【Market research】New Horizons for Herbicides - Analysis of 2020 Global Top 20 Molecules and Top Crops

Date:12-14-2021

Highlights:

• Largest increase in herbicide consumption is to occur in Asia by 2050. LATAM countries are also expected to drive demand for herbicides.

• About 20 molecules encompass over 55% of the global herbicide market. 17 of the top 20 molecules are selective herbicides.

• Top crops using herbicides are cereals, soybean, maize, rice and sugarcane. 

• Flumioxazin, Pendimethalin, Clomazone and Sulfentrazone are the major pre-emergence herbicides that find application in a wide range of crops, especially in the top crops by consumption in this segment.

• China in particular, remained one of the major exporters of Sulfentrazone technical worldwide, until recently. India is emerging to be a production hub for Sulfentrazone. 

Every year, crop protection chemicals save around 50% of yield losses, caused by pests, diseases and weeds. The fact that 800 plant protection chemicals are registered worldwide is a testament to the speed with which the industry has been evolving. It also speaks volumes about the increasing demand for newer and more custom-made solutions as time moves on. As we slowly emerge out of the pandemic, the need to secure food supply is set to be top priority in every nation. And with climate change looming large, the vagaries of biotic and abiotic factors affecting a crop are today more pronounced than ever before. And it throws the door wide open for newer, unprecedented challenges to the farming community, keeping the researchers, policy makers and industry players on their toes. 

Herbicides to the fore

If we can be sure of one thing, it’s that however the challenges unfold, herbicides are set to play a vital role in it. The global crop protection market size for 2020 was estimated at USD 62.04 billion and is expected to grow at a CAGR of 2.3%. Herbicides continue to dominate the business by a whopping 44% at USD 27.4 billion followed by fungicides (USD 16.8 billion) and insecticides (USD 15.6 billion) taking 27% and 25% market share between them. 

Population trends indicate the largest increase in herbicide consumption is to occur in Asia by 2050. Also, significant changes in farm policies in LATAM countries are also expected to drive demand for herbicides – in order to increase crop yield and productivity.

 

A recent study indicates that about 20 molecules encompass over 55% of the global herbicide market. Glyphosate remains numero uno contributing to about 21% of the total herbicide market at USD 5855 million in spite of many major regulations implemented on the usage of this herbicide worldwide. Glufosinate ammonium comes a by-far second at USD 1220 million, having posted a healthy CAGR of 17% during the period 2016-2020. 17 of the top 20 molecules in this segment are selective herbicides. Other molecules that registered a double-digit growth rate are Dicamba, at a staggering 27%, Nicosulfuron at 16%, Sulfentrazone at 13% and Clethodim at 10% for the period 2016-2020.

Top 20 Molecules in Global Herbicide Market
Product	Value (USD mn.)
	2016	2017	2018	2019	2020*
Glyphosate	4408	5110	5325	5251	5855
Glufosinate Ammonium	660	750	916	980	1220
2,4-D	585	671	748	815	910
Mesotrione	650	709	780	800	470
Atrazine	560	590	655	668	590
Metolachlor	590	608	645	630	tbc
Paraquat dichloride	610	568	585	620	850
Acetochlor	420	452	475	452	425
Pinoxaden	390	421	435	421	440
Dicamba	270	341	388	409	700
Flumioxazin	350	336	380	402	tbc
Pendimethalin	335	393	405	397	390
Clomazone	300	320	365	375	tbc
Clethodim	260	283	309	348	380
Picloram	260	294	310	321	tbc
Nicosulfuron	220	267	282	295	395
Sulfentrazone	210	253	280	293	345
Fenoxaprop	180	266	272	286	tbc
Clodinafop Propargyl	165	273	282	275	tbc
Isoxaflutole	220	235	258	265	tbc

If we look at the top crops using agrochemical products we find Soybean and Maize dominating consumption individually, followed by Rice and Sugarcane. As composites, Cereals, and Fruits & Vegetables are the top crops for the year 2020. Maize and Soybean rule the roost, particularly in the herbicide segment, with increase in planted areas in LatAm as the region witnesses a paradigm shift in its agricultural policies brought about by the geo-political climate.

Crop-wise share of Crop Protection Products - 2020
Crop	Value (USD mn)
	Herbicides	Insecticides	Fungicides	Others	Total
Cereals	5,375	907	3,190	391	9,863
Maize	4,491	2,345	2,692	62	9,589
Soybean	4,903	1,418	645	50	7,017
Rice	2,479	2,251	1,533	120	6,381
Other Fruits & Vegetables	899	1,537	235	304	2,975
Other crops	313	376	1,205	181	2,075
Sugarcane	474	536	900	110	2,019
Oilseed Rape	1,207	535	172	88	2,002
Cotton	470	480	921	81	1,952
Sunflower	1,081	322	503	37	1,944
Sugarbeet	490	104	120	3	717
Pome fruit	825	72	40	0	937
Potato	2,253	3,299	3,282	414	9,248
Vine	2,148	1,499	1,368	303	5,318
Total	27,407	15,681	16,804	2,144	62,036

Mesotrione, Atrazine and Nicosulfuron are exclusive herbicides for broad spectrum control of weeds in Maize. Flumioxazin, Pendimethalin, Clomazone and Sulfentrazone are the major pre-emergence herbicides that find application in a wide range of crops, especially in the top crops by consumption in this segment. Among this, Flumioxazin and Sulfentrazone are known to exhibit both pre-emergence and post-emergence activity thus giving longer residual control in broader spectrum of annual grasses and broad leaf weeds. Research studies taken up by various institutions globally suggest that Sulfentrazone has an edge over Flumioxazin in the control of sedges, thereby garnering wider acceptance in the farming community.

We first come across Sulfentrazone at the time of its launch in the mid-nineties by the FMC Corporation. It was introduced for Soybean crop in Brazil starting from that period. Later on, combinations of Sulfentrazone with S-Metolachlor, Imazethapyr, Chlorimuron ethyl were introduced to tap into its full potential.  Today, Sulfentrazone is a popular choice for weed management in Soybean and Sugarcane crop, particularly in the US and Latin America.

In recent times, Sulfentrazone again rose to the occasion to meet the challenge of glyphosate-resistant weeds in the US. Some difficult market conditions seem to have caused a dip in its usage around 2015, with consumption restricted to around USD 200 million. The molecule emerged stronger with favourable market conditions. But Sulfentrazone proved that it is here to stay, with a resurgence in the following years.

Though the Americas continue to be the hotspot for consumption, Asia commands Sulfentrazone production globally. China in particular, remained one of the major exporters of Sulfentrazone technical worldwide, until recently. In the past few years, a new players has stepped up into the spotlight, quite notably, India. The subcontinent is emerging to be a production hub for Sulfentrazone apart from the other agrochemicals it is known for. 

Manufacturer-Wise Export Volumes for Sulfentrazone Tech. (2017-2020)
Name of the Company	Exporting Country	Volumes in terms of Tech. (MT)
		2017	2018	2019	2020
Jiangsu Baozong & Baoda Pharmaceutical Co., Ltd.	China	1,760	2,064	2,032	1,435
Jiangsu Lianhe Chemical Technology Co., Ltd.	China	2,900	2,845	248	288
Jiangxi Heyi Chemicals Co., Ltd.	China	211	100	58	189
Luzhou Dongfang Agricultural Chemical Co., Ltd.	China	252	883	-	-
Luzhou East Agrochemical Co., Ltd.	China	-	57	975	1,606
Shandong Weifang Rainbow Chemical Co., Ltd.	China	131	32	-	-
Suzhou FMC Crop Care Co., Ltd.	China	1	1	-	-
Tagros Chemcials India Private Limited	India	185	842	2,787	3,481
UPL Limited	India	0	0	54	138
Willowood Chemicals Private Limited	India	104	-	20	-
Others	China	23	79	213	466
Grand Total	-	5,568	6,903	6,386	7,604

Contributing factors to India being big on herbicides

Policy support from the Government of India and the impetus to be Self-reliant, has helped the agrochemicals industry to be competitive in the global market without compromising on the quality. Indian manufacturers have not only captured the growing demand for Sulfentrazone, but also have replaced the Chinese volumes taking almost half of the global production. 

Tagros, one of the key players in the Indian agrochemical market, has become the focal point for this shift in the global market dynamics in Sulfentrazone technical. While the total export volume from Asia to the world is pegged at 7604 MT in 2020, Tagros has solely contributed 3481 MT for the same year taking 45% share in worldwide Sulfentrazone market.

Agrochemical companies worldwide are working extensively to expand application of Sulfentrazone to other major crops like Rice, Maize and Fruits and vegetables. Various industry players have launched multiple combinations of Sulfentrazone for broader spectrum control in a wide range of crops. 

The exciting growth trends surrounding Sulfentrazone are likely to continue for quite a while. For one, there have been negligible variations in planted areas for Soybean, thus increasing pressure for more productivity - the global supply of Soybean is likely to remains tight in the commodity market. The scenario is no different for Sugarcane as it accounts for 80% of global sugar production. With opportunities in Soybean and Sugarcane looking solid and Rice and Maize poised to become potential game changers, Sulfentrazone is all set to explore unchartered territories.

Any comments, please contact AgroPages at christina@agropages.com