The global crop protection chemical market was valued at US$70.329 billion in the year 2019 and is expected to grow to a market size worth US$101.640 billion by year-end 2026, growing at a CAGR of 5.42%. The prime reason which is driving the growth in the market is the surging necessity of food yield to ensure food security and increasing irregular agriculture cycles, owing to worsening climatic and environmental conditions. Farmers use crop protection chemicals to protect their crops from diseases, weeds and unwanted plant growth, insects attack, climatic conditions, nutrient deficiency, and other factors.
Rapid urbanization and skyrocketing population growth have put pressure on farmers and producers to increase yield. Governments, around the world, are concerned regarding the food security of their people. Global warming and climatic changes have also severely impacted crop yield, which has increased the usage of crop protection chemicals. However, the market is constrained owing to harmful usages, to both humans and nature, resulting in severe health impacts.
Surging Food Insecurity Will Drive the Market for Crop Protection Chemicals During the Forecasted Period
The prime driver of the crop protection chemical market growth is increasing food insecurity globally. Food security is defined by the UN Committee of World Food Security as availability of food and accessibility by individuals. Food insecurity occurs when there is a shortage of food or when an individual cannot access/ afford the food. Globally the food insecurity is surging, especially from the past decade. As per the database provided by the World Bank, food insecurity in the population has increased from 22.346% in 2015 to 25.805% in 2018. This indicates that 25.805% of the global population is not getting access to food. The key reasons behind such a spike in food insecurity are lower yield in comparison with the growing population and food demand. While the population is growing at 1.075% (annually), agriculture and crop production are not growing at a rate to meet the demand for additional births. The population is predicted to reach the 9.8 billion mark by 2050, from 7.8 billion in 2019 (Source United Nations), which will drastically increase the demand for food. This increased population will also demand areas for residential and other development purposes, taking away the land cultivated for food production. Moreover, rapid urbanization has resulted in a loss of arable land for the construction of roads, buildings, complexes, and others. this has further pressurized existing agricultural lands to increase yield.
The crop protection chemicals are an aid to meet the rising food demand. Based on type, the market is segmented into herbicides, insecticides, fungicides, and others. Herbicides and fungicides help in the removal of crop harming herbs, such as weed which take up space and nutrition from the soil, and fungus that consume the crop and harm it. Insecticides help in dealing with insects that attack the crop and ruin it, decreasing the yield. Other chemicals facilitate disease prevention among the crop to ensure a greater yield.
By application, crop protection chemicals are largely used by fruits and vegetables, oilseeds and pulses, cereals and grains, and others. The cereals and Grains segment of the market is anticipated to dominate the usage of crop protection chemicals during the forecasted period. This segment is more prone to attack by insects, such as locusts, and unwanted plants. In early 2020, the Indian region of Rajasthan, Madhya Pradesh, and parts of Uttar Pradesh were attacked by locusts. Authorities estimate around 90,000 hectares around 20 regions of Rajasthan were severely impacted by their attack. This has created a food shortage in the country.
Drastic climatic changes have also impacted agriculture and crop production. Global warming resulting in a rise in temperature and disturbed rainfall cycles have also impacted the yield, raising the concern of farmers and authorities.
Major Market Restraints Are Pesticides by-Products and Chemical Usage. This Might Constrain the Market Growth of Crop Protection Chemicals
The market for crop protection chemicals faces some restraints that will hinder its market size during the forecasted period. First, crop protection chemicals-based pesticides are quite toxic, for both user and the crop, and produce a lot of residuals. These pesticides have toxic chemicals that have adverse health effects on humans and animals. Moreover, they are not biodegradable and may result in bioaccumulation. Furthermore, if they enter the irrigation system, they cause pollution of water. Secondly, there are certain chances that these chemicals may enter into crop yield and reduce its quality. These chemicals are harmful and have the potential to harm the end consumers. Moreover, it becomes difficult to remove them once they enter the yield.
Based on origin, crop protection chemicals are segmented as synthetic and bio-products. While synthetic crop protectors are made from lab-made chemicals, bio-protectors are produced naturally and are 100% organic. Synthetic protectors are effective and increase the yield more, as compared with bio-protectors, but are toxic, having the capability of severing the health of consumers, and non-biodegradable. Moreover, synthetic protectors cause more harm to the user when getting in contact with sensitive organs and are highly flammable. Bio-protectors on the other hand, are cultivated naturally and are chemical-free. They provide more nutritional benefits to the crop while keeping them 100% organic. These bio-protectors are biodegradable and hence eco-friendly. They cast no harm to the user or crop. However, bio-protectors are a bit expensive than synthetic protectors and have lower shelf-life. Moreover, their distribution is a bit more tedious than synthetic protectors. Bio-protectors also suffer from the disadvantage of lack of awareness, especially in developing countries.
Asia Pacific Region Is Predicted to Employ a Larger Market Share During the Forecasted Period. The Asia Pacific Region Will Boom at an Exponential Rate at the Same Time.
Base on geography, the market for crop protection chemicals 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 North American region is forecasted to dominate the market, during the period 2019 -2026, owing to its advanced agriculture technology and infrastructure. Educated and well-aware producers/ farmers also play a crucial role in market development. The Asia Pacific region is anticipated to boom during the given period, owing to rapid urbanization and skyrocketing population growth.
The analysis report on the crop protection chemicals market covers the severe effect of the coronavirus pandemic on the agrochemical industry, with a special focus on this market, owing to lockdown and supply chain disturbance.