The growing demand for agricultural products has made the role of pesticides of utmost significance. There have been several crop failure instances in the past due to pests that can be regulated by using effective quantities of pesticides. The farmers around the globe have started using pesticides to manage pest development, and this has raised the pesticides market multiple times. But what are pesticides and why are they important? Pesticides are mixtures or substances for plant protection that either repel or kill a pest. They are significant for preserving the crops from pest infestations, weeds and diseases. They are used globally for improving the agricultural output. Pesticides are used to prevent crop spoilage due to pests such as weeds (herbicides), insects (insecticides) and fungi (fungicides) during the last stages of crop production process.
The significance of pesticides has been rising over the years to enhance overall agricultural production and safeguard adequate availability of food for continuously growing world population. According to a new technical market research report released by BCC research, the global pesticide market was valued at $75 billion in 2017 and is further projected to stretch out to $90 billion by the end of 2023. China and America are the two countries that make maximum use of pesticides and are the major contributors to the growing worldwide pesticide industry.
The market for pesticides can be broken into two major segments – bio pesticides and synthetic pesticides. The synthetic pesticide market are the pesticides made using laboratory chemicals like sulfur and sulfuric acid, and the bio pesticides are derived from natural and biological materials such as plants, microorganisms, animals and a few minerals. The market for synthetic pesticides is currently about $60 billion and the market for bio pesticides is $6.4 billion. The synthetic pesticide industry is expected to reach $81 billion representing a CAGR of 4.8% and the bio pesticide industry is expected to reach to $9 billion demonstrating a CAGR of 15.99%. The growth is expected to be higher in the developing nations like Asia and South America (especially Argentina and Brazil). The mature markets such as European Union and the USA are predicted to attract high sales as well. The growth in the pesticide market will be driven by three major market segments including agriculture, consumer and commercial.
As a result of its wide market acceptance and high acquisition activity, the pesticide industry is in the mature phase of its life cycle. The stable nature of the industry products, ownership and brands indicate the mature phase of the industry. Monsanto, DuPont and Bayer are the key influential players in the pesticide industry. Agricultural sectors and households remain to be the most important purchasing markets for pesticides.
The main driver of development in the pesticide industry is increasing global population which is increasing the demand of the food. The food demand is also raised due to increasing calorie intake per capita. Other factors driving growth in the pesticide market include necessity of improvement in the current yield and decrease in the area under agriculture. However, there are certain limitations to the use of pesticides. The Environment Protection Agency (EPA) has turned up with stringent regulations restricting the use of pesticides in agriculture produce pertaining to their negative impact on the environment. Another factor restricting the development of synthetic pesticide sector is consumer awareness of pesticide consumption. The consumers are now well literate and prefer the consumption of bio pesticides. This is the sole reason why the bio pesticide industry is expected to grow at a rapid rate than the synthetic pesticide industry.
While demand development in North America is likely to be the slowest, despite being the biggest market for pesticides, Asia-Pacific is anticipated to emerge as the fastest increasing market for the pesticide industry. The US demand for formulated pesticide products is projected to expand by 2.6 percent per year, according to estimates. The demand for the active ingredients of pesticides is also expected to increase by 1.4% every year. In the next five years, India, Japan and China are anticipated to be the main pesticide markets.
Governments in several nations have developed projects to promote the creation and use of bio pesticides due to their low toxicity, increased security and increased pest control efficiency. Research has been conducted to explore how microorganisms such as bacteria, virus, fungus, or microscopic nematode worms can be used in agricultural methods to control or eliminate pests that can harm a plant. But market growth has also been hampered by the low use of pesticides per capita in several areas, entrenched market for pesticides, declining farmland, and burgeoning cost of research and development. Therefore, in order to further boost the market for the pesticide sector, it is essential to investigate the creation of cost-effective bio pesticides. It is also essential to make individuals conscious of the reality that the bio pesticides do not damage the quality of food and people’s health, in reality they render the food pest free.