Global Crop Protection Chemicals Market to Reach $106.7 Billion by 2031; Pennsylvania Agribusinesses Stand to Benefit

agribusinesses, agriculture© Savanevich Viktar / Canva

The global crop protection chemicals market is anticipated to reach a staggering $106.7 billion in demand by 2031, according to a new report by Transparency Market Research, Inc. This growth, representing a CAGR of 5.7% between 2021 and 2031, is primarily driven by an increase in production and demand for open field and protective cultivation.

Crop protection chemicals, also known as pesticides, are crucial in controlling pests that can significantly reduce agricultural yields. This includes insects, weeds, fungi, bacteria, and other organisms threatening the health and productivity of crops. As such, these chemicals play a pivotal role in modern agriculture, assisting farmers in enhancing their crop yields and ensuring food security.

Driving Factors and Restraints

A key factor contributing to this growth is the increasing emphasis on improved agricultural crop output. Integrated pest management strategies, which include biological control, the adoption of resistant varieties, and adjustment of cultural practices, have shown significant results. For instance, according to the Directorate of Plant Protection Quarantine & Storage (India), these strategies have enhanced agricultural crop output by 40.14% and 26.63% in rice and cotton harvests, respectively.

However, the growing resistance of pests to crop pesticides may pose a challenge to market growth.

Latest Developments

Recent developments in the global crop protection chemicals market include the launch of a seed treatment named Victrato by Syngenta in May 2022, targeting nematodes and significant soil-borne fungi. Furthermore, in May 2021, China’s two centrally administered, state-owned chemical manufacturers, Sinochem and ChemChina, were merged to form a new chemical giant operating in various sectors.

Key Players

Prominent players in the global crop protection chemicals market include BASF SE, Covestro AG, Jiangsu Changqing Agrochemical Co., Ltd., Corteva, FMC Corporation, Sumitomo Chemical Co., Ltd., UPL, Meghmani Organics Ltd., NIHON NOHYAKU CO. LTD., Nissan Chemical Corporation, Agrinos, ChemChina, Bharat Rasayan Ltd., Aimco Pesticides Ltd., Dhanuka Agritech Ltd., Ichiban, and Nufarm.

  • BASF SE: A multinational chemical company based in Germany, BASF SE is one of the largest chemical producers in the world. The company operates through various segments including chemicals, materials, industrial solutions, surface technologies, nutrition & care, and agricultural solutions.
  • Covestro AG: Formerly Bayer MaterialScience, Covestro AG is a German company that specializes in the production of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life.
  • Jiangsu Changqing Agrochemical Co., Ltd.: This Chinese company specializes in the research, development, production, and sales of pesticides and other agrochemical products.
  • Corteva: An American agricultural chemical and seed company, Corteva was formed in 2019 as a spinoff from DowDuPont. It provides farmers around the world with a complete portfolio of products including seeds, crop protection, and digital solutions.
  • FMC Corporation: An American chemical manufacturing company, FMC Corporation produces insecticides, herbicides, and fungicides along with lithium for electric vehicle batteries.
  • Sumitomo Chemical Co., Ltd.: Based in Japan, Sumitomo Chemical Co., Ltd. offers a wide range of products in the fields of petrochemicals, energy and functional materials, IT-related chemicals, health and crop sciences, and pharmaceuticals.
  • UPL: UPL is an Indian multinational company that manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, and specialty chemicals.
  • Meghmani Organics Ltd.: An India-based company, Meghmani Organics Ltd. specializes in the manufacture of pigment and pesticide products.
  • NIHON NOHYAKU CO. LTD.: Established in Japan, NIHON NOHYAKU CO. LTD. is engaged in the manufacture and sale of agrochemicals, public health chemicals, and industrial chemicals.
  • Nissan Chemical Corporation: A chemical company based in Japan, Nissan Chemical Corporation produces and sells chemicals, performance materials, agrochemicals, pharmaceuticals, and more.
  • Agrinos: A global leader in biological crop nutrition products, Agrinos is dedicated to improving the productivity and sustainability of modern agriculture.
  • ChemChina: Known officially as China National Chemical Corporation, ChemChina is a state-owned enterprise in China that produces and sells a variety of chemical products.
  • Bharat Rasayan Ltd.: An Indian company, Bharat Rasayan Ltd. manufactures technical grade pesticides and intermediates, fungicides, herbicides, and insecticides.
  • Aimco Pesticides Ltd.: Established in India, Aimco Pesticides Ltd. is a leading manufacturer and exporter of various types of pesticides.
  • Dhanuka Agritech Ltd.: Another Indian company, Dhanuka Agritech Ltd. manufactures a wide range of agrochemicals like herbicides, insecticides, fungicides, miticides, plant growth regulators, etc.
  • Ichiban: Ichiban Crop Science Limited, based in India, is engaged in manufacturing, supplying, and exporting a comprehensive range of agrochemicals.
  • Nufarm: An Australian company, Nufarm produces a wide range of agricultural chemicals including herbicides, insecticides, and fungicides.
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Implications for Pennsylvania

Pennsylvania, with its rich history in agriculture and a diverse array of crops, stands to benefit immensely from these global trends. The state’s agribusinesses can leverage the advancements in crop protection chemicals to increase their yields, improve crop health, and boost their bottom lines. Furthermore, the growth of the global market may also present export opportunities for Pennsylvania-based manufacturers of these chemicals.

In conclusion, the global crop protection chemicals market is expected to witness considerable growth in the coming decade, driven by increased demand for improved agricultural output. With the right strategies and investments, Pennsylvania’s agribusinesses can capitalize on these trends to ensure a prosperous future.

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