The global pesticides market is expected to grow from about $85 billion in 2019 to more than $130 billion in 2023 at a compound annual growth rate (CAGR) of 11.5%. The pesticides market growth will be aided by the economic growth forecasted in many developed and developing countries. The International Monetary Fund (IMF) predicts that the global real gross domestic product (GDP) growth will be 3.7% over 2019 and 2020, and 3.6% from 2021 to 2023. Recovering commodity prices, after a significant decline in the historic period are further expected to aid the market growth. Developed economies are expected to register stable growth during the forecast period. Additionally, emerging markets are expected to continue to grow slightly faster than the developed markets in the forecast period. For instance, India’s GDP is expected to grow at 7.3%, whereas China is forecasted to register GDP growth of 6.2% in 2019. Economic growth will drive agricultural activities, and increase disposable incomes and spending on pesticides by end-users. Economic growth is also expected to increase investments in end user markets, thus driving the global pesticides market.
Pesticides are chemicals used to eliminate or control a variety of pests related to agriculture that can damage crops and livestock and reduce farm productivity. Agricultural chemicals (also known as agrochemicals) are chemical agents such as fungicides, herbicides and insecticides that are used to control crop-harming organisms (e.g., fungi, mites, insects, insect eggs and larvae) or viruses.
Developing countries, including India, China, and Brazil, are attracting investments in the chemical industries. This is mainly due to continued economic growth, positive demographic trends, reforms and initiatives by governments, policies inviting foreign investment, urbanization, increasing income levels and comparatively cheap labor. These countries are witnessing changes in business models, reductions in bureaucracy and corruption, promotion of private sector partnerships and emerging mobile and technology platforms. For instance, China received $150 billion investments in the chemicals industry which includes pesticides in 2015, thus offering positive growth prospects for agrochemicals companies.
In the forecast period, emerging countries are expected to experience improvements in infrastructure, broadening of service offerings, significant support for innovation, and increasing foreign investments, thus, increasing the demand for pesticides in these countries.
World population is growing and is expected to reach 10 billion by 2050; this is also expected to significantly boost the pesticides market. The growing population will increase the demand for food. Crop production, farming activities and trade volumes will have to increase to meet the increasing demand for food. Additionally, farmers and commercial farming companies will increase acquisitions in arable land to increase crop productions, thus increasing the demand for insecticides, herbicides and fungicides, which are all segments of the pesticides market.