COVID-19 impact on the global economy has resulted in socio-economic disruptions; along with other industries, the spread of COVID-19 has affected the agriculture input sector. The coronavirus has impacted critical processes in the production and distribution of agrochemicals, from raw material imports to end-product manufacturing.

China is one of the major producers of both active ingredients and pesticide products. Thus, the closure of Chinese factories has led to a massive shortage in the supply of active ingredients (required for pesticide manufacturing) and protection products for crops. Furthermore, even after resuming chemical manufacturing units in China by the end of February 2020, the supply of products for crop protection was disrupted. This disruption in the supply chain was mainly due to the lockdowns declared in many countries to contain the spread of coronavirus. In addition, these lockdowns have restricted the transport of raw materials and protection products in highly affected areas. Many shipping companies have also suspended their services. Owing to these major problems in the supply chain, the sales of crop pesticides and other products are expected to be lower than last year, thereby causing a decline in the market value of these protection products.

LATEST TRENDS

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Growing Adoption of Integrated Pest Management to Enhance Yields

The integrated pest management strategy focuses predominantly on the long-term prevention of pests by combining techniques such as biological control, utilization of resistant variants, and modification of cultural practices. Different pest control methods and extensive information on the pest life cycle and their interaction result in proper pest management with the most negligible hazard to human and animal health. Thus, farmers are inclining toward such methodologies as it reduces the environmental risks associated with pest management. For instance, according to the Directorate of Plant Protection Quarantine & Storage (India), agricultural crop yield has increased by 40.14% and 26.63% in rice and cotton crops, respectively, with integrated pest management practices.

According to the research findings, the global losses due to insect pests have declined from 13.6% in the post-green revolution era to 10.8% towards the beginning of this century. This decline in pest infestation was due to the tremendous change in the crop production systems, use of these protection chemicals, increased awareness about field & post-harvest losses and required control measures. Improved infrastructure facilities for post-harvest management of crop production across the world.

DRIVING FACTORS

Increasing Utilization of Crop Protection Solutions for High Yield to Fuel Growth

Crop protection chemicals are widely utilized in modern agriculture as an effective and economical solution to enhance crop yield by preventing crops from harmful pests and weeds. Thus, the rise in crop yield helps to ensure food security for the growing populations. According to the Food and Agriculture Organization (FAO), Brazil, China, and the U.S are major consumers of these protection products. High usage of pesticides in these countries can be identified as one of the main causes for rising crop yield.

 The emergence of Pests and Diseases Due to Fluctuations in Climatic Conditions to Aid Growth

Changes in climatic conditions have accelerated the occurrence and prevalence of plant diseases and pests. Climatic fluctuations have a significant impact on crop production and susceptibility to pest problems. Climate change increases the susceptibility of crops to different pests and diseases, which, in turn, affects crop yield. Therefore, any change in the climate leads to deviation in farming practices, leading to a decline in productivity. Further, irregular rainfall in various regions led to a rise in the fungal population. These factors have increased the dependability of farmers on the products for efficient pest prevention, thereby fueling the growth of the market.

RESTRAINING FACTORS

Growth in Resistance of Pests to Crop Pesticides to Hamper the Market

The increased resistance of pests toward certain crop protection chemicals is a major factor restraining the market growth. The significant decline in the effectiveness of certain active ingredients has led to enhanced resistance to pests. This resistance can be attributed to the change in metabolism patterns in insects, increasing reproductive rates, and extreme pest proliferation.

SEGMENTATION

By Type Analysis

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Rising Weed Population to Spike Adoption of Herbicides

The herbicides segment dominated the global market as many developing countries, such as India and China, face shortage of laborers for mechanical weeding. High efficiency offered by herbicides over manual weeding techniques is expected to support the market segment growth in the coming years. The launch of various herbicide products having unique features based on the selectivity of weed and emergence of crops, adds stimulus to the crop protection chemicals market growth. On the other hand, the increasing area under genetically modified crops across various regions also attracts increased usage of herbicide products in crop cultivation.

By Crop Type Analysis

Cereals Segment to Observe Robust Growth

The cereals segment has been observing a robust growth in recent years, owing to the high adoption of crop protection products in cereal production. According to FAO, world cereal production is projected to rise by 2.6% in 2020 from previous year levels. Additionally, the rising global population has led to an increased focus on food security and high demand for crops, thereby contributing to the growth of the cereals segment.

By Source Analysis

Synthetic Chemicals Segment to Emerge Dominant

The synthetic chemicals segment holds a major market share due to the high use of these chemicals in developing countries of Asia, South America, Africa, and the Middle East. The increased usage of synthetic chemicals is primarily attributed to their lower price and pest-targeted effectiveness. On the other hand, the demand for biologically sourced protection products is increasing as the regional, country, and local governments promote environment-friendly crop protection products.

By Mode of Application Analysis

Seed Treatment Mode of Application to Display Strong Growth

Conventional modes of application, such as foliar and soil application segments, accounts for a significant market share. Still, seed treatment has emerged as a popular method of applying these protection chemicals in recent years. Considering its cost, efficacy, and safety, the seed treatment method of application is fast emerging as a better alternative to conventional/traditional pest control methods. It can supplement other pest control measures to achieve satisfactory results in the field.

REGIONAL INSIGHTS

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Asia Pacific is the largest market. The growing awareness about the use of protection products for crops among small and marginal crop producers in the region has supported the market's strong growth. Expansion of areas under cultivation of high-value and export-oriented crops is projected to support the market growth in Asia Pacific. The rising population in the region and the increasing need for food crops also enhance pesticides in the region.

South America is now the second-largest consumer of crop protection chemicals, and its usage is projected to surpass the dominating region by 2024. Brazil is the key pesticide consumer in the region. The growth of the Brazil crop protection chemicals market is driven by growing exports of agricultural commodities, an increasing area under cultivation, and modern farm inputs, including these protection products.

The consumption of crop protection chemicals in Europe is supported by increasing awareness regarding integrated pest management approaches, advances in farming practices, and the need to increase yield per hectare. The presence of key manufacturers such as Bayer, BASF, and Syngenta also drives the high use of pesticides in the region.

The North American crop protection chemicals market is driven by declining arable land and food security. Large area under cultivation of cereal crops also fuels the use of such chemicals in the region. The U.S. is the major pesticide consumer in the region, and its growth is driven by the adoption of advanced technologies and modern farming practices.

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The cost-effectiveness of chemical pesticides and the need to increase agricultural productivity boost crop protection products in the Middle East and African region. The large area under field crop cultivation and high demand for grain crops also fuel the adoption of these products in the region.

KEY INDUSTRY PLAYERS

Key Players to Intensively Focus on New Product Launches for Efficient Crop Protection Solutions

Industry players are launching new crop protection products considering the diversified demand from farmers and agriculturists. The manufacturers are focusing on expanding their geographical presence as well as increasing their production capabilities. This will help in delivering better quality products to consumers.

UPL (India) made significant acquisitions in recent years to strengthen its position in the global market. The company completed the acquisition of Arysta LifeScience Inc. from Platform Specialty Products for USD 4.2 billion in 2019 (February). Now, the company has its footprint in 76 countries and sales in more than 130 countries.

LIST OF KEY COMPANIES PROFILED

• Bayer CropScience (Leverkusen, Germany)


• Syngenta AG (Basel, Switzerland)


• BASF (Ludwigshafen, Germany)


• Corteva, Inc. (Delaware, U.S.)


• FMC Corporation (Pennsylvania, U.S.)


• ChemChina (Beijing, China)


• Sumitomo Chemicals (Tokyo, Japan)


• UPL Ltd. (Mumbai, India)


• Nufarm (Melbourne, Australia)


• Rotam CropScience Ltd (Hong Kong, China)

KEY INDUSTRY DEVELOPMENTS:

In January 2020, Crystal Crop Protection Ltd acquired three insecticide brands, Dursban, Nurelle-D, and Predator, from Corteva Agriscience. This acquisition will be a valuable addition to the company's business and strengthen its market presence.

In May 2019, BASF launched an innovative fungicide, ‘Seltima,’ for rice crop protection in Thailand. The product contains unique encapsulation technology to ensure the controlled release of the active ingredient directly on the plant surface.

REPORT COVERAGE

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The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Crop Protection Chemicals Market Segmentation