The nematicides market is projected to register a CAGR of 5.8%, during the forecast period (2021-2026). The global pandemic Covid-19 had a significant impact on the nematicides market. The imposition of lockdown restrictions around the world has resulted in supply chain disruptions which in turn, disturbed the stakeholders involved in the supply of products to the destined locations. The factors such as shortage of labor and limited supply of raw materials due to restriction of movements have led to decrease in production efficiency. During the study period, it has been found that although the advent of bio-based nematicides is registering a high growth rate in terms of development and adoption, the chemical nematicides segment still occupies the largest share in the overall market. The rate of application of Halogen compounds and other fumigants outpaces that of organophosphate and carbamate, as soil fumigation is intensively practiced for controlling root-knot nematodes in vegetable crops across the world. However, liquid nematicides which are non-fumigant in nature, are being increasingly adopted by the farmers, as a result of the rising concerns about the effects on the environment and human health. Fluensulfone, which is a recently developed active ingredient, has reportedly resulted in the decrease of potato cyst nematode infection by 43% and increased potato yield by 62% in the United States, as revealed by a study conducted in 2019. North America is the largest region for registered nematicide use with the United States accounting for 51.9% of the share in the region, in 2019, where cereal cyst nematodes result in economic loses worth USD 3.4 million, annually.
Key Market Trends
Increasing Demand for Bio-Based Nematicides
Although synthetic or chemical nematicides continue to witness a positive trajectory in demand, an emerging preference for biological nematicides has been observed in recent years, primarily due to the rapid adoption of Integrated Pest Management (IPM) techniques and sustainable agricultural practices, globally. Empirical observations have revealed that bio-nematicides act synergistically with other agricultural inputs as an important component under environmentally friendly IPM programs. For instance, As per an article published in the Journal of the International Organization for Biological Control, in 2017, there have been numerous developments in the commercialization of bio-nematicides in the United States, in the past few years. Extensive research has been conducted in developing Pasteuria spp. and Purpureocillium lilacinus as potential nematicides. In developing countries like India, the usage of bio nematicides is growing in recent years. For instance, Under the scheme, “Strengthening & Modernization of Pest Management Approach (SMPMA)”, the overall use of bio-pesticides including bio-nematicides in India, increased from 123.0 metric ton during 1994-1995 to 7,682.0 metric ton during 2018-2019. Integrated Pest Management has been a compulsory regulation in the European Union since 2014, as part of its strategy towards achieving sustainability in agriculture and reduction of pesticide risks. Additionally, the area under organic farmland in Europe rose drastically from 13,535.2 thousand hectares in 2016 to 15,635.5 thousand hectares in 2018. Multiple nematodes (roundworms), such as root-knot, cyst, sting, and lance, prevalent on a wide range of crops grown organically in the region, are further expected to push the demand for bio-nematicides in the coming years.
North America Dominates the Global Market
Owing to the presence of various nematode species attacking a wide range of economically important crops, as well as awareness of farmers regarding the application of chemical nematicides, the country has garnered the highest share in the North American market. In 2018, by chemical type, the fumigants segment dominated the market. Soil fumigation is the most widely accepted practice for crop treatment against nematodes. In North America, Meloidogyne, Heterodera, Tylenchulus, Rotylenchulus, and Protylenchulus are the common agricultural pest nematodes. Due to their high volatility, chemical fumigants are used in enclosed spaces, like greenhouses, warehouses, etc. Most of the soil fumigants are formulated in the gas form. Though soil fumigation is one of the most adopted methods in the country to control nematodes, they are not effective in the long run. These gaseous nematodes escape simultaneously into the atmosphere as they are applied in the soil. However, this can be prevented to some extent by locking the soil surface using some tillage or plowing equipment. In terms of crops, vegetables, corn, and cotton are majorly affected by nematodes in the Unite States. The most common nematode species affecting cotton in the United States are southern root-knot (Meloidogyne incognita), reniform (Rotylenchulus reniformis), Columbia lance (Hoplolaimus columbus), and sting (Belonolaimus longicaudatus). The increase in the number of nematicide products based on the aforementioned nematodes is estimated to drive the market. Farmers in the country are opting for bio-based nematicides, primarily due to increased pressure from the Environmental Protection Agency (EPA) to reduce the usage of chemical nematicides. The adverse impact of chemical nematicides on the environment has led to the restricted use of chemical nematicide products. This factor is expected to restrict the market’s growth in the future.
The global nematicides market is a consolidated market with the top seven players accounted for 66.0% of the market share in 2019, while others held a share of 34.0% in the same year. American Vanguard Corporation, Bayer AG, Syngenta International AG, Corteva Agriscience, and UPL Limited are the major players in the market. Major players are expanding their presence by making their nematicide products registered from respective regulatory authorities. The other prominent players who are active in the global nematicides market include Sumitomo Chemical Co. Ltd, Nufarm Ltd, ADAMA LTD, and Marrone Bio Innovations Inc.
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