The global pesticide market accounted for USD 49.92 billion in 2016. The market is expected to register a CAGR of 3.1% during the forecast period. Intellectual Property Rights (IPRs), in the form of patents and data protection, are important to the crop protection chemicals industry as they help facilitate a balance between the R&D sector (innovator companies) and the generic sector.
Bio-pesticides are less harmful as compared to regular synthetic pesticides. As a result, they typically affect only the target pest and other organisms that are closely related to it, as against broad-spectrum conventional pesticides, which can be harmful to other organisms. Although the bio-pesticide segment generated a small fraction of the revenue generated by the chemical industry, the segment is likely to witness a CAGR of 3.4% during the forecast period.
The global population is increasing exponentially and every day, nearly 200,000 people are contributing to the global food demand. According to the US Population Division, the global population has increased nearly fourfold in the past 100 years and is projected to reach 9.2 billion by 2050. Supplying food to this growing population has become a global challenge. Per capita farmland in 2030 is expected to decrease to 1800 m² from 2,200 m² in 2005. Various crop pests contribute to the decrease, causing 10-16% global crop losses annually. Thus, crop protection is the key strategy adopted by farmers to meet the global food demand. Pesticides are a proven technology used to increase the global food production.
Asia-Pacific is expected to grow at a fast rate, exhibiting a CAGR of 3.6%. The market in China was valued at USD 4.69 billion in 2016. In 2016, insecticides accounted for 37% of the pesticide market in China, and are expected to witness a CAGR of 3.38% during the forecast period. Fungicides accounted for 33% of the pesticide market in 2016.
Major Players: Bayer, BASF, Syngenta, DowDuPont, Monsanto, FMC, and Nufarm, among others.
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