Slow And Controlled Release Pesticides Market Report

Slow And Controlled Release Pesticides Market Analysis By Pesticides-type (Herbicides, Fungicides, Insecticides), By Application (Agriculture), By Region, Competitive Landscape, And Segment Forecasts, 2014 - 2025

Published: August 2017  |  110 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-532-8

Industry Insights

The global slow & controlled release pesticides market size was USD 1.7 billion in 2016 and is anticipated to grow at a CAGR of 7.3% from 2017 to 2025. The limited arable land area and rising demand for food by growing population is expected to drive the segment growth in the forecast period.

The slow and controlled release formulation of pesticides consist of retarding biological agents which release their constituents in to the surroundings over a defined period. These agents are bound chemically and physically in a polymer mix by using various techniques. The different systems to incorporate this formulation includes migration control by membranes, migration control without membranes, laminate system, monolithic systems.

U.S. slow and controlled release pesticides market by application, 2014 - 2025 (USD Million)

U.S. slow and controlled release pesticides market

The market vendors are working in an integrated manufacturing environment. Most of the manufacturers are also suppliers as these manufacturers require only hydrocarbon-based raw materials such as ethane, propane, and so on. The remaining manufacturing technology used by the vendors are mostly proprietary. Thus, the industry is working in a forward integrated environment.

The change in the dietary habits among the people of the U.S. is driving demand for corn-derived sweeteners which has significantly increased the demand for corn. Thus, to meet the growing demand for corn-based sweeteners the slow and controlled release pesticides industry is expected to rise in the country.

The United States Environmental Protection Agency has established the pesticides tolerance limit for the crops traded in the country. It has set these norms for each crop using deducing risk assessment analysis. The U.S. Food and Drug Administration (FDA) and the Department of Agriculture (USDA) is responsible for enforcing these norms. The USDA is responsible for enforcing tolerance limit for poultry, egg, and meat products whereas FDA enforces the rules for other foods such as vegetables, fruits, and so on.

The market in the U.S. is likely to be driven by the strong growth in agriculture sector of the country. Increase emphasis towards biotech plants or crops is likely to drive the demand for the product in the predicted timeline. Companies manufacturing slow and controlled release formulation are developing technologies to enhance efficiency and reduce overall pricing of the product. However, recent mergers of the key players in the industry are leading market towards consolidation. The segment is likely to experience oligopoly trade policy where top five companies will control the pricing in the coming years. The key ten vendors almost constitute nearly 90% of the global agrochemical market.

The top five key players are entering strategic merger which is likely to intensify the competition scenario of agrochemical industry. Slow and controlled release pesticides are part of the global agrochemical industry. Any change in the agrochemical industry will affect the market dynamics of the industry.

Pesticides-type Insights

The herbicides segment is likely to be the most dominating pesticides-type from 2016 to 2025. The herbicides are expected to grow from 39.6% in 2016 to 40.2% by 2025. The growth is primarily supported by the demand from the agriculture industry. The herbicides segment is likely to be driven by its increasing usage in the developing nations. The growth in population coupled with rising awareness for healthy diet is anticipated to be among the major drivers for advancing herbicides segment.

The fungicides are expected to observe strong demand from the European region. France and Italy constitute for the major usage of fungicides in the European region due to the limited arable land area and rising migration in the country. However, the government of France has deduced a plan to cut its pesticides consumption by half by 2025. Still, the segment is expected to grow at a CAGR of 6.7% from 2017 to 2025.

The fungicides are projected to observe steady demand from the developing economies such as India, South Africa, Brazil, Argentina, and so on. These developing countries have agricultural sector as one of the major contributors in their GDP’s. The emphasis on increasing agricultural yield in these countries is likely to act as a catalyst for the growth of fungicides segment during the forecast period.

The demand of insecticides is expected to accelerate in the projected timeline due to the rising threat of parasites. The change in global climate has triggered the growth in numbers of pests. Rising global average temperature has caused frost sensitive insects to outlast winters and breed again in the summers. This has instigated the growth of moths, insects, beetles, aphids, and other types of bugs. Thus, the rising growth of pests and insects are likely to provide the strong demand for the pesticides sector and is expected to grow at a CAGR of 7.5% from 2017 to 2025.

The maximum growth for the insecticides segment is anticipated to be from the Asia-Pacific region. The growth is supported by the technological advances implemented by developing countries of the region such as India, China, and so on. These countries practice agrarian culture due to their large population. The booming population coupled with rising urbanization and increasing purchasing power of the middle-class is likely to drive the demand for agricultural commodities. The growth in the demand for the agricultural commodities is likely to act as a key driver for the growth of insecticides segment in the region.

Application Insights

The market for slow and controlled release pesticides by the application is segmented into agriculture and other sectors. The agriculture sector is anticipated to dominate the industry with the primary share of 61.8% in 2016 and is expected to increase its share to 62.7% by 2025. Furthermore, the growing population coupled with swiftly rising urbanization is likely to strain the food resources. To counter this challenge, crop yield is likely to be increased with the use of biotech crops and growth enabling chemicals.

The global agricultural output is largely dependent on six countries which include China, India, Brazil, Nigeria, the U.S. and Indonesia. Brazil has significantly grown its agricultural output by becoming the leading exporter of corn, sugar, meat, soybeans, and coffee. The country’s government has reformed its agricultural policies and enabled the use of modern technology to increase the agricultural output and also by investing in the expansion of the harvested area. Thus, change in government policies supporting agricultural growth is likely to drive the segment growth.

Similarly, the agriculture sector of India is likely to play an important role in the development of the industry. Indian agriculture has added the advantage of diverse topography, a variety of soil types, and climate which provides farmers to engage in agricultural activities throughout the year. The growing agriculture sector in India is likely to offer potential demand for the development of industry during the projected timeline.

The others segment included in the segmentation includes residential, commercial, and household application of slow and controlled release formulation. The segment is expected to decline 38.2% in 2016 to 37.3% in 2025. Although, it is anticipated to grow at stable pace, owning to the increasing population of pests in residential, commercial, and household properties. This growth has further accelerated with the change in climatic conditions.

Regional Insights

The North America region is likely to dominate the market for slow and controlled released pesticides from 2017 to 2025. High agricultural productivity output is likely to create a constant demand for the slow and controlled release formulation. The North America region is anticipated to be followed by APAC, Europe, CSA, and MEA. However, the strongest growth concerning CAGR is likely to be recorded in the APAC and CSA region respectively.

Global slow and controlled release pesticides market share, by region, 2016(%)

Global slow and controlled release pesticides market

The growth is likely to occur in the developing economies such as Mexico, India, South Africa. For instance, Mexico has signed multiple trades and sanitary agreements with the U.S. to provide avocados, berries, tomatoes. Furthermore, Mexico also signed the pact with China to provide tobacco, berries, dairy and other products. The stable demand is expected to create strain to increase agricultural output. Thus, developing nations are anticipated to play a primary role in the development of this industry.

Competitive Insights

The market is moving towards consolidation. Major players are implementing growth-through-acquisition strategy to increase their presence. The key players of the industry compete at global level to increase their industry presence.  The merger of top players in the industry is likely to result in oligopoly trade practice in the coming years.

The sector is observing rise in strategic mergers among key industry players. For instance, the key mergers of slow and controlled release pesticides industry include merger of Dow and DuPont, Bayer and Monsanto, and Syngenta and ChemChina.

Key players include ADAMA Agricultural Solutions Ltd., Arysta LifeScience Corporation, BASF SE, Bayer AG, The Dow Chemical Company, DuPont, Monsanto Company, Sumitomo Chemical Co. Ltd., and Syngenta.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historic data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America & Middle East & Africa

Country scope

U.S., Canada, Mexico, Russia, Germany, France, Japan, China, India, Australia, Brazil, Argentina, and South Africa

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global slow and controlled release pesticides market on the basis pesticides-type, application, and region:

  • Pesticides-type Outlook (Revenue, USD Million, 2014 - 2025)

    • Herbicides

    • Fungicides

    • Insecticides

    • Others

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Agriculture

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S

      • Canada

      • Mexico

    • Europe

      • Russia

      • France

      • Germany

    • Asia Pacific

      • Japan

      • China

      • India

      • Australia

    • Central & South America

      • Brazil

      • Argentina

    • Middle East and Africa

      • South Africa

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