Pesticide Intermediate Market Overview
Pesticide Intermediate Market size is estimated to
reach $157.4 billion by 2027, growing at a CAGR of 6.8% during the forecast period
2022-2027. Pesticide intermediates can be demarcated as chemicals taken into
account for the production of various categories of pesticides such as
insecticide, bactericides, and herbicides/weeding. Chloroacetylchlorid,
Chloroacetic acid, Thiosemicarbazide, Dimethyl chlorothiophosphate, and others
are a few examples of intermediates used for the production of several chemical
pesticides. These intermediates alone are well suitable for use as pesticides
also as they hold many properties similar to pesticides. Pesticides have become
an indispensable part of the modern-day agriculture industry as they are of
great help in controlling several crop diseases instigated by microorganisms.
Moreover, pesticides such as algicides and disinfectants have many household
functions ranging from killing bacteria to impeding the growth of algae in
swimming pools. The pesticide intermediates market outlook is very appealing
due to elevating awareness among small farmers about the availability and
effectiveness of such options. Decreasing farming land due to rapid
industrialization around the globe is accruing the demand for crop productivity
and greater yield by using bio-pesticides is a major factor set to drive the
growth of the Pesticide Intermediate Industry for the period 2022-2027.
The report: “Pesticide Intermediate Market
Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the
following segments of the Pesticide Intermediate Market.
By Type: Chemical Pesticides, Biological pesticides.
By Application: Rodenticides, Algicides, Fungicide, Avicide, Bactericide, Insecticide, Herbicides/Weeding, and others.
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America) and Rest of World (the Middle East and Africa).
- Geographically, the Asia-Pacific Pesticide Intermediate Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027.
- Natural pesticides presence is said to be a preeminent driver driving the growth of the Pesticide Intermediate Market. Considering escalating health cognizance among people regarding the existence of biopesticides which are prepared from natural materials is said to reduce the market growth.
- Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Pesticide Intermediate Market report.
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Pesticide Intermediate Market Segment Analysis-By Type
The Pesticide Preparations Market based on the type can be further segmented into chemical Pesticides, biological pesticides. The pesticide intermediates are used in the synthesis of chemical pesticides because the latter one is prepared from natural materials. Even though they accompany many health threats, still their market is estimated to grow because of lower cost. As per WHO, more than 1000 chemical pesticides are used around the globe. Many farmers cannot afford to bear the extortionate cost of biopesticides and are more willing to adopt cheaper options like pesticide intermediates. But proliferating health awareness among people about harmful effects of chemical pesticides prepared from intermediates or active ingredients the chemical pesticides market is reducing as compared to biopesticides as they are the consequences of natural materials like minerals, and plants. Therefore, the biopesticides segment is estimated to be the fastest-growing segment with a CAGR of 7.4% over the forecast period 2022-2027. The growth is owing to the effectiveness and non-toxic nature of biopesticides as compared to chemical pesticides. Biopesticides are famous for targeting only a few harmful pests while remaining inert to humans, animals, and birds. In addition to that, they do not pollute the environment and leave no harmful effect on food owing to their degradable nature. Moreover, the heightening alertness among farmers about harmful effects of chemical pesticides prepared through intermediates. Pesticide Intermediate Market Segment Analysis-By Application The Pesticide Preparations Market based on the application can be further segmented into rodenticides, algicides, fungicides, avicide, bactericide, insecticide, herbicides/weeding, and others. The insecticides segment held the largest share in 2021. Therefore, the usage of several active ingredients such as bet-cyfluthrin, permethrin, cypermethrin, and others are taken into account for the fabrication of pesticides is broadening. Moreover, Intermediates are an indispensable part of synthetic insecticides like chlorinated hydrocarbons, organophosphates. The growth in this segment is owing to the budding attacks of insects on crops every year and insecticides have become primary agents to keep insects away from crops. According to Food and Agriculture Organization (FAO), annually more than 20% of crop production is spoiled by pests. Moreover, the insecticides and herbicides segment is estimated to be the fastest-growing segment with a CAGR of 7.6% over the forecast period 2022-2027. This growth is owing to bourgeoning difficulties of undesirable plants and insects which reduce the crop yield. Moreover, the cognizance among farmers stimulating the use of present-day tools and techniques like pesticides will be another big factor in the growth of the respective segment.
Pesticide Intermediate Market Segment Analysis - By Geography
The Pesticide Preparations Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asia-pacific held the largest share with 36% of the overall market in 2021. The growth in this segment is owing to the factors such as the presence of the biggest manufacturer and user of intermediates like China. China uses more than 25% of the world’s pesticides. On another hand, it accounts for 9% of global cropland. Moreover, a bigger chunk of Asian economies is dependent upon the agriculture sector. China’s agriculture sector contributes more than 7% to the GDP whereas, over 20-22% of people are employed in this sector. Similarly, the Indian agriculture sector contributes around 13-14% and employs over 40% of the workforce in the country. Therefore, considering the importance of the agriculture industry for these nations the demand for pesticide intermediates is accruing. Moreover, the Asia-pacific segment is expected to offer lucrative growth opportunities over the forecast period 2022-2027. This growth is owing to the proliferating the demand for food due to enlarging population. Moreover, prospering economies of Asian nations are ensuring innumerable flows of riches into the research and development sector which is also stimulating the growth in this segment.
Pesticide Intermediate Market Drivers
The presence of natural pesticides and the accruing population is Anticipated to Boost Product Demand.
The emergence of biopesticides which are prepared from natural materials like microbial and other biochemicals is proving to be the best thing since sliced bread for the pesticides market. Moreover, the accruing population is fueling the demand for gigantic food production. As of 2021 the world population is standing around 7.9 billion and is likely to touch 9 billion by the year 2040. Now, no rocket science is required to understand this simple fact that more population means additional demand for food, and as food demand will grow, so is the demand for pesticides to ensure productivity. According to a report crop production will escalate by 65-70% by the year 2050 and it will eventually enlarge the usage of pesticides to increase the yield by controlling pests.
Reducing cropland, and the effectiveness of pesticides is Expected to Boost Product Demand.
Due to expanding water pollution, industrial wastes the soil is losing is its fertility, and fields are turning barren. Therefore, the size of cropland is reducing rapidly. Therefore, land degradation has emerged as an existential threat to humanity because no food simply means no life. According to a report, around 20-25% of land worldwide is degraded. Therefore, to counter the problem countries have started using pesticides to increase the crop yield per acres. Moreover, a report claimed that around 38-40% of crops worldwide is destroyed by pests in 2021.
Pesticide Intermediate Market Challenges
Growing health awareness among people is Anticipated to Hamper Market Growth
The literacy rate is enlarging worldwide and as a result, people are becoming more conscious about their health. Therefore, as demand for chemically prepared foods is decreasing the overall demand for pesticides can be strangled. The pesticides decompose after a long period of time and leave their harmful effects in the final products. Moreover, many animals fall victim to such chemicals and lose their lives. Moreover, their intake of pesticides can originate complications such as diarrhea, nausea, abdominal pain or swelling, and others. Further, higher risk of childhood cancers has been noted in people, who are actively into farming. As per American Cancer Society, around 10,500 children below the age of 15 were diagnosed for cancer in 2021. All these factors are anticipated to hamper the growth of the respective market as people may turn aversive to consuming food prepared by synthetic pesticides.
Pesticide Intermediate Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in this market. Pesticide Intermediate top 10 companies include:
- BASF SE
- Syngenta AG
- FMC Corporation
- Bayer AG
- Syngenta AG
- Adama Agricultural Solution Ltd.
- In January 2022, Biotalys and Olon have entered into a long-term partnership for the production of protein based biocontrols. The following would be a major step forward in the production efficiency and scalability. The partnership is driven by the common vision of transforming food protection with unique protein-based biocontrol solutions and secures the global supply of Biotalys’ newly developed biofungicide, Evoca™*, planned for market introduction in the United States in the second half of 2022 – pending regulatory approval.
- In December 2021, Pesticide Manufacturers would pay less in fiscal 2022 to register new pesticides. The following were announced by US Environmental Protection Agency made an announcement. The agency would charge $3660 per pesticide product, which is a ready decline of 8.5% from 2021. The EPA made the change to prevent exceeding the amount of fees it can collect under the Pesticide Registration Improvement Extension Act of 2018, which authorizes the agency to collect a total of $155 million over 5 years. The EPA collected $92.6 million the first 3 years, leaving $62.4 million for fiscal 2022 and 2023. It adjusted the fee amount, so it won’t bring in more than half that balance, or $31.2 million, in fiscal 2022.