In 2014, the global pesticide market was valued at US$63.2 billion.

[Lead – China Pesticide & Fertilizer Network] In 2014, the global market value of crop‑protectant pesticides reached US$56.655 billion, up 4.5% year over year. Including non‑crop pesticides, total global pesticide sales amounted to US$63.212 billion, a 4.2% increase compared with the previous year. Among these, non‑crop pesticide sales stood at US$6.557 billion, growing by only 1.2% year over year.

 

　　Global Market

 

　　According to data from the UK-based consulting firm Phillips McDougall, in 2014 the global market value of crop protection products reached US$56.655 billion, up 4.5% year on year, based on distributor-level figures.

 

　　Including non‑crop pesticides, global pesticide sales totaled US$63.212 billion, up 4.2% year over year. Among these, non‑crop pesticide sales amounted to US$6.557 billion, reflecting a modest year‑on‑year increase of just 1.2%. Weak exchange rates and economic sluggishness in several countries were the primary factors hindering growth in the non‑crop pesticide market.

 

　　At the beginning of 2014, crop prices remained firm, but as agricultural yields increased, prices softened. Phillips McDougall noted that Thailand suppressed rice prices in an effort to reduce inventories. In 2014, glyphosate prices declined, while sales of fungicides and insecticides benefited from farmers’ preference for higher‑end products. Last year, exchange rates exerted a similar impact on the market as in the previous year; with the exception of the euro, the U.S. dollar strengthened against most major currencies. In emerging markets, rising sales volumes were the primary driver behind market gains.

 

　　Excluding the effects of exchange-rate fluctuations and inflation, the global crop‑protection market is estimated to have grown by 5.4%.

 

　　Regional Market

 

　　In dollar terms, the Latin American market continued to post the strongest growth on record, though its pace slowed compared with 2012/13. The region has also emerged as the world’s largest market for crop protection products, generating $16.147 billion in sales in 2014—a 15.1% year-on-year increase. Brazil and Argentina led this expansion. Favorable U.S. harvests and declining crop prices prompted shifts in planting patterns across Latin America in 2013/14, with farmers moving from corn to soybeans. At the start of 2014, milder outbreaks of Asian soybean rust (Phakopsora pachyrhizi) due to dry weather, combined with reduced sugarcane yields and lower crop prices, weighed on growth in the Brazilian market. Despite constraints on Argentina’s crop and agrochemical trade, peso depreciation, and high inflation, the country’s pesticide market performed well, with favorable weather serving as the primary positive driver. Although falling corn prices curbed corn‑planting acreage, the 2014/15 growing season got off to a strong start. In the broader developing Latin American region, the agrochemical market maintained steady growth.

 

　　2014 was a challenging year for the Asian crop‑protection market. Nevertheless, in dollar terms, sales in the region still posted modest growth. Insufficient monsoon rains led to drought conditions in some areas, while exchange‑rate volatility against the U.S. dollar also weighed on agrochemical trade. Rising labor costs, declining glyphosate prices, and weakening palm‑oil prices all squeezed profit margins. Rice prices continued to fall, largely due to destocking in Thailand. Although market conditions were relatively favorable in India, weak monsoon rains caused water shortages in parts of the country, hindering growth in its agrochemical sector. Drought also affected markets in northern China, Indonesia, parts of Thailand, and the Philippines, while Australia remained under prolonged dry conditions. In Japan, the agrochemical market had recovered from the tsunami and stabilized. Last year, Asia’s crop‑protection market recorded sales of US$14.644 billion, up 1.5% year over year.

 

　　The European market benefited from a mild winter and an early spring, though parts of Central Europe were affected by a cool, wet summer. Northern Europe enjoyed favorable growing conditions, driving strong performance in the agrochemical market; by contrast, many southern regions saw little market momentum. Overall, the Central European market remained robust, while political instability in Ukraine weighed on agrochemical trade. In sum, sales of crop protection products in Europe rose 1.8% year over year in 2014, reaching $13.885 billion.

 

　　Adverse weather conditions, elevated crop inventories, and excessively high transportation costs have constrained growth in the Canadian pesticide market. Although acreage devoted to corn and small grains has declined, acreage for canola and soybeans has expanded. In the United States, falling corn prices have led to a reduction in corn planting, while acreage for soybeans and cotton has increased. A weak start to the corn and soybean growing season has kept the pre-emergence herbicide market sluggish; however, market performance strengthened during the summer growing season. Drought once again affected markets in the southern and western United States, as well as Mexico. In 2014, sales of crop‑use pesticides in the North American Free Trade Agreement (NAFTA) region fell 2.0% year over year, totaling $9.81 billion.

 

　　In other regions of the world, such as Africa and the Middle East, where agricultural exports hold a strong position, sales of crop protection products totaled US$2.169 billion, up 3.1% year over year. The Zambian market continues to benefit from migrant workers originating in Zimbabwe and South Africa, while Nigeria’s imports have increased; however, much of its imported pesticide is destined for re-export.

 

　　Prospects

 

　　The bumper grain harvest in 2014 has already led to rising crop inventories and lower agricultural commodity prices, putting downward pressure on the pesticide market. Nevertheless, the global pesticide market is still expected to grow in 2015, albeit at a slower pace than in the previous year.

 

　　With U.S. corn production hitting another record high in 2014, the corn market is expected to remain weak in 2015. Corn prices have already declined, prompting a reduction in planted acreage; Argentina and Brazil are shifting from corn to soybeans, and U.S. planting intention surveys suggest a similar trend. However, soybean inventories remain elevated, and with a likely increase in soybean production in 2015, downward pressure on soybean prices is substantial.

 

　　The wheat market is also relatively fragile. Although Argentina’s wheat acreage increased in the 2014/15 season, U.S. and EU‑28 wheat acreage is expected to decline in 2015, while Canada’s wheat acreage may expand. Meanwhile, demand for rice is rising, and rice prices are currently on the upswing, driven by a drop in Thai rice inventories following price cuts and sales.

 

　　The Latin American agrochemical market is expected to continue growing, though at a pace that may fall short of 2013/14 levels. Key factors include shifts in crop patterns in Brazil and Argentina; declining agricultural commodity prices and drought conditions; and the further adoption of genetically modified crops, which will reduce demand for herbicides and insecticides in Brazil. Additionally, trade disputes and inflation in Argentina pose headwinds. In the developing economies of Latin America, rising domestic demand and improving economic conditions should sustain market expansion. Meanwhile, in North America, Canada is likely to break free from the stagnation seen in 2014, enabling a recovery in growth; however, the U.S. market lacks supportive catalysts, as corn acreage declines, corn prices weaken, and glyphosate prices remain under pressure.

 

　　The outlook for the European pesticide market remains uncertain. Declining wheat prices and reduced subsidies will weigh on traditional EU member states, but Central and Eastern European countries should benefit from increased support, while lower production costs may help offset the impact of falling crop prices. In 2014, the South Asian and Australian markets were hit by adverse weather conditions, but they are expected to recover this year.

 

　　Phillips McDougall forecasts that, despite the significant influence of weather conditions on the pesticide market, global pesticide sales will grow by 1% to 2% in 2015, with Asia and emerging markets leading the expansion.