Organophosphate Pesticides Market Size Forecast to Reach $9 Billion by 2025

Organophosphate Pesticides Market size is forecast to reach $9 billion by 2025, after growing at a CAGR of 5% during 2020-2025. Organophosphates are chemical substances that are produced by esterification between phosphoric acid and alcohol. The major factors that drive the organophosphate pesticides market are high population growth and subsequent increase in the demand for food, limited agricultural land, and an increase in consumer awareness about the benefits of agrochemicals. Furthermore, surging uses of organophosphate pesticides in the commercial agriculture to control pests on fruit and vegetable crops are driving the growth of Organophosphate market size during the forecast period. However, adverse environmental effect and toxicity of organophosphate pesticides to humans and aquatic ecosystem acts as a restraint for the market growth.

Key Takeaways

  • Among all the insecticide, in the United States, the organophosphates occupy majority of the share. As, organophosphate insecticides are highly effective insect control agents.
  • Rise in intensive farming in various parts of the United States boost the market growth. In 2017, Florida was one of the major producer of agricultural products with 47,000 commercial farms and ranches, using a total of 9.45 million acres.
  • In August 2018, the U.S. Ninth Circuit Court of Appeals has ordered the Environmental Protection Agency (EPA) to ban chlorpyrifos, this hamper the growth of organophosphate pesticides market.
  • Increasing health concerns and rising popularity of organic farming also hinders the growth of organophosphate pesticides market.

Type – Segment Analysis

Insecticide segment holds the largest share of more than 40% in the organophosphate pesticides market in 2019. Insects damages the crops either by directly feeding on leaves, roots, and stems or by absorbing the nutrients present in the soil. Increasing awareness among the people to protect their crops from pests is driving the growth of organophosphate pesticides market. Organophosphate pesticides such as diazinon, damages the acetylcholinesterase enzyme which is responsible for controlling the nerve signals in the pests. Destruction of the nervous system kill the insects which in turn results in better crop productivity. According to Trade map, global import of insecticides grew by 8% and reached $ 9.9 million in 2019.

By Ingredient- Segment Analysis

Glyphosate segment holds the largest share of more than 30% in the organophosphate pesticides market in 2019. Surging demand of organophosphate pesticides for eliminating the weeds from farmland is fueling the growth of market. As, weed damages the crops, as they absorb water, sunlight and nutrients and also act as a vector of dangerous plant pathogens. Furthermore, glyphosate is absorbed through foliage, roots, and inhibits the plant enzymes that are involved in synthesis of amino acids such as tyrosine, tryptophan, and phenylalanine. Whereas the destruction of enzyme stops the growth of weeds and results in better agricultural productivity.

Application – Segment Analysis

Based on the application, crop based segment holds the largest share of more than 45% in the organophosphate pesticides market.  The Food and Agriculture Organization (FAO) has estimated that global cereals production reached 2710.9 MT in 2019-20 from 2648.7 MT in 2018-19. Increase in demand of cereals and grains all over the world is impelling the farmers to use pesticides to kill weeds and pests, which in turn boosts the growth of organophosphate pesticides market.  Furthermore, according to the Organization for Economic Co-operation and Development, global cereal production is projected to increase by 367 Mt to reach 3,053 Mt in 2028. Maize production is projected to increase the most by 181 Mt, followed by wheat (+86 Mt) subsequently raising the demand of organophosphate pesticides.

COVID-19 proved to be a challenge for the growth of organophosphate pesticides market. The outbreak of coronavirus has postponed deliveries of organophosphate pesticides and other food equipment from yards, due to shortages of staff or supplies, as well as lockdown. India’s fruits and vegetables export declined by 16% and reached at $1 billion for the period between April 2019 and January 2020, from $1.19 billion for the same period the previous year, according to the Agricultural and Processed Food Products Export Development Authority (APEDA). Industries are shuttered all around the world and the lack of manpower has led many manufacturing companies to stop their production which further hampers the growth of market. In addition, World Trade Organization forecasted that the global trade will fall by between 13% and 32% in 2020 as the COVID 19 pandemic disrupts normal economic activity and life around the world, subsequently affecting the growth of organophosphate pesticides market.

Geography – Segment Analysis

Among the regions, the Asia Pacific region is projected to witness the highest CAGR of 7% in the organophosphate pesticides market during the forecast period. This growth is attributed to the surging demand for quality food coupled with growing population and declined farming land across the region. For instance, China’s Ministry of Natural Resources estimated that country’s arable land declined by 60,900 hectares and fell to 134.86 million hectares in 2017. Rapid industrialization and urbanization in emerging economic nations like China, India, and Malaysia has decreased the farming land, which further drive the demand of organophosphate pesticides for better agricultural output. According to the Indian governmental report, food Processing Industry in India contributed approx. $3.92 Bn to India’s exports in the year 2017-18 and total consumption of the food and beverage segment domestically is expected to reach $1.142 Tn by 2025. Thus, growing food requirement and better agriculture output further drive the demand for organophosphate pesticides for lowering the infections in plants to meet the food requirement is also augmenting the growth of market.

Drivers – Organophosphate Pesticides Market

  • Increasing government initiatives to boost agriculture sector

The government of various countries are focusing and spending heavily in the field of agriculture to boost agriculture sector and meet the growing food demand. For instance, in 2016, according to China’s Ministry of Agriculture, over 1,300 Chinese enterprises had overseas investments in agriculture, forestry, and fisheries valued at $26 billion. Additionally, in 2020, the Canadian government invested a total of $560,000 on the Canadian Federation of Agriculture (CFA) to develop the Canadian Agri-Food Sustainability Initiative. The European government has taken initiatives such as Common Agricultural Policy (CAP) and Young Farmers. Thus, owing to the various initiatives by the government, agricultural production is also increasing in the various regions. Thus, with the increasing crop production the demand for organophosphate pesticides is also increasing to increase the crop yield, which acts as a driver for the organophosphate pesticide market.

  • Rising food demand due to growing population

According to the United Nations Organization (UNO), world population is projected to reach 8.5 billion by 2030. Thus, increase in population drive the demand for organophosphate pesticides from agriculture sector for higher crop yield and from household sector. United Nations Food and Agriculture Organization (FAO) estimated that the demand for food will grow by 60% by 2050. In addition, The United States Department of Agriculture took an initiative – “The Agriculture and Food Research Initiative (AFRI)” to ensure food safety and security and train the next generation of the agricultural workforce. Also, over 2016 to 2018, 5.6% of the UK population were estimated to have experienced food insecurity based on the FAO’s globally set threshold for food insecurity. Thus, increasing food demand and food security concerns drives the growth of the market.

Challenges – Organophosphate Pesticides Market 

  • Adverse environmental effects and adoption of organic farming

Despite the use of organophosphate pesticides in eliminating pests, the surging environmental concerns and harmful effect of organophosphate on human health acts as a restraint for the growth of the market. Exposure to organophosphates cause anxiety, heart or kidney failure, damages central nervous system, and even lead to death. They are also toxic to aquatic organisms. Whereas exposure during pregnancy is associated with developmental abnormalities, reduced motor function, and decreased IQ. Thus, owing to the harmful effects of the organophosphate pesticides, several organizations have had call for the ban of organophosphate pesticides. For instance, in 2019, the California Department of Pesticide Regulation (DPR) designated chlorpyrifos (CPS) and he California Environmental Protection Agency (CalEPA) moved to ban the use of Chlorpyrifos an organophosphate pesticide. Moreover, presence of alternatives such as Buprofezin, Chlorfenapyr, Imazamox, and Acequinocyl, with reduced risk of pesticides to human health also affect the growth of the organophosphate pesticides market.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the organophosphate pesticides market report. In 2019, the market of organophosphate pesticides has been consolidated by the top 10 companies accounting for xx% of the share. Major players in the organophosphate pesticides market are Bayer Cropscience AG, BASF SE, Dow AgroSciences LLC, DuPont de Nemours, Inc., Nufarm Ltd., Syngenta AG, United Phosphorus Limited, FMC Corporation, Adama Agricultural Solution Ltd, and United Phosphorus Limited, among others.