Insecticides Market

Market Overview

The global insecticides market size was worth USD 14 billion in 2021. It is estimated to reach an expected value of USD 22 billion by 2030 at a CAGR of 5% during the forecast period (2022–2030). 

Food production is influenced by the sort of setting in which it is carried out. Insecticides play a critical role in crop yields. Insecticide is the main driver behind the food sector and other application industries throughout every agricultural firm. The growth of generic goods has been a feature of contemporary crop protection industries, in contrast to diminishing revenues of agrochemicals that were found through Research & development activities and then copyrighted. As a result of this predicament, various companies that market generic brands have entrenched themselves as the biggest sellers of insecticides on a regular basis.

Various types of insecticide solutions are available on the market, such as systematic insecticides, biological insecticides, and others, all of which preserve the target pest and crop. Sometimes the implementation method is unique, like soil infusion, space recovery, soil amendment, and so on. The most popular approaches are sprays, fluids, and location bait injections. Farmers may be able to acquire the pricing components since they are cost-effective in the market. Due to significant climate changes, a high level of plant biodiversity, growing demand for crops, and increased production in Asia-Pacific countries, the Asia-Pacific area holds the greatest share of the market.

The insecticides market is divided by origin, application, insect pest type, and regions. 

Market Dynamics

Drivers: Usage of Insecticides for Better Crop Protection and Production

Syngenta, a Chinese-owned firm, was one of the major participants in the agricultural market in terms of sales. Syngenta's extensive product portfolio includes insecticides for a variety of plant groups, comprising grains, cereals, oilseeds, vegetables, turfs, ornamental plants, and so on. Nutrien, a Canadian fertilizer company (the product of a merger between PotashCorp and Agrium) was one of the world's biggest pesticide firms as of 2021, according to market value. BASF, Dupont, FMC Corporation, Marrone Bio Innovation, ADM,  Sumitomo Chemicals, and a few other industry heavyweights are also available.

Corn, rice, and wheat are the most common insecticide-treated crops in the cereals and grains sector. Since grains are grown in almost every nation, the worldwide demand for pesticides is significant, and this growth is projected to continue over the next five years. Total grain output has been expanding on a global basis, and with the increase in cereal production and distribution, it's become increasingly important for farmers to focus on quality and yield by using appropriate pesticides.

Drivers: Rise in Research to Develop Newer Variants of Products

Pests are getting increasingly abundant in diverse crops around the world, and insecticide-resistant pests are becoming more prevalent. Insecticides can be used to control a wide range of pests. However, as pests gain resistance, they lose their potency over time, and a large loss in susceptibility to a pesticide diminishes its performance on the field.

Insecticide resistance usually develops as a result of increased reliance on insecticide-based pest control of insects pests. This tolerance grows rapidly as the heat increases, allowing insects or lice to proliferate more quickly. Pink bollworm, a key cotton pest, has been observed to acquire resistance to the Bt cotton crop over time.

The Environmental Protection Agency (EPA) in the United States is striving to slow and prevent pesticide resistance. These pests have wreaked havoc on many commercially vital crops, forcing farmers to rely more heavily on the use of insecticides.

Constant investigation to develop newer product varieties, boost product releases, and increase operational company revenues, all of which benefit the worldwide insecticides industry.

Restraints: Toxicity Related to Insecticides

Because insecticides are deadly, they are hazardous to small pets and children, requiring proper handling and proper safety practices, which is restricting insecticides' acceptability for residential use.

Furthermore, in 2018, the US Environmental Protection Agency (EPA) banned the use of endosulfan in the US. Endosulfan was employed in the production of a variety of vegetables, fruits, and many other plants, including tomato, potato, apple, and cotton. However, among farmworkers, the insecticide has been associated with congenital abnormalities, mental retardation, and mortality. These prohibitions and regulations will, to some degree, stifle market expansion over the projection period.

What are the Future Opportunities of the Global Insecticides Market?

Growing Potential for Emulsifiable Concentrates

In most cases, an emulsifiable concentrate formulation will contain a fluid adjuvant that is oil-soluble, in addition to one or more solvents derived from petroleum and a mixing ingredient. Because of their versatility in both farming and non-agricultural uses, emulsifiable concentrates are a composition of pesticide that is widely utilized all over the world. They are proficient with a wide variety of sprayers, like portable and hydraulic sprayers, among others. Emulsifiable concentrates are the most common type of pesticide used nowadays since they are more convenient to work with when spraying over vast regions.

Regional Analysis

Fastest Growth in Asia-Pacific

The insecticides market share is segmented into four regions: North America, Europe, Asia-Pacific, South America, and Middle East & Africa.

In 2021, North America accounted for the largest share of the insecticides market. The North American insecticides market is expected to generate a value of USD 10,432 million by 2030, at a CAGR of 5%. 

In 2018, users in the United States spent more than USD 2.30 billion on agronomic insecticides. In the same year, it contributed 20.8 percent of the US insecticides market. The disparity between government restrictions in overseas markets, particularly in the European Union, China, and Brazil, is generating a bias in favor of pesticide use in the United States, increasing insecticide product sales domestically.

The disparity between government restrictions in overseas markets, particularly in the European Union, China, and Brazil, is generating a bias in favor of pesticide application in the United States, increasing insecticide sales volume domestically.

The Asia-Pacific insecticides market is expecting lucrative growth in the coming future. Asia-Pacific Insecticides market is expected to generate a value of USD 8,993 million by 2030, at the highest CAGR of 5% during the forecast period. 

China is the market leader for pesticides in Asia-Pacific. Insecticide use on field products has reduced over the years, as increased use of synthetic pesticides has culminated in environmental deterioration and severe soil pollution. Additionally, being the world's largest cotton grower, China has expanded the adoption of GMO cotton, resulting in significant and persistent reductions in the usage of chemical insecticides in the country.

In South America, the Argentine insecticide market, unlike Brazil's, has shown a positive trend, with the exception of a dip in 2016. However, following that, the market studied saw favorable expansion, which is likely to continue during the forecast period, owing to rising worldwide demand for the country's key crops. In addition, Africa has had its fair share of insect infestations and crop diseases, most notably with the rapid spread of a new bug in Nigeria in 2016.

Segmental Analysis

The Insecticides market share is classified into the origin, application, and insect pest type.

Based on origin, the global insecticides market is segmented into synthetic insecticides and bioinsecticides. 

The synthetic insecticide segment is dominant over other product types of insecticides and is expected to generate USD 16,368 million by 2030. It is expected to grow at a CAGR of 4% during the forecast period. 

Increasing population, rising food consumption, shrinking farmland, and crop loss due to insects and pathogens are all major drivers driving the global market for agricultural chemicals, particularly insecticides.

Technological advancement is being employed by certain companies to broaden their product portfolios. In June 2018, BASF launched the pesticide Sefina in India and Australia to protect vegetable crops and cotton from sucking pests. In April 2017, it also developed a new insecticide for rice fields in Indonesia called Xemco 300 SC. Minecto Pro, a foliar-applied pesticide, was launched in November 2018 by Syngenta to manage pests in potatoes, pears, apples, and other vegetable crops.

By application, the market is classified into grains and cereals, pulses and oilseeds, commercial crops, fruits and vegetables, turf and ornamental. The grains and cereals segment is anticipated to generate USD 7,573 million by 2030 at a CAGR of 5%. 

Rice yields have been steadily increasing over the world in recent years. In 2019, the worldwide land under rice farming was 162 million hectares, as per Statista.

Due to poor knowledge, farmers cultivating cereals and grains, mainly in developing nations, use traditional insecticides in large quantities without knowing the specific field requirements of insecticides. Synthetic pesticides are still the most common technique of bug control, bolstering the insecticides business. 

By insect pest type, the Insecticides market is classified into sucking pest insecticide and biting and chewing pest insecticide. The sucking pest insecticide segment was the highest contributor to the market and is estimated to reach USD 13,541 million by 2030, at a CAGR of 6% during the forecast period. 

The most frequent sucking pests found worldwide are aphids, thrips, whiteflies, leafhoppers, flies, white mites, and bugs. Dimethoate, imidacloprid, acetamiprid, acephate, and other feeding pest pesticide formulations are only a few examples.

In the production of vegetables in the location, sucking pests such as thrips, polyphagotarsonemus latus, scirtothrips dorsalis, mites, bemisia tabaci, whitefly, and are extremely common. This increases the demand for sucking bug pesticides and the market for them in the region.

Impact of covid-19

Food production is influenced by the sort of setting in which it is carried out. Insecticides play a critical role in crop yields. Insecticide is the main driver behind the food sector and other application industries throughout every agricultural firm. The growth of generic goods has been a feature of contemporary crop protection industries, in contrast to diminishing revenues of agrochemicals that were found through Research & development activities and then copyrighted. As a result of this predicament, various companies that market generic brands have entrenched themselves as the biggest sellers of insecticides on a regular basis.

Various types of insecticide solutions are available on the market, such as systematic insecticides, biological insecticides, and others, all of which preserve the target pest and crop. Sometimes the implementation method is unique, like soil infusion, space recovery, soil amendment, and so on. The most popular approaches are sprays, fluids, and location bait injections. Farmers may be able to acquire the pricing components since they are cost-effective in the market. Due to significant climate changes, a high level of plant biodiversity, growing demand for crops, and increased production in Asia-Pacific countries, the Asia-Pacific area holds the greatest share of the market.

Recent Developments

• September 2020 - Alfa Agricultural Supplies SA was acquired by ADAMA in order to expand its product offering and better serve Greece's producers. 
• January 2018 - Based on ADAMA's active components and Ceradis' technology, ADAMA and Ceradis BV have entered into an R&D collaboration to produce novel, creative, and sustainable agricultural protection solutions.