Fungicides Market Size, Share & Industry Analysis, By Type (Chemical and Biological), Crop Type (Cereals, Oilseeds & Pulses, Fruits & Vegetables, and Others), Application Method (Foliar, Chemigation, Seed Treatment, and Others), and Regional Forecast, 2024-2032

The global fungicides market size was USD 20.20 billion in 2023 and is projected to grow from USD 21.18 billion in 2024 to USD 31.91 billion by 2032, exhibiting a CAGR of 4.93% during the forecast period (2024-2032). Asia Pacific dominated the fungicides market with a market share of 28.86% in 2023.

There has been a negative impact of the COVID-19 pandemic on a global market, ultimately disrupting the global supply chain. According to our analysis, the global market exhibited a decrease of 2.15% in 2020. The rise in CAGR during the forecast period is due to the rise in the disease outbreak as a result of changing climatic conditions and an increase in the cultivation of high-value crops.

Furthermore, the increasing resistance to products has fueled the need to introduce new products that would increase the adoption of fungicidal crop protection products.

The global outbreak of COVID-19 was followed by lockdowns across several countries and this had a severe impact on the production and supply of products. The disruption in the supply chain of plant protection products including fungicide products was also due to the labor shortage. Further, the disruption caused by the COVID-19 pandemic in the flow of crop protection products, either from local or international suppliers to the farm level, has already resulted in reduced outputs. For example, transportation costs of pesticides to East Africa have increased by a factor of three, and shipping was delayed due to fewer flights to the region.

Therefore, the spread of COVID-19 led to a gap in demand and supply thereby affecting the final price of products. 

Fungicides Market Trends

Increased Emphasis on Ensuring Food Security and Preventing Malnourishment

As per the Food and Agriculture Organization, food security is a state where people have physical and economic access to food and nutrition at all times. Food availability is necessary to meet dietary needs and food preferences for an active and healthy lifestyle among individuals. Despite the rapid growth in agricultural production, out of 8 people, one suffers from chronic hunger. Food insecurity is said to be a major threat globally. For instance, as per the United Nations, the number of people who faced hunger in 2022 was between 691 and 783 million. Thus, institutions and organizations such as the World Bank are making further efforts to assist in eradicating the crises. For instance, in May 2022, the World Bank announced its commitment to provide USD 30 billion to tackle this crisis.

The goal of eradicating hunger by 2030 known as “Zero hunger” strategy that aims to eradicate hunger malnutrition by 2030 has fallen behind its goals. The economic slowdown caused by the global pandemic COVID-19, extreme climate conditions in certain regions of the world have threatened food supply. As per report stated by the UN Food and Agriculture Organization, undernourishment increased from 8.4 percent in 2019 to 9.9 percent in 2020. Governments across various nations are thus adopting different programs to enable farmers adopt latest products and technologies to improve their yield. These strategies help to boost the adoption of products among the farmers.

Rise in Adoption of Organic Farming

In recent years, the demand for organic food products in markets such as Europe and the U.S. has increased significantly. This in turn has given rise to the demand for natural and chemical free products such as bio-fungicides among the growers. As per reports stated by UN Food and Agriculture Organization, around 187 countries worldwide are practicing organic farming. As area under organic cultivation is increasing companies are launching bio fungicides to meet the growing demand in the sector. For instance, Syngenta launched bio fungicide “BotriStop” in Peru and Mexico in 2021.

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Fungicides Market Growth Factors

Introduction of Novel Products Will Fuel Adoption of Fungicides

The area under fruits & vegetables is increasing with the change of the global food structure and the changing cropping pattern. This has further resulted in an increasing demand for fungicide products comprising novel active ingredients. For instance, in 2019 BASF, a leading agro-chemical company received registration for its new active ingredient “Revysol” fungicides from the U.S. Environmental Protection Agency (EPA). Additionally, in 2021, FMC Corporation also received approval from U.S. Environmental Protection Agency (EPA) for the registration of fluindapyr that can be used in specialty crops as well as turfs. Due to the increasing disease resistance to strobilurin fungicides, the manufacturers are focusing on the development of strobilurins in combination with the other range of products.

Outbreak of Several Diseases to Skyrocket Demand for Products

Climate change is a major concern for agricultural production across the world. A change in the climatic parameters has a significant impact on crop production and the crops are susceptible to diseases and pests. This, in turn, affects crop health and causes deviations in farming practices. Furthermore, researchers from many decades have shown the seasonal effects of temperature, rainfall, and humidity on the disease that are responsible for major crop loss. Thus, the change in temperature and a rise in the atmospheric moisture content influence the growth of fungi and the emergence of hazardous fungal diseases. This further increases the need for fungal pesticides applications, thereby driving the market growth.

RESTRAINING FACTORS

Growing Resistance to Active Ingredients May Hamper Growth

Among the various types of pesticides used in the market, the chemical pesticides are the most widely used products for protecting crops due to their cheap prices and ease of use. The use of these products indiscriminately on the crops led to several negative side effects. For instance, beneficial non-target microorganism presents in crops such as Tirchoderma, Arbuscular Mycorrhyzal Fungi may be negatively affected by the use of these products on crops.

Additionally, the continuous use of these products on the crops, may cause the fungus present in the crops to develop resistance against the products. For instance, Botrytis cinerea, a grey mold fungus present in fruits and vegetables developed resistance against fungicides. There are several other fungi which have also developed resistance against fungicide products. This acts as a major factor restraining the adoption of fungal pesticide products for crop protection.

Fungicides Market Segmentation Analysis

By Type Analysis

Chemical Segment to Emerge as Dominant segment Owing to their High Usage in Developing Nations

By type, the market includes chemical and biological.

Chemical origin fungicidal also known as synthetic fungicides are biocidal substances that can kill or prevent the growth of fungi and their spores. The chemical fungicidal products are predominantly preferred over the biological products due to their immediate effect in controlling the growth of fungi. Also, due to the high concentration of active ingredients, the chemical fungicidal products can cover a large acreage. In the chemical fungicide products market, dithiocarbamates, triazoles, inorganic fungicides, strobilurins, and chloronitriles are highly preferred by growers across the world. These products from the triazole, chloronitrile, and dithiocarbamate group have major applications in oilseeds and pulses and fruits & vegetables.

Moreover, the high stability and easy availability of chemical fungicide products in the market are the crucial factors that are responsible for the dominance of this segment.

However, the bio fungicide products segment is projected to grow at a faster pace due to the increasing demand for organically grown fruits & vegetables and stringent government regulation on the presence of residue levels on the edible crops.

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By Crop Type Analysis

Cereals Segment to Grow Rapidly Backed by Their Rising Demand & Production

Based on the crop type, the market includes cereals, oilseeds, pulses, and fruits & vegetables.

The cereals segment reported major consumption of fungicide products and this can be attributed to the significant application rate per hectare and large area harvested. Also, corn, wheat, and rice are staple food items in regions such as America, Europe, and Asia-Pacific, respectively. Thus, an increase in the demand for cereal crops would lead to an increase in its production, thereby fueling the demand for fungal pesticide products. Furthermore, the total area harvested for cereals was 715.39 million hectares in 2018, according to the Food and Agriculture Organization (FAO). This large area harvested indicates the high demand for innovative fungicidal crop protection products.

By Application Method Analysis

Foliar Treatment Segment to Exhibit High Growth Stoked by Their Increasing Preference

By application method, the market includes foliar, chemigation, seed treatment, and others.

Fungicides are applied by using different application methods. However, foliar treatment is largely preferred across all the regions. The high preference given to the foliar treatment is due to its uniform application and low volume requirement per hectare. The reduction in volume requirement per hectare increases the profitability of farmers by saving input costs and protecting the crop from damage. In addition to this, the foliar application covers vulnerable plant surfaces and blocks the entry of pathogens that invade the crop. The foliar application also helps to eradicate the already established infections and reduce the secondary inoculum.

REGIONAL INSIGHTS

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Asia-Pacific Accounts Majority of Market Share in Fungicides Consumption Globally

Asia pacific region includes some of the largest agriculture dependent economies such as China, India, and Japan among others. The surging rice cultivation, and the increasing post-harvest damages are the primary aspects fueling the market in this region. Major crops such as rice, soybean, and wheat among others are grown in these regions. With the rise in disposable income in these regions, there is an increasing demand among consumers for high-quality food products which also acts as another factor contributing to the growth of the market in the region.

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In the North American Region, countries such as U.S. and Canada are adopting natural as well as synthetic crop protection solutions to improve the crop yield. Major crop protection companies are thus developing new and innovative products as well as active ingredients and launching them in the market taking into account the evolving customer preferences. For instance, in 2021, Syngenta launched new a product named “VAYANTIS®” for corn and soybean seeds.

On the other hand, strict regulations are being adopted by the regulatory bodies in Europe to curb the use of these products in crop production. As several scientific studies have pointed out the negative environmental effects caused by the use of fungicides, the European Union Commission through careful consideration, implemented ban on use of certain products. For instance, in 2020, the use of “Mancozeb” was restricted by European Commission.

The South American market is predicted to expand at the fastest pace during the foreseeable years. The rapid increase in fungicide consumption in the region, especially for the cultivation of cereals and oilseeds presents a resilient opportunity for the companies to increase their footprint. Brazil, Argentina, and Colombia are the key consumers in the region. However, the fungicide consumption in Brazil and Argentina is projected to grow at a stable rate while the consumption in Colombia is declining.

The fungicides market growth in the Middle East & Africa is primarily driven by increased usage of chemical fungicide products and the adoption of advanced agricultural practices. South Africa is the major consumer in the African region. The consumption of these products in the South African region is driven by the optimum application of products in the high-value crops such as fruits & vegetables, and nuts.

List of Key Companies in Fungicides Market

Highly Fragmented Market Structure Owing to Presence of Large Number of Regional and Local Players Who Are Competing with Major Fungicide Manufacturing Companies 

Major agro-chemical companies such as Syngenta AG, FMC Corporation, Bayer AG, ADAMA Ltd., and BASF SE have established a separate product portfolio of crop protection products which include fungicides to meet the growing demand among the farmers. Additionally, local manufacturers as well as regional players are also competitive over the major players to increase their market share, thus making the market highly fragmented. Major companies leverage their capabilities of research and development of new products and adopt the strategy of acquisition and merger to consolidate their position and compete with other key players in that market.

For instance, in May 2020, BASF launched Melyra in the Chinese market. The new fungicide is from Revysol series and is designed for application in tomatoes and grapes.

In November 2019, ADAMA Ltd. acquired the French-Swiss crop protection company, SFP, which is based in Switzerland. The acquisition helped SFP to increase its market presence in Europe through ADAMA’s commercial network.

LIST OF KEY COMPANIES PROFILED:

• Bayer AG (Leverkusen, Germany)


• BASF SE (Ludwigshafen, Germany)


• Syngenta AG (Basel, Switzerland)


• Corteva, Inc. (Delaware, U.S.)


• FMC Corporation (Pennsylvania, U.S.)


• Sumitomo Chemicals (Tokyo, Japan)


• UPL Ltd. (Mumbai, India)


• Nufarm (Melbourne, Australia)


• ADAMA Agricultural Solutions Ltd. (Ashdod City, Israel)


• Isagro SpA (Milan, Italy)

INDUSTRY DEVELOPMENTS:

• October 2023: “Bayer”, one of the well-known agriculture products companies based in the U.K., received approval from the Chemicals Regulation Division (CRD) for its new active substance to be used in fungicides. The new substance is isoflucypram, which will be used in its product called Vimoy.


• September 2022: BASF, a well-known agriculture nutrition manufacturer, announced the launch of its all-new innovative fungicide product called Revylution, which received approval for use in New Zealand.


• November 2022: Bayer announced the launch of its new fungicide called Luna Flex under its Luna brand, which is registered for critical crops, fruits, and vegetables, including apples. The new product is designed to deal with diseases such as scab, melanosis, powdery mildew, and gummy stem blight.


• February 2020: BASF launched its new fungicide, Revysol in the Irish market. This product can be used on wheat and barley and has powerful adaptation to disease mutations


• December 2019: FMC Corporation launched Rayora, a systemic demethylation inhibitor (DMI) to prevent and cure dollar spots.

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The global market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rates for all possible market segments. The report presents various key insights: an overview of related markets, recent industry developments, such as mergers & acquisitions, regulatory scenarios in critical countries, and global fungicides industry trends.

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