Definition / Scope
“Plant protection” may be defined as all measures taken to protect cultivated plants against diseases, pests as well as competing weed and grasses. Chemical plant protection help to ensure the high yield that today has become possible thanks to efficient varieties, good supply of the plants with nutrients and innovative agricultural engineering.
The global crop protection chemicals market is projected to grow at a CAGR of 5.15% from 2016 and reach USD 70.57 Billion by 2021.
|Base Year||2017||Researched through internet|
There is no need for caution if applied early in the season, but very late applications of fungicides, insecticides or desiccants, and harvest management tools may result in residue levels found in the seed. New pesticides must be evaluated before they can enter the market. Existing pesticides must be re-evaluated periodically to ensure that they continue to meet the appropriate safety standard.
- Ecological Risk Assessment: Many plant and wildlife species can be found near or in cities, agricultural fields, and recreational areas. Before allowing a pesticide product to be sold on the market, we ensure that the pesticide will not pose any unreasonable risks to plants, wildlife and the environment. We do this by evaluating data submitted in support of registration regarding the potential hazard that a pesticide may present to non-target plants, fish, and wildlife species.
- Human Health Risk Assessment: A human health risk assessment is the process to estimate the nature and probability of adverse health effects in humans who may be exposed to chemicals in contaminated environmental media, now or in the future.
- Hazard Identification: Examines whether a substance has the potential to cause harm to humans and/or ecological systems, and if so, under what circumstances.
- Dose Response Assessment: Examines the numerical relationship between exposure and effects.
- Exposure Assessment: Examines what is known about the frequency, timing, and levels of contact with a substance.
- Risk Characterization: Examines how well the data support conclusions about the nature and extent of the risk from exposure to pesticides.
- Cumulative Risk: A common mechanism of toxicity is identified when two or more chemicals or other substances cause a common toxic effect(s) by the same, or essentially the same, sequence of major biochemical events. This new assessment is called a cumulative risk assessment and is designed to evaluate the risk of a common toxic effect associated with concurrent exposure by all relevant pathways and routes of exposure to a group of chemicals that share a common mechanism of toxicity.
- Models, Databases, and Guidelines: The risk assessment process depends on having appropriate data and using well tested models. Harmonized test guidelines reduce the burden on chemical producers and conserve scientific resources, including the minimal use of laboratory test animals. They also form a basis for work sharing and cooperation among all OECD countries.
Top Market Opportunities
Companies mentioned are as follows: AG Biochem Inc. AG Biotech Australia Pty. Ltd. Agraquest Inc. BASF SE Bayer AG Dow Agrosciences LLC EI DuPont De Nemours and Co. Monsanto Co. Potash Corp. SAS Inc. Syngenta AG Troy Biosciences Inc. Valent Biosciences Corp.
- The Asia Pacific accounts for the largest share in global crop protection market owing to the presence of biggest arable land in the world
- China, Japan, Malaysia, Mauritius contribute significantly in the Asia Pacific market for crop protection management
One of the key strategies followed by companies in the global crop protection chemicals market is mergers and acquisitions. Recently, Monsanto offered to buy the U.S. seed maker Sygenta AG for US$45 billion. In case this merger fails, Monsanto is expected to approach German giant Bayer AG, regarding the acquisition of its crop protection chemical business. Besides these companies, other notable companies operating in the global crop protection chemicals market are DuPont, Arystya Lifescience, Sumotomo Chemicals, Nufarm, Makhteshim Agam, and DOW Agroscience.
The new policies practiced in the Asia Pacific region and Latin America is positively impacting the crop protection market taking into consideration the CAGR of 6.8%. The changing farming practices and rising concerns across the globe are some of the key factors impacting the growth of the crop protection market.
Crop Protection Chemicals Market & Product Segment Analysis- 1 Herbicides Glyphosate Atrazine Acetochlor 2,4 - D
2 Insecticides Chlorpyrifos Malathion Pyrethrins and Pyrethroids Carbaryl Others (DIAZINON, TERBUFOS, METHOXYCHLOR)
Crop Protection Chemicals Market: Application Segment Analysis
- Cereals & Grain - Rice, Wheat, Corn
- Oilseeds & Pulses - Rapeseed, Sunflower, Soya bean, Cotton, Sugarcane
- Fruits, Vegetables and Nuts
Crop Protection Chemicals Market: Regional Segment Analysis
- North America - U.S.
- Europe - Germany, UK, France
- Asia Pacific - China, Japan, India
- Latin America - Brazil
- Middle East & Africa
1.Qualitative analysis Industry landscape and trends Market dynamics and key issues Technology landscape Market opportunities Porter’s analysis and PESTEL analysis Competitive landscape and product benchmarking Policy and regulatory scenario
2. Quantitative analysis
Market volume and revenue estimates and forecast up to 2022
Market volume and revenue estimate and forecast up to 2022, by product
Market volume and revenue estimate and forecast up to 2022, by application
Regional market volume and revenue forecast up to 2022, by product
Regional market volume and revenue forecast up to 2022, by application
The global market valued at USD 207.5 billion in 2014. It is projected to reach USD 250.5 billion by 2020, at a CAGR of 3.2% from 2015 to 2020. Asia-Pacific dominated the global market with a share of around 36.7%. The European region is expected to be the fastest-growing market in the near future, for the growing concentration of farmers towards technology driven agriculture practices.
Market for agrochemicals is being driven by increasing awareness among the farmers across developing nations with the technology driven farm practices. The regional government supports to increase the agricultural crop output with minimized use of agrochemicals.
High-value crops such as cereals & grains and fruits & vegetables and protected cultivation of crops are driving the demand for the agrochemicals market. Increase in protected cultivation of crops has been attracting growers across the globe as it offers handful returns on investment.
More number of growers have ventured into the greenhouse system of agriculture production industry, for higher rates of return for the product. The use of agrochemicals is highly seasonal and improved, protected crop production is driving the year-round demand for agrochemicals products, especially pesticides and- fertilizers.
Major players such as Israel Chemicals (Israel), Yara International ASA (Norway), The Mosaic Co. (U.S.), BASF SE (Germany), and Dow Chemical Limited (U.S.) account for around 70% of the global agrochemicals market, with respect to the developments in the market from 2015-2020.
The global market for pesticides is expected to register a CAGR of 5.79% between 2016 and 2021. By 2021, Asia-Pacific is projected to grow at the fastest pace, followed by South America.
Many independent retailers suffer from the same ailments many small businesses incur i.e. lack of capital, and no succession plan. Most line company retail outlets have autonomy on day to day operations, but require head office approval for capital expenditures.
Depending on active ingredients, the market is classified into Parathion, Malathion, Chloropyriphos, Diazinon, Dimethoate, Glyphosate, Methamidophos and other organophosphates. For various crops, diverse pesticides are used as they are classified into herbicide, insecticides, fungicides and other pesticides. Market study indicated that Cereals and grains consumed the highest market in the use of insecticide products.
The rising disposable income levels, rising population and food security have made Asia-pacific, the region with maximum potential for growth. The emerging economies including China, India, Vietnam and Thailand are the major consumers of organophosphate pesticide for application in various cereal and grain crops.
Accounting for one-fourth of the global pesticides market share, the segment attracts great deal of investments from agricultural inputs companies. The major companies in global organophosphates pesticides market are DuPont, Cheminova AS, Syngenta, Bayer Cropscience AG, Yara International etc.
Manufacturers choose distributors based on a number of criterion. Performance abilities i.e. warehousing capacity, credit worthiness, and the ability to place and receive an early order all affect the manufacturer’s decision.
Another criterion is the willingness or ability of the distributor to actively promote a pesticide thereby creating product demand that “pulls” the product through the supply chain, or the ability of the distributor to “push” the product into the retail system. A final criterion is the market coverage provided by the retailer.
Pricing Distributor margins for pesticides vary considerably with a range of 2% to 12% . Competition at the distributor level is intense with distributors indicating that ½ of 1% was very important to their financial success.
Distribution costs as a percentage of sales for pesticides ranged from 2% to 5% and averaged 3.5%. The main distribution costs were warehousing, marketing, transportation and administration.
Distributors indicated a wide range of accuracy for forecasting pesticide demand (i.e. 2% to 40%). Factors complicating the demand forecast were: weather; commodity prices; manufacturer and grower programs; and acreage swings. When forecasting demand, distributors rely on historical sales, early booking programs and planting intentions. Most distributors expected to carry 15% to 20% of inventory.
Key Market Players
US and become largest world market by 2016.Increased farming of biofuel crops and the use of genetically modified (GM) seeds caused pesticide sales in Argentina and Brazil to more than double between 2006 and 2011, with Brazil surpassing the US to become the largest market in the world. China became the fourth largest national market as rising pesticide production in the country improved domestic pesticide availability and facilitated sharply increasing utilization rates.
We analyze the $49 billion world agricultural pesticide industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by product (e.g., herbicides, insecticides, fungicides), crop (e.g., corn, wheat, rice, soybeans), world region and for 43 countries.
The following steps to be considered
- Make research investments and policy changes that emphasize development of pesticides and application technologies that pose reduced health risks and are compatible with ecologically based pest management.
- Promote scientific and social initiatives to make development and use of alternatives to pesticides more competitive in a wide variety of managed and natural ecosystems.
- Increase the ability and motivation of agricultural workers to lessen their exposure to potentially harmful chemicals and refine worker-protection regulations and enforce compliance with them.
- Reduce adverse off-target effects by judicious choice of chemical agents, implementation of precision application technology and determination of economic- and environmental-impact thresholds for pesticide use in more agricultural systems.
- Reduce the overall environmental impact of the agricultural enterprise.
The most promising opportunity for increasing benefits and reducing risks is to invest time, money, and effort into developing a diverse toolbox of pest-management strategies that include safe products and practices that integrate chemical approaches into an overall, ecologically based framework to optimize sustainable production, environmental quality, and human health.
- Research topics that should be targeted by the public sector include
- Minor-use crops.
- Pest biology and ecology.
- Integration of several pest-management tools in managed and natural ecosystems.
- Targeted applications of pesticides.
- Risk perception and risk assessment of pesticides and their alternatives.
- Economic and social impacts of pesticide use.