How Agrochemicals Market is Positioned in the United States?
US Agrochemical market grew at a limited growth rate of ~% over the review period 2013-2019 and was further driven by shift towards new, proprietary premixes & formulations involving more than one active ingredient. Rising demand for crop protection chemicals due to frequent outbreaks of pest attacks on crops resulted in heavy losses during that season. New food processing, manufacturing, and packaging techniques have resulted in a flourishing F&B sector in the US. This has also led to an increase in the demand for agricultural products such as food grains, oilseeds, vegetables and fruits, which, in turn, is driving the agrochemicals market growth. Entry of several foreign players has also contributed towards the same coupled with increasing usage of Bio pesticides in the US. Changes in acreage under diversion programs and the Conservation Reserve Program (CRP) influenced the acreage in crop production and pesticide use in the US. Apart from that, growing population base and proportionately declining arable land have led to the need for improvement within US agricultural production. Advancements in new breeding technologies claim to improve yields, as well as increase the lifespan of crops. For instance, GMO crops by increasing fertilizer absorption capacity.
Large investment towards development of new varieties of effective and eco-friendly herbicides has also driven market demand.
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. 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. The minimal revenue share was captured by fungicides in the year 2019. US is a major producer of both older fungicides such as mancozeb and newer product types such as carboxamides. For newer fungicides, United States is facing less competition from lower-cost overseas producers, and exports represent a significant share of total US production. Production of agricultural fungicide.
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. Whereas, the share of granules and powder form of pesticides was relatively low as the particular product forms are often mistreated.
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.
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 are herbicides. In case of Fruit crops, both herbicides and insecticides are used for crop protection. Major fruit and nut crops include oranges, peanuts, grapes and apples. 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.
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 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.
Comparative 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 in and are competiting on the basis of product pricing, quality / 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.
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 expect 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)
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