Fungicides Market Size, Growth, Industry & Revenue | 2032

Report Description

Fungicides Market Outlook 2032

The global fungicides market size was USD 22.09 Billion in 2023 and is projected to reach USD 37.27 Billion by 2032, expanding at a CAGR of 6.2% during 2024–2032. The market growth is attributed to the increasing demand for crop protection solutions against fungal diseases globally.

Increasing demand for effective crop protection solutions against fungal diseases is driving the market. Farmers and agricultural professionals are increasingly adopting fungicides to mitigate the impact of fungal infections on crop yields, thus boosting the market expansion. Moreover, advancements in fungicide formulations and technologies are propelling the market, providing efficient and targeted solutions for disease control in various crops.

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Growing environmental concerns and stringent government regulations regarding pesticide usage are enhancing the fungicides market. Regulatory bodies are imposing strict guidelines and standards for the development and use of fungicidal products, emphasizing safety, efficacy, and environmental sustainability. This regulatory environment is prompting manufacturers to innovate and introduce eco-friendly fungicides with reduced environmental impact, driving the market. For instance,

• In January 2024, Syngenta announced the launch of a new fungicide formulation specifically designed to combat wheat rust, a fungal disease that poses a significant threat to global wheat production. The fungicide, named RustGuard Pro, offers enhanced efficacy against multiple strains of wheat rust while minimizing environmental impact, reflecting the industry's ongoing efforts to develop innovative solutions for disease management in key crops.

Rising awareness among farmers about the benefits of integrated pest management (IPM) practices is fueling the demand for fungicides. Integrated approaches that combine biological, cultural, and chemical methods are gaining traction as sustainable solutions for disease management in agriculture. Therefore, the fungicides market is witnessing increased adoption across a wide range of applications, including cereals, fruits, vegetables, and ornamental crops, catering to diverse agricultural needs globally.

• In March 2023, new regulation by the European Union on plant protection products (Regulation (EU) 2023/127) came into effect, introducing strict criteria for the approval and use of fungicides and other pesticides. The regulation emphasizes the need for comprehensive risk assessments, including environmental and human health impacts, before authorizing fungicidal products for market placement. This regulatory framework underscores the growing importance of sustainable and safe agricultural practices in the fungicides market.

Impact of Artificial Intelligence (AI) in the Fungicides Market

Artificial Intelligence (AI) has revolutionized the fungicides industry by optimizing disease management strategies through data-driven insights and predictive analytics. AI algorithms analyze vast amounts of agronomic data, including weather patterns, soil conditions, and crop health metrics, to generate actionable recommendations for fungicide application timing and dosage. This data-driven approach enhances the precision and efficacy of fungicide treatments, resulting in improved disease control and high crop yields.

AI-powered monitoring systems detect early signs of fungal infections, enabling proactive interventions and reducing the reliance on broad-spectrum fungicides. By facilitating targeted and timely applications, AI contributes to sustainable agriculture practices by minimizing chemical inputs while maximizing crop protection, thus reshaping the future of fungicide use in modern agriculture.

• In October 2023, Bayer Crop Science unveiled a new AI-driven platform called FungAI, designed to optimize fungicide applications in vineyards. FungAI integrates satellite imagery, weather data, and machine learning algorithms to predict disease outbreaks and recommend precise fungicide treatments. This innovative solution improves disease control and reduces fungicide usage and environmental impact, showcasing the transformative role of AI in modern agriculture.

Fungicides Market Dynamics

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Major Drivers

Growing awareness about the economic significance of crop protection and the increasing need for sustainable agricultural practices are driving the market. Farmers and agricultural professionals are increasingly recognizing the pivotal role of fungicides in safeguarding crop yields and ensuring food security, particularly in the face of rising global population and changing climatic conditions. For instance,

• In September 2021, Corteva Agriscience and Gaiago, a biotechnology company, entered an agreement to develop, validate, and commercialize fungicides for global farmers, focusing on grapevines, potatoes, vegetables, stone fruits, and pome fruits against downy mildew, late blight, and botrytis.

Surging prevalence of fungal diseases in major crop-producing regions is propelling the market. Fungal pathogens pose significant threats to crop health and productivity, necessitating proactive measures such as fungicide applications to mitigate disease risks and maintain optimal yields. This rising incidence of fungal infections underscores the critical importance of effective disease management strategies in modern agriculture.

High investments in research and development (R&D) by key market players and government institutions are boosting the market. The ongoing efforts to develop novel active ingredients, improve application methods, and enhance product efficacy are aimed at meeting the evolving needs of farmers and addressing regulatory requirements for safe and sustainable fungicide use. These R&D initiatives are poised to shape the future landscape of the fungicides market, offering advanced solutions for disease control and crop protection. For instance,

• In January 2023, the United States Environmental Protection Agency (EPA) introduced guidelines for AI-based agricultural technologies, including AI-driven fungicide management systems. The guidelines outline criteria for data accuracy, algorithm transparency, and environmental safety assessments to ensure the responsible use of AI in optimizing fungicide applications. This regulatory framework promotes the adoption of AI technologies while safeguarding environmental sustainability and agricultural productivity.

Existing Restraints

High regulatory scrutiny and stringent approval processes are projected to impede the introduction of new fungicidal products into the market. Regulatory bodies require extensive safety and efficacy data, leading to prolonged timelines and increased costs for manufacturers seeking product registrations. This regulatory burden hinders innovation and limits the availability of advanced fungicide formulations, impeding the market.

Environmental concerns related to fungicide use, such as potential impact on non-target organisms and ecosystems, are anticipated to restrain the market growth. Increasing awareness about the ecological consequences of pesticide applications has led to calls for sustainable and environmentally friendly alternatives. Market players are under pressure to develop and promote eco-friendly fungicides with reduced environmental footprints, aligning with global sustainability goals and consumer preferences. For example,

• As reported by the Food and Agriculture Organization, fungal diseases cause an average economic loss of approximately USD 220.0 Billion despite widespread fungicide use. Changing climatic conditions and frequent disease outbreaks exacerbate this situation, necessitating increased application rates.

Emerging Opportunities

Rising adoption of integrated pest management (IPM) is creating opportunities in the fungicides market. Integrated approaches that combine biological, cultural, and chemical methods are gaining traction as sustainable solutions for disease management in agriculture. This shift toward holistic pest control strategies encourages the use of fungicides alongside other control measures, expanding the market for integrated solutions and promoting environmentally friendly farming practices.

Increasing demand for specialty crops and high-value horticultural products is driving opportunities in the fungicides market. Specialty crops such as fruits, vegetables, and ornamental plants require tailored disease management solutions due to their unique susceptibility to fungal infections. This niche market segment presents opportunities for fungicide manufacturers to develop specialized formulations and targeted solutions that address the specific needs of high-value crop producers, thereby diversifying product portfolios and capturing market share in premium crop segments.

Growing investments in sustainable agriculture initiatives and research and development (R&D) are creating opportunities for innovation in fungicides. Governments, private organizations, and agricultural institutions are allocating resources toward developing eco-friendly and effective fungicidal products. This focus on sustainability and innovation addresses environmental concerns and opens new avenues for market players to introduce advanced formulations, novel active ingredients, and precision application technologies, driving the market.

Scope of the Fungicides Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Regional Outlook

In terms of region, the global fungicides market is classified as Asia Pacific, North America, Latin America, Europe, and the Middle East & Africa. Asia Pacific held a major market share in 2023, owing to extensive agricultural activities in key crops such as rice, wheat, and soybeans, contributed to significant fungicide usage. Additionally, favorable government policies supporting agricultural development and investments in modern farming practices such as precision agriculture played a crucial role in boosting the demand for fungicides. Furthermore, the growing population and rising food demand in the region necessitate effective disease control measures, further driving the market. For instance,

• In March 2020, Secadis, a new fungicide introduced by BASF Agricultural Solutions in India, aids apple farmers in protecting their crops and enhancing productivity. This systemic and translaminar solution improves disease management for apple growers.

The market in Latin America is projected to grow at a significant pace during the forecast period, due to the vast expansion of arable land and favorable climatic conditions that make it conducive to agriculture, leading to increased cultivation of crops requiring fungicide applications. Additionally, rising investments in agricultural infrastructure and technologies, coupled with improving access to agrochemical inputs, are expected to drive the adoption of fungicides in the coming years. Moreover, the expanding horticultural sector and growing demand for specialty crops are augmenting the market in the region. For instance,

• In February 2023, ADAMA inaugurated a new multi-purpose facility in Brazil enhancing its Prothioconazole-based product pipeline for global markets and introducing innovative items to the Brazil market.

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Fungicides Market Segment Insights

Type of Fungicides Segment Analysis

Based on type of fungicides, the fungicides market is divided into contact, systemic, translaminar, penetrant, and others. The systemic segment held a major share of the market in 2023, owing to its ability to provide long-lasting and thorough protection by moving through vascular system of the plant. This effectiveness against a wide range of fungal diseases and ease of application and extended residual activity are propelling the segment.

The systemic segment is expected to expand at a significant growth rate in the coming years, due to the increasing adoption of modern farming practices and technological advancements. Farmers are increasingly relying on systemic fungicides for comprehensive disease control, especially in high-value crops and regions prone to fungal infections. Moreover, ongoing research and development efforts aimed at enhancing the efficacy and safety of systemic fungicides are expected to propel the segment during the assessment years.

Crop Type Segment Analysis

On the basis of crop type, the global market is segregated into cereals & grains, fruits & vegetables, oilseeds & pulses, turf & ornamentals, and others. The cereals & grains segment held a large market share in 2023, attributed to the extensive cultivation of staple crops globally. Fungicides are widely used in cereals & grains to protect against fungal diseases that significantly impact yields. Additionally, the increasing demand for food grains and the need for enhanced crop protection drives the segment.

The fruits & vegetables segment is anticipated to expand at a substantial CAGR during the projected period, due to the rising consumer demand for fresh produce and increasing adoption of intensive farming practices. Fruits and vegetables are highly susceptible to fungal infections, necessitating effective disease management strategies, including fungicide applications. Furthermore, advancements in agricultural technologies and the shift toward sustainable farming practices are expected to the fuel the segment in the coming years.

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Application Method Segment Analysis

Based on application method, the fungicides market is segmented into foliar spray, soil treatment, seed treatment, and post-harvest treatment. The foliar spray segment led the market in terms of revenue in 2023, owing to its widespread use in crop protection. Foliar spray application allows fungicides to be directly applied to the plant's leaves, providing quick and targeted protection against fungal diseases. This method is favored for its ease of application, effectiveness in controlling foliar pathogens, and ability to cover large agricultural areas efficiently.

The seed treatment segment is projected to register a robust growth rate during the assessment years, as it offers early protection against soil-borne and seed-transmitted fungal pathogens, enhancing crop establishment and overall yield potential. Additionally, advancements in seed coating technologies and formulations improve the efficacy and safety of seed-applied fungicides, driving their adoption among farmers. Furthermore, growing awareness about the benefits of integrated pest management (IPM) practices and the need for sustainable agriculture further propel the segment.

Mode of Action Segment Analysis

On the basis of mode of action, the market is divided into multi-site and single-site. The multi-site mode of action segment generated a major revenue share of the market in 2023, attributed to its broad-spectrum activity against various fungal pathogens. Multi-site fungicides target multiple sites in fungal cells, making them effective against a wide range of diseases and reducing the risk of resistance development. This versatility and efficacy in disease control contributed to the dominance of the multi-site mode of action segment. For instance,

• In February 2023, Corteva Agriscience introduced Univoq, its first fungicide product tailored for grains, featuring distinctive mode of Inatreq of action for preventive, curative, and long-lasting efficacy against cereal diseases.

The single-site mode of action segment is projected to register a robust growth rate during the assessment years, due to the advancements in fungicide research. This led to the development of novel single-site fungicides with high specificity and targeted action against specific fungal pathogens. This precision in targeting pathogens reduces the risk of non-target effects and minimizes environmental impact, driving the adoption of single-site mode of action fungicides. Additionally, increasing concerns about fungicide resistance and regulatory pressure to use environmentally friendly products further boost the segment.

Formulation Segment Analysis

Based on formulation, the fungicides market is segmented into liquid and dry. The liquid segment led the market in terms of revenue in 2023, as liquid formulations are convenient to use and easily mixable with water, allowing for efficient application through various methods such as foliar spray, soil drenching, and irrigation systems. This ease of application and uniform coverage contributes to their widespread adoption among farmers. Additionally, liquid formulations offer improved efficacy and fast absorption by plants, leading to improved disease control and higher yields. These advantages are propelling the segment.

The dry formulation segment is projected to register a robust growth rate during the assessment years, due to the development of stable and user-friendly products, such as granules, powders, and dusts, that are easier to handle and store as compared to liquid formulations. This increased stability and convenience appeal to farmers in regions with limited access to water or where precise application is required. Moreover, the dry formulation segment offers cost-effective options for disease control, making them attractive to a wide range of farmers and agricultural enterprises.

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End-user Segment Analysis

On the basis of end-user, the market is divided into agriculture, horticulture, forestry, and turf & ornamental. The agriculture segment generated a major revenue share of the market in 2023, attributed to the extensive use of fungicides in crop protection across various agricultural practices. Agriculture is the largest end-user sector for fungicides, covering a wide range of crops such as cereals, grains, oilseeds, and pulses. The need to protect these crops from fungal diseases, to ensure food security and maximize yields is driving the segment.

The horticulture segment is expected to lead the market in terms of revenue during the projection period. Horticultural crops, including fruits, vegetables, and ornamentals, are highly susceptible to fungal diseases, necessitating effective disease management strategies, including fungicide applications. Additionally, the increasing demand for high-quality and disease-free horticultural produce, driven by changing consumer preferences and growing urbanization, fuels the segment.

Distribution Channel Segment Analysis

Based on distribution channel, the fungicides market is segmented into direct sales, retail sales, and online sales. The retail sales segment led the fungicides market in terms of revenue in 2023, as the retail sales channels, such as agrochemical retailers and distributors, offer convenience and accessibility to a wide range of fungicide products for farmers and agricultural professionals. This accessibility, coupled with personalized customer service and technical support, enhances the adoption of fungicides among end-users.

The online sales segment is projected to register a robust growth rate during the assessment years, owing to the increasing digitalization of agricultural practices and the rise of e-commerce platforms provide farmers with convenient access to fungicide products, regardless of their geographical location. This accessibility and convenience appeal to a wide range of customers, including small-scale farmers and agribusinesses. Additionally, promotional offers, discounts, and doorstep delivery services offered by online retailers further incentivize the adoption of fungicides through online channels, boost the segment.