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World glufosinate market to reach $2,097 mn by 2022
Jun. 29, 2016
Allied Market Research
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United States
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Author: Hemali Narkhede, Allied Market Research
Glufosinate ammonium (glufosinate), a naturally occurring broad-spectrum contact herbicide derived from phosphinothricin, was first commercialized in Japan in 1984. The herbicide did not get as much acceptance as was expected until recently owing to wide usage of glyphosate and paraquat globally. Significant development and commercialization of genetically modified glufosinate-resistant crop pave the path for glufosinate in the agrochemical industry.
Glufosinate ammonium (glufosinate), a naturally occurring broad-spectrum contact herbicide derived from phosphinothricin, was first commercialized in Japan in 1984. The herbicide did not get as much acceptance as was expected until recently owing to wide usage of glyphosate and paraquat globally. Significant development and commercialization of genetically modified glufosinate-resistant crop pave the path for glufosinate in the agrochemical industry.
Figure 1: Top Factors Impacting World Glufosinate Market
Source: AMR Analysis
| In the year 2013, the demand for glufosinate was around 4,000 tons, which has now crossed 15,000 tons in 2015, registering a growth of more than 270% in two years. |
Over the years, the number of weeds resistant to glyphosate has increased owing to its wide application on crops. As per industry experts, this shortcoming can be overcome by the use of glufosinate, which reduces weed resistance and also increases the weeding effect. Application of glufosinate herbicides on various crops is generally considered as safe. In addition, it is used in combination with other herbicides to enhance its effectiveness. New companies are entering the market owing to the benefits offered by use of glufosinate and opportunities available in the herbicide industry.
Figure 2: Market Opportunity in the World Glufosinate Market
Source: AMR Analysis
| In 2015, North America occupied the largest share of 43%, however, Asia-Pacific region is expected to be the fastest growing market during the forecast period. |
At present, U.S. leads the demand for glufosinate, followed by China, Korea, India, Brazil, and others. Rising demand for glufosinate in the U.S. and other countries resulted in short supply subsequently providing opportunity for capacity expansion and new market entrants. However, prices for glufosinate are still expected to remain high due to complexities in the manufacturing process and its limited supply in the industry.
Bayer CropScience leads the glufosinate market followed by Lier Chemical Company Ltd., Zhejiang Yongnong Chem. Ind. Co., Ltd., Hebei Bestar Bio-Technology Co., Ltd., and others. Many new applications have been
registered by agrochemical companies in last two years in China for manufacturing both technical and formulation grade of glufosinate, but very few have the capabilities for commercial production.
| Business expansion and acquisition are the leading strategy adopted by the key players in this market in order to widen their geographic reach in glufosinate market. |
The demand for glufosinate herbicides has witnessed tremendous growth driven by the development of genetically modified glufosinate-tolerant crops. In the last five years, significant capacity expansion has been witnessed in the industry and this trend is expected to continue in the future as well. Bayer CropScience is the largest producer of glufosinate and intends to expand its capacity to almost double by end of 2017, owing to strong demand from regions such as North America and Asia-Pacific.
| The leading players operating in North America are Bayer CropScience, Zhejiang Yongnong Chem. Ind. Co., Ltd., Lier Chemical Company Ltd., and UPL Limited. |
In the U.S., Food and Drug Administration (FDA) regulates registration and usage of agrochemicals in the country. Glufosinate is considered as safe for usage in crops when compared to other herbicides available in the market which is driving its penetration in the U.S. agrochemicals market.
Source: Allied Market Research
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