The global Crop Protection market is poised for significant growth, with the market size expected to surpass USD 66.7 billion by 2030, growing at a compound annual growth rate CAGR of 5.6% from 2023 to 2030. The market was valued at USD 42.6 billion in 2021 and is projected to reach USD 43.24 billion in 2022.
The increasing demand for Crop Protection is driven by the need to enhance agricultural productivity and meet the challenges posed by a growing population and climate change. Biotech crops have contributed to food security, sustainability, and climate change mitigation by increasing crop productivity, conserving biodiversity, and providing a better environment. According to the International Service for the Acquisition of Agri-biotech Applications (ISAAA), the global area of biotech crops reached 212.5 million hectares in 2020, a 5.7% increase from 2019.
Market Segmentation
The global Crop Protection market is segmented based on product, application, source, and region:
By product: The herbicides segment dominated the market, accounting for 45.2% of the global revenue in 2021, followed by fungicides (32.1%) and insecticides (22.7%).
By application: The cereals and grains segment dominated the global Crop Protection market in 2020, accounting for 35.4% of the total revenue, followed by fruits & vegetables (22.1%), cotton (15.2%), and rice (12.3%).
By source: The synthetic chemicals segment accounted for 82.3% of the global market revenue in 2021, while the biologicals segment held a 17.7% share.
By region: Asia Pacific was the largest regional market, accounting for 41.2% of the global revenue in 2021, followed by Europe (25.1%), North America (19.1%), Latin America (10.1%), and the Middle East and Africa (4.5%).
Market Drivers and Restraints
The growing utilization of crop protection products for high yield is expected to drive the market growth. However, the increase in pests' resistance to crop pesticides may hinder market growth. According to a study by the University of Arizona, the global cost of pesticide resistance in major crops is estimated to be around USD 10 billion annually.
Regional Analysis
Europe's Crop Protection market is primarily driven by the expanding agricultural sector, improvements in farming methods, and a growing consciousness of healthy food. Germany, France, the United Kingdom, and Italy were the main contributors to the expansion of the regional market in 2020, accounting for 72.3% of the European market revenue.
Top Players and Recent Developments
Leading companies in the Crop Protection market include Nufarm Ltd., BASF SE, Bayer CropScience, Syngenta AG, and FMC Corporation. Nufarm Ltd. created an Asia Pacific company in October 2020 by combining enterprises from Australia and New Zealand with those from Asia, aimed at improving manufacturing capabilities, supply chain efficiency, and regional potential.
Generics in Crop Protection
The report New Generics in Crop Protection 2022 by S&P Global Commodity Insights provides a guide to important herbicide, fungicide, insecticide, and nematicide active ingredients coming off patent over the period from 2020 to 2027. The report covers 12 herbicides, 17 fungicides, 8 insecticides, and 2 nematicides registered in the European Union or the US.
Biological Crop Protection
The global market for Biological Crop Protection (Bio-Pesticide) was estimated to be worth US$ 6,104.9 million in 2023 and is forecast to grow at a CAGR of 9.01% from 2023 to 2028. The increasing adoption of biological crop protection methods is driven by the need for sustainable and eco-friendly solutions in agriculture, with the global area under organic agriculture reaching 74.9 million hectares in 2020, a 4.1% increase from 2019.
Conclusion
The global Crop Protection market is poised for significant growth, driven by the need to enhance agricultural productivity and meet the challenges posed by a growing population and climate change. The market is segmented based on product, application, source, and region, with the cereals and grains segment dominating the market. Europe's Crop Protection market is primarily driven by the expanding agricultural sector and a growing consciousness of healthy food. The increasing adoption of biological crop protection methods is a promising trend in the industry, with the global bio-pesticide market expected to grow at a CAGR of 9.01% from 2023 to 2028.