The crop protection chemical market is expected to grow at a compound annual growth rate of 5.42% to reach a market size worth US$101.640 billion by 2026. This market was valued at US$70.329 billion in 2019. The growing population has increased the demand for food and grains. However, irregular agriculture cycles caused by global warming and worsening climatic conditions have resulted in food shortages and insecurity around the globe. Furthermore, a decrease in the availability of arable land has been observed in the past few decades with the conversion of land from agricultural means to an urban settlement.
This has hence resulted in pressure on existing land holdings to increase their yields. To meet this growing demand, farmers use crop protection chemicals to secure them from insect attacks, climatic conditions, diseases, and nutrient deficiency. The governments are also supporting the use of these chemicals to secure food availability. However, these chemicals contain elements that are harmful to the end consumers, which may constrain the market.
Rising Food Insecurity Will Boost the Market Demand for Crop Protection Chemicals
Rising food insecurity is the prime reason which is encouraging the growth of the crop protection chemicals market. The UN states that the World population is anticipated to reach 9.8 billion in 2050 from 7.8 billion in 2019. This means a 1.075% annual growth during this period. However, the growth of crop yield and food production is far less than the growth in the population. owing to climatic worsening and increasing global warming, agriculture cycles around the globe are disturbed, resulting in an uneven cycle and bad or low yield of the cop. Further, rapid urbanization has resulted in the consumption of arable lands into the construction of buildings, complexes, parks, and other concretes resulting in higher pressure on available lands to produce a greater yield. Moreover, rising income inequality and disparities have created the situation of food insecurity. The World Bank database reports that global food insecurities have surged by 3.459%. Food insecurity in the year 2015 was around 22.346% which had increased to 25.805% in the year 2018. These statistics have raised concerns of governments and institutions.
The crop protection chemicals act as a helping hand to the rising food demand. Crop protection chemicals reduce the effect of climatic conditions on the final yield for better productivity. Further, these chemicals protect the crop from insect attacks and diseases, so that their productivity does not degrade. Of all, these chemicals also provide the required nutrients to the crop for better growth and greater productivity. Based on type, the crop protection chemicals market is divided into herbicides, insecticides, fungicides, and others.
Herbicides and fungicides chemicals facilitate the removal of undesirable plants such as weeds so that they do not consume the area and nutrients meant for the food crop. Insecticides help to decrease and remove the attack of insects on the crop, sustaining their productivity.
Cereals and Grains Will Have a Significant Market Share During the Study Period of 2019 to 2026
The crop protection chemical market is divided, based on application as fruits and vegetables, cereals and grains, oilseeds and pulses, and others. During the study period, cereals and grains are expected to grow at an exponential rate since these are at higher risk of attack by insects. The fruits and vegetables will have a significant market share while the oilseeds and pulses will dominate the market. the prime reason driving the demand by oilseeds and pulses industry is a shift in consumption trends. With the rise in disposable income, consumers are shifting from a carbohydrate rich diet to a protein rich diet, hence consuming more pulses.
The Usage of Pesticides and Insecticides Results in by-Products Leftovers and Usage of Harmful Chemicals. This May Hinder the Market Size of the Crop Protection Chemicals Industry
One of the prime factors that may hinder the market growth of the crop protection chemicals market is that usage of pesticides and insecticides result in by-products of waste that has the potential to pollute the environment if not disposed of and treated carefully. Moreover, chemicals used in pesticides and insecticides are quite harmful to living organisms and may cause deaths among humans and animals if they come under direct contact. Further, if these chemicals find their way into the final yield or food product, they have the capability to cause harm to the consumer, causing illness or death. These chemicals also pollute the water bodies, severely disturbing the aquatic ecosystem. Of all, these chemicals are highly flammable hence have the potential to cause greater harm to the crop. However, an alternative to chemical-based crop protectors is Bio-products based crop protectors.
The crop protection chemicals market, based on origin, is divided into synthetic chemicals and bio-products. Synthetic chemicals are more effective and result in higher yield. However, these chemicals are highly toxic and cause pollution. They are highly flammable and have the potential to severely harm the health of humans and animals. They disturb the aquatic ecosystem if they find their way inside water bodies. The bio-products, on the other hand, are 100% natural and do not harm the crop or animals. But these chemicals are less effective as compared with synthetic chemicals. Further, bio-products are difficult to transport and spread. But since they are eco-friendly, governments have promoted their usage and production. Furthermore, the rising trend of organic food consumption supports the market for bio-products crop protectors.
During the Forecasted Period, the Asia Pacific Region Will Show Robust Growth
The crop protection chemicals market, by geography, is segmented as the North American region, the South American region, the Middle East and African region, the European region, and the Asia Pacific region. The Asia Pacific region is predicted to grow at the fastest rate in the crop protection chemical market. rapid urbanization along with surging population growth has resulted in higher demand for chemicals to increase yield.