Nematicides Market Size, Share & COVID-19 Impact Analysis, By Type (Fumigants, Organophosphate, Carbamate, Bio-based Nematicides), Crop (Vegetables, Field Crops, Fruits, and Others), Formulation (Liquid, Granular or Emulsifiable Liquid, and Others), and Regional Forecast, 2020-2027

The global nematicides market size stood at USD 1,439.2 million in 2019 and is projected to reach USD 2,055.3 million by 2027, exhibiting a CAGR of 4.7% during the forecast period.

Amplified demand for high-value crops such as fruits and vegetables and rising incidence of nematode infestation are leading to the increasing demand for nematicide products. Higher acceptance and appreciation of the product amongst growers in developing as well as developed countries are influencing the market growth trajectory. Besides, the ongoing research and development activities for the production of sustainable nematicides are fueling the present growth scenario.

Coronavirus Outbreak: Disrupted Supply of Raw Material to Impede Market

The Covid-19 global pandemic disrupted operations across all agri-inputs sectors. The supply chain of the market includes an interconnection between raw material transport, manufacturing plants, manufacturers, and transportation & logistics. The spread of COVID-19 has affected the supply chain around the world. Also, with the uncertainties allied with the pandemic’s duration and nature, the supply-chain disruption is expected to continue.

The nematicides market remains to be challenged by the economic and logistics impacts of Covid-19. Nonetheless, the effects are irregular across markets and not all undesirable. For instance, the sudden outbreak of COVID-19 has had a big impact on cash flow, disruption in raw material procurement, and product distribution but the demand for nematicides is expected to increase post-COVID-19 to ensure overall food security. The prominent, as well as niche companies, are expected to rigorously enter digital solutions to continue the revenue generation, which can serve as an opportunity for company growth even after COVID 19 pandemic. This pandemic has taught the companies that there could be capacity concerns during these kinds of global crises, and companies must learn to adapt to this new normal.

LATEST TRENDS

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Proliferating Demand for Sustainable Agri-inputs to Support High Growth Trajectory

The increasing environmental concerns and health problems caused due to synthetic agri-inputs have led to the significant demand for sustainable agri-inputs such as bio-based nematicides. Organic farming is gradually encouraged as an ideal substitute for conventional practice to reduce the overall impact on human beings and the environment. The favorable growth trajectory of organic farming is predicted to benefit the future growth of bio-based nematicides with stronger demand dynamics for bio-based plant protection solutions during the forecast period.

DRIVING FACTORS

Ever-rising Demand for Food is Playing a Crucial Role in the Market Growth

Agriculture is one of the most crucial economic sectors in the world. The rapidly increasing population is urging growers to utilize pesticides such as nematicides to improve yield quantity as well as quality. Moreover, the strong emphasis from governments and other stakeholders on the organic and sustainable mode of farming has increased the utilization of bio-based nematicides among farmers.

The decreasing agriculture production due to nematode damage is expected to be a favorable factor for market growth. For instance, according to the Food and Agriculture Organization (FAO), on a global basis, annual crop losses due to nematode infestation have been estimated to be approximately 12.3%, amounting to some US$ 77 million yearly. 

Rising Investment in R&D Activities to Support Market Growth

The rising investment by prominent market players in the research and development of innovative products is anticipated to positively impact market growth. For instance, in September 2019, FMC Corporation introduced its new product, Presence. The company claims that this is the first microbiological nematicide in the Brazilian market permitted for use on seeds. The product has brilliant stability and the highest concentration in the market and it will benefit the overall plant health by promoting root growth.

RESTRAINING FACTORS

High Environmental Risk is Restricting the Market Growth

High environmental risk allied with the utilization of synthetic pesticides is predicted to hamper market growth. The uses of synthetic pesticides have recorded extensive and large-scale damage to the environment. Thus, there has been a strong call of action regarding the improvisation in traditional agricultural solutions and limitations on the use of synthetic pesticides. These above-mentioned factors can negatively impact market growth.

SEGMENTATION

By Type Analysis

Fumigants Segment to Lead the Market During the Forecast Period

The fumigants segment held the largest share in the global nematicides market in 2019. Fumigants are broad-spectrum nematicide products where the active component transfers through the soil as a gas. Fumigants are not bound by soil or taken up by plants, thus they have a small period of residual pesticidal activity and they are highly effective compared to other nematicides such as organophosphate and carbamate. The aforementioned factor is expected to aid the fumigant's growth in the upcoming years.

At present, the bio-based nematicides segment is growing at the highest pace in the global market. The increasing popularity and adoption rate of bio-based nematicide products is predicted to be a favorable factor for market growth. The long term use of bio-based nematode control products for crop cultivation is eco-friendly, economical, and more effective over chemical-based nematicides, which is expected to increase the utilization of bio-based nematicide products in forthcoming years.

By Crop Analysis

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Application of Nematicides in the Production of Vegetables to Remain High

The vegetable segment is predicted to hold the largest market share due to the rising incidences of nematode infestation on numerous vegetables such as carrots, potatoes, and tomatoes. Nematode-infected roots become damaged and distorted which hamper the quality and quantity of the product. Moreover, nematodes also aggravate the harmful effects of fungi and bacteria. Hence, vegetable growers use nematicide products to treat nematodes and avoid product losses. The increasing farmer's inclination towards the cultivation of organic fruits, vegetables, and cereals is expected to boost the demand for bio-based nematicide products in upcoming years.

By Formulation Analysis

Liquid Formulation of Nematicides is Extensively Utilized among Farmers

The liquid formulation of the product has secured a larger revenue chunk in 2019, and the segment is anticipated to grow at a significant pace throughout the forecast period. The demand for liquid nematicide products is high among the farmers across the globe owing to ease of application, convenience in the usage of the product & to evade any wastage or spoilage of the product due to contamination. Nonetheless, the granular or powder formulation of the product is also gaining traction among farmers due to the comparatively long shelf life, easy storage, and transport of the product.

REGIONAL INSIGHTS

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North America is the leading market at present and it is projected to hold a major proportion of the global market share during the foreseeable years. The regional market is expected to grow at the fastest pace mainly because of the phase-out and restrictions of hazardous and older solutions and intensive research performed by prominent market players to develop sustainable and effective nematode control. The presence of prominent players such as Bayer Crop Science AG, Marrone Bio Innovations, and The Dow Chemical Company in the U.S. is likely to act as a growth booster for the market in the region.

The demand for nematode control products in Asia Pacific is predicted to remain promising during the upcoming years owing to the rising cultivation of high-value crops such as vegetables and fruits. As a result, numerous prominent market players operating in the global market are expanding their business in the region. For instance, in 2019, Bayer Crop Science AG has announced the launch of nematicide for Australia. The product Indemnify will help the farmers to control plant-parasitic nematodes. Moreover, high profit linked with the export of organic vegetables and fruits is forcing farmers to use bio-based nematicide products, which is another reason ascribed to the latent growth of the nematicides industry within the region.

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The rising infestation of nematodes on major crops such as potatoes and sugar beet is affecting the overall quality and quantity of the crops, which will propel the growth of the market in Europe. The demand for bio-based nematicides is increasing in various European countries due to rising awareness regarding the benefit of bio-based nematicides and increasing government support for the utilization of organic solutions. The South American market is driven by the rising demand for efficient agriculture products and declining food production rates because of nematodes infestation.

KEY INDUSTRY PLAYERS

Emphasis on Innovative Product Development to Positively Aid Market Growth

The tremendous increase in the cultivation of high-value crops such as fruits and vegetables is expected to upsurge the demand for nematode control products at a stronger pace. The rising demand for this product is gravitating major players to diversifying their product portfolio and distribution network to increase their market reach and consumer base. BASF SE is one of the leaders operating in the nematode control products market. Mergers & acquisitions and new product development are some of the crucial strategies adopted by the company to compete in the global market. For instance, in August 2018, BASF SE announced the complete acquisition of a wide range of businesses and assets from Bayer Crop Science AG (Germany). This acquisition will help BASF SE to enter the nematicide seed treatment markets.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Ludwigshafen, Germany)


• Bayer Crop Science AG (Leverkusen, Germany)


• FMC Corporation (Philadelphia, United States)


• The Dow Chemical Company (Michigan, United States)


• Syngenta (Basal, Switzerland)


• ADAMA Agricultural Solution Ltd. (Airport City, Israel)


• Nufarm Limited (Laverton North, Australia)


• Marrone Bio Innovations (California, United States)


• American Vanguard Corporation (California, United States)


• UPL Limited (Mumbai, India)

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, the U.S. Environmental Protection Agency (EPA) proposed registering the new active ingredient fluazaindolizine. This nematicide is expected to delay the development of resistance in nematodes. The manufacturers have offered the product for use in carrots, corn vegetables, citrus fruits, among others.


• In March 2021, FMC Corporation announced a strategic collaboration with UPL Ltd. to increase their manufacturing capabilities and increase the market penetration of agriculture products such as Rynaxypr. These commercial agreement enables the company to obtain a sustainable agricultural growth and supply new product offerings to the clients.


• In November 2020, Syngenta, a global leader in crop protection with headquarters in Switzerland, launched an innovative insect control technology named as Spiropidion. This product helps the farmers protect crops against pests, including aphids, scales, and is safe for beneficial insects such as bees.

REPORT COVERAGE

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The nematicides market report provides qualitative and quantitative insights on the market and a detailed analysis of market size and growth rate for all possible segments in the market. Along with this, the market research report provides an elaborative analysis of the market dynamics, swot analysis, and competitive landscape. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key industry trends.

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