Fungicides Market - Forecasts from 2022 to 2027

The fungicides market is evaluated at US$19.378 billion for the year 2020, growing at a CAGR of 4.24%, reaching a market size of US$25.914 billion by the year 2027.

Fungicides are pesticides that have the primary function of protecting plants from fungi and their spores. Fungicides prevent the growth of fungi in plants, and it also protects the plants from other types of diseases. The prevention of diseases from plants comprises many activities, which are collectively known as integrated pest management. The market for fungicides is projected to show moderate growth over the course of the next five years.

The market growth is primarily driven by the fact that diseases are the most common occurrence in plants which further impacts the quantity and quality of the yield. Thus, the farmers stay inclined towards adopting fungicides as a part of pest management, as managing diseases is considered one of the most integral parts of the crop production process. Fungicides can be used for serving several purposes, which may be to increase crop productivity, control diseases as they may deteriorate the quality, and also improve the shelf life of harvested products.

Several control practices are used to manage plant diseases, including crop rotation, disease-tolerant crop cultivators, sanitation, and fungicides, among others. Fungicides in these control practices are often considered one of the vital methods for disease protection as it prevents numerous diseases and is considered more effective than other cultural practices. Also, these can target specific enzymes, which is also a major factor amplifying its adoption globally. Furthermore, increasing global demand for food owing to the growing global population base is the primary driver of the increasing agricultural activities at the global level, which has led to a surge in demand for crop protection chemicals as the requirements for high yield and reduction of crop losses is increasing. Additionally, the growing cases of crop diseases across the globe are also fuelling the demand for fungicides. The growing global population and the steady reduction in the arable land are driving the agrochemical market. Simultaneously, the relative improvement in farm income over the years, along with the favourable agriculture policies, is further supplementing the market's growth. The market for fungicides is also being driven by the fact that multiple players in the market are implementing different strategies to gain a competitive edge over other players with an aim to capture a greater market share. Players are investing heavily in the form of facility expansions, R&D, partnerships, and agreements. Thus, all these factors collectively contribute to positive market growth throughout the next five years.

Growing food demand

The market for fungicides is projected to grow on account of the globally growing demand for food. As the population increases, the demand for food increases simultaneously. According to the data from the United Nations, the global population is projected to reach 9.7 billion by the year 2050. According to the Asian Development Bank (ADB), two-thirds of the world’s one billion hungry reside in the APAC region. Moreover, rapid industrialization and expanding urbanization in emerging economies such as China, India, and South Korea lead to the deterioration of arable land in the region. Farmers need to increase the crop yield given the limited cultivable land area. All these factors are encouraging farmers to increase their dependency on crop protection chemicals, which in turn is driving the demand for fungicides in the next five years.

The fungicides market has been segmented on the basis of type, crop type, form, and geography. By type, the classification of the market has been done into synthetic and biological. By crop type, the classification of the market has been done into cereals and grains, fruits and vegetables, oilseeds and pulses, and others. On the basis of form, the segmentation of the market has been done based on dry and liquid. Geographically, the fungicides market has been distributed in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Biological fungicides grow at a noteworthy rate

By type, synthetic fungicides are expected to hold a substantial share in the market throughout the next five years. The primary factor supplementing the share of this segment is the wide applications of fungicides for different crop types globally for the enhancement of crop productivity. Biological fungicides are projected to witness promising growth during the next five years primarily because of the growing focus on good agricultural practices in many parts of the world. The growing focus on environmental protection is further bolstering the growth of this segment during the forecast period. Additionally, the launch of new biological fungicides by several market players further shows the potential for the growth of this segment over the next five years.

Oilseeds and Pulses hold a considerable share

Pulses are considered highly nutritious as they contain high levels of dietary fibre, minerals, and vitamins, among others. In addition, the rising consumption of pulses globally is owing to various health benefits such as proper digestion and maintaining blood cholesterol, among others. Therefore, higher consumption of these seeds and pulses in major countries such as India, China, and United States will further lead to a higher amount of cultivation which in turn is positively impacting the growth of this segment during the forecast period.

Fruits and Vegetables are expected to grow at a healthy rate throughout the course of the next five years, which is attributed to the rising consumption of fruits and vegetables across the globe on account of the growing concerns regarding the health benefits of the consumption of fruits and vegetables. Furthermore, the growing production of vegetables due to the continuously increasing demand around the world is also considered to be one of the key factors bolstering the growth of the market during the next five years.

APAC to witness promising growth

Geographically, North America will dominate the regional market since countries such as the U.S, Canada, and Mexico are the major producers of fruits and vegetables. Growing awareness among farmers about sustainable farming practices in the U.S. will spur the demand for fungicides in the region. APAC is anticipated to witness the fastest regional market growth owing to the increasing need to raise crop yield in order to eliminate food insecurity in the region.

Impact of the COVID-19 pandemic

Globally, the COVID-19 outbreak caused a huge slowdown in the fungicide industry. Most nations had declared lockdowns and social distance restrictions in response to the rising number of virus cases, and the global economy suffered. The production and supply chains for the fungicide market were disrupted, leading to a decrease in supply. Shortage of labour was another reason that resulted in lower productivity. The lack of fungicides in the market led to lower crop production and food scarcity, mostly in underdeveloped and developing countries. However, with the rising demand for food and with the resumption of major industries, the market is anticipated to increase in demand.

Key Developments in the market

There is a high volume of companies working in the fungicides market. However, some have solidified their position as the leading providers in this industry. These players are involved in a plethora of investments, product launches, and R&D as a part of their growth strategies to strengthen their position further and provide better products and services to their customers worldwide, which is expected to propel the growth of the market in the coming years. Some of these are:

• In September 2020, DhanukaAgritech, one of India’s largest agrochemical companies, announced the launch of its two new latest fungicide products, KIRARI, primarily for the grapes segment for controlling downy mildew and NISSODIUM to be used in grapes for controlling powdery mildew.
• In August 2020, FMC Corporation, an American chemical manufacturing company based out of America, announced the launch of its new Xyway 3D fungicide, which is one of its kind, only at-plant fungicide which provides season-long and inside-out disease protection from planting to harvest.
• In July 2020, Syngenta AG, a Switzerland bases agrochemical company, announced the launch of its three new fungicide products, which are Ascernity, Posterity XT, and Posterity Forte, which will offer prevention from various diseases such as dollar spot, spring dead spot, anthracnose, and a large patch on golf course turf.
• In May 2020, BASF SE, the largest chemical producer in the world based out of Germany, announced the launch of its innovation Melyra® fungicide powered by Revysol® specifically for its Chinese customers.
• In April 2020, Bayer AG, one of the largest pharmaceutical companies in the world, announced its new product innovation, i.e., Sonata, which is a biological fungicide that is based on Bacillus pumilis for wine and table grapes, also approved for use in the organic farming.
• In March 2020, Corteva, Inc., one of the major American agricultural chemical manufacturing companies based out of the United States, launched a new range for their applications on cereals for sale in France.
• In March 2020, Sumitomo Chemical Company Limited, a Japanese chemical company, announced a new horticulture fungicide KANAME® Flowable in Japan.

Competitive Insights

Prominent/major key market players in the fungicides market include BASF SE, Bayer AG, and Corteva, among others. The players in the fungicides market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered, along with the recent deals and investments of these important players in the fungicides market.

Segmentation

By Type

• Synthetic
• Biological

By Crop Type

• Cereals & Grains
• Fruits & Vegetables
• Oilseeds & Pulses
• Other

By Form

• Dry
• Liquid

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• France
• UK
• Middle East and Africa
• UAE
• Saudi Arabia
• Asia Pacific
• Japan
• China
• India
• South Korea