by The global crop protection chemicals market is estimated to be valued at US$63.26 million in 2021 and is expected to reach by 2022, growing at a CAGR of 4.10% during the forecast period (2022-2030), as stated in a new report by Coherent Market Insights.
Market Overview:
Crop protection chemicals are organic and synthetic substances used to control the growth of pests, diseases, and weeds in crops. These chemicals help in enhancing crop yield and agricultural productivity. The increasing need for high-quality agricultural produce to meet the rising demand for food, rapid urbanization, and shrinking arable land is driving the market for crop protection chemicals. These chemicals also contribute to reducing pre- and post-harvest losses, ensuring crop quality, and improving the efficiency of agriculture.
Market Key Trends:
One key trend in the crop protection chemicals market is the growing adoption of bio-based and organic crop protection products. With the rising awareness about the harmful effects of synthetic chemicals on human health and the environment, farmers are increasingly shifting towards eco-friendly alternatives. Bio-based crop protection products offer benefits such as reduced toxicity, greater target specificity, and environmental sustainability. This shift towards bio-based products is expected to drive the market growth in the coming years.
Porter’s Analysis:
Threat of new entrants: With established players dominating the crop protection chemicals market and a high level of entry barriers such as high capital investment and complex regulations, the threat of new entrants is relatively low. Existing companies have well-established distribution networks and strong relationships with suppliers, making it difficult for new entrants to gain market share.
Bargaining power of buyers: The bargaining power of buyers in the crop protection chemicals market is moderate. While buyers have the option to switch between different suppliers, the relatively concentrated nature of the market gives suppliers some leverage. Additionally, the importance of crop protection chemicals in ensuring yield and quality of crops gives suppliers an advantage in negotiating prices.
Bargaining power of suppliers: The bargaining power of suppliers in the crop protection chemicals market is high. There are a limited number of suppliers, and they hold significant control over the raw materials required for production. Additionally, the cost of switching suppliers is relatively high, giving suppliers the upper hand in negotiations.
Threat of new substitutes: The threat of new substitutes in the crop protection chemicals market is low. These chemicals play a crucial role in protecting crops from pests, diseases, and weeds, and there are limited alternatives available that can provide the same level of effectiveness. Furthermore, the extensive research and development required to develop new substitutes act as a barrier to entry for potential substitute products.
Competitive rivalry: The competitive rivalry in the crop protection chemicals market is intense. There are several key players in the market, competing based on product portfolio, brand reputation, and innovation. This competition leads to aggressive marketing strategies, continuous product development, and competitive pricing.
Key Takeaways:
The global Crop Protection Chemicals Market Growth is expected to witness high growth, exhibiting a CAGR of 4.10% over the forecast period (2022-2030). This growth can be attributed to the increasing need for higher crop yield and quality to meet the rising demand for food due to population growth. Additionally, the growing awareness among farmers regarding the benefits of crop protection chemicals in maximizing agricultural productivity further contributes to market growth.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the crop protection chemicals market. The region has a significant agricultural sector, with countries like China and India being major contributors to crop production. Additionally, the adoption of advanced agricultural practices and increasing investments in the agricultural sector further drive the demand for crop protection chemicals in this region.
Key players operating in the crop protection chemicals market include Bayer CropScience, ChemChina Corporation, BASF SE, Corteva Agriscience, UPL Limited, FMC Corporation, Nufarm Ltd, Sumitomo Chemicals, American Vanguard Corporation, ISAGRO SpA, Bioworks Inc., Ishihara Sangyo Kaisha Ltd, Marrone Bio Innovations Inc., and Syngenta International AG. These key players focus on strategic initiatives such as mergers and acquisitions, partnerships, and product launches to strengthen their market position and gain a competitive edge.
Overall, the crop protection chemicals market is expected to experience significant growth driven by increasing global food demand, adoption of advanced agricultural practices, and the need to maximize crop productivity. The market is highly competitive, with key players constantly striving to innovate and meet the evolving needs of farmers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
