Agricultural Fumigants Market Size, Share & Trends Analysis Report By Products (1,3 Dichloropropene, Chloropicrin, Dimethyl Disulfide, Methyl Bromide, Metam Potassium, Metam Sodium, Phosphine, Others), By Application (Soil, Warehouses, Others), By Form (Solid, Liquid, Gas) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global agricultural fumigants market size was valued at USD 2.5 billion in 2021 and is projected to reach USD 4.05 billion by 2030 at a CAGR of 5.5% from 2022 to 2030.

Fumigation, which entails the application of a pesticide gas into the soil or air in order to eradicate pests, has found widespread use in agriculture. Fumigation is one of the methods of pest control used to kill or inhibit the growth of pests. To make soil free from insects, weeds, nematodes, and rodents such as moles, agricultural fumigants are injected into the soil. Then there are fumigant pesticides, which are applied to grains and crops after harvest to kill small insects and fungi. For crop protection, fumigants are utilised. It eliminates pathogens such as weeds, fungi, and nematodes from the soil and promotes optimal crop development.

Fumigants are highly effective at reaching pests and are useful for both pre-harvest and post-harvest applications. Phosphine, methyl bromide, chloropicrin, 1, 3-dichloropropane, and others are the most frequently used agricultural fumigants. They are available in a variety of forms, including solid, liquid, and gas, which are applicable to both soil and storage facilities.

Fumigation in agriculture entails the release of gas or vapours into the air or the injection of fumigants into the soil in order to eradicate soil-borne pests such as termites and bedbugs. Generally, soil fumigation is employed to protect crops from damage by inhibiting the development of weeds, nematodes, moles, and other soil insects. During the storage of harvested grains and cereals, fumigation is also used to prevent the development of insects.

Market Dynamics

Market Drivers 

Post-Harvest Food Losses Drive the Market

Reducing post-harvest food losses is a crucial element of ensuring food security. Freshly harvested agricultural products undergo transformations during handling, resulting in post-harvest losses. By fumigating for pest control, it is possible to prevent post-harvest losses. For instance, ammonia gas fumigation prevents the decay of citrus fruit after harvest. By fumigating lemons and oranges with ammonia gas, postharvest green mould and blue mould, caused by Penicillium digitatum and Penicillium italicum, are effectively controlled. Thus, fumigation helps to prevent post-harvest losses and preserve the quality of agricultural products. Furthermore, fumigation aids in the thorough cleaning of storage areas, silos, and warehouses. This is utilised as a precautionary measure during pre-harvest cleaning for the storage of grains.

Rising Population And Demand For Food Drive The Market

A rapidly expanding global population has exponentially increased the demand for food, necessitating the implementation of improved agricultural practices. This has had a significant impact on the demand for agricultural fumigants, which protect agricultural products from pests. Additionally, over the years, the demand for fumigants has increased in tandem with the expansion of agricultural production. The use of fumigation has increased at all stages of the supply chain for grains and oilseeds, and it is now the most common method of insect control on farms. Fumigation is one of the most preferred methods for preventing the buildup of insect infestations in farm storage and silos while avoiding the development of pest resistance. Legislative restrictions limit the active substances available to a limited number of fumigants and insecticides for storage. Fumigation with methyl bromide (MB) is an effective method for minimising the phytosanitary risk posed by products. While the European Union has prohibited the use of MB, Canada continues to require it as the only approved treatment for the quarantine and pre-shipment of certain products.

The Food and Agriculture Organization (FAO) of the United Nations has predicted that agricultural productivity will increase by 70 per cent by 2050 in order to meet rising food demand. By 2050, it is anticipated that the demand for agricultural crops will reach approximately 6,759 million tonnes. The global production of cereals increased from 2,906.5 million tonnes in 2018 to 2,996.1 million tonnes in 2020. Consequently, it is anticipated that the demand for agricultural warehouses, storage technologies, and related products such as fumigants will increase over time. In warehouses, pests damage the majority of crops, and the use of fumigants reduces agricultural product loss. As a result, the global market for agricultural fumigants is anticipated to experience an increase in demand.

Market Restraints 

Stringent Government Regulations And High Labour Costs Become A Restraint For The Market

Various governing bodies regulate the use of volatile chemicals in soil fumigation. It is necessary to identify the most suitable fumigant for the various applications. In addition, using a handheld or manual injectors to apply these fumigants incurs high labour expenses. Equipment and labour expenses account for the majority of the costs associated with fumigation. Only licenced fumigators can administer fumigation treatments. Fumigation is a highly technical process that necessitates the use of specialised materials and gas-measuring equipment by operators with specialised knowledge.

Market Opportunities

Increased Awareness Is Likely To Drive The Market Further

Increasing awareness among farmers about contaminant-free food has led to a rise in product adoption, which is likely to have a positive effect on the size of the Agricultural Fumigants Market during the forecast period. Improved storage technology will contribute significantly to the size of the Agricultural Fumigants Market over the next few years as post-harvest crop preservation concerns continue to grow. Moreover, the manufacturers are also focusing on new product developments by investing more in R&D activities for active ingredients that can inhibit the resistance of insects by finding some alternative fumigants.

Regional Analysis

The global agricultural fumigants market share is segmented into North America, Europe, Asia-Pacific, and LAMEA based on the regional analysis. North America has the largest Agricultural Fumigants Market size in 2020 due to farmers' growing awareness of the importance of crop protection against insects, rodents, nematodes, etc., in order to reduce agricultural commodity losses. Increasing agricultural practices in India, China, and Indonesia is anticipated to propel the Agricultural Fumigants Market size in the Asia Pacific during the forecast period. Due to Brazil's increasing capacity for adopting advanced agricultural practices and storage techniques, the size of the Latin American agricultural fumigants market is also projected to expand significantly over the next few years.

Segmental Analysis

The agricultural fumigant market share can be segmented on the basis of Application, Product, Form, Region and Competitors. Soil fumigation is a pre-planting soil treatment technique that uses chemicals to prevent crop infections caused by rodents, nematodes, weeds, and insects, among others. All fumigants used on plants are phytotoxic; therefore, they must be eliminated from the soil prior to sowing or transplanting to prevent crop damage. The application of these products to soil is highly dependent on a variety of factors, such as soil type, crop type and texture, airspace, local moisture content, temperature, and dosage, among others.

The typical direction of fumigant movement is from high concentration to low concentration areas. Historically, their application required the use of fumigant storage compartments attached to tractors and controlled by a dosing mechanism. Among the varied applications are row or bed treatment, deep placement with a complete application, surface sealing, sole plough application, and precision tillage.

Other applications primarily include warehouses and transport vessels. The type of warehouse and storage fumigation is determined by the duration of storage, the covering of goods, and the type of space. The majority of companies prefer methyl bromide fumigation, in which case the stored grains must be shipped within a short time frame.

On the basis of form, the market for agricultural fumigants is divided into solid, liquid, and gas segments. The use of powder, pellets, and tablets to control insects and other pests constitutes a solid form. It is the safest of the three forms due to its simplicity of application and reduced risk of exposure to gases. In the majority of the world's regions, it is also deemed relatively safer for the environment.

The liquid form contains soluble products used to eliminate, among other things, moulds, insects, and other pests. Typically, they are sprayed over the desired land area using conventional sprayers. The volume of solvent dispersion is at the discretion of the applicator. This method of fumigation is generally regarded as the safest when carried out in enclosed chambers or in the open air.

Typically, the gaseous form is applied in enclosed chambers with gas-tight coverings to prevent gas leakage into the environment. It is also known as space fumigation and is performed with caution to limit gaseous dispersion into the environment due to the presence of ozone-depleting substances, such as methyl bromide. These eliminate insects, nematodes, termites, and weeds, among others, with efficiency.

Impact of covid-19

Covid-19 had some profound adverse impacts on the global advanced ceramics market.

COVID-19 spread across the world from China, making the whole world stand still and to a complete lockdown situation. Covid-19 is an infectious disease that was caused by a newly discovered coronavirus. During the time, the fatality rate among the population above 40 was also high globally. The disease causes severe illness for people suffering from medical conditions like diabetes, cardiovascular disease, chronic respiratory disease, etc.

Considering the situation during that time, it was declared a pandemic which led to numerous countries, including the major economies like China, the United States, India, and others, implementing lockdowns which adversely affected the global economy.

In the first two quarters of 2020, the economic and industrial operations temporarily halted. Almost every manufacturing unit where advanced ceramics is used, such as electrical and electronics, transportation, industrial, chemical, and other End-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers. The lockdown implemented put a halt to global supply chains. This resulted in repercussions in terms of both production and demand for advanced ceramics.

Market Recovery Timeline and Challenges

With time the lockdowns were uplifted, and relaxation was made to the public. Gradually, the economy picked up the pace and started its operations, bringing the demand in the global advanced ceramics market and increasing among various industries. As the situation improved during the initial months of 2021, the economies also strengthened their fiscal policies and initiated their development process; the end-user industries began their activities, bringing the overall ceramics market back on track.

Recent Developments

• January 2022 : UPL Ltd entered into an agreement with Bunge Ltd whereby Bunge Ltd will acquire a 33 per cent stake in Sinagro in order to bolster its grain orientation strategy in Brazil.
• January of 2021 :  UPL and TeleSense formed a strategic alliance to introduce monitoring solutions for post-harvest commodity transport and storage. This will facilitate progress toward reducing food waste by detecting and mitigating potential issues such as hotspots, excessive moisture, and pests. This will complement the company's extensive selection of gas monitoring, safety, and detection devices in addition to fumigants.
• November 2020 : MustGrow obtained an exclusive patent licence for the fumigation of stored vegetables and grains from the University of Idaho