Asia-Pacific Crop Protection Chemicals Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Asia-Pacific Crop Protection Chemicals Market size is estimated at USD 18.17 billion in 2023, and is expected to reach USD 21.07 billion by 2028, growing at a CAGR of 3% during the forecast period (2023-2028).

Key Highlights

• The increasing need for food crops due to the rise in population in the region fueled the use of pesticides to enhance crop yield. Additionally, in countries such as India and other Southeast Asian countries, the arable land per person is decreasing at an alarming rate, where the use of pesticides can play an important role in increasing the average crop yields per hectare. In the region, Technological advancements are revolutionizing farming practices, and pest management is one area that is benefitting greatly from new technologies. These advancements are helping farmers to produce food more efficiently and sustainably while minimizing the impact of pest damage on their crops.
• both government and private initiatives are raising awareness about the proper use of pesticides among farmers. By educating farmers on the appropriate quantity and application methodology of pesticides, these initiatives can help to reduce the amount of pesticides used while still effectively controlling pests. This can not only benefit the environment and human health but also result in cost savings for farmers, as they will need to purchase fewer pesticides. In addition to reducing pesticide usage, increased awareness about the potential crop savings in developing nations is another positive outcome of these initiatives. Farmers can increase their yields and profitability by using pesticides more efficiently, leading to more sustainable and prosperous agricultural practices.
• Crops, such as vegetables, are largely grown in Asian countries, such as India, China, and Japan, and it involves a very high usage rate of pesticides. Japan is a significant market for crop protection chemicals for fruits and vegetables. The country has the highest pesticide usage per hectare compared to any other country at approximately 12 kg per hectare. Similarly, synthetic pesticides have been extensively used in India to alleviate the estimated 45% gross loss of crops due to the infestation of pests and diseases.
• With a growing emphasis on the environment and sustainability, the South Korean government enforced clean production and environment-friendly agriculture (EFA) policies, which led to a decline in pesticide usage in the country. The government has encouraged the use of microbial pesticides, which are expected to grow rapidly in the coming years. The growing demand for food safety and quality, increasing consumer demand for organic products, and favorable government policies promoting biocontrol products are some factors driving biopesticides' market growth.

APAC Crop Protection Chemicals Market Trends

Increase in Adoption of Biopesticides

• The increasing impetus provided by the demand for safe and healthy food and the increasing realization of the adverse effects of using excess synthetic crop protection chemicals on human health has provided the required fillip to the nascent biopesticide market in the region. In China, the registration costs, the tests to be performed on biopesticides, and the time required to register the biopesticides were reduced to phase out the use of synthetic pesticides and promote the use of bio-based and organic pesticides.
• The increase in the organic farming area during the last decade in major agriculture countries such as China, India, Australia, etc., is driving the usage of biopesticides in the region. According to the latest report of the Research Institute of Organic Agriculture (German: Forschungsinstitut für biologischen Landbau) (FiBL), Australia is the largest country in the organic agriculture area with 35.7 million hectares, and India has the higher number of producers in organic farming. The establishment of the Asia-Pacific Biopesticides and Biofertilizers Information Platform is a positive step towards promoting sustainable agriculture in the region. By promoting cross-border cooperation and sharing resources of agricultural technology, the platform can help reduce the dependence on chemical materials and promote the use of biopesticides and biofertilizers, which are environmentally friendly and sustainable.
• For instance, in China, the Ministry of Agriculture introduced the “Zero Growth Policy of Pesticides and Fertilizers by 2020” to phase out synthetic pesticides and promote bio-based and organic pesticides. The exponential growth in demand for biological agro-inputs in markets such as China attracts many international players to come and introduce their technologies and establish their manufacturing plants in the region. With regional regulatory authorities also promoting bio-pesticide usage through regulations, policies, and schemes, the demand for biopesticides is expected to increase during the forecast period.

Insecticide Holds a Prominent Share

• The increasing demand for agricultural products and the resultant commercialization of agriculture induced a rising use of agricultural chemicals in the region. Crop damage by insects is reported to be the highest, followed by pathogens and weeds. Insecticides account for a major share of total pesticide use in the region. In countries such as India, there is a significant increase in imports of insecticides from countries such as China, the United States, and Germany.
• There are companies that are focused on diversifying their product portfolios by promoting product innovations in this market. For instance, in November 2020, Syngenta launched Spiropidion, an innovative new technology that can be used to protect a wide array of crops from some of the most damaging and difficult-to-control pests. The growing demand for food security in the Asia-Pacific region, on account of the rising population, has resulted in the increased usage of insecticides.
• Owing to an increased focus on environmental sustainability while maintaining crop output, the demand for bio-insecticides in the region is expected to increase in the coming years. With companies such as Syngenta CropScience, Bayer AG, and FMC corporation setting up their own manufacturing plants and launching products that cater to the needs of farmers in this region, the market growth for insecticides is expected to increase over the next few years. Regulatory bodies, like the US Department of Agriculture (USDA), Environmental Protection Agency (EPA), and the Food and Drug Administration (FDA), are focusing on increasing the usage of bioinsecticides over chemical insecticides due to the negative impacts of chemical insecticides on the environment.

APAC Crop Protection Chemicals Industry Overview

Asia-Pacific crop protection chemicals market is consolidated with few major players operating in the market, and concerns about the increasing productivity of crops are driving the players to adopt innovative strategies to dominate the market. Bayer CropScience AG, BASF SE, UPL Ltd, Syngenta CropProtection AG, FMC Corporation, and Sumitomo Chemical Co., Ltd are some of the prominent players operating in this market. These players are investing heavily in research and development activities and are launching new innovative crop protection chemical products in the region.

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