Canada Crop Protection Chemicals - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Canada Crop Protection Chemicals Market size is estimated at USD 2.14 billion in 2024, and is expected to reach USD 2.56 billion by 2029, growing at a CAGR of 3.60% during the forecast period (2024-2029).

Key Highlights

• Agriculture is the most important economic sector in the country. Canada ranks fifth in agricultural exports globally. With the growing population and declining arable land, there has been a growing concern to increase agricultural productivity by preventing crop damage, which, in turn, is driving the crop protection chemicals market in the country.
• Further, biopesticides are gaining popularity over their synthetic counterparts in the country. The emerging preference for biological pesticides in recent years has been primarily due to the rapid adoption of sustainable agriculture practices, such as integrated pest management (IPM) and organic farming. According to the Research Institute of Organic Agriculture FiBL statistics, the area under organic farming in Canada was recorded at around 1,417,612.0 hectares in 2020, up by 2.27% from the previous year. This is further spurred by the greater awareness among Canadian consumers about the harmful effects of synthetic pesticides in the food they consume, increasing the demand for natural alternatives to suppress the pest population. More farmers are now relying on biopesticides for crop protection. Owing to this, biopesticides are likely to witness faster growth than synthetic chemicals in the country.
• Any crop protection chemical intended for agricultural use has to be registered and approved by Health Canada's Pest Management Regulatory Agency, and they must follow the maximum residue level (MRL) that is indicated for an individual product and pesticide. The stringent regulatory framework with respect to the effects of pesticide application, the rising adoption of genetically modified (GM) crops, and the seasonal weather fluctuations prevailing in the country are anticipated to restrain the growth of the crop protection chemicals market during the forecast period.

Canada Crop Protection Chemicals Market Trends

Decreasing Yield Due to Pest Infestations

The rising demand for pest management products is being driven by the emergence of new pests and diseases, leading to crop loss. Customers are increasingly looking for targeted and effective solutions to improve their yield. Thus, crop protection is a key strategy adopted by farmers to limit crop damage and enhance productivity.

According to the FAO, in 2020, soybeans' yield was 29,557 hg/ha, which decreased to 26,293 hg/ha in 2021. This was mainly due to the infestation from two prominent pests, namely soybean aphids and two-spotted spider mites (TSSM). The pest incidence was mitigated through the wide application of pesticides, which helped in retrieving the crops.

Canada is the world's second-largest producer of durum wheat, the grain that is used in semolina to make pasta and couscous. As farmers are facing huge yield losses from existing and emerging weeds, as well as increasing issues with weed resistance. Agricultural companies are constantly developing and launching new and improved products and formulations to try and stay ahead of the curve. For instance, BASF, UPL AgroSolutions, Nufarm, FMC Canada, and Corteva Agriscience farmers in Western Canada can look out for the years 2021 and 2022 for multiple new herbicide ranges to control weed development in the farmland. BASF Smoulder is another pre-seed herbicide for wheat and barley growers containing the active ingredients saflufenacil and metsulfuron-methyl, which provides residual control of volunteer canola and burndown of all Group 2-, 4- and 9-resistant broadleaf weeds.

Therefore, owing to weather limitations, coupled with concerns over pest incidence, the application of pesticides has become crucial to improve crop yield in Canada. This is anticipated to drive the market studied during the forecast period.

Bio-based Chemicals to Record the Fastest Growth

Owing to the escalating demand for food safety and quality, biopesticides are gaining popularity over their synthetic counterparts. Although the prevalence of synthetic or chemical pesticides continues, emerging preference for biological pesticides was observed in recent years in the country primarily due to the rapidity in the adoption of sustainable agricultural practices, such as integrated pest management (IPM) techniques and organic farming.

According to the Research Institute of Organic Agriculture, organic land area in 2020 was 1.4 million ha, which increased from 1.3 million ha the previous year. Furthermore growing consumer concern over the safety of food is driving organic products which leads to the use of biopesticides than chemicals. According to the World of Organic Agriculture 2019 report, Canada ranked among the top 10 global markets for organic foods and had one of the world's highest per capita consumption rates.

Owing to the demand for bio-based products companies are introducing new products in the market studied. For instance, FMC Corporation launched ZironarTM bio fungicide/bionematicide, a new biological product, in May 2022. This product offers early-season protection against critical fungal diseases and soil nematodes, as well as a biostimulant effect that helps boost yields and plant health.

Canada Crop Protection Chemicals Industry Overview

The Canadian crop protection chemical market is highly consolidated. Bayer, BASF, Corteva Agriscience, UPL, and Syngenta AG are some of the major players who are operating in this market. Mergers and acquisitions, partnerships, expansions, and product launches are some of the major business strategies adopted by the aforementioned major players.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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