Asia Continues to Drive $60-Billion Crop Protection Market

Bob FaircloughPesticides for the crop protection market have seen fairly steady growth since 2009 with and should exceed more than $60 billion in 2014, said Bob Fairclough, team leader, amis AgriGlobe, Kleffmann Group at the Farm Chemicals International Global Sourcing Summit held in Delhi, India this week.

Fairclough provided an overview “Crop Protection Market Trends” to attendees of the event. His presentation covered the growth of markets and pesticides, proprietary versus off-patent, factors that have affected the market in long term, GMOs, production and other related topics. Here’s a quick summary of part of Fairclough’s comments. Look for more comprehensive coverage in the coming weeks. Market share for generic products continue to grow about 3% per year and is expected to reach about 80% of the global crop protection market this year.

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Asia remains the leading market for pesticides followed by Europe, Latin America, North America, and the Middle East and Africa. These areas have shown growth, with the exception of the Middle East and Africa which has remained mostly flat since 2008 showing only a slight uptick in the past couple of years.

Indonesia has seen the fastest growth in crop protection products since 2009 with a per annum growth rate of almost 35%. The global growth rate is 5%, Fairclough said. Nigeria, Romania, Ukraine and Uruguay also experienced robust growth. On the other end of the spectrum Finland is the country that has seen the biggest decrease in crop protection product use at nearly 9%.

In terms of crops, grains receive the greatest share of crop input dollars followed by fruit and vegetable, and oil crops. Sugar crops (sugar cane and sugar beets) and fiber crops have remained relatively flat or declined since 2009.

Herbicides, insecticides and fungicides have all seen growth since 2009 with herbicides the most popular with about $25 billion of the market. Plant growth regulators and fumigants have remained a relatively small portion of the market and sales have remained flat.

Looking forward, a 5% per annum growth rate would put the crop protection market at nearly $80 billion.