An In-depth Insight into the Global Pesticides Market
The world population has been growing at a rapid rate. To cater to the demands of the population, the food supply in the world has to grow proportionally. The problem is that the arable land is limited, so people have to rely on efficiency gains to meet the world’s food demand. Insects, weeds, and pests […]
The world population has been growing at a rapid rate. To cater to the demands of the population, the food supply in the world has to grow proportionally. The problem is that the arable land is limited, so people have to rely on efficiency gains to meet the world’s food demand. Insects, weeds, and pests destroy a majority of the crops. Pesticides are extensively used to control the spoilage of crops against pests. Pesticides are used to preserve the crops and food from harmful pests during the production, processing, storage, or transport process. The rising demand for weed management has led to the growth of the herbicides segment, which is the largest segment in the global pesticides market. Herbicides are extensively used to control weed growth in crops.
The APAC region is the largest market for pesticides, accounting for a market share of about 49%. The market is expected to grow at a CAGR of about 7% in the region. The consumption in this region can be attributed to the use of pesticides in regions such as India, China, and Japan. These regions require a high amount of pesticides as it is the leading producer of rice, wheat, and vegetables. The regional market is expected to reach nearly $23 billion by 2022. Additionally, continuously evolving technology and advances in the agriculture industry are encouraging farmers to engage in effective pest management, which, in turn, has resulted in the increased use of pesticides.
The supply market for pesticides is controlled by few major players such as BASF, Bayer, DowDuPont, and Syngenta. Smaller players are also making an impact in this market by increasing their production capacities in North America and Africa. Suppliers are using proprietary manufacturing technologies to enhance the quality of pesticides and increase automation of production processes. Leading suppliers are also focusing on the adoption of technologies such as process analyzers to enhance quality control and improve the performance of pesticides.
Top 3 exporters of pesticides
- Germany: US$4 billion (13% of global exports)
- China: US$3.7 billion (12% of global exports)
- The US: US$3.4 billion (11.1% of global exports)
One of the most fascinating trends seen in this market is the use of GM technology to provide disease or insect resistance in crops. It can either work by making the plant immune to certain pesticides so it can be used in huge amounts without the harmful side effects or be resistant to the pests itself. However, the GM technology is heavily regulated, and suppliers using DNA technology are legally required to assure the safety and quality of the product before it enters the food supply.
The environmental impact of pesticides is one of the biggest talking points in the world right now. Some pesticides have been proven to be harmful to the humans, and use of such chemicals can lead to the pollution of freshwater, which releases carcinogens and other poison into the ecosystem. As a result, the use of pesticides will be less in the future. Additionally, people are refraining from using foods grown using pesticides and opting for organic food.
There has been significant volatility in the prices of raw material in the pesticides industry. The price volatility poses challenges for organizations in predicting their procurement budgets. Lack of knowledge on price fluctuations can be disadvantageous for buyers as it results in the buyer paying more than the market price due to contractual obligations. However, to save against such price fluctuations, buyers can implement a contract clause that provides an upper limit on pesticide prices.
Read more about the supply market landscape in the pesticides market along with supply market insights, procurement challenges, category management, and pricing models in SpendEdge’s upcoming report on the global pesticides market.