Crop Protection Chemicals Market – Forecast, 2023-2030

Crop Protection Chemicals Market Overview

Crop Protection Chemicals market size is forecast to reach US$97.5 billion by 2030, after growing at a CAGR of 5.3% during 2024-2030. Crop Protection Chemicals are used to protect crops from insects, infestation and diseases and promote healthy plant growth. Pesticides are used to control pests and includes herbicides, insecticides, fungicides, nematicides, rodenticides, etc. The growing need for food security is a primary driver for the agrochemicals market. Additionally, the rising incidences of pest attacks and government subsidies on pesticides further boost the market. A significant trend is the demand for sustainability. Due to the growing need to reduce chemical based products owing to side effects, there is a demand for biopesticides. In April 2024, Syngenta and Lavie Bio announced a collaboration to accelerate the development of biopesticides. Another trend in the market is the use of drones. Farmers are increasingly using drones to apply crop protection chemicals. Advanced drones use sensors and cameras to create real-time maps of the field allowing for targeted spraying and avoiding unnecessary crop protection chemical usage.

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COVID-19 / Ukraine Crisis - Impact Analysis:  

• The agricultural sector was affected due to supply chain issues, pricing issues and market disruptions. Lockdowns impacted the restaurant, hospitality and transportation sectors, causing the demand for fruits, vegetables sugar and other raw and manufactured agricultural products to shrink. Shortage of labor also affected the crop protection chemicals market
• The Russia-Ukraine war drastically affected the Crop Protection Chemicals market. The high energy prices due to inflation and sanctions on Russia led to very high manufacturing costs for crop protection chemicals especially in Europe which affected the market. 

Key Takeaways

Conventional is the Largest Segment

Conventional chemicals dominate the crop protection chemicals market due to their proven efficacy in controlling a wide range of pests and diseases. These synthetic chemicals, including herbicides, insecticides and fungicides, offer rapid action and consistent results, making them indispensable for large-scale agricultural operations. The widespread adoption of conventional pesticides is further supported by their availability in diverse formulations tailored to various crop and pest types. According to the United States Geological Survey (USGS), about 1 billion pounds of conventional pesticides are used each year in the United States to control weeds, insects and other pests.

Cereals and Grains are the Largest Segment

Cereals and Grains are the largest segment in the crop protection chemicals market, According to the Food and Agriculture Organization of the United Nations (FAO), rice, wheat and corn together account for over 90% of the world’s cereal production. As per the FAO, rice is a major crop in South Asia. According to the projected demand, in major Asian countries rice consumption will increase faster than the population growth. In summary, in Asia, the rice consumption by the year 2025 will increase by more than 51%. As the demand for food grains like rice is projected to grow, to safeguard these grains from spoilage, the use of crop protection chemicals is mandatory.

APAC Leads the Market

APAC occupies the largest market share in the Crop Protection Chemicals Market owing to the owing to its large agricultural sector and the significant volume of food production and need for crop protection chemicals. Asian countries such as China, Indonesia, Thailand, Vietnam and India have substantial demand for crop protection chemicals to maximize productivity to ensure food security. China's grain output reached a record high of 695.4 million tons in 2023, an increase of 8.8 million tons compared to 2022, as per data from the Ministry of Agriculture and Rural Affairs. As per the 14th Five-year Plan of China Pesticide, the country aims to supply 80% of the world’s pesticide demand. Additionally, the Asian region also exports a lot of its agricultural commodities which drives the need for higher agricultural productivity, further boosting the demand for crop protection chemicals.

Growing Need for Food Security

The world population reached 8 billion people on 15 November, 2022, according to data provided by the United Nations (UN). The UN also estimates that the world population will reach 9 billion by 2037. The increasing population creates a huge demand for food. There is a need to not only increase production to meet the demand but also to ensure food security of an increasing population. To ensure food security, it is important that the crop yield is not spoiled by pests which necessitates the demand for crop protection chemicals. The growing global population is intensifying the demand for food, driving the need for higher agricultural productivity. Farmers are increasingly adopting crop protection chemicals to improve output on their farms to ensure food security.

Alternative Crop Protection Methods to Hamper the Market

Alternative methods are being used instead of relying on crop protection chemicals. The use of genetically modified organism (GMO) crops and integrated pest management (IPM) limit the use of agrochemicals and pesticides. Most of the GMO crops grown today were developed to help farmers prevent crop loss. The three most common traits found in GMO crops are resistance to insects, tolerance to herbicides and resistance to plant viruses. This brings down the dependence on pesticides. IPM is a series of crop protection strategies to grow healthy crops and minimize the use of pesticides. IPM combines the use of biological, cultural and chemical practices to control pests in agriculture. Awareness about these alternative crop protection methos and their implementation can prove to be challenge for the crop protection chemicals market.