by The Crop Protection Chemicals Market is estimated to be valued at US$ 66.44 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Crop protection chemicals refer to agrochemicals that are used for protecting crops from weeds, pests, and diseases. It includes insecticides, herbicides, fungicides and other chemical groups that help maximize crop yield by preventing crop damage. With growing population and shrinking arable land, modern agriculture focused on high-yield crop varieties and chemical methods of cultivation is becoming increasingly important. Crop protection chemicals play a vital role in ensuring food security by controlling various biotic and abiotic factors that hamper crop growth.
Market Dynamics:
The crop protection chemicals market is primarily driven by growing adoption of intensive cultivation practices and hybrid high-yield crop varieties which are highly susceptible to pests and diseases. According to the UN’s Food and Agriculture Organization (FAO), around 20-40% of global crop production is lost to pests every year. Furthermore, climate change is causing unpredictable changes in weather patterns leading to proliferation of new pests and diseases. This has increased dependency on agrochemicals for resilient crop yields. Additionally, government support in the form of subsidies for purchasing crop protection products is also fueling market growth. However, stringent regulations around pesticide residues and increasing preference for organic farming practices may hamper market expansion during the forecast period.
Segment Analysis
The crop protection chemicals market is dominated by the herbicides segment, which accounted for over 35% market share in 2022. Herbicides help in controlling weeds by killing or inhibiting the growth of unwanted plant species. They are widely used across countries to increase crop yields from limited cultivated land. Within herbicides, the glyphosate sub-segment dominates due to its effectiveness in controlling a wide range of weeds at reasonable prices.
PEST Analysis
Political: Stringent regulations regarding the use of toxic agrochemicals in many countries can impact market growth. However, support for usage of chemicals to boost farm outputs also impacts the market positively.
Economic: Rising farm incomes and increasing global demand for food crops are major drivers for the market. However, economic slowdowns can negatively impact market demand.
Social: Population growth and changing dietary patterns increase the need for higher crop yields, fuelling market growth. However, increasing health and environment concerns also raise demand for biopesticides.
Technological: Advancements in biopesticides and development of newer molecules with improved selectivity help farmers boost productivity sustainably, opening opportunities for market players.
Key Takeaways
The Global Crop Protection Chemicals Market Growth is expected to witness high, exhibiting CAGR of 6.7% over the forecast period, due to increasing global food demand amid rising population. The market size for 2023 is estimated at US$ 66.44 Bn.
Regional analysis indicates Asia Pacific as the fastest growing regional market supported by factors such as increasing cultivation in countries such as India and China. North America and Western Europe are established yet evolving markets while markets in Latin America and Middle East & Africa are expected to provide lucrative opportunities.
Key players operating in the crop protection chemicals market incorporate Bayer CropScience, ChemChina Corporation, BASF SE, Corteva Agriscience, UPL Limited, FMC Corporation, Nufarm Ltd, Sumitomo Chemicals, American Vanguard Corporation, ISAGRO SpA, Bioworks Inc., Ishihara Sangyo Kaisha Ltd, Marrone Bio Innovations Inc., and Syngenta International AG. The market is undergoing consolidation with big players focusing on portfolio expansion mainly through mergers and acquisitions
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
