Canada Crop Protection Chemicals - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Canada Crop Protection Chemicals Market size is estimated at 1.70 billion USD in 2024, and is expected to reach 2.22 billion USD by 2029, growing at a CAGR of 5.53% during the forecast period (2024-2029).

The market is driven by the growing pressure of pests and diseases

• Canada's agriculture is diverse and plays a crucial role in the country's economy. It includes the cultivation of various crops, such as wheat, canola, barley, and fruits like apples and blueberries, along with livestock farming. Pests and diseases pose significant challenges to Canadian agriculture. Common pests include Colorado potato beetles, cabbage maggots, and soybean aphids, affecting major crops like potatoes, cruciferous vegetables, and soybeans.
• Failure to control weeds led to a significant 10.0% potential yield loss in soybeans, amounting to USD 32 million in Eastern Canada, leading to increased demand for herbicides. Herbicides accounted for the highest share of 84.99% of the crop protection chemicals consumed in Canada, with a market value of USD 1.27 billion in 2022.
• Fungicides are widely used in Canadian agriculture to control fungal diseases, accounting for a share of 13.14% in 2022. Wheat is a major crop in Canada and is significantly affected by Fusarium head blight, leading to yield losses ranging between 50% and 60%. The Fusarium species can produce spores on infected crop residue like straw and stubble in the field.
• The Colorado potato beetle (Leptinotarsa decemlineata) poses a significant threat to potatoes and affects eggplant and tomato crops. It is highly destructive and capable of causing severe damage to potato yields, with crop reductions ranging from 20% to 100%, primarily by feeding on foliage. Insecticides accounted for 8.47% of Canada's crop protection chemicals market in 2022. Nematodes and snails also pose a significant threat to Canada's agricultural production, leading to significant yield losses.
• The market is driven by the growing pest pressure and the need to control them to increase productivity.

Canada Crop Protection Chemicals Market Trends

Adoption of various sustainable agriculture practices and IPM techniques lead to a reduction in the consumption of pesticides for hectare

• Farmers in Canada are adopting integrated pest management (IPM) techniques, crop rotation, and other sustainable farming practices, which are reducing the reliance on chemical pesticides. Increased awareness and understanding of the environmental impact of pesticides led to a shift toward more eco-friendly alternatives. The country experienced a decrease in the consumption of pesticides, from 3.02 thousand metric ton per hectare to 2.5 thousand metric ton per hectare during 2017-2022.
• The Canadian government has instituted regulations and policies to foster responsible pesticide use, promote sustainable agriculture, and safeguard the environment, consequently influencing the pesticide market in the country. In 2020, the government introduced a sustainable agriculture plan to reduce pesticides in Québec over the next decade.
• Canada's organic industry emerged as one of the fastest-growing industries. Increased investment in this industry and governmental initiatives, such as providing subsidies and implementing favorable schemes, are projected to hinder the demand for synthetic pesticides. In 2022, the Canadian government allocated approximately USD 103,400 to the Organic Federation of Canada, facilitating a collaborative effort to foster sustainability and growth within the country's organic industry.
• However, rising temperatures and changing weather conditions may create more favorable environments for pests and diseases to thrive, leading to increased pressure on crops. In response to these challenges, farmers might need to use more pesticides to control pests and prevent the spread of diseases to protect their crops and ensure food security.

Growing demand and changes in import tariffs are significantly impacting the costs of active ingredients in the country

• Canada's agricultural industry depends considerably on agrochemicals to protect crops and boost yields. However, the country faces a significant dependence on the import of these pesticides. In 2021, Canada imported USD 1.85 billion in pesticides, establishing it as the fourth-largest global pesticide importer. As a result of this dependency on imports, pesticide prices are significantly impacted by currency exchange rates, import tariffs, and duties. These factors contribute to market fluctuations and instability.
• In 2022, cypermethrin was valued at USD 21.0 thousand per metric ton. Its widespread utilization in agriculture is due to its proficiency in managing diverse insect varieties, such as aphids, beetles, spotted bollworms, pink bollworms, and hairy caterpillars. Its proven efficacy has elevated its popularity among farmers aiming to protect their crops from pests and secure a fruitful yield.
• Atrazine, a systemic herbicide categorized as part of the chlorinated triazine family, is utilized to selectively target and control annual grasses and broadleaf weeds before germination. Formulations of herbicides containing atrazine are authorized for use on crops such as corn, sweet corn, sorghum, sugarcane, wheat, and guava. The recorded price for atrazine in 2022 stood at USD 13.8 thousand per metric ton.
• Malathion is an organophosphate insecticide used on a wide variety of food and feed crops to control many types of insects, such as aphids, fleas, leafhoppers, Japanese beetles, and other insect pests, on several crops. Five crops extensively grown in Canada that use malathion frequently are cherry tomato, broccoli, mulberry, cranberry, and fig. Malathion was valued at USD 12.5 thousand per metric ton in 2022.

Canada Crop Protection Chemicals Industry Overview

The Canada Crop Protection Chemicals Market is fairly consolidated, with the top five companies occupying 76.55%. The major players in this market are BASF SE, Bayer AG, Corteva Agriscience, FMC Corporation and Nufarm Ltd (sorted alphabetically).

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