Global crop protection market on the rise

May 26, 2015 by Drader

The world’s appetite for crop protection continues to grow.

According to Mordor Intelligence’s  Global Crop Protection Chemicals (Pesticides) Market – Growth, Trends And Forecasts (2015 – 2020), the global volume market for pesticides is projected to reach 3.4 million tons by 2020, an increase from 2.3 million tons in 2014, with a CAGR for volume growth being 6.2% between now and 2020. Current global value market for pesticides stands at $54.8 billion (US) in 2014 and is projected to reach $81.8 billion (US) by 2020.

Demand is being driven by decreasing arable land, increasing population and the need for higher crop yields. Complicating matters is growing attention and regulation on chemical pesticides, which can be toxic to the environment at large. For companies like EcoPesticides that are focused on biologic-based pesticides, this is positive news.

More good news for EcoPesticides is that chemicals such as chlorpyrifos (insecticide) remain under constant reviews and may eventually be banned.  Biopesticides are seeing faster growth in demand compared to chemical pesticides and herbicides due in part to governmental support. Barriers to growth include R&D costs, demand for high crop yields and entrenched chemical products.

Asia-Pacific is forecast to be the fastest growing market with the United States holding steady. The United States, China, Japan, and Taiwan have the highest per capita usage of pesticides  compared to low consumption in countries like India and Greece. The need for food security and better reforms will drive the market in these countries.

While there’s room for new companies, particularly in the biopesticide segment, global companies like  American Vanguard, ABASF SE, Bayer CropScience, Dow AgroSciences, DuPont, Monsanto, Syngenta AG, and Valent Biosciences continue to dominate.

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