Carbamate Market - Forecast(2023 - 2028)

Carbamate Market Overview

The Carbamate Market size is forecasted to grow at a CAGR of 4.1% during the forecast period 2022-2027. Carbamate is an organic compound composed of carbamic acid and can be categorized into ammonium carbamate, covalent carbamates, and more. It is primarily used in the synthesis of urea, polyurethanes, isocyanates, pesticide, and other applications that are used in multiple industries such as agriculture, plastics, paints & coatings, cosmetics, and more. In 2020, the COVID-19 lockdown had significantly reduced production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor, and the decline of the supply and demand chain all over the world, thus, affecting the market. However, a steady recovery in agricultural production has been witnessed across the world since 2021. Carbamate is primarily used as a pesticide on agricultural crops in order to control various insects such as aphids, whitefly, crickets, and more from destroying the crops. According to the Food and Agriculture Organization (FAO), the global agricultural production including wheat and coarse grains is expected to increase by 9% from 2021 to 2030. An increase in agricultural production along with the surging consumer preference for the installation of gardens and lawns in residential and commercial buildings acts as the major driver for the market. On the other hand, health hazards associated with the use of carbamate may confine the growth of the market.

Report Coverage

The report: “Carbamate Market Report– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Carbamate Industry.

Key Takeaways

• Granular formulation held a significant share in the Carbamate Market in 2021. Its wide range of characteristics, ease of use, and increased efficiency made it stand out in comparison to other formulations in the market.
• Pesticide application held the largest share in the Carbamate Market in 2021, owing to the increasing demand for carbamate for pest control during crop production and for improving the overall crop productivity.
• Asia-Pacific dominated the Carbamate Market in 2021, owing to the increasing demand for Carbamate from the agricultural sector of the region. For instance, according to the United States Department of Agriculture (USDA), the total wheat production in China reached up to 136.9 million metric tons in 2021, an increase of 1.6% as compared to 134.3 million metric tons in 2020.

Figure: Asia-Pacific Carbamate Market Revenue, 2021-2027 (US$ Million)

Carbamate Market Segment Analysis – By Formulation

The granular formulation held a significant share in the Carbamate Market in 2021, owing to its increasing demand due to the characteristics and benefits it offers over other types of formulations. For instance, granular carbamate pesticide is easy to use in comparison to spray, and other formulations, and can be directly attached to the soil where the insects are usually located. Moreover, granular pesticide normally lasts longer in outdoor settings as compared to spray pesticide that can quickly break down due to rain and sunlight. In addition to this, granular formulations are more economical, safer to use, and more effective as it releases the pesticide directly into the soil, which provides optimum protection of the crops, gardens, and lawns from pests or insects. Hence, all of these benefits are driving its demand over other types of formulations, which in turn, is expected to boost the market growth during the forecast period.

Carbamate Market Segment Analysis – By Application

The pesticide segment held the largest share in the Carbamate Market in 2021 and is expected to grow at a CAGR of 4.3% between 2022 and 2027, owing to the increasing demand for carbamate pesticide from agricultural sectors across the globe. For instance, in January 2022, the government of Egypt invested around EGP 6.4 billion (US$ 413 million) for the continuation of its agricultural project. The project will focus on the production of crops such as wheat, maize, cotton, and oil. In September 2021, the Spanish government invested around EUR 13 million (US$ 15.4 million) in order to fund the country’s agricultural projects that aim at increasing the country’s food crop production capacity. Furthermore, recent insights from the US Department of Agriculture state that the global food crop production reached 2,791.5 million metric tons in 2021, and 2,719.7 million metric tons in 2020, representing an incline of 2.57% in 2021 as compared to 2020.

In this way, an increase in crop production across the world is expected to increase the demand for carbamate such as methomyl for the production of pesticides, which are required to control various pests or insects, such as aphids, whiteflies, and weevils that can cause significant damage to such food crops. This is expected to accelerate the growth of the market during the forecast period.

Carbamate Market Segment Analysis – By Geography

Asia-Pacific held the largest share in the Carbamate Market in 2021 up to 31%. The consumption of carbamate is particularly high in this region due to its increasing demand from the agricultural sector. For instance, according to the US Department of Agriculture, in 2020 the total food crop production in the Asia-Pacific region reached 1026.7 million metric tons in 2021, an increase of 2.7% in comparison to 998.8 million metric tons in 2020. According to the Department of Agriculture & Farmers Welfare, the total vegetable production in India reached 191.8 million metric tons in 2019, an increase of 4.7% in comparison to 2018. Furthermore, the total oilseed crop production in the Asia-Pacific region reached 127.6 million metric tons in 2020, and 131 million metric tons in 2021, representing a growth of 2.6% in 2021.

Thus, such surging production of food crops in the Asia-Pacific region is expected to drive the demand for carbamate for the production of pesticides used for pest control during crop production and for improving the overall crop productivity. This is expected to boost the growth of the market in the upcoming years.

Carbamate Market Drivers

An increase in agricultural production is most likely to increase demand for the product

Carbamate is primarily used as a pesticide on agricultural crops to control various pests or insects from destroying the crops and for improving the overall productivity. They kill insects by affecting their brains and nervous systems. For instance, according to the United States Department of Agriculture (USDA), global grains production reached 1,498.9 million metric tons in 2021, an increase of 4.5% in comparison to 1,434 million metric tons in 2020. According to the Food and Agriculture Organization, China produced around 588.26 million metric tons of vegetables in 2019. Furthermore, according to the European Union, the total production of fruits in the European region reached around 36.8 million metric tons in 2020, among which apples and pears production were the highest at 14.3 million metric tons, equivalent to 38.9% of the total fruit production in the region. Hence, such surging agricultural production across multiple regions is expected to increase the demand for carbamate pesticides for the protection of such crops from pests or insects, thus, resulting in the growth of the market in the upcoming years.

Surging consumer preference toward the installation of gardens and lawns in residential and commercial buildings is most likely to increase demand for the product

The inclusion of gardens and lawns in residential and commercial buildings offers pleasing aesthetics and aromas along with a range of other benefits. The presence of gardens and lawns in a building can act as a natural coolant, and air cleaners, as they play a significant role in absorbing carbon dioxide, dust, and other pollutants while producing oxygen and improving the overall air quality. Moreover, lawns and plants can considerably reduce noise pollution and are capable of reducing noise levels by 20% to 30%. Furthermore, gardens and lawns help in preventing erosion and protecting the water quality by absorbing the excess runoff during rainfall. Owing to these benefits, consumer preference towards the installation of gardens and lawns in residential and commercial buildings has been increasing in recent years, which in turn, is expected to drive the demand for carbamate pesticide in order to protect such gardens and lawns from damage caused by unwanted pests or insects. This is expected to propel the market growth in the upcoming years.

Carbamate Market Challenges

Health hazards associated with the use of carbamate can cause an obstruction to the market growth

Carbamate is known to cause acute toxicity in case of inhalation or ingestion. Carbamate poisoning cases are mostly associated with oral ingestion or occupational exposure. Short-term exposure to carbamates can cause headache, nausea, muscle twitching dizziness, loss of memory, weakness, tremor, tearing, constriction of pupils, and slowed heartbeat. Meanwhile, long-term exposure to carbamates can cause delayed neurotoxicity, which includes extreme tingling and burning sensations. This delayed neurotoxicity can further lead to paralysis. In addition to this, prolonged exposure can also cause damage to the kidney, liver, immune system, and bone marrow. The International Agency for Research on Cancer (IARC) has classified carbamate as a possible carcinogen to humans. Furthermore, it is considered to be hazardous to the aquatic environment as well and can cause long-term effects on aquatic life. Thus, such health hazards associated with the use of carbamate may confine the growth of the market.

Carbamate Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Carbamate Market. Global Carbamate top 10 companies are:

1. BASF SE
2. Bayer AG
3.  FMC Corporation
4. Corteva
5. Nufarm Canada
6. UPL Limited
7. Sumitomo Chemical Co. Ltd
8. ADAMA
9. AMVAC Chemical Corporation
10. LUMITOS AG

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