The South American crop protection chemicals market has been estimated at USD 14.1 Billion in 2015 and is projected to reach USD 19.6 Billion by 2020, at a CAGR of 6.83% during the forecast period from 2015 to 2020. 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 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 54% of total pesticides sales in 2015.
Pesticides market is driven by the need to increase crop yield and efficiency. The region’s population is growing, 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 region, especially in developing countries of Brazil and Argentina. Demand for organic and completely natural foods is increasing at a high 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. 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 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.
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 are 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.
The market is also segmented geographically into Brazil, Argentina and others. Brazil has the largest consumer base in the world. Argentina follows the list. The rising disposable income levels, rising population and food security have made Brazil, the country with maximum potential for growth. The low affordability and explicit cost cutting measures of farmers in developing and under developed countries hinder the real potential of the market.
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 and under developed regions 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 region. The major companies in crop protection chemicals are Syngenta, Bayer, BASF, DuPont, Dow agrosciences, Monsanto etc. The current trend to survive in the market is the research and innovation route for major companies. Major companies also export many banned pesticides in USA to these countries. All major companies are investing profoundly in new product development to keep up with competition and gain market share. Pesticides were prominent for increased agricultural yields and will remain so in the coming years.
Key Deliverables in the Study