The global crop protection chemicals market size was estimated at USD 60.37 billion in 2016, growing at a CAGR of 6.8% over the forecast period. Increasing necessity of enhanced crop yield to fulfill the demand by the rising population in the emerging economies is expected to compel farmers to opt for the use of crop protection chemicals.
Initiatives taken by the manufacturers to produce bio-based chemicals from innovative sources such as plants, animals, and bacteria, which will have a low environmental impact, is expected to drive growth. The industry is expected to witness high growth in the developing economies including Brazil and India owing to high investments in the agricultural sector in the region.
Variation in the climatic condition in North America, which enables the production of wide variety of crops is expected to have a positive impact on the industry growth over the forecast period. The U.S. is a key producer and exporter of soybean, cotton, and rice thus demands high quantities of crop protection chemicals.
The presence of several manufacturers with high production volume and wide product portfolio is expected to increase competition. The industry players are expected to compete on the basis of geographical reach and pricing. Widespread dealership and expansion in the local markets are expected to be the key strategies for the industry players to sustain in the industry.
Stringent regulatory framework against the application of hazardous synthetic pesticides owing to their severe impacts on the environment is expected to hamper the industry growth. Furthermore, innovation in the agricultural field to produce commercial seeds, which reduce the necessity of the product, is expected to affect the market negatively.
The demand for herbicides in the Asia Pacific was USD 2.51 billion in 2016 and is expected to grow at a CAGR of 6.6% over the forecast period. The rise in production of grains and cereals coupled with the adoption of superior farming practices in the Asian countries is likely to have a positive impact on the industry growth over the projected period.
Insecticide accounted for the 20.7% of the European crop protection chemicals industry in 2016 and is expected to grow at a CAGR of 6.1% over the forecast period. Stringent government regulations imposed by the EU on the use of harmful chemicals for agricultural applications is expected to hamper growth of insecticides in the region.
Crop protection chemicals demand for fruits and vegetables is expected to grow at a CAGR of 7.0% over the forecast period, owing to rising demand from food processing industry. Changing consumer dietary habits, which demand healthy and good quality fruits and vegetables are expected to propel demand.
The demand for crop protection compounds for rice was USD 5.37 billion in 2016. Rice has been a primary food, especially in the Asian countries including China, India, South Korea and Japan. China was the largest rice producer in 2016, followed by India, which in turn makes it the largest consumer for rice protection elements for the same year.
The demand for herbicides in Europe stood at USD 8.08 billion in 2016. High product demand for fruits and vegetables to combat weed is expected to have a positive impact on the industry growth. Furthermore, growing demand for the product to wipe out invasive plant species in undesirable places is expected to drive growth.
The Asia Pacific accounted for a significant share in the market as the region is one of the major producers of agricultural products including cotton, rice and maize. The region primarily produces various types of subtropical and tropical fruits. Moreover, the principal crops grown in the region are rice, pulses, and wheat which demand crop protection chemicals for better quality and yield, thus driving the product demand.
The key players in the industry include Marrone Bio Innovations, BASF SE, Nufarm Ltd, FMC Corp, BioWorks, DuPont, Monsanto, Natural Industries, Dow AgroSciences, Syngenta AG, Sumitomo Chemical, Novozymes A/S, and Valent Biosciences.
In October 2017, Bayer got engaged in an agreement to sell its selected Crop Science businesses to BASF SE for 7.2 billion. This asset sold by the company is inclusive of Bayer’s glufosinate-ammonium business and the associated LibertyLink technology used for herbicide tolerance.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2012 to 2022. For the purpose of this study, Grand View Research has segmented the global crop protection chemicals market report on the basis of product, application, and region:
Product Outlook (Volume, Kilotons, Revenue, USD Million, 2012 - 2022)
Application Outlook (Volume, Kilotons, Revenue, USD Million, 2012 - 2022)
Fruits & vegetables
Regional Outlook (Volume, Kilotons, Revenue, USD Million, 2012 - 2022)
Rest of the world
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