Pesticides Market Definition
The pesticides manufacturing market consists of the sales of pesticides by entities (organizations, sole traders or partnerships) that formulate and prepare agricultural and household pest control chemicals (except fertilizers). The pesticide and other agricultural chemical industry comprises establishments that primarily engage in the formulation and preparation of agricultural and household pest control chemicals.
Pesticides are chemicals used to eliminate or control a variety of pests related to agriculture that can damage crops and livestock and reduce farm productivity. Agricultural chemicals (also known as agrochemicals) are chemical agents such as fungicides, herbicides and insecticides that are used to control crop-harming organisms (e.g., fungi, mites, insects, insect eggs and larvae) or viruses. Other agricultural chemicals are agricultural agents such as rodenticides, nematicides, bactericides and others to control crop-harming organisms such as rodents, nematodes, bacteria and others.
Pesticides Market Size
The global pesticides market size reached a value of nearly $84.5 billion in 2019, having grown at a compound annual growth rate (CAGR) of 4.2% since 2015, and is expected to grow at a CAGR of 11.5% to nearly $130.7 billion by 2023. Growth in the historic period resulted from strong economic growth in emerging markets and intensive farming techniques in the pesticides market. Factors that negatively affected growth in the historic period were high research and development (R&D) costs, and alternative techniques.
Going forward, faster economic growth in many developed and developing countries, and growing populations will drive growth. Factors that could hinder the growth of the pesticides market in the future include rising awareness of negative effects of pesticides on environment, rising demand for organic food product, geopolitical tensions and patent expires.
Pesticides Market Drivers
The key drivers of the pesticides market include:
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 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.
Pesticides Market Restraints
The key restraints on the pesticides market include:
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 use of pesticides, techniques such as these were implemented widely, restricting the market’s growth.
Pesticides Market Trends
Major trends influencing the pesticides market include:
Increasing Scope Of Nano-Insecticides
Toxicologists and horticulturists globally are adopting nanotechnology and nanoparticles in the development of new, environmentally friendly insecticides. Nanoparticles have revolutionized the pharmaceuticals, medical equipment, and chemicals industries. Most engineers believe that nanotechnology can help make insecticides much safer as a large variety of them are non-toxic. Moreover, with proper study and development, insecticides can be made more effective, significantly reducing the amount of insecticides sprayed on agricultural fields.
Environmentally Friendly Alternatives
Companies in the herbicides industry are increasingly investing in the research and development to develop environmentally friendly alternatives. Many countries are considering banning harmful herbicides such as glyphosate which release harmful toxins in the environment. Companies are investing in processes to manufacture less harmful alternatives to glyphosate. For instance, in May 2016, Syngeta AG developed "Acuron”, a herbicide targeted against difficult weeds in corn. Companies are expected to continue developing new kinds of herbicides which have limited impacts on the environment.
Opportunities And Recommendations In The Pesticides Market
Opportunities – The pesticides market size will gain the most in the Brazil at $7.09 billion. Market-trend-based strategies for the pesticides market include increase in adjuvants use, adoption of biopesticides, increasing scope of nano-insecticides, environmentally friendly alternatives, consolidation of major player, safety regulations leading to product development, low prices leading to increased demand for inorganic fungicides in developing countries and investing new product development. Player-adopted strategies in the pesticides market include integrating agronomic expertise reinforcing M&A strategies to expand product portfolio, new products lunches and approvals and investing in research and development activities.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the pesticides companies to consider producing biopesticides, increase investments in research and development to produce environmentally friendly and nanopesticides, consider outsourcing their manufacturing facilities to developing countries and focus on offering products to the fruit growers.
Pesticides Market Segmentation
The pesticides market is segmented by type, and by geography.
The pesticides market can be segmented by type into
The herbicides market was the largest segment of the pesticides market, accounting for 51.9% of the total in 2019. It was followed by fungicides, and insecticides. Going forward, the herbicides segment is expected to be the fastest growing segment in the pesticides market.
- a) Herbicides
- b) Fungicides
- c) Insecticides
By Geography - The pesticides market is segmented into
Asia-Pacific was the largest region in the global pesticides market, accounting for 26.8% of the total in 2019. It was followed by South America, North America, and then the other regions. Going forward, the fastest-growing regions in the pesticides market will be Africa and South America.
- o North America
- o Western Europe
- o Asia Pacific
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Pesticides Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Syngenta
- • Bayer AG
- • BASF SE
- • Dow DuPont Inc.
- • FMC Corporation
- • LG Chem ltd
- • Sumitomo Chemical Co ltd
- • Wacker Chemie AG
- • Arkema SA
- • Kuraray Co Ltd
- • Jiangsu Huifeng Agrochemical Co.
- • Nutrichem Company Limited
- • Shandong Weifang Rainbow Chemical Co.
- • Sichuan Leshan Fuhua Tongda Agro-Chemical Technology Co.
- • Nanjing Red Sun Co.
- • PI Industries
- • Sharda Crop
- • Dhanuka Agritec
- • Monsanto India.
- • Sumitomo Chemical.
- • Kumiai chemical
- • Nufarm UK
- • Hockley International
- • Interfarm (UK) Ltd
- • Monsanto
- • UPL
- • Astranova Tarim Ticaret Ve San. A.S.
- • Menta Co. Ltd.
- • Ag-Chem Africa
- • Chema Industries
- • Jubaili Agrotec ltd.