Showing posts with label US Agrochemical Market Trends. Show all posts
Showing posts with label US Agrochemical Market Trends. Show all posts

Friday, July 10, 2020

In-Depth Analysis of the COVID-19 Impact on US Agrochemical Market: Ken Research


COVID-19 outbreak has been declared a pandemic by the WHO, causing a huge impact on people’s lives, families, communities and businesses. As of 7th July 2020, US has been leading in terms of total number of positive cases registered i.e. over 3.2 million with clusters around New York, Seattle and in the California. The state of New York (which was once stated as the epicenter), now have lowest infections in the country, but other states such as Texas and Florida are seeing increase in number of COVID positive cases. Being a developed nation, US economy faced an unconventional shock followed by reduction in productive capacity as a consequence of lockdown and shortage of healthcare equipment & healthcare workers. However, the US government followed certain counter-measures to deal with the long term consequences of unemployment. Additionally, the size of resources put behind the relief package (put in place by US government) has collectively surpassed the collective set of efforts taken across Europe and other regions.

The pandemic continues to take its toll on both large scale businesses & MSMEs. Businesses must evaluate the financial as well as operational challenges caused by COVID-19 while rapidly addressing the needs of their clients / end users and suppliers. The infection has spared only a few businesses, mostly offering healthcare products-services, while many other sectors for instance, travel and tourism, hospitality and food & beverage industries experienced major disruptions. It led to closure of work places, shopping malls and restaurants which further reduced demand for numerous activities in the short as well as long term. Data estimates from the U.S. Census Bureau showed April’s monthly sales for retail purchases in stores & online spending at bars and restaurants totaled USD 403.9 billion thus, resulting into a decline of 16.0% from the previous month and over 21% lower than the same time last year.

The severe effect of the corona virus pandemic on low-wage workers was also briefly stated by “the Peterson Institute for International Economics” which said that approximately 40% of the US house-holds in February were making less than USD 40,000 per year and had lost their jobs in the month of March.”

For More Information on the research report, refer to below link:-

Most businesses are focusing on survival as the markets have become highly uncertain and are socially distant. E-commerce on the flip side is expected to see over 20% growth in 2020, majorly driven by increased uptake of online shopping from consumers who shifted online while brick-and-mortar stores were closed. As a result of which, players are increasing budget towards online and social media advertising as US adults are expected to continue spending more time on social media post pandemic. Amongst the North American region, US is one of the leading countries with 288.1 million internet users (87.0% penetration), 353.2 million mobile phone connections and 230.0 million active social media users (70.0% penetration) therefore, highlighting the growing digital base which has enforced more significance and greater participation of E-commerce activities in multiple sectors.

Impact on Agrochemical Business:-
Corona virus outbreak has hit supply chains across the world thus, causing disruptions and trade tensions. Compared to large industries such as energy, tourism and airline services which are more affected, the agrochemical industry is smaller in size however, and it is closely related to food production. In addition, the US chemical industry has been severely affected due to oil price shock. The country being a net export of disinfectants and other agro-chemical based products saw decline in terms of value and volume over the past few months. Exporters of raw materials are facing issues as US factories remain shut and a prolonged trade halt will impact margins and profitability of any company. Agrochemical prices which were going down during last year saw a rapid surge of 20-25%. Thus, any sort of global movements are restricted by major players due to possible infections at airport / transit airports causing a negative impact on sales activities. The functioning of domestic pesticides industry may not be affected immediately by halt in production levels as the country is currently in possession of inventories for the next 2-3 months. As manufacturing and logistics are slowly recovering with ease in lockdown restrictions, the US government must help local manufacturing companies by granting registration from the USEPA (The United States Environmental Protection Agency) and manufacturing licenses by states. The virus has impacted major agrochemical producers from raw materials to finished products. US is one of the major producers of both active ingredients that form the base of formulated agrochemical products, and ready-made conventional pesticides.

Impact on Agricultural Activities:-
Agriculture is a labor-intensive industry however the COVID pandemic has led to non-availability of labor because people are self-isolating or travel instructions are in place thus, causing bottlenecks in harvesting, packaging and transportation activities. Disruption in terms of food produce / supply will be mostly felt by farmers, small businesses & medium sized companies. Agriculture, food and related industries contributed over USD 1.0 trillion to country’s GDP i.e. over 5-6% in the past few years. In accordance with the USDA, around 22.0 million full and part-time jobs were related to the agricultural and food sector i.e. 11.0% of total U.S. employment during 2018. USDA service center employees continue to assist agricultural producers with disaster assistance, conservation, safety net & farm loan programs and services such as conservation planning and acreage reporting while supporting flexibilities for producers and implementing the Corona Virus Aid, Relief, and Economic Securities (CARES) Act. Additionally, US Small Business Administration (SBA) offers multiple programs available to agricultural producers whose operations have been impacted by the corona virus pandemic.

Strategies Adopted by the Market Players: -
The US-headquartered company FMC has followed procedures to ensure the health & wellness of employees, including alternative work arrangements, travel restrictions and other measures. The company recently formulated a business continuation plan and its commercial teams are focused on supporting customers and ensuring farmers have the products they need. Additionally, they have sufficient product stock to meet anticipated customer needs for the immediate future. FMC’s sales & marketing & technical service teams continue to operate fully.

Farmers Business Network (FBN) is a US data and pesticide E-business Company which has recently announced a discount sale of more than 80 kinds of key seeds and pesticides with 15.0% discount on top of the current low prices, which will further aid farmers to cope up with the financial stress during the pandemic, which happens to be a planting season. Products can be ordered online & can be further delivered from more than 70 FBN warehouses across the US. Given the epidemic circumstances, offline sales saw a huge decline and therefore, the online selling mode in the near future will play a more significant role.

Domestic demand as well as exports for agrochemical products is largely affected due to the global lockdown situation causing a decline in terms of production capacity. Major focus is also being given on marketing the products in a safe & sanitized manner across US to regain the confidence of end users.

Shifts in the Industry Practices:-
For agrochemical companies, disruption of their supply chain network will pose major risk. Another major challenge is changing suppliers or manufacturers which might not be easy, since changing source of material will require updates on product registration. Unless emergency status is granted by governments, changing or adding a new source may take at least a year or longer, before getting approval from any national authority according to the current pesticide registration regulations in the US.

Comprehensive measures are taken by agrochemical manufacturers to make sure the restrictions to control outbreak will not potentially lead to halt in agribusiness globally.

Looking at the agricultural commodities under the current circumstance reported by the USDA, US companies have increased production of pasta and rice to meet the growing demand by consumers worried by the COVID-19 crisis.

In the coming months, shortage of raw materials and products might occur together with further transportation interruptions. Agrochemical players need to bridge possible financial bottlenecks due to the material shortage, production stoppages and falling demand in the markets. Under the current circumstances, it is important to ensure the smooth flow of trade and to make use of the international market as vital tool to secure supply and demand.

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)

Related Reports:-



Contact Us:-

Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

Monday, July 6, 2020

Insecticides, Fertilizers, Crop Protection Chemicals & Plant Growth Regulators were some of the widely used Agrochemicals over the past few years: Ken Research


"New food processing, manufacturing, and packaging techniques have resulted in a flourishing F&B sector leading to increase in demand for agricultural products such as food grains, oilseeds, vegetables, and fruits, which, in turn, is driving the agrochemicals market growth.

US agrochemical market revenue was driven by growing demand for crop protection chemicals due to frequent outbreaks of pest attacks on crops, which resulted in heavy losses during that season. Apart from that, the growing animal husbandry sector has increased the demand for animal feed, further triggering the demand for agrochemicals such as fertilizers and plant growth regulators. Low availability of arable land has also triggered the demand for fertilizers alongside growing demand for macronutrients, such as nitrogen, phosphorus, and potassium, which has collectively boosted fertilizers market in the country. Additionally, the US was among one of the countries with the highest agricultural output in 2016 with corn being its major product.

Agrochemical manufacturers increased their emphasis towards biotech plants / crops to increase the demand for their particular product. Mechanization of agricultural activities, lower fund borrowing rates and growing food processing industry have also driven the country’s agriculture sector. Major pesticide producers have either launched variety of genetically modified seeds, or are in the process of developing a new variety of pesticides which are all intended to be grown with the company’s own proprietary formulation. Biotechnology firms have established their presence in the market based on new & unique biological pesticides, particularly by forging alliances with established companies / firms.

Advances in crop varieties and seed technology, including transgenic varieties, have also played a major role in higher yields. For instance, diffusion of biotechnology and advancements in production techniques has positively contributed further efficiencies.

Growth in meat production, rising production of poultry and surge in demand for rice had a significant impact on the agricultural productivity which in turn, led to surge in demand for agrochemical products.

The report titled US Agrochemical Market Outlook to 2025 – Increasing Usage of Integrated Pest Management Activities and Bio Pesticides to Drive Market Growthby Ken Research suggested that US Agrochemical Market is further expected to grow in future majorly due to entries of several foreign players have also contributed towards the same coupled with increasing usage of Bio pesticides in the US. The country’s agro-chemical market is expected to register a positive six year CAGR of 2.3%, 1.6% and 0.4% in terms of revenue by formulants, revenue by technicals and pesticide active ingredient demand respectively during the forecast period 2019P-2025F.

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)

For More Information on the research report, refer to below link:-

Related Reports:-



Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

US Agrochemical Market Outlook to 2025: Ken Research


The report titled US Agrochemical Market Outlook to 2025 – Increasing Usage of Integrated Pest Management Activities and Bio Pesticides to Drive Market Growthprovides a comprehensive analysis of the agrochemical industry of the US. The report also covers overview and genesis, overall market size in terms of revenue (formulants and technicals) and sales volume (active ingredient demand), market segmentation by product types (herbicides, insecticides, fungicides and other pesticides) and their sub-types, Pesticide Form (Liquid, Granules and Powder), Market Structure (Organized and Unorganized Market) and By Type of Crops (Cereal Crops, Fruit Crops and Vegetable Crops); trends & developments and issues & challenges, regulatory landscape, SWOT analysis and comparative landscape including the heat map, competition scenario, pricing analysis, cross comparison, strengths and weaknesses, mergers & acquisitions and company profiling of major agrochemical manufacturers. The report concludes with future market projections on the basis of revenue (formulants and technicals) and sales volume (active ingredient demand), by product type, form, market structure and crop type and analyst recommendations highlighting opportunities and cautions for both existing as well as new players.

US Agrochemical Market Overview and Size
US Agrochemical market grew at a limited growth rate over the review period 2013-2019 and was further driven by shift towards new, proprietary premixes & formulations involving more than one active ingredient. During 2017, total number of farms in the US were evaluated at 2.04 million along with a land area of 900.0 million acres. Rising demand for crop protection chemicals due to frequent outbreaks of pest attacks on crops, resulted in heavy losses especially during monsoon. The productivity per acre has grown steadily due to more effective / efficient farming technologies, including greater mechanization techniques applied to land and water management, improved methods of land preparation, planting, crop protection, harvesting, and storage. As a result of which, New food processing, manufacturing, and packaging techniques have resulted in a flourishing F&B sector thus, giving a boost to crop protection pesticides for agricultural products such as food grains, oilseeds, vegetables and fruits, which, in turn, is driving the agrochemicals market growth. Also, entries of several foreign players have also contributed towards the same coupled with increasing usage of Bio pesticides in the United States.

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. Rising insecticide active ingredient demand in the US was observed towards Organophosphates, Carbamates, Pyrethroids and Neonicotinoids. 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. Apart from that, active ingredient demand towards Atrazine, 2,4-D, S-Metolachlor, Acetochlor and Dicamba herbicides gained traction in the US. Minimal revenue share was captured by fungicides in the year 2019. Active ingredient demand towards Chlorothalonil and Mancozeb fungicides. The US is a major producer of both older fungicides and newer product types.

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. Switching to liquid sprays leads to lesser wastage as compared to other forms. Majorly, liquid spray is used in the spring (April, May and Early June) and fall (September, October and Mid-November) to get weed control. On the other hand, granules & powder pesticide-form collectively captured low revenue share as their usage is minimal and highly dependent based on weather conditions.

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. The unorganized market players do not have distributors and instead directly sells to the farmers. Additionally, there products are not approved by any sort of regulator and the government.

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 (corn, soybean and others) are herbicides. Over 95% of US corn acreage is treated at least once per growing season with pesticides. In case of Fruit based crops, both herbicides and insecticides are used for crop protection. Major fruit and nut crops include oranges, peanuts, grapes and apples. Unlike major field crops, a fruit orchard requires insecticide at least once or twice per season in a year. 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. Vegetables (including potatoes) do not account for a large proportion of herbicide and insecticide usage however, they are the largest end use for agricultural fungicides.

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 the 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.

Competitive 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 and are competiting on the basis of product pricing, quality and 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. Major mergers and acquisitions in the US crop protection space have provided international players with a competitive edge over local players. For instance, Bayer acquired Monsanto in 2018, Syngenta acquired Adama in 2017 and Strider in 2018.

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 expected 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)

Key Topics Covered in the Report:-
Executive Summary - US Agrochemical Market
Socio Economic Overview
Country Overview
Cross Comparison of Countries (US, Canada, Mexico, Argentina and Brazil) – Crop Production Summary (Wheat, Coarse Grains, Corn, Barley, Oats, Rye, Sorghum, Rice, Oilseed, Soybean, Cottonsead, Peanut, Sunflowerseed, Rapeseed and cotton)
Need, Opportunity and Industry Size of Agrochemical Market
US Agrochemical Market Constraints
Trends and Developments in the US Agrochemical Market
Selected Digital Technology Trends in the Agrochemical Industry
Agricultural Overview in the US
US Agrochemical Market Industry Life Cycle
US Agrochemical Market Size by Revenue (Formulants and Technicals) and Volume (Agricultural Pesticide Active Ingredient Demand), 2013-2019P
Demand & Supply Side Ecosystem, Preferences & Trends across End Users Market
Overview of Agricultural Pesticide Supply and Demand
Ecosystem for Agrochemical Market in the US
Value Chain Analysis
US Agrochemical Market Segmentation
Snapshot on US Biopesticide Market
Trade Scenario in US Agrochemicals Market, 2017-2018
Comparative Landscape in US Agrochemical Market
Regulatory Landscape in US Agrochemical Market
SWOT Analysis
Decision Making Process by Farmers before Purchasing Agrochemicals in the US
Industry Restructuring in the US Agrochemical Market
US Agrochemical Market Future Outlook and Projections, 2019P-2025F
Analyst Recommendations
Appendix / Research Methodology

For More Information on the research report, refer to below link:-

Related Reports:-



Contact Us:-

Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249