Monday, 6 July 2020

US Agrochemical Market Outlook to 2025


The report titled US Agrochemical Market Outlook to 2025 – Increasing Usage of Integrated Pest Management Activities and Bio Pesticides to Drive Market Growthprovides a comprehensive analysis of the agrochemical industry of the US. The report also covers overview and genesis, overall market size in terms of revenue (formulants and technicals) and sales volume (active ingredient demand), market segmentation by product types (herbicides, insecticides, fungicides and other pesticides) and their sub-types, Pesticide Form (Liquid, Granules and Powder), Market Structure (Organized and Unorganized Market) and By Type of Crops (Cereal Crops, Fruit Crops and Vegetable Crops); trends & developments and issues & challenges, regulatory landscape, SWOT analysis and comparative landscape including the heat map, competition scenario, pricing analysis, cross comparison, strengths and weaknesses, mergers & acquisitions and company profiling of major agrochemical manufacturers. The report concludes with future market projections on the basis of revenue (formulants and technicals) and sales volume (active ingredient demand), by product type, form, market structure and crop type and analyst recommendations highlighting opportunities and cautions for both existing as well as new players.
US Agrochemical Market Overview and Size
US Agrochemical market grew at a limited growth rate over the review period 2013-2019 and was further driven by shift towards new, proprietary premixes & formulations involving more than one active ingredient. During 2017, total number of farms in the US were evaluated at 2.04 million along with a land area of 900.0 million acres. Rising demand for crop protection chemicals due to frequent outbreaks of pest attacks on crops, resulted in heavy losses especially during monsoon. The productivity per acre has grown steadily due to more effective / efficient farming technologies, including greater mechanization techniques applied to land and water management, improved methods of land preparation, planting, crop protection, harvesting, and storage. As a result of which, New food processing, manufacturing, and packaging techniques have resulted in a flourishing F&B sector thus, giving a boost to crop protection pesticides for agricultural products such as food grains, oilseeds, vegetables and fruits, which, in turn, is driving the agrochemicals market growth. Also, entries of several foreign players have also contributed towards the same coupled with increasing usage of Bio pesticides in the United States.
US Agrochemical Market Segmentation
By Product Type (Herbicides, Insecticides, Fungicides and Other Pesticides)
Strong growth was observed in the insecticides product segment majorly due to slight increase in acreage for insecticide-heavy crops such as fruits and vegetables. Continued adoption of Integrated Pest Management (IPM) techniques has limited the demand as farmers tend to turn to insecticides as a last resort. Rising insecticide active ingredient demand in the US was observed towards Organophosphates, Carbamates, Pyrethroids and Neonicotinoids. Whereas on the other hand, demand for herbicides was fueled by a growing need for more effective herbicide formulations as weeds become more resistant to glyphosate. Apart from that, active ingredient demand towards Atrazine, 2,4-D, S-Metolachlor, Acetochlor and Dicamba herbicides gained traction in the US. Minimal revenue share was captured by fungicides in the year 2019. Active ingredient demand towards Chlorothalonil and Mancozeb fungicides. The US is a major producer of both older fungicides and newer product types.
By Pesticide Form (Liquid, Granules and Powder)
Liquid pesticides have a majority share in terms of revenues in the US. Since the use of liquid pesticides is relatively easier, farmers prefer to use liquid pesticides. Switching to liquid sprays leads to lesser wastage as compared to other forms. Majorly, liquid spray is used in the spring (April, May and Early June) and fall (September, October and Mid-November) to get weed control. On the other hand, granules & powder pesticide-form collectively captured low revenue share as their usage is minimal and highly dependent based on weather conditions.
By Market Structure (Organized and Unorganized Market)
Organized sector was observed to be higher in terms of revenue owing to the updated set of government authorities and their regulations and number of checks performed at multiple stages. As farmers tend to use local and authenticated products, agro-chemical companies go through the stringent processes in order to get approvals for the same and establish their brand the country. The unorganized market players do not have distributors and instead directly sells to the farmers. Additionally, there products are not approved by any sort of regulator and the government.
By Crop Type (Cereal, Fruits, Vegetables and Others)
Cereal crops has contributed the most in the overall agrochemical market revenues in the year 2019, with corn and soybean grown the most in the US. Major pesticides used in cereal crops (corn, soybean and others) are herbicides. Over 95% of US corn acreage is treated at least once per growing season with pesticides. In case of Fruit based crops, both herbicides and insecticides are used for crop protection. Major fruit and nut crops include oranges, peanuts, grapes and apples. Unlike major field crops, a fruit orchard requires insecticide at least once or twice per season in a year. Pesticides are effective in combating against pests and increase the yield of the fruits. Most grown vegetable crops in the US include potato, tomato and sugarcane. Vegetables (including potatoes) do not account for a large proportion of herbicide and insecticide usage however, they are the largest end use for agricultural fungicides.
Snapshot on US Bio-Pesticide Market
Biopesticides market in the US was identified in an early growth stage. Dominance of chemical pesticides has limited desired level of usage, given that the commercialization of new products in the market is lagging behind. Bio-pesticides on the other hand, are gaining traction in the global research community. Over 200 biopesticide product types are sold in the US, compared to the 60 analogous products in the European Union (EU) market. Development of the bio-pesticides is strongly related to research on biological control agents. Nanoformulations and microencapsulation technologies can improve the stability and residual action of biopesticide products, and this could increase their field use over long term.
Competitive Landscape in US Agrochemical Market
Competition stage was observed to be moderately concentrated, with leading 5 players collectively capturing over half of total market share in terms of revenue contribution during 2019. Nevertheless, the local / domestic players have presence in the market and are competiting on the basis of product pricing, quality and reliability, manufacturing facilities, research and development, product portfolio / variants, clientele / end user, distribution network and geographical reach. Because of the presence of several major pesticide producers, United States is net exporter of pesticide products. Major pesticide producers have either launched variety of genetically modified seeds, or are in the process of developing a new variety of pesticides. Major mergers and acquisitions in the US crop protection space have provided international players with a competitive edge over local players. For instance, Bayer acquired Monsanto in 2018, Syngenta acquired Adama in 2017 and Strider in 2018.
US Agrochemical Market Future Outlook and Projections
Due ot the COVID-19 pandemic, US agrochemical market growth will get affected on a short term basis owing to loss of many existing crop protection products. Continued decline in the rate of new product introductions, growth of off-patent manufacturers will also cause a negative impact. Apart from that, consolidation of farms and farmland is likely to happen after COVID-19 in the United States. The agrochemical market may witness a boost due to expected investments in biologicals caused by manufacturer shift to food security and sustainable crop production thus, ensuring efficient supply chains. As a result, this should in turn drive interest towards new product formulations for biopesticides and biostimulants. The trade dispute between China and USA remains the most significant political factor impacting the agriculture industry. As the arable land deficit grows and agricultural practices become more efficient, government focus may shift from use of agrochemicals to other aspects which can increase the longevity of arable land without harming the environment. Factors such as growing demand for corn and soybeans will likely maintain strong total input requirements, even if usage per acre decreases due to rising costs and adoption of better practices.
Key Segments Covered:-
Product Type
Herbicides
Glyphosate
Atrazine
2,4-D
S-Metolachlor
Acetochlor
Dicamba
Others
Insecticides
Organophosphates
Carbamates
Pyrethroids
Neonicotinoids
Other
Fungicides
Chlorothalonil
Mancozeb
Other
Other Agricultural Pesticides:-
Fumigants
Defoliants & Desiccants
Rodenticides
Nematicides
All Others
Pesticide Form
Liquid
Granules
Powder
Market Structure
Organized Market
Unorganized Market
Crop Type
Cereal
Fruits
Vegetables
Others
Key Target Audience:-
Venture Capitalist Firms
Agrochemical Manufacturers
Raw Material Suppliers
Research & Development Institutes
Government Bodies & Regulating Authorities
Herbicide Manufacturers and Distributors
Insecticide Manufacturers
Fungicides Manufacturers
Time Period Captured in the Report:-
Historical Period: 2013-2019P
Forecast Period: 2019P–2025F
Companies Covered:-
Bayer
Syngenta
BASF
Corteva Agriscience
FMC Corporation
Others (ADAMA Agricultural Solutions, DOW Chemical, Du Pont, Monsanto, Nufarm and Sumito Chemical)
Key Topics Covered in the Report:-
Executive Summary - US Agrochemical Market
Socio Economic Overview
Country Overview
Cross Comparison of Countries (US, Canada, Mexico, Argentina and Brazil) – Crop Production Summary (Wheat, Coarse Grains, Corn, Barley, Oats, Rye, Sorghum, Rice, Oilseed, Soybean, Cottonsead, Peanut, Sunflowerseed, Rapeseed and cotton)
Need, Opportunity and Industry Size of Agrochemical Market
US Agrochemical Market Constraints
Trends and Developments in the US Agrochemical Market
Selected Digital Technology Trends in the Agrochemical Industry
Agricultural Overview in the US
US Agrochemical Market Industry Life Cycle
US Agrochemical Market Size by Revenue (Formulants and Technicals) and Volume (Agricultural Pesticide Active Ingredient Demand), 2013-2019P
Demand & Supply Side Ecosystem, Preferences & Trends across End Users Market
Overview of Agricultural Pesticide Supply and Demand
Ecosystem for Agrochemical Market in the US
Value Chain Analysis
US Agrochemical Market Segmentation
Snapshot on US Biopesticide Market
Trade Scenario in US Agrochemicals Market, 2017-2018
Comparative Landscape in US Agrochemical Market
Regulatory Landscape in US Agrochemical Market
SWOT Analysis
Decision Making Process by Farmers before Purchasing Agrochemicals in the US
Industry Restructuring in the US Agrochemical Market
US Agrochemical Market Future Outlook and Projections, 2019P-2025F
Analyst Recommendations
Appendix / Research Methodology
For More Information on the research report, refer to below link:-
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