Glufosinate market size is forecast to reach US$3.8 billion by 2027 after growing at a CAGR of 10.2% during 2022-2027. Glufosinate is an organic chemical compound (C5H12NO4P), which is originally called phosphinothricin. Glufosinate is mainly used as an effective herbicide in a wide variety of crops and herbs to prevent insects and bugs in both agricultural farms and non-agricultural uses.
Glufosinate market size is forecast to reach US$3.8 billion by 2027 after growing at a CAGR of 10.2% during 2022-2027. Glufosinate is an organic chemical compound (C5H12NO4P), which is originally called phosphinothricin. Glufosinate is mainly used as an effective herbicide in a wide variety of crops and herbs to prevent insects and bugs in both agricultural farms and non-agricultural uses. Glufosinate is also being called ammonium salt, which is a naturally occurring highly efficient herbicide, which is produced using different species of Streptomyces soil bacteria, whereas glufosate and paraquat are the synthetic versions of glufosinate. Glufosinate acts as a unique, simple, and effective weed control solution for a broad range of crops and weeds, due to its low toxicity, easy decomposition, and high efficiency in small quantities. Farmers use glufosinate herbicide as it ensures more protection, and it works only on the applied part of the crops and plant, where its application to a crop is done just before the harvest to kill the leaves or plants so that the crop dries out from environmental conditions more quickly and evenly, for which the process is known as crop desiccation. Glufosinate is also used as a fungicide in crops for the prevention of various diseases, which is additionally contributing to the growth of the market globally. The glufosinate market rise has also been accelerated by factors like its broad marijuana range and its high efficiency. Hence, it is predicted that the demanding agriculture industry will contribute hugely to the glufosinate market growth during the forecast period.
COVID-19 Impact
The global market and demand for glufosinate were mildly affected by the outbreak of the COVID-19 pandemic. Due to the decline in agricultural activities for a short while, the herbicide and pesticides market was hampered and hence the growth of the glufosinate market. Owing to the lockdown implemented across all countries had significantly affected the supply chain of numerous industries across the globe, hence increasing the supply-demand gap. It has exposed various challenges for several industries like agriculture, biomedical and biotechnology, environment, and others. The closure of bio-medical and biotechnology facilities affected the market across countries, such as China, Australia, Canada, and the United States, among others, which are most affected, also impacted the output of the global crops and showed a slight decline in sales. The covid-19 pandemic crisis has negatively impacted almost all end-use industries of glufosinate, except for the pharmaceuticals industry. However, as the pandemic is now slowly brought under control, the market will regain its normal growth pace across all regions.
Report Coverage
The report: “Glufosinate Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Glufosinate Industry.
By Form: Liquid, and Solid - Dry.
By Application: Herbicide, Plant Breeding, Liquid Chromatography, and Others.
By End-Use Industry: Agriculture, Bio-Medical and Bio-Technology, Pharmaceutical, Environment, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (the Middle East, and Africa).
Key Takeaways
Asia-Pacific mainly dominates the Glufosinate market, owing to the growing crop production in the region. The increasing new forms of pests and plant disease, and the need for the farmers to guard their crops against unwanted weeds, fungi, and bacteria are the main factors driving the expansion of the glufosinate market.
Moreover, the increasing government investments, schemes, and attention towards the agriculture industry are expected to cause product demand in near future.
The liquid segment accounted for a majority share in the global glufosinate market and is expected to dominate the segment over the forecast period.
The use of glufosinate in the agriculture segment has increased and is expected to grow at a higher rate as compared to other applications during the forecast period.
However, the health concerns related to excess consumption of glufosinate and the stringent regulations imposed by health and food organizations of nations across the world are some of the inhibiting factors in the glufosinate market.
Glufosinate Market Segment Analysis – By Form
The liquid segment held the largest share of 53% in the glufosinate market in 2021. The liquid concentration of glufosinate dominated the global glufosinate market, owing to its advantages like mixing readily with water, being non-volatile, not abrasive, ease of transport and storage, and easy application. The liquid form of glufosinate is widely employed compared to solid-dry form is because of its low-temperature stability, which can have an extended process and duration of usage. The liquid glufosinate is increasingly used due to the growing need for low-temperature stability in various industrial and non-industrial activities. Liquid glufosinate is a comparatively easy-to-use formulation and is highly employed in the agricultural industry for weed control for it to have minimal toxicity and direct effect on animal species. The growing popularity of agrochemicals, biotechnology, biomedical, and the higher need for safe products like naturally occurring glufosinate herbicide will boost the glufosinate market growth. As a result, the demand for liquid glufosinate can be seen and will increase significantly, which contributes to increased business growth.
Glufosinate Market Segment Analysis – By Application
The herbicide segment held the largest share of 44% in the glufosinate market in 2021. Herbicide contribution in the agriculture industry is fuelling the growth of the glufosinate market globally, as it finds its application in young crops and herbs during their early stages of development to acquire the full productivity of product applied. The glufosinate market is expected to gain substantial attention during the forecast period mainly due to the rapidly advancing agrochemical sector and the demanding need to protect crops from various diseases. The rising technological advancements within the agriculture sector have led to the emergence of genetically modified crops. In addition, the increase in the number of agricultural farmlands to suffice the continuously growing population will drive the market expansion. Glufosinate is especially secure to use herbicide, which helps to regulate the growth of important weeds. Unrestrained demand for horticulture and biotechnology will additionally contribute to the glufosinate market growth. Thus, these multiple advantages and uses associated with glufosinate are expected to boost the growth of the global glufosinate market. But hence, glufosinate majorly finds its application in agriculture, which alone is driving the growth of the market massively.
Glufosinate Market Segment Analysis – By End-Use Industry
The agriculture segment held the largest share of 39% in the glufosinate market in 2021. The demand for glufosinate is predicted to expand within the next few years of the forecast period, thanks to the growing yield of agricultural crops such as corn, soybean, beans, canola, sugar beets, sugar cane, and sweet potato that are genetically modified to tolerate glufosinate, due to which the agricultural sector is expected to contribute significantly to the glufosinate market. Foodgrains and cereals recorded the highest revenue compared to other crops owing to the inflow of glufosinate tolerant crops. The rising consumption, presence of greater yield, growing demand, and harvest of food grains in several countries will positively contribute to the agricultural segment of the market. For instance, according to the Economic Survey of India 2020-21 report, the country's total food grain production in 2020 was 296.65 million tons, up by 11.44 million tons from 2019 which was 285.21 million tons. Glufosinate has become a crucial herbicide in worldwide agriculture because it allows farmers to manage weeds in a variety of crops while maintaining a balance between environmental, economic, and social needs, which is why it is valued in food crops mainly. As a result of such a growing focus on the agriculture industry, it is projected to fuel the growth of the global glufosinate market over the forecast period.
Glufosinate Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the Glufosinate market in 2021 up to 41%, owing to the increasing demand from the agriculture industry, which has increased at a rapid rate, due to the rise in the consumer base of the region, especially in China, India, and South Korea. The presence of many production facilities, industry players, and constant growth of the agricultural industry in this region are the main reasons for the growing demand of the glufosinate market in the Asia-pacific region. For instance, the Japanese government is on a journey to increase agricultural exports from USD 8.5 billion in 2020 to USD 18.5 billion by 2025 and USD 46.1 billion by 2030 by expanding the financial resources available to agricultural and food producers and exporters.
Secondly, North America exhibited moderate growth over the forecast period after the Asia Pacific. North America is the second major exporting region for Glufosinate due to its capacity. Hence, with all such applications and robust demand within the region, the Glufosinate market is predicted to witness healthy growth during the forecast period.
Glufosinate Market Drivers
Increasing agricultural activities
Growing agricultural activities owing to the need and requirement of the rapidly increasing population will act as a driving factor for the glufosinate market. For instance, in China, the agriculture industry constantly rises every year by at least 2.3%, which accounted for about USD 734.9 billion in the first three quarters and recorded nearly 670 billion kg in 2020, which marks the sixth consecutive year for China’s total food grain production that has crossed over 650 billion kg. These kinds of increases in agricultural activities and demand for genetically modified crops owing to their cost-effective characteristic and weed controlling properties will boost the growth of the glufosinate market globally.
Government support and initiatives
Governments are investing extensively in agricultural projects and initiatives since it is one of the most effective ways to improve environmental sustainability. The US Department of Agriculture launched a program called "The Agriculture and Food Research Initiative (AFRI)" to maintain food safety and security while also training the next generation of agricultural workers. The Canadian government gave the Canadian Federation of Agriculture (CFA) a total of $560,000 in 2020 to establish the Canadian Agri-Food Sustainability Initiative. Programs such as the Common Agricultural Policy (CAP) and Young Farmers have been adopted by the European government. The Agriculture Export Policy, 2018 was adopted by the Indian government in December 2018. The new strategy aims to increase India's agricultural exports to US$60 billion by 2022 and US$100 billion in the next several years, assuming a stable trade policy regimen. Thus, the agriculture sector is expanding in numerous places as a result of the government's various agricultural programs. And with the increasing agricultural sector, the demand for glufosinate will also increase, which will certainly drive the market growth during the forecast period.
Glufosinate Market Challenges
Effects on human health and the environment
The smaller amount of toxicity in glufosinate hampers the expansion of the market. Effects of glufosinate on human health, animals, environment, and strict government regulatory factors are restraining the growth of the market globally. According to the US Environmental Protection Agency (EPA), glufosinate-ammonium (glufosinate) is an organophosphorus chemical that is predominantly a foliar-active herbicide with low systemic activity and has been associated with a variety of human health and environmental impacts. Surprisingly, the EPA detected a multi-generational hazard in mammals when the chemical is used according to the label instructions in 2013, but no new limits have been placed to account for this. But different countries have made different sets of directives and legislation to follow concerning the utilization and transport of glufosinate. Both manufacturing and end-use companies find it difficult to satisfy and follow these country-wise rules. This might discourage the investments made within the glufosinate market, thereby hampering market expansion at strict places.
Glufosinate Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Glufosinate market. Glufosinate top 10 companies include: Bayer CropScience
Syngenta
Monsanto Company
BASF SE
Lier Chemical
Jiangsu Huangma
Dow AgroSciences
Hebei Veyong Biochemical Co., Ltd. Co., Ltd.
Zhejiang YongNong
Nufarm Americas
Recent Developments
In 2019, Nufarm Americas launched a new product called Cheetah Pro Herbicide, which is a non-selective herbicide for control of grassy and broadleaf weeds and sedges in a variety of golf, turf, and landscape settings. This product launch enhanced the product portfolio of the firm.
In September 2020, BASF has acquired the proprietary Glu-L™ technology for L-glufosinate ammonium from AgriMetis™, an industry leader for the development of biotechnological innovations for crop protection. With this BASF Agricultural Solutions will offer its customers an even more efficient product to protect against unwanted weeds with an improved formulation.
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