Market Trends of Warehouse Fumigants Industry
Surplus Production and Growing International trade
The global population growth has led to increased consumer demand for food. According to the US Department of Agriculture, global corn consumption reached 1,222 million metric tons in 2023, showing a consistent upward trend. To meet this demand, production increased to 1,230 million metric tons in MY 2023-2024, up from 1,160 million metric tons in the previous year. This surplus production requires the storage of agricultural products, including grains, fruits, and vegetables, in warehouses. The increased volume of stored goods elevates the risk of pest infestations and spoilage, driving the demand for effective fumigation solutions in warehouses worldwide.
The growth in international agricultural trade, influenced by diverse global food consumption patterns, further impacts the warehouse fumigants market. For example, China's cereals imports increased from USD 19.5 billion in 2022 to USD 20.5 billion in 2023, according to the ITC Trade Map. This increased cross-border movement of goods heightens the risk of pest transfer between countries and regions, necessitating enhanced fumigation measures in warehouses and storage facilities to prevent produce loss. The combination of surplus production and expanding international trade has intensified the need for warehouse fumigants to maintain product quality during storage.
North America Dominates the Global Market
North America holds a significant share in global warehouse fumigant consumption due to increased storage service requirements. The region primarily uses fumigants for warehouse and soil applications across various commodities including corn, rice, barley, potato, tomato, wheat, strawberry, and cabbage. The region has experienced substantial growth in warehouse leasing from logistics companies. The expansion of service offerings, including grocery and vegetable e-commerce with same-day delivery options, has prompted retailers to increase outsourcing. Additionally, small businesses and local companies in the region utilize external warehousing to manage costs, contributing to warehouse fumigant market growth.
The increasing imports of vegetables and perishable goods into North America necessitate enhanced storage facilities for off-season usage. According to ITC Trade Map data, the import value of edible vegetables and certain roots and tubers reached USD 15.4 billion in 2023, an increase from USD 14.7 billion in the previous year.
To meet the growing warehouse fumigation demands, major service providers are expanding their offerings. For example, SGS provides fumigation services for stored goods and agricultural commodities, including cereals, cocoa, coffee, peanuts, pulses, and tobacco, in silos, stacks, and warehouses. These service enhancements are expected to support market growth throughout the forecast period.
