Global Nematicides Market - 2021-2028
Nematicides refer to the pesticides available for controlling nematode population and infestation, as well as the formulations and application techniques utilized by growers, to maximize nematode control and significantly increase crop yields. Decrease in fertile and arable land has inversely led to an increase in high yielding crops demand to meet global food requirements. This factor has considerably boosted nematicides demand, in order to increase crop protection and improve quality of yield from limited crops. In addition, governmental support encouraging the development of bio-nematicides as an alternative to conventional synthetic pesticides has also fostered the global nematicides market growth. The global nematicides market valued USD XX million in 2020 and is forecasted to reach USD XX million by 2028, growing at a CAGR of XX% during the forecast period (2021-2028)
Market Dynamics: Growing demand for food
The rapidly increasing population is urging growers to utilize pesticides such as nematicides to improve yield quantity as well as quality. Moreover, the strong emphasis from governments and other stakeholders on the organic and sustainable mode of farming has increased the utilization of bio-based nematicides among farmers. The decreasing agriculture production due to nematode damage is expected to be a favorable factor for market growth. For instance, according to the Food and Agriculture Organization (FAO), on a global basis, annual crop losses due to nematode infestation have been estimated to approximately 12.3%, amounting to approximately USD 77 million. Moreover, the rising investment by prominent market players in research and development of innovative products is anticipated to positively impact the market growth. For instance, in September 2019, FMC Corporation introduced its new product, Presence. The company claims that this is the first microbiological nematicide in the Brazilian market permitted for use on seeds.
However, high environmental risk allied with the utilization of synthetic pesticides is expected to hamper the market growth. The uses of synthetic pesticides have recorded extensive and large-scale damage to the environment. Thus, there has been a strong call of action regarding the improvisation in traditional agricultural solutions and limitations on the use of synthetic pesticides. Moreover, awareness about biologicals, such as bionematicides among farmers, is very low. Farmers are not aware of the method of use and the cost-effective benefits of these crop protection products. In developing countries, they are not aware of integrated pest management (IPM) solutions.
Market Segmentation: Bio-based nematicides segment is expected to be the fastest growing segment with a CAGR of XX% during the forecast period
The global nematicides market has been segmented by type into fumigants, organophosphates, carbamates and bio-based nematicides among others. Bio-based nematicides is expected to be the fastest growing segment during the forecast period. With the increasing awareness among consumers about the importance of organic foods, the adoption of sustainable agriculture and integrated pest management solutions has increased. This has led to the demand for biocontrol products such as pheromones, biofungicides, biopesticides, and bionematicides. A number of major players in the market such as Marrone Bio Innovations (US) and Valent BioSciences (US) are introducing bionematicide solutions for seed treatment. These factors have paved the way for the high growth rate in the bio-based nematicides segment.
On the other hand, fumigants segment held a significant market revenue share of XX% in the year 2020. Fumigants are broad-spectrum nematicide products where the active component transfers through the soil and gas. Fumigants are not bound by soil or taken up by plant, thus they have a small period of residual pesticide activity and they are highly effective compared to other nematicides.
Geographical Penetration: North America is expected to dominate the global nematicides market
By geography, North America is expected to dominate the global nematicides market in the year 2020, growing with a CAGR of xx% during the forecast period. The United States held highest market revenue share of XX% in the year 2020. Owing to the presence of various nematode species attacking a wide range of economically important crops, as well as awareness of farmers regarding the application of chemical nematicides, the country has garnered the highest share in the North America nematicides market. Fluensulfone, which is a recently developed active ingredient, has reportedly resulted in the decrease of potato cyst nematode infection by 43% and increased potato yield by 62% in the United States, as revealed by a study conducted in 2019. Moreover, presence of prominent players such as Bayer Crop Science AG, Marrone Bio Innovations and The Dow Chemical Company in the US is likely to boost the market in the region.
The global nematicides market is consolidated with key players accounting for majority share of XX%. American Vanguard Corporation, Bayer AG, Syngenta International AG, Corteva, Inc., and UPL Limited are the major players in the market. Major players are expanding their presence by making their nematicide products registered from respective regulatory authorities. Mergers & acquisitions and new product development are some of the crucial strategies adopted by key players. For instance, in August 2018, BASF SE acquired a wide range of businesses and assets from Bayer CropScience (Germany). This acquisition would complement crop protection, biotech, and digital farming activities. This acquisition also allowed the company to enter the non-selective herbicide and nematicide seed treatment markets. In May 2020, Gropro Corporation, launched new nematode control, that is, Vigilance Nematicide. In March 2019, Syngenta announced a new beneficial spot treatment rate for Divanema Nematicide. In April 2019, IHARA launched seed treatment product CERTEZA N for control of nematodes in Brazil.
COVID-19 Impact: Positive growth in nematicides market, due to increased deamand
COVID-19 didn't make a significant impact on the market as the demand for pesticides continues to grow, because agriculture is an essential commodity and most counties rely on those sectors for economic as well as other related services. There has been a negligible impact on global supply chains and operations. Despite the lockdown and closure of borders by various governments worldwide, the nematicide market continues to register steady growth during that period. Agriculture is an essential commodity as there are certain seasons for the cultivation of useful and imperative crops such as wheat, grains, cereals, and others. Farmers and other agricultural players cannot afford to waste and avoid the cultivation period, despite the pandemic. Avoidance will lead to huge losses which is a negative setback for farmers, governments, and other stakeholders involved.
Nonetheless, the effects are irregular across markets and not all undesirable. For instance, the sudden outbreak of COVID-19 has had a big impact on cash flow, disruption in raw material procurement, and product distribution but the demand for nematicides is expected to increase post-COVID-19 to ensure overall food security. The prominent, as well as niche companies, are expected to rigorously enter digital solutions to continue the revenue generation, which can serve as an opportunity for company growth even after COVID 19 pandemic.