The global fungicides market is projected to reach USD 32.3 billion by 2029 from USD 23.9 billion by 2024, at a CAGR of 6.2% during the forecast period in terms of value.
The global fungicides market is driven by the rapidly increasing demand for high farm yields to feed a growing global population needing effective crop-protection solutions. Intensification from climate change broadens the fit of fungal diseases, further driving fungicide demand. Formulations of fungicides coupled with advances in application technology enhance efficiency. Another factor contributing to the increase in the market is the growing awareness of sustainable agriculture and rising farming activities in developing countries. All these factors together boost the demand for innovative and proper broad-spectrum fungicide solutions across the globe.
Market Dynamics
Driver: Climate change increasing disease infestation in crops
With changing weather patterns and increased global temperatures, pests and diseases are more prone, leading to increased incidence rates of fungal diseases in crops. All these are conditions favoring increased ease of growth and spread of these fungi, thus eliciting vulnerability to a number of crop species across different regions. This puts farmers and those in agricultural production at a very high risk of failing crops, which affects productivity and profitability outright.
Fungicides are rapidly increasing, and it is imperative in modern-day crop protection strategies to counterbalance these harmful risks. High occurrences of attacks by fungal pathogens have sharply increased the use of effective fungicidal solutions that act mandatorily in crop health maintenance and yield stabilization.
Restraint : Restraints from stringent regulations in approval of new fungicide products
The fungicides industry also remains under pressure from various regulatory frameworks enacted by various countries. The governments of most countries have been found to focus on environmental protection and public health, which restrains the growth of the fungicides market. Such strict regulations are in place whereby chemical fungicides are subjected to intense testing and approval processes before their utilization. This prolongs product launch time and increases the cost associated with the launch of new products. Regulation (EC) No 1107/2009 governs the marketing of Plant Protection Products (PPPs) within the European Union. Before their market availability or usage, PPPs must receive authorization in the respective EU country. This regulation establishes the guidelines and processes for PPP authorization. According to the timelines set up in Regulation (EC) No 1107/2009, the approval of active fungicide substances takes approximately 2.5 to 3.5 years. The time frame elapses from the date of admissibility to the date of publication of the regulation, which determines the approval or non-approval of the active substance.
Opportunity : Rising demand for biological fungicide
A major opportunity in the global fungicides market is the growing demand for bio-fungicides, resulting from increasing consumer awareness and regulatory pressures to adopt more sustainable ways of farming. With growing environmental concerns and organic farming initiatives, farmers and regulatory agencies are looking for substitutes for conventional chemical fungicides. Bio-fungicides, derived from natural sources, are an environmentally friendly solution and fit very well with the objectives of organic and sustainable agriculture. Therefore, these products reduce the environmental fingerprint of crop protection and help supply the rising market of health-oriented consumers who wish to consume foodstuffs produced using minimum synthesized inputs.
Challenge: Development of fungicide resistance in fungi
The development of resistance in fungal strains due to the continuous and often repetitive use of some fungicides has emerged as one of the growing challenges in the worldwide fungicides market. With the rotation of these strains, they become much less sensitive to several applied fungicidal treatments on the market today, eroding product efficacy to the level of those previously obsolete products. This resistance, in turn, not only compromises crop protection efforts but also adds more pressure on agricultural producers to find alternative solutions.
Key Players:
Top fungicide companies include BASF SE (Germany), Bayer AG (Germany), Syngenta Group (Switzerland), UPL (India), Corteva (US), FMC Corporation (US), Nufarm (Australia), Sumitomo Chemical Co., Ltd. (Japan), NIPPON SODA CO, LTD. (Japan), Gowan Company (US), American Vanguard Corporation (US), Koppert (Netherlands), KUMIAI CHEMICAL INDUSTRY CO., LTD. (Japan), Albaugh LLC (US), and Sipcam Oxon Spa (Italy).
