The crop protection chemicals market has been forecast to increase at a compound annual growth rate (CAGR) of 5.93% through 2016, driven by the increase in global demand for food grains, and the increase in the Genetically Modified (GM) crop area.
Pesticides protect the plants from various weeds, nematodes and fungus, thus raising the yield production. Increased awareness for crop protection in developed nations like the U.S, better and effective utilization of pesticides along with adoption of high end technologies are key growth drivers for the market.
The development of chemicals to protect agricultural crops is an important activity within the chemical industry. Without them, many crops would suffer dramatic losses. Some of these chemicals, the insecticides, are also very important in combating human and animal diseases. The environmental and toxicological properties of these chemicals have improved considerably over the last six decades.
Herbicides, fungicides and insecticides are the foremost product segments in the global crop protection market. The herbicides market will experience both the highest growth rate as well as highest volume traded in the next six years.
Globally, biofuels are gaining importance due to the increasing focus on sustainability. Bioethanol is the major biofuel, followed by biodiesel and biogas. The natural feedstocks for biofuels are grains such as rapeseed, rice, and wheat or crops such as sugarcane and corn. The demand for crop protection chemicals is also derived from the demand for biofuels.
For instance, ethanol requires corn as a feedstock for its production; therefore, an increase in the demand for ethanol will lead to an increase in the production of corn, which in turn would result in an increase in the use of crop protection chemicals.
Asia Pacific accounted for majority of the global crop protection market in 2011 and is expected to do so till 2018; however Latin American and North American markets are expected to grow at a higher rate.
Key players currently dominating the crop protection chemicals market include BASF SE, Bayer CropScience, Dow AgroSciences, and Syngenta AG.
For more information on the crop protection chemicals market, see the latest research: Crop Protection Chemicals Market
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