Pesticides Market - Forecast (2022 - 2027)

The pesticides Market is forecast to reach $70.89 billion by 2027, after growing at a CAGR of 3.67% during 2022-2027. Pesticides are substances that are used to control pests, including weeds. The term pesticide includes herbicide, insecticides, termiticides, nematicide, molluscicide, piscicide, avicide, rodenticide, fungicide, and others. Pesticides are applied to crops before or after harvest to protect the commodity from deterioration during storage and transport. The application of pesticides provides better farm yield and storage and distribution of obtained output due to which the pesticides market is expected to grow during the forecast period.

Report Coverage

The report: “Pesticides Market - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Pesticides Market.

Key Takeaways

• The importance of pesticides has increased significantly over the last few decades, catalyzed by the need to enhance agricultural output and ensure adequate food availability for the growing global population.
• Asia- Pacific is accounted for a significant share in the market, as it is one of the major producers of key crops like rice, corn and cotton. Synthetic pesticides have been widely used in India to reduce approximately 45% gross crop loss owing to the pest and disease infestation.

-Toxicologists and horticulturists globally are adopting nanotechnology and nanoparticles in the development of new, environmentally friendly insecticides

• By Type - Segment Analysis

The synthetic pesticides segment held a significant share of the pesticides market in 2019. The global synthetic pesticides market has been increasing during the forecast period due to the improved efficiency in the utilization of pesticides. Factors that drive the usage of synthetic pesticides are decreasing in cultivable land, increasing demand for food, increasing adoption of genetically modified (GM) crops, and acceptance of new farming practices. According to an article published from the Proceedings of the International Academy of Ecology and Environmental Sciences (IAEES), restraining the use of pesticide during the production of fruits, vegetable, and cereals may lead to a loss of 78%, 54% and 32% of total loss in the yield. Whereas, using pesticides reduced the loss of around 35% of the total production.

• By Crop Type - Segment Analysis

The cereals and grains segment held a significant share in the pesticides market in 2019. The growing need to increase food security, along with the onset of climate change and the prospect of increased drought, have played a key role in increasing the usage of pesticides in cereal cultivation. Various global agencies have launched programs to educate farmers on the usage of pesticides in cereal cultivation. For instance, in Lesotho, the United Nations launched ‘Strengthening the capacity of smallholder farmers, extension staff and agro-dealers on judicious use of herbicides’, to increase farmers’ knowledge on the safe use of herbicides and other pesticides, and protect the health of communities and prevent damage to the environment.

The growing cereal exports, supported by initiatives launched by government agencies to promote the usage of pesticides, which will further boost the pesticides market.

Geography - Segment Analysis

The Asia Pacific dominated the pesticides market with a share of more than 48% during the forecast period. Developing economies such as China and India are focusing extensively on increasing crop yield and efficiency in rural areas, owing to the high growth potential. Variation in the climatic condition in Asia-Pacific enables the production of a wide variety of crops which is expected to have a positive impact on the agricultural sector over the forecast period. The Asia Pacific is a prominent producer of wheat, rice and vegetables. Hence, the requirement for pesticides is high in this region, and crop-based pesticides are expected to drive the pesticide market in the region.

Drivers - Pesticides Market

Intensive Farming Techniques

Farmers globally are adopting intensive farming techniques to increase productivity per hectare, driving the demand for pesticides. Intensive farming is an agricultural intensification and mechanization system that aims to maximize yields from available land through means such as the heavy use of pesticides and chemical fertilizers. These techniques help to meet the rising demand for food from the growing population and prevent food shortages. Intensive farming techniques such as monoculture drive the demand for pesticides. Monoculture is a practice of growing one type of crop intensively over a large area, depleting the nutrients in the soil and making it heavily dependent on pesticides.

Challenges - Pesticides Market

Alternative Techniques

The use of alternative techniques such as integrated pest management (IPM) and crop rotation have reduced the use of pesticides in farms. IPM farms may grow pest-resistant crop varieties, use predatory insects to kill plant-eating pests, employ mechanical pest traps, and eliminate pest nesting areas by ploughing under harvested crops. Due to the rise in awareness of the effects caused by the use of pesticides, techniques such as these were implemented widely, restricting the market’s growth.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the pesticides market. In 2019, the market of pesticides has been consolidated by the top five players accounting for xx% of the pesticides market share. Major top 10 companies of the pesticides market are BASF SE, Nufarm Ltd, FMC Corp, BioWorks, DuPont, Monsanto, Natural Industries, Dow AgroSciences, Syngenta AG, and Sumitomo Chemical among others.

Acquisition/ Product Launch

• In June 2018, Bayer completed a successful acquisition of the U.S. based firm Monsanto. This acquisition was aimed to help the farmers affordable and healthy food is a sustainable manner.
• In May 2016, Syngeta AG developed "Acuron”, an herbicide targeted against difficult weeds in corn.

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