The market has been estimated at USD 15.4 Billion in 2016 and is projected to reach USD 23.3 Billion by 2022, at a CAGR of 7.13% during the forecast period from 2017 to 2022. Crop protection chemicals also called pesticides constitute a class of agrochemicals that are used to kill plant-harming organisms like pests, weeds, rodents, nematodes etc., and preventing the destruction of crops by them. Any material or mixture that is capable of preventing, destroying, repelling or mitigating a pest can be called pesticide. Herbicides, insecticides, insect growth regulators, nematicides, termiticides, mollusicicdes, piscicides, avicides, rodenticides, predacides, bactericides, insect repellants, animal repellants, antimicrobials, fungicides, disinfectants, sanitizers and their bio counter parts all come under the classification of pesticides.
Pesticides market is driven by the need to increase crop yield and efficiency. The region’s population is growing rapidly, but the farmlands have been decreasing pushing farmers to increase their yields. New farming practices are adopted by farmers to increase crop yields. Genetically modified (GM) plants have helped farmers increase their yields coupled with the reduction of use in some pesticides. Bio pesticides adoption is also occurring all over the world, especially in developed and some developing countries. Demand for organic and completely natural foods is increasing at a stellar rate and inevitably bio pesticides consumption has to be increased. Pesticides help in optimal usage of resources for plant growth and protect the crop from various pathogens. Some pesticides repel animals coming towards them with the help of pheromones. The usage of generic pesticides in this region is high especially in rapidly growing markets like China and India. These markets are suitable for generic pesticide manufacturers. New farming practices require new crop protection products. The research and development costs are escalating. For previously mentioned reasons, investment for companies is high on new products and they are wary of returns. Per capita usage of pesticides is low in some developing countries because of costs. This poses a threat to companies, as their market reach might not follow desired growth patterns. Shrinking farmlands are also threat in the form of less usage of pesticides. In countries like Japan, pesticides usage is saturated and a reduction in agricultural land will definitely bring down pesticides usage as well.
The market is classified based on the application into herbicides, fungicides, insecticides and other pesticides. They are further segmented depending on their chemical origin: bio pesticides and synthetic pesticides. Diverse pesticides range is used in agriculture and farming. Pesticides are also segmented by their usage in crops like cereals, fruits etc. Non-crop utilization of pesticides in turfs, ornamentals and others is also studied. Market study indicated that Cereals and grains consumed the highest market in the use of pesticides. This can be attributed to the food safety and wide variety of uses of cereals and grains. Decreasing farmlands and increasing population pose a serious threat to food security. Recently, grains are also used to produce bio fuel and this poses a risk to food security especially in developing countries where price drastically influences consumption. Pesticides help to increase farm yields and still have a large scope to improve the overall agricultural production of the world.
The market is also segmented geographically into China, India, Japan, Australia and others. China has the largest consumer base in this region. Australia and Japan followed the list. The rising disposable income levels, rising population and food security have made India, the country with maximum potential for growth. The low affordability and explicit cost cutting measures of farmers in developing countries hinder the real potential of the market. Pesticides are used in crops as well as non-crop plants like turfs and ornamentals. They can be broadly classified into four groups depending on their usage. Farmers use herbicides for killing unwanted plants called weeds, insecticides for killing insects, fungicides for treating diseases caused by fungus and other pesticides for treating diseases, which are not caused by fungi or insects. Herbicides accounted for more than 53.5% of total pesticides sales in 2015.
The major companies in crop protection chemicals are Bayer, BASF, DuPont, Dow agrosciences, Syngenta, Monsanto, UPL etc. The current trend to survive in the market is the research and innovation route for major companies. Lot of small and growing companies are currently using generic pesticides to increase their sales revenue. All major companies are investing profoundly in new product development to keep up with competition to gain market share and increase their revenue. Pesticides were prominent for increased agricultural yields and will remain so in the coming years.
Key Deliverables in the Study