Resistant Pest Populations and Environmental Concerns Drive Change in Pesticide Market
US demand for formulated agricultural pesticides is projected to increase 2.1 percent per year through 2020. Over the same period, demand for agricultural pesticide active ingredients is expected to rise less than one percent per year. Growing problems with resistant pest populations, such as glyphosate-resistant pigweed, will support demand for improved pesticide formulations. Additionally, environmental concerns -- such as declining honeybee populations possibly linked to the use of neonicotinoid insecticides -- will prompt additional interest in more environmentally friendly pesticides and pest management techniques.
Key Findings in the Agricultural Pesticide Study
Glyphosate Resistance will Drive New Herbicide Formulations
Going forward, herbicides will continue to represent the largest share of active ingredient demand. Glyphosate will remain the largest product type by far, particularly as glyphosate-tolerant crop varieties will continue to be ubiquitous. However, increased resistance to glyphosate in many weed populations has forced pesticide producers to formulate new herbicide products, and the introduction of crops with tolerance for multiple herbicides (such as dicamba or glufosinate in addition to glyphosate) will support increased demand for herbicides other than glyphosate.
More Environmentally Friendly Active Ingredients to Fare Best
Several agricultural pesticides in use today have come under scrutiny for their potentially harmful impacts on the environment and human health, which will support the transition to new active ingredients that are less hazardous. For example, the increased scrutiny of neonicotinoids for their potential role in reducing honeybee populations and continued concerns about older products such as organophosphates and carbamates will support the adoption of other insecticides, such as pyrethroids. Concerns about the persistence of chlorothalonil byproducts in the environment will support the use of alternatice contact fungicides.
Product Reformulation Will Be Favored Over New Active Ingredient Development
Because research into new active ingredients can be cost-prohibitive, many producers are instead developing improved formulations utilizing existing active ingredients. These value-added formulations may feature improved delivery systems, greater efficiency, and multiple active ingredients. Products such as seed treatments, which are relatively low-volume and emphasize prevention, will see strong growth prospects. However, pesticide demand in agriculture will continue to be restrained by concerns about the overuse of pesticides. More widespread education about integrated pest management techniques will enable a greater number of growers to rely on non-chemical pest management actions whenever possible.
This presents historical demand data (2005, 2010, and 2015) and forecasts (2020 and 2025) by product (herbicides, insecticides, fungicides, fumigants, defoliants and desiccants, rodenticides, nematicides) and crop (corn, soybeans, vegetables and melons, fruit and nuts, cotton). The study also evaluates company market share and competitive analysis on industry competitors including ADAMA, BASF, Bayer, Dow Chemical, DuPont, FMC, Monsanto, Nufarm, Sumitomo Chemical, and Syngenta.