The fungicides market is evaluated at US$19.205 billion for the year 2019 growing at a CAGR of 4.16% reaching the market size of US$24.531 billion by the year 2025.
Fungicides are pesticides that have a primary function of protecting the plants from fungi and its spores. Fungicides prevent the growth of fungi on plants and it also protects the plants from other types of diseases. The prevention of diseases from plants comprises a lot of activities which is collectively known as integrated pest management. The market for fungicides is projected to show moderate growth over the course of the next five years. The market growth is primarily being driven by the fact that diseases are the most common occurrence on plants which further impacts the quantity and quality of the yield. Thus, the farmers stay inclined towards the adoption of fungicides as a part of pest management as managing diseases is considered one of the most integral parts of the crop production process. Fungicides can be used for serving several purposes which may be to increase crop productivity, control diseases as it may deteriorate the quality, and also improve the shelf life of harvested products.
There are a number of control practices that are used to manage plant diseases that include crop rotation, use of disease tolerant crop cultivators, sanitation, and fungicides among others. Fungicides in these control practices is often considered as one of the vital methods for disease protection as it prevents numerous diseases and is considered more effective than other cultural practices. Also, these have the ability to target specific enzymes, which is also a major factor amplifying its adoption globally. Furthermore, Increasing global demand for food owing to the growing global population base is the major driver of the growing agricultural activities at the global level which has led to an increase in the demand for crop protection chemicals as the requirements for high yield and reduction of crop losses is increasing. Additionally, the growing cases of crop diseases across the globe are also fuelling the demand for fungicides. The growing global population and the steady reduction in the arable land is driving the agrochemical market. Simultaneously, the relative improvement in the farm income over the years along with the favorable agriculture policies is further supplementing the growth of the market. The market for fungicides is also being driven by the fact the multiple players in the market are implementing different strategies to gain a competitive edge over other players with an aim to capture a greater market share. Players are investing heavily in the form of facility expansions, R&D, partnerships, and agreements, thus all these factors are collectively contributing towards the positive market growth throughout the course of the next five years.
Growing food demand
The market for fungicides is projected to grow on account of the globally growing demand for food. As the population is increasing the demand for food is increasing simultaneously. According to the data from the United Nations, the global population is projected to reach 9.7 billion by the year 2050. According to the Asian Development Bank (ADB), two-thirds of the world’s one billion hungry reside in the APAC region. Moreover, rapid industrialization and expanding urbanization in emerging economies such as China, India, and South Korea is leading to the deterioration of arable land in the region owing to which farmers need to increase the crop yield given the limited cultivable land area. All these factors are encouraging farmers to increase there a dependency on crop protection chemicals, which in turn is driving the demand for fungicides in the next five years.
The fungicides market has been segmented on the basis of type, crop type, form, and geography. By type, the classification of the market has been done into synthetic and biological. By crop type, the classification of the market has been done into cereals and grains, fruits and vegetables, oilseeds and pulses, and others. On the basis of form, the segmentation of the market has been done based on dry and liquid. Geographically, the fungicides market has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Biological fungicides to grow at a noteworthy rate
By type, the synthetic fungicides are expected to hold a substantial share in the market throughout the course of the next five years. The major factor supplementing the share of this segment is the wide applications of fungicides for different crop types globally for the enhancement of crop productivity. The biological fungicides are projected to witness a promising growth during the next five years primarily on account of the growing focus towards good agricultural practices in many parts of the world. The growing focus towards environmental protection is further bolstering the growth of this segment during the forecast period. Additionally, the launch of new biological fungicides by several market players further shows the potential for the growth of this segment over the course of the next five years.
Oilseeds and Pulses to hold a considerable share
Pulses are considered highly nutritious as they contain high levels of dietary fibers, minerals, and vitamins among others. In addition, there rising consumption of pulses globally owing to various health benefits such as proper digestion and maintaining blood cholesterol among others. Therefore, higher consumption of these seeds and pulses in major countries such as India, China, and United States will further lead to a higher amount of cultivation which in turn is positively impacting the growth of this segment during the forecast period.
Fruits and Vegetables are expected to grow at a healthy rate throughout the course of the next five years which is attributed to the rising consumption of fruits and vegetables across the globe on account of the growing concerns regarding the health benefits on the consumption of fruits and vegetables. Furthermore, the growing production of vegetables due to the continuously increasing demand around the world is also considered to one of the key factors bolstering the growth of the market during the next five years.
APAC to witness promising growth
Geographically, North America will dominate the regional market since countries such as the U.S, Canada, and Mexico are the major producers of fruits and vegetables. Growing awareness among farmers about sustainable farming practices in the U.S. will spur the demand for fungicides in the region. APAC is anticipated to witness the fastest regional market growth owing to the increasing need to raise crop yield in order to eliminate food insecurity in the region.
Key Developments in the market
There is a high volume of companies working in the fungicides market, however, some have solidified their position as the leading providers in this industry. These players are involved in a plethora of investments, product launches, and R&D as a part of their growth strategies to further strengthen their position and provide better products and services to their customers worldwide, which is further expected to propel the growth of the market in the coming years. Some of these are:
Prominent/major key market players in the fungicides market include BASF SE, Bayer AG, and Corteva among others. The players in the fungicides market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have been covered along with their relative competitive position and strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the fungicides market.