Rising Agricultural Output, Shifts in Crop Mix Will Require Greater Pesticide Application Rates

Cleveland OH, February 9, 2022 – Expanding agricultural output and shifts in crop mix will bolster growth in the global agricultural pesticides market through 2025, according to a new Freedonia Group analysis.

With the exceptions of Central and South America and the Africa/Mideast region, total cropland is expected to stay nearly flat in most regions, which will require greater use of agricultural inputs – including pesticides – to maximize agricultural production in order to meet global needs.

Additionally, many countries in Central and South America, the Asia/Pacific region, and the Africa/Mideast region are shifting their product mix away from agricultural products for domestic consumption to more valuable crops for export. The higher value of these export crops will support increased investment in crop protection products, in addition to increasing the need for greater productivity on other cropland to ensure that domestic needs are still met.

Global Demand for Agricultural Pesticides to Grow 3.3% Annually Through 2025

Global demand for agricultural pesticides is projected to rise 3.3% per year to $79.8 billion in 2025. The most significant gains are expected in Central and South America, where expansions in cropland, a shift in crop mix, and greater intensity of agricultural production will continue to necessitate greater use of pesticides. Above average gains are also expected in Eastern Europe, the Asia/Pacific region, and the Africa/Mideast region. Growth in value terms in these regions will be supported by improved supply chains offering greater access to a wider variety of pesticide products; a shift to newer, more expensive pesticides; and intensification and industrialization of agricultural practices.

In the more established agricultural pesticide markets in North America and Western Europe, gains in pesticide demand in value terms will primarily be supported by continued gradual increases in average prices as users shift to an improving selection of newer pesticide formulations.

Want to Learn More?

Global Agricultural Pesticides, now available from The Freedonia Group, analyzes the world market for agricultural pesticides by region and country. Historical data for 2010, 2015 and 2020, and forecasts to 2025 and 2030 are provided for demand in current (including inflation) US dollars by product and crop type.

Products:

• herbicides
• insecticides
• fungicides
• other pesticides and repellents (e.g., acaricides, bactericides, defoliants and desiccants, fumigants, larvicides, molluscicides, nematicides, ovicides, rodenticides, silvicides, slimicides

Crops:

• vegetables and potatoes
• fruit
• corn
• soybeans
• rice
• wheat
• cotton
• sorghum
• barley
• other crops (e.g., oilseeds, beans, sugar cane, rubber, pasture and forage crops)