According to MarketsandMarkets, the North American crop protection chemicals market is projected to reach USD 21.0 billion by 2029 from USD 15.98 billion by 2024, at a CAGR of 5.6% during the forecast period in terms of value. As a key region for the export of agricultural products, North America is one of the largest consumers of crop protection chemicals. It is mainly dominated by large-scale operations, primarily focused on exports, with a very organized distribution chain. Factors such as fertile soils, availability of water & land, entrepreneurial farmers, and efficient infrastructure are key competitive advantages for the regional market. However, the need to optimize the use of natural resources and manage increasing labor costs is a key challenge that fuels the market demand for crop protection chemicals to gain efficient production.
According to the North Carolina State University (2022), new research warns that agricultural pests, particularly the corn earworm (Helicoverpa zea), are moving northwards and becoming more widespread in the US as the climate warms. As farmers in previously unaffected regions face increasing threats to key crops like maize, cotton, soy, and vegetables, the demand for pesticides and other pest management strategies is expected to rise, fuelling growth and innovation in the crop protection industry.
Market Dynamics
Driver: Changes in precipitation, carbon dioxide levels, and warming temperatures
Climate change, caused by increasing temperatures, changing precipitation patterns, and increased carbon dioxide levels, has driven the demand for crop protection chemicals in North America. Warmer climates and greater humidity lead to infestation by pests and fungi like aphids, spider mites, and rust diseases, thus enhancing the use of insecticides and fungicides. As per some studies, warming temperatures in North America have resulted in the extension of the growing season for pests like corn rootworm and soybean aphids, leading to increased pesticide application. Elevated CO2 levels accelerate weed growth, particularly for species like Amaranthus, necessitating greater herbicide use. Researchers identified that yield losses due to increased insect pressure have the potential to increase by 10 to 25% per degree Celsius of warming. Extreme weather events, like heavy rainfall and droughts, test the effectiveness of crop chemicals, leading to innovation in weather-resistant formulations. Moreover, precision agriculture techniques that utilize climate data have been helpful to farmers in optimizing chemical use, thereby cutting costs and increasing efficiency with the efficient application of crop protection chemicals.
Companies investing in research and development to create climate-resilient products and integrated pest management strategies are well-positioned to meet these challenges and capitalize on the expanding market needs. Companies such as Bayer and BASF are finding solutions to these issues by formulating advanced, adaptive pesticides.
Restraint: Regulatory barriers
The crop protection chemicals market is significantly challenged by stringent regulations governing pesticide registration, approval, and usage. These regulations introduce complexity and increased costs for manufacturers and farmers. Compliance with these diverse requirements can be a formidable obstacle, adding difficulty to product development and market access. Effective regulation is crucial for balancing controlled access to key plant science technologies with safety and sustainability standards, aiming to ensure there are no unacceptable risks to human health and the environment.
Regulation of pesticides involves a comprehensive framework that scrutinizes all phases of the product life cycle, emphasizing safety considerations from research and development to regulatory assessment. Regulatory bodies rigorously evaluate products to determine permissible uses, supported by stringent quality control standards. This framework also covers proper handling, transportation, usage precautions, labeling, and setting Maximum Residue Limits (MRLs) in food. One prominent example of such regulatory challenges is the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) in the US. FIFRA mandates federal regulation of the distribution, sale, and use of pesticides. Under this act, all pesticides distributed or sold in the US must be registered (licensed) by the Environmental Protection Agency (EPA). Before the EPA may register a pesticide under FIFRA, the applicant must demonstrate that using the pesticide according to specified conditions "will not generally cause unreasonable adverse effects on the environment.
Despite the challenges, strict regulatory standards are crucial to ensure safe and sustainable pesticide use, supporting sustainable food production by minimizing risks and promoting best practices.
Opportunity: Integrated pest management (IPM)
IPM integrates different controls like chemical, biological, and mechanical for effective and efficient usage of chemical pesticides. It is widely gaining pace as a cost-effective measure in addition to farmers' long-run benefits from its use. IPM strategies can reduce crop losses by as much as 30% and enhance yields by using natural pest controls along with minimum pesticide applications. IPM supports sustainability and efficiency trends, which is in line with the growth of the crop protection chemicals market in the region.
Industry bodies are emphasizing the need for reduced pesticide use due to environmental and health concerns. IPM creates demand for biopesticides, pheromone traps, beneficial insects, and other non-chemical control measures. Manufacturers can diversify their product lines to include these alternative solutions, meeting the growing demand for IPM-compatible products. Chemical interventions still play a role in IPM, but they must be more targeted and environmentally friendly. This drives innovation in developing new chemical formulations that are effective in smaller quantities, have specific modes of action, and degrade quickly in the environment. Companies that invest in such innovations can meet stringent regulatory standards and market demand for safer products, positioning themselves as leaders in sustainable agriculture. The big players, such as Bayer, Syngenta, and BASF, are heavily investing in IPM-based products.
Challenge: Resistance management
One of the significant threats to crop protection chemicals in North America is Pest resistance management. Herbicides, fungicides, and insecticides all face an increased incidence of resistance because of the reliance on chemical controls and the relative lack of other IPM approaches. There is already herbicide resistance in over 250 plant species around the world, the vast majority of which are significant to crops in North America. It has particularly affected large-scale crops such as corn and soybeans, where the yield losses can reach 50% without proper control measures. Moreover, resistance to primary insecticides has been reported from key pests such as the Colorado potato beetle and the western corn rootworm. All these put more stress on traditional control methods, necessitating better education, stakeholder collaboration, and increased use of IPM strategies.
A practical way forward includes innovative solutions in new active ingredients, formulation novelties, and well-planned, strategic rotation plans that will enhance the sustainability of pesticides and extend the life of products. For ex- to fight against weeds that are resistant to glyphosate, Syngenta AG came up with Acuron, an herbicide composed of multiple active ingredients having different modes of action.
Herbicides to dominate the North America crop protection chemicals market share during the forecast period.
Herbicide dominates the crop protection chemicals market in North America due to its effectiveness in managing weeds for important crops such as corn, soybeans, and wheat. The adoption of genetically modified herbicide-resistant crops further permits the application of broad-spectrum herbicides with minimal risk to crops. Herbicides also entail significant savings in labor and costs since they reduce hand weeding, which makes them indispensable for large-scale farming. Also, further formulation innovation enhances efficiency and diminishes negative impacts on the environment, which increases its attractiveness. A stable regulatory environment and strong market promotion from producers also support their leading position. Bayer AG’s Roundup herbicide is widely used due to its efficacy and compatibility with herbicide-tolerant genetically modified (GM) crops. Corteva Agriscience is focusing on expanding its portfolio with innovative sustainability-oriented herbicides for target resistance management in weeds.
Among crop types, the fruits and vegetables segment is likely to experience high growth.
Wheat, rice, corn, soybeans, and fruits and vegetables are the major crop types for crop protection chemicals in the region. Due to their high value, these crops present a major scope for consuming high-cost inputs such as crop protection chemicals. The significant rise in fruit and vegetable production indicates a greater need for crop protection chemicals to safeguard these crops from pests, diseases, and weeds, ensuring high yields and quality. The fruits and vegetables segment is expected to grow significantly due to increasing consumer demand for high-quality produce and stringent crop standards. According to the FAO Agricultural Production Statistics for 2000–2022, world fruit production grew by 63% and global vegetable production increased by 71% from 2000. These high-value crops are more vulnerable to pests and diseases, requiring intensive pest management solutions including various pesticides and bio-based products.
The US will continue to dominate the North American crop protection chemicals market during the forecast period.
With a well-established agricultural sector, the US holds the largest share in the region due to its vast agricultural landscape, high crop yields, and advanced farming practices. As a leading producer of major crops like corn, soybeans, wheat, and cotton, the country requires significant inputs to manage weeds, pests, and diseases. The increasing concerns over food security and the need to maximize productivity on limited arable land further propel the demand for crop protection in the country. Established players such as Corteva (US) and FMC Corporation (US) are continuously making efforts to develop various crop protection chemical products to enhance agricultural yield and productivity. For example, FMC introduced a new crop protection product for the US market in 2024: Ethos Elite LFR insecticide/biofungicide. This solution combines the well-established pyrethroid insecticide bifenthrin with two proprietary biological strains from FMC, Bacillus velezensis strain RTI301 and Bacillus subtilis strain RTI477. Together, they offer broad-spectrum control against early-season diseases and soilborne pests.
Key Market Players
The key players in the North American market include FMC Corporation (US), Corteva (US), Albaugh LLC (US), Gowan Company (US), and American Vanguard Corporation (US), etc. Companies are focusing on product innovations, bio-based and eco-friendly solutions and technology adoption for maintaining growth and competitiveness. Key players like Corteva, Bayer, and BASF are investing in R&D to develop crop-specific and environmentally sustainable pesticides.
Recent Developments
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In May 2024, FMC Corporation announced a research agreement with AgroSpheres, aiming to accelerate the discovery and development of novel bioinsecticides, which constituted a crucial component of FMC’s long-range strategic plan.
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In April 2024, Bayer entered into an agreement with AlphaBio Control, a UK company, to secure exclusive rights to a novel biological insecticide. This groundbreaking product, slated for a potential launch in 2028 after further development and registration, will be the first of its kind for arable crops like oilseed rape and cereals.
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In January 2024, Certis Biologicals launched Convergence biofungicide, a potent crop protection solution designed for corn, soybeans, and peanuts. This new biofungicide merged impressive disease control and plant health benefits into one convenient, bio-based solution for row crop farmers.
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In January 2024, Albaugh Specialty Products announced the launch of Prothioconazole 4L Select. As a DMI fungicide, Prothioconazole 4L Select provides preventive and curative control against numerous challenging cool- and warm-season turf diseases.
