A recent study stated that the demand for crop protection chemicals will continue to increase rapidly, especially due to dwindling arable land and there is an urgent need to address food security. According to Market research, the global crop protection chemicals in market will exhibit a 5.4% CAGR 2020 to 2025. Countries like Brazil, India, China, and Southeast Asian countries are the most rapidly growing markets due to increasing demand for healthy, sustainable food.
The crop protection agrochemicals market in the world is undergoing changes in response to crop mixing trends and dynamic environmental regulations. As increasing the demand and population the Growth has also taken place for food demand. “According to data world population is expected to reach more than 9.82 billion by 2050, which is likely to have a huge impact on dwindling agriculture cultivable land. Also, with continued increase pressure on food security and think about next generation, the pressure to address these issues becomes more complex, demanding better yields.
What about Market
If we talk about 2018 market for crop protection chemicals was around US $64.3 billion. By 2025, it is expected to reach 84.2 billion USD. Where the Herbicides dominated the crop protection agrochemicals market in 2018 which accounting for more than 50% market share.
The application rate has declined every year due to its efficacy. Fungicides were the most commonly consumed crop protection chemicals in all regions. Fungal infections have been a major concern among farmers. According to Fairfield Market Research, "research showing at least 100 million tonnes of rice, wheat, corn and soybeans is being destroyed every year." Without the use of the highest fungal yield of fruits, vegetables and cereals will fall to 60% -70%.
The study also indicated that it was reported that the cereals and cereals segment was the largest consumer of crop protection chemicals in 2018 and had more than 30% share in the global market. Crop protection chemicals were the major consumption in wheat, rice and corn and a similar trend is expected to continue in the coming years.
Why Demand increase?
While most other industries struggled to stay amid the unprecedented COVID-19 outbreak, demand for crop protection chemicals continued to grow at a steady pace. Excessive dependence on agricultural inputs ensures unceasing demand for crop protection for chemicals, making it an essential commodity. Many agrochemical companies considered shocks during the first half of 2020, with supply-chain disruptions leading to continued growth in demand.
Consumers' behavior was greatly affected. However, the outbreak of COVID-19 displaced the historically anticipated project amid changing consumer preferences, pointing to a relatively flat trajectory. It also encouraged many developing countries to focus on innovation of novel inputs of global standard to help farmers improve the productivity and quality of their agricultural lands.
Market Focus on Brazil, Argentina, India
This trend is reflected in the fact that both Latin America and Asia Pacific continued to demonstrate increasing demand for crop protection chemicals. This has helped attract a big market player to the regional market. For example, in 2018, BASF already announced plans to launch 20 agro chemicals in India in the coming five years. It was also announced by Pesticide India Limited (IIL) that it plans to launch three new products as the company gradually returns to normal, reducing the restrictions imposed due to the epidemic. Some big players in the indian market are Bayer, Syngenta, BASF, (DuPont), FMC and ADAMA.
Don't know if all this is happening right or wrong? Is the need of the hour or is it messing with health? Are chemicals necessary or needed? Submit your views what you think about this !!
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