June 15, 2024
Crop Protection Chemicals Market

The Global Crop Protection Chemicals Market is driven by growing agriculture sector

Crop protection chemicals such as herbicides, insecticides and fertilizers play a crucial role in efficient farming by controlling pests and improving soil fertility and crop yields. Herbicides are widely used for removing unwanted weeds that compete for nutrients in the soil. Insecticides protect crops from being damaged by insects. Fertilizers replenish the soil with essential nutrients removed by crops during cultivation. The growing demand for food due to increasing global population has intensified agricultural production worldwide. Farmers extensively rely on crop protection chemicals to meet rising food demand in a sustainable way.

The global Crop Protection Chemicals Market is estimated to be valued at US$ 73.21 billion in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends driving growth in the global crop protection chemicals market is the growing adoption of genetically modified (GM) crops. Genetically modified crops have been engineered to resist pests, diseases, herbicides and other stresses. They are therefore less susceptible to insect damage and weed infestation compared to conventional crops. This significantly reduces the use of insecticides and herbicides on GM crops, thereby supporting market expansion. Another key trend spurring market potential is the rising demand for bio-pesticides and eco-friendly crop protection products. Concerns regarding residue toxicity of synthetic chemicals is propelling the shift towards organic and sustainable agricultural practices. Companies are extensively investing in R&D of bio-based crop protection solutions derived from natural sources such as bacteria, fungi and plants. This is expected to gain more traction in the coming years.

Porter’s Analysis
Threat of new entrants: The crop protection chemicals market requires considerable R&D investment and compliance with stringent regulations which pose significant barriers for new players.
Bargaining power of buyers: The buyers have moderate bargaining power due to the availability of substitute products. However, their needs are also well understood by existing suppliers.
Bargaining power of suppliers: A few large multinational corporations dominate production and supply in this market, giving them substantial bargaining power over buyers.
Threat of new substitutes: Alternatives like biopesticides and Integrated Pest Management techniques can challenge major players but barriers to widespread adoption remain.
Competitive rivalry: Major players compete intensely on product price and quality while focusing on portfolio expansion into developing regions.

Key Takeaways

The Global Crop Protection Chemicals Market Size is expected to witness high growth over the forecast period supported by rising crop yield demands. The global Crop Protection Chemicals Market is estimated to be valued at US$ 73.21 billion in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2024 to 2031.

The Asia Pacific region currently dominates the market due to large agricultural output and is expected to maintain its lead through 2031. Asia Pacific accounts for over 40% of the global market revenue owing to high pesticide usage in countries such as India and China. Large cultivable areas and protection requirements for rice, fruits and vegetables are driving regional market growth. North America and Europe follow next on the back of advanced agricultural practices.

Key players:

Key players operating in the crop protection chemicals market are BASF SE, Sumitomo Chemical Co., Ltd., Bayer AG, Corteva Agriscience, Syngenta AG. These companies focus on developing innovative product portfolios and expanding into high growth Asian and Latin American countries. They also pursue M&A activities to strengthen regional market presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it