Fungicides: Ensuring the Safety and Security of the Crops
The fungicides market was valued at US$19.378 billion in 2020, growing at a CAGR of 4.24% reaching a market size of US$25.914 million by 2027. According to World Bank data, the ever-growing world population was 7.84 billion in 2021. The upward movement of the world population is simultaneously increasing the number of mouths to be fed every day. This gives rise to the task of producing enough food for the world population. Furthermore, the growing concern of fungi on the crops is becoming a hurdle in the path of food security, safety, and sufficiency. For instance, the FAO (Food and Agriculture Organization of the United Nations) estimated in June 2021, that 40% of global crop production was destroyed due to pests annually. Additionally, over US$220 billion, and at least US$70 billion were lost due to plant diseases and invasive insects respectively. This alarming scenario has created a need for fungicides in the market. Fungicides primarily act as pesticides to protect plants from fungi and their spores. Furthermore, the plants and crop fields are protected from damage with the help of fungicides, which is beneficial to the safety of crops. Hence, the use of fungicides has increased in the market, and it has positively affected the market growth of fungicides.
During the forecast period, analysts anticipate that the market will grow due to the rising awareness about fungicides and their benefits and other complementary factors.
The prime factor driving the fungicide market is the need for disease control in plants. Fungal infections are the most common occurrence in plants which affects the health of the plant, its quantity, and quality of yield. Furthermore, these fungal infections can multiply rapidly among the plants which may eventually kill them, and then ultimately will cause a massive crop loss for the farmer. To aid these issues, fungicides serve their benefits in several ways like controlling fungi diseases, mold and mildew, increasing crop productivity, etc.
Additionally, rising awareness regarding the use of fungicides has increased, which is boosting the market demand for fungicides in the market. In December 2021, the FAO Agricultural news shared a picture of an Afghani farmer who used the fungicide on the certified wheat seed before sowing, in order to protect the seed from seed-borne diseases. This case reflected the widespread awareness regarding the use of fungicides among the common farmers. The right use of fungicides before sowing the seed can kill soil-borne pathogens and ensure the good health of crops. Furthermore, fungicides can benefit crops by acting as protectants. These protective fungicides are not absorbed by the plant, but they stick to the surface of the plant and provide a protective barrier to prevent the fungus from entering and damaging the plant tissue.
The market for biological fungicides is expected to propel at a considerate proportion.
By type, the fungicides are mainly segmented into synthetic and biological fungicides. Synthetic fungicides are highly effective for crop yield, but the repeated use of synthetic fungicides has led to environmental pollution, development of resistance and residual toxicity, etc. Furthermore, the market for synthetic fungicides is expected to hold a substantial share during the forecast period. Alternatively, the biological fungicide segment is expecting a net-worthy growth during the forecast period, owing to the growing focus on healthy and environment-friendly farming practices. Furthermore, the rising focus on environment-conscious decision-making coupled with numerous benefits of biological fungicides has produced growth for this segment.
During the forecast period, the analyst anticipates that the oilseed and pulses will hold a considerable share in the growth of the fungicide market.
In the agricultural sector, pulses are considered highly nutritious owing to their high levels of minerals, fibers, and proteins. As per the USDA, the US pulse exports in 2021 were at 1 million metric tons and the pulse market has seen a 0.1% of compound average growth in the same year. The overall growth prospects of the pulse and oilseed market are positive during the forecast period; hence a higher amount of cultivation is expected in the market. Countries like India and China will further lead to higher amounts of cultivation to aid the rising demand, this will further impact the growth of the fungicide market in this segment in the next five years.
Furthermore, the fruit and vegetable market is expected to rise owing to the rising food demand. The rising consumption aided by the growing population is also expected to propel demand in the agricultural sector. This will ultimately create higher demand for fungicides to prevent the plants from any pathogenic diseases and the use of fungicides will further aid the healthy growth of crops and ensure quality yield for the end users.
By Geography, the APAC market is expecting a promising growth
The fungicide market has been segmented into five regions: North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. Analysts suggest that the North American region will dominate the regional market for fungicides owing to the agricultural prospects of countries like the US, Canada, and Mexico. These North American countries are major fruit and vegetable producers. On the other hand, the APAC region is anticipated to experience a fasted growth in the fungicides market. The Asia Pacific market is expecting a high population growth which will boost the food demand in this region, hence it will simultaneously propel the fungicide market during the forecast period.
The COVID-19 pandemic had a significant impact on the fungicide market. The industry was temporarily shut down due to pandemic restrictions. Consequently, it affected the production and supply chains for the fungicide market. The fungicide industry leaders felt the wrath of disrupted market conditions. For instance, BASF SE Group, a major player in chemicals, plastics, and crop protection products reported a net loss of €1,060 million in 2020. As a result of the labor shortage, industry-wide impacts were felt by other market players owing to low productivity. Furthermore, the lack of fungicides worsened crop production and resulted in a scarcity of food mostly in underdeveloped and developing nations.
Leave a ReplyWant to join the discussion?
Feel free to contribute!