The Fungicides market is expected to grow at a compound annual growth rate of 4.24% over the analyzed period to reach a market size of US$25.914 billion in 2027. The market stood at US$ 19.378 billion in 2020. Fungicides are pesticides that are used to protect plants from fungi and their spores. Fungicides inhibit the growth of fungi in plants while also protecting them from other types of diseases. Fungicide decreases crop losses before and after harvest while increasing crop yield. Fungicides are primarily produced by the chemical and pharmaceutical industries. Furthermore, the demand for food products is increasing as the population grows. Food crop losses are primarily caused by diseases in crops at various stages of development. Fungicides are increasingly being used in floriculture, horticulture, and farming to increase crop yield and protect crops from various diseases. Fungicides are primarily used in cereal crops in farming. Plant disease prevention entails a variety of activities that are referred to collectively as integrated pest management. The fungicides market is expected to grow moderately over the next five years.
Fungicides are of two types synthetic and biological. Plant pathogenic fungi have been effectively controlled by synthetic fungicides. Their repeated use over decades has disrupted natural biological systems, sometimes leading to the development of fungal resistance. They had unfavourable effects on non-target organisms and exacerbated environmental and human health concerns. Synthetic fungicides are expected to have a significant market share over the next five years. The primary factor supplementing this segment's share is the widespread use of fungicides for various crop types worldwide to improve crop productivity.
Biofungicdes are living organism formulations used to control the activity of plant pathogenic fungi and bacteria. Biofungicides are based on observations of natural processes in which beneficial microorganisms, typically isolated from soil, inhibit the activity of plant pathogens. Biological fungicides are expected to grow rapidly over the next five years, owing to a growing emphasis on good agricultural practises in many parts of the world. During the forecast period, the growing emphasis on environmental protection will support the growth of this segment. Furthermore, the introduction of new biological fungicides by several market players demonstrates the segment's potential for growth over the next five years.
Based on the crop type, fungicides are segmented into 4 types cereals & grains, fruits & vegetables, oilseeds & pulses, and other etc. Pulses are considered highly nutritious because they are high in dietary fibre, minerals, and vitamins, among other things. Furthermore, the growing global consumption of pulses is due to a variety of health benefits, including proper digestion and blood cholesterol maintenance, among others. As a result, increased consumption of these seeds and pulses in major countries such as India, China, and the United States will result in increased cultivation, which will boost the segment's growth over the course of the forecast period. FAO forecasts for 2021/22 indicate a tightening market outlook for oilseeds and derived products, which is largely supported by production shortfalls coinciding with relatively resilient demand. Although the global supply-demand picture may remain relatively tight, preliminary forecasts for 2022/23 point to increased outputs across the oilcrops complex.
Fruits and vegetables are expected to grow at a healthy rate over the next five years, owing to rising consumption of fruits and vegetables around the world as a result of growing concerns about the health benefits of eating fruits and vegetables. Furthermore, rising vegetable production due to rising global demand is viewed as one of the key factors supporting market growth over the next five years.
Consumption of cereals and grains is increasing around the world as people become more concerned about the health benefits of eating cereals and grains. Furthermore, rising grain production due to rising global demand is regarded as one of the key factors supporting market growth over the next five years. Forecasts from the FAO Although high input costs and water scarcity may prevent global rice production from increasing, the 2022 harvest is expected to be abundant due to public efforts to assist the sector in dealing with profitability challenges. As a result, global rice consumption and trade may continue to rise while reserves remain plentiful. Triazols, strobilurins, morpholines and carboxamides, and chlorothalonil are the most commonly used fungicides for disease control in cereals.
Increasing food demand:
The global demand for food is expected to drive growth in the fungicide market. The demand for food rises in tandem with the increase in the global population. According to United Nations data, the global population is expected to reach 9.7 billion by 2050. According to the Asian Development Bank (ADB), the APAC region is home to two-thirds of the world's one billion hungry people. Furthermore, rapid industrialization and expanding urbanisation in emerging economies such as China, India, and South Korea are causing the region's arable land to deteriorate. Given the limited cultivable land area, farmers must increase crop yield. All of these factors are encouraging farmers to increase their reliance on crop protection chemicals, which will drive fungicide demand over the next five years.
The emergence of several diseases has increased demand:
Climate change is a major source of concern for agricultural production around the world. Climate change can affect crop quality and yield, making crops more susceptible to diseases and pests. This has a significant impact on crop health. Many studies have shown that seasonal factors such as rainfall and temperature humidity can cause crop loss. The growth of fungi and the spread of hazardous fungal disease is influenced by changes in temperature and moisture content. This increases the demand for fungicides, further fueling the growth.
Regional and Geographical Insights:
On a Geographical note, Geographically, North America will dominate the regional market because major producers of fruits and vegetables include the United States, Canada, and Mexico. Growing farmer awareness of sustainable farming practices in the United States will increase the demand for fungicides in the region. Due to the increasing need to increase crop yield in order to eliminate food insecurity in the region, APAC is expected to have the fastest regional market growth.