Crop Protection Chemicals Market Size, Share & COVID-19 Impact Analysis, By Type (Herbicides, Insecticides, Fungicides, and Others), Source (Synthetic Chemicals and Biologicals), Mode of Application (Foliar Spray, Soil Treatment, Seed Treatment, and Others), Crop Type, and Regional Forecast, 2020-2027

The global crop protection chemicals market size was valued at USD 55.73 billion in 2019 and is projected to reach USD 73.94 billion by 2027, exhibiting a CAGR of 4.50% during the forecast period.

Crop protection products, such as crop pesticides, are used to 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 around the world. These chemicals are broadly categorized in herbicides, fungicides, and insecticide groups.

The focus of research in recent years in the crop protection chemicals 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 in their action 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 of regional and local markets.

Covid-19 Pandemic Affected the Global Economy and Crop Protection Products Purchasing Pattern

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 involved 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 crop protection products. Furthermore, even after resuming chemical manufacturing units in China by the end of February 2020, the supply of crop protection products was disrupted. This disruption in the supply chain was mainly due to the lockdowns that were declared in many countries to contain the spread of coronavirus. In addition, these lockdowns have restricted the transport of raw materials and crop 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 agricultural products are expected to be lower as compared to last year, thereby causing a decline in the market value of crop protection products.

LATEST TRENDS

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Growing Adoption of Integrated Pest Management to Enhance the Yields

Integrated pest management strategy focuses predominantly on long-term prevention of pests by combining techniques such as biological control, utilization of resistant variants, and modification of cultural practices. The combination of different pest control methods along with extensive information on the pest life cycle and their interaction results in proper pest management with the least hazard to human and animal health. Thus, farmers are inclining towards 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 with the implementation of integrated pest management practices compared to non-IPM fields.

According to the research findings, 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, due to the tremendous change in the crop production systems, use of crop protection chemicals, increased awareness about field & post-harvest losses & required control measures, and 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 crop protection products. High usage of pesticides in these countries can be identified as one of the main causes of 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 major impact on crop production and susceptibility to pests. 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 and this leads to a decline in productivity. Further, irregular rainfall in various regions has led to rising in the fungal population. These Key factors have increased the dependability of farmers on crop protection products for efficient pest prevention, which is fueling the crop protection chemicals market growth.

RESTRAINING FACTORS

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

The increased resistance of pests towards 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 is witnessing significant growth as many developing countries such as India and China are facing a shortage of laborers for mechanical weeding. Also, the high efficiency offered by herbicides over manual weeding techniques is expected to support the segment’s growth in the coming years. The launch of various herbicide products having unique features based on the selectivity of weed, the emergence of crop, etc. is adding stimulus to the growth of the market. On the other hand, the increasing area under genetically modified crops across various regions is also attracting the increased usage of herbicide products in crop cultivation.

By Crop Type Analysis

Cereals Segment to Observe Robust Growth

The cereals segment is observing a robust growth in recent years owing to the significant 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 demand for 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 is holding major crop protection chemicals market share due to high use of these chemicals in developing countries of Asia, South America, Africa, and the Middle East. The high usage of synthetic chemicals is primarily owing to their lower price and their pest-targeted effectiveness. On the other hand, biologically sourced crop protection products demand increasing as the regional, country, and local government bodies are promoting the usage of environmental 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 account for large market share, but seed treatment has emerged as a popular method of application of crop 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 and can supplement other pest control measures to achieve satisfactory results in the field.

REGIONAL INSIGHTS

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Insecticides to Emerge as Most Attractive Product Type to Meet Growing Food Demand in Asia Pacific

Globally, the insecticides segment is forecasted to be the most attractive product type segment in crop protection chemicals during the forecast period. Asia Pacific region is the largest market for insecticide products and growing awareness about the use of crop protection products among the small and marginal crop producers in the region has supported the strong growth of the insecticides segment. Expansion of areas under cultivation of high-value and export-oriented crops is projected to support the growth of the insecticide segment in the Asia Pacific region.

Market players in the North America and Europe are majorly focusing on the biologically derived crop protection products considering the safety of environment. South America is the second largest consumer of these chemicals now and its usage is projected to surpass the dominating region by 2024.

Bio-based or biological origin this market accounted for 8.3% share in 2019 and is forecasted to witness strong growth due to factors such as the development of pest resistance to pesticides, stringent regulatory policies, and the emergence of start-ups in developing bio-based products (as they require limited investment compared to synthetic chemicals). Multinational companies are proactively exploring opportunities in the bio-based chemicals segment by adopting strategies such as the acquisition of start-up companies and forming joint ventures to establish their presence in the market.

KEY INDUSTRY PLAYERS

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

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, USA)


• ChemChina (Beijing, China)


• Sumitomo Chemicals (Tokyo, Japan)


• UPL Ltd. (Mumbai, India)


• Nufarm (Melbourne, Australia)


• Rotam CropSciences Ltd (Hong Kong)


• Other players

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 special encapsulation technology to ensure the controlled release of the active ingredient directly on the plant surface.

REPORT COVERAGE

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The crop protection chemicals 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.

Report Scope & Segmentation