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

The Argentina Crop Protection Chemicals Market size is estimated at 5.97 billion USD in 2024, and is expected to reach 7.78 billion USD by 2029, growing at a CAGR of 5.43% during the forecast period (2024-2029).

Herbicides dominated the market

• Argentina is known for its vast agricultural lands, favorable climate, and agricultural expertise, making it one of the major agricultural producers and exporters globally. The country's agricultural sector is focused on high-yield production to meet domestic and international demand. Pesticides play a significant role in ensuring higher yields by reducing losses caused by pests and diseases. Argentina occupied the second-highest share of 13.9% by value of the South American crop protection chemicals market in 2022.
• Weed attacks on crops are the most common across the country. Fleabane, pigweed, johnsongrass, goosegrass, finger grass, and barnyard grass majorly impact the yield of major field crops. Argentina has a high demand for its wheat, soybean, and maize crops, and weeds pose a significant threat to this demand. Thus, weed management is necessary in the country. Herbicides occupied the highest share of 86.8% by value in 2022. Glyphosate is the most commonly used herbicide in the country.
• Most pests and diseases attack the foliage of crops, hindering the further growth of the plant. Thus, the foliar mode of application is highly preferred in the application of fungicides and insecticides and accounted for the second-highest share of 31.6% by value in 2022.
• The growing demand for major grains and oilseeds domestically and internationally, coupled with increased concerns for food security and various developments, facilitated efficient methods of cultivation, minimizing the impact of pests on their crops. This has driven the market, which is anticipated to register a CAGR of 5.4% during the forecast period (2023-2029).

Argentina Crop Protection Chemicals Market Trends

The rise in weed infestation and growing resistance of weed species to herbicides significantly increased the per-hectare herbicide consumption in the country

• In Argentina, there has been a noteworthy surge in pesticide consumption per hectare, witnessing a remarkable growth of 1,072 grams per hectare between 2017 and 2022. This remarkable increase can be predominantly attributed to the adverse impacts of climate change, such as frequent droughts, intensified heatwaves, and the adoption of intensive agricultural practices. The changing climate conditions have exacerbated the proliferation of weeds, pests, and diseases in agricultural fields, posing significant challenges to crop cultivation. Thus, farmers have had to grapple with higher yield losses, leading them to resort to more extensive and effective utilization of pesticides for protecting their crops.
• In Argentina, there has been a notable rise in the adoption of no-tillage and monoculture practices, which offer certain advantages but also bring about challenges such as the proliferation of weeds, diseases, and insect pests. In response to the increasing demand for exports, farmers are increasingly resorting to monoculture practices, which, in turn, necessitate the heightened use of agrochemicals to enhance crop productivity.
• The primary type of pesticides utilized and consumed per hectare in Argentina is herbicides, which registered a significant growth of 1,047 grams per hectare by 2022, in contrast to the figures from 2017. This substantial increase in herbicide consumption can be mainly attributed to the rise in weed infestations, the adoption of herbicide-resistant cultivars, and the growing resistance of weed species to herbicides. These factors collectively contribute to the higher demand and utilization of herbicides per hectare. As of 2023, almost 30 weed species had increased resistance toward multiple herbicides, which could lead to a rise in herbicide usage.

Frequent climate changes and pesticide import policies majorly alter the active ingredient prices

• Argentina holds a prominent position as the major agricultural country in the region. It stands as the world's third-largest consumer of pesticides. Certain pesticide products utilized in Argentina are banned in other countries, and the country heavily relies on pesticide imports from EU countries to meet its agricultural demands.
• During 2019, pesticide prices experienced significant growth, mainly due to the adverse effects of increased drought and heat waves on the country's agriculture sector. These conditions led to higher pesticide usage, a surge in demand for pesticides, and the unavailability of certain products, all contributing to the overall rise in pesticide prices.
• From 2020 to 2022, there was a significant reduction in the prices of active ingredients compared to the period from 2017 to 2019. This notable decrease can be predominantly attributed to the implementation of the EU-Mercosur Trade Agreement, which played a crucial role in eliminating tariffs on EU pesticide exports to Mercosur countries like Argentina. The agreement also led to reduced controls on imported foods, resulting in increased pesticide use. These changes in trade policies have had a considerable impact on the pricing and availability of active ingredients in the market.
• The country relies heavily on the use of cypermethrin, atrazine, and mancozeb as major active ingredients. The prices of these chemicals are significantly influenced by import policies, fluctuations in raw material prices, regulatory approvals, and the overall demand. As of 2022, the prices for cypermethrin, atrazine, and mancozeb were USD 21,046.2, USD 13,817.9, and USD 7,824.0 per metric ton, respectively.

Argentina Crop Protection Chemicals Industry Overview

The Argentina Crop Protection Chemicals Market is moderately consolidated, with the top five companies occupying 59.12%. The major players in this market are ADAMA Agricultural Solutions Ltd, BASF SE, Bayer AG, Corteva Agriscience and Syngenta Group (sorted alphabetically).

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