BIS Research: Analysis of Global Agricultural Adjuvant Market Dynamics and Trends
May. 8, 2018
Identifying this increasing demand for crop/plant safety, companies have come up with agricultural adjuvants, which assist in maximizing the quality, productivity and sustainability of the agricultural production systems, disease vector management in the public health systems, and in other industrial and residential areas. These do not directly kill pests, instead, these modify certain properties of the spray solution, which improves the ability of the pesticide to penetrate, target or protect the target organism.
The concept of “green crop protection” is spreading rapidly across the globe, and it may be the future of the agricultural sector. This is driving the demand for agricultural adjuvants, as these are important to manage the increasing concern over pesticide residues on food and the problem of pest resistance. Many countries are following the trend of lowering the level of Maximum Residue Limit (MRL), and this is expected to continue in the future. Companies in the agricultural adjuvants market across the globe have launched a wide range of products that provide sustainability, crop quality and harvest flexibility benefits. By 2020, it is expected that a significant number of traditional agrochemical companies will enter this market, which will further consolidate the resource.
The agricultural adjuvants market encompasses a wide array of product types, such as activators, utility modifiers and others, including thickening agents, spreaders and stickers. The activator modifiers dominated the global agricultural adjuvants market in 2017, with a market share of more than 50% in value and more than 40% in volume. This type of adjuvant is also expected to see the best growth prospects by 2022 due to its application on a large-scale to increase the efficiency of crop protection products. These modifiers work to improve the biological performance of pesticides by altering their characteristics: be it the particle size, thickness of the spray or herbicide solubility in the spray solution. Though comparatively less utilized, spray modifiers change the physicochemical characteristics of the spray solution.
Primarily, these agricultural adjuvants are mixed with herbicides and fungicides, to be sprayed over various crop, such as fruits, vegetables, cereal and oilseeds, among others. Utilization of these adjuvants in insecticides has been comparatively less until now. These adjuvants reach the crops/farms through various methods of propagation for crop protection. More than 40% of the times, the foliar spray method is used for propagation. Currently, North America is at the forefront in the agricultural adjuvants market, with high market penetration in countries such as the United States (U.S.), Canada and Mexico, due to the growing consumption rate of adjuvants in these countries.
Stringent regulatory norms regarding the Maximum Residue Limit (MRL) in the North American and European regions are expected to guide the adjuvants demand in the Asia-Pacific region, especially in China, Japan and India, in the coming years(as shown in figure 1). The Asia-Pacific region is anticipated to show the highest growth rate over the next five years because of the increased number of initiatives and investments in research and development done by various companies in the region to increase the usage of adjuvants.
The growth of the agricultural adjuvants market as a whole is being driven by certain factors such as the increasing consumption of agrochemicals (for both crop and non-crop use), awareness regarding the hazards of using chemical pesticides, and the development of Integrated Pest Management (IPM) techniques, among others.
A highly fragmented one, the market currently involves several small and large players from the agrochemical industry. AkzoNobel N.V., Brandt Consolidated Inc., Croda International PLC, Evonik Industries Ag, Helena Chemical Company, Huntsman International LLC, Nufarm Limited, Solvay and The DOW Chemical Company are some of the prominent players in the agricultural adjuvants market. The market is widely considered as an emerging market by governments of various countries and players operating in the market. Significant efforts are being made by them, primarily in the form of business expansion strategies and product launches, to explore the potential opportunities that exist in this market and compete with the other players(as shown in figure 4).
According to BIS Research report, the agricultural adjuvants market is expected to reach $3,594.1 million and 312.8 kilotons by 2021 at a compound annual growth rate(CAGR) of 5.5% and 7.1%, respectively, from 2016 to 2021. This growth is attributed to the increasing demand for IPM techniques and the adoption of green crop protection concepts globally. Moreover, with the growing adoption of precision farming techniques, the use of agricultural adjuvants is also expected to increase, as precision farming techniques use adjuvants for the appropriate agrochemical application.
Though agricultural adjuvants have been available for a couple of decades now, there remains wide scope for innovations and technological advancements in the field. From the global perspective, these adjuvants have been successful to a large extent in enhancing the quality and quantity of agricultural produce. The key focus now should be on the pre-determined dosage of the adjuvants and their applications on farms and crops.
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