US and European crop protection agent market will gradually increase

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At present, the market for crop protection agents in North America and Europe is at a mature stage, and the market scale has grown moderately. Although constrained by environmental influences and genetically modified foods, this major conflict between the rising population and the limited supply of foodstuffs cannot be resolved in the short-term, and at the same time as the introduction of newly developed protective agents for active ingredients, crop protection agents The market will be further developed.

A research report published by Frost & Sullivan, a well-known US growth consulting firm, in October 2012 predicts that by 2015, the overall crop protection market in North America and Europe will grow at a compound annual growth rate of 2.8% to US$26.55 billion; It will increase at a compound annual growth rate of 0.9% from 1.839 billion pounds in 2010 to 1.927 billion pounds in 2015.

Looking separately, the North American market will grow from US$ 10.62 billion in 2010 to US$ 12.47 billion in 2015; the European market will grow from US$ 12.50 billion to US$ 14.08 billion. The combined annual growth rates of the two are 3.3% and 2.4%, respectively. The growth rate in the North American market is slightly higher than that in the European market.

The market segments for crop protection agents in North America and Europe include fungicides, herbicides, and insecticides. From the point of view of sales, herbicide products became the largest market segment with a market share of 54.4%; followed by the fungicides market, which accounted for 25.6% of the total market size; and the pesticide market share was the smallest, accounting for 20.0%. .

The growth of the overall market is mainly due to the application of new active components such as azoxystrobin and the requirement to increase food production. The fungicide market is expected to be the fastest growing segment, followed by herbicides and pesticides. In order to maintain the growth of the market, companies must pay more attention to the research and development of new chemical products and formulate a more comprehensive pest management model.

According to the Frost & Sullivan Research Report, the main driving forces for the crop protection agent market in North America and Europe in the future are the following:

The growth rate of crop planting areas is very limited. There is limited room for growth in the global crop growing region. To meet the food supply, it is necessary to strive to produce more food on the basis of the existing planting regions. The crop protection agent provides a very effective solution. Increase food production.

Rising food prices promote the use of crop protection agents. As the current supply of food can not meet the demand, food prices have continued to rise globally. The increase in prices has also given growers more room for profit, which has also prompted them to prefer to use crop protection agents to further expand their production and gain higher returns.

The manufacture of biofuels requires large amounts of crops. Traditional fossil fuels are rapidly depleting. Therefore, the development of alternative energy sources has received increasing attention. Biofuels are one of the most important alternative energy sources. In the United States, the industry for producing fuel ethanol from corn is rapidly developing. The increase in the production of bioethanol will also place higher demands on the output of grain, especially corn. Crop protection agents, as one way to increase production, will also grow accordingly.

Increased meat food consumption. Globally, as the consumption of meat continues to grow, and accordingly, the demand for animal feed continues to rise, and crop protection agents can increase feed supply, the growth in meat consumption has also driven the further development of the crop protection agent market.

At the same time, the use of crop protection agents also faces some resistance.

The first is strict government regulations. Widespread use of crop protection agents can lead to soil, water and air pollution. Therefore, there are many laws and regulations that limit the production and use of crop protection agents. In the United States, new active ingredients must be registered with the US Environmental Protection Agency before they can be introduced into the market. Obtaining this registration requires passing a series of complicated tests first, which increases the cost of the product. On the other hand, many pesticides that have been used have been harmful to the environment due to their high toxicity and are now banned by the government. At present, the use of many crop protection agents has been strictly monitored to observe its environmental impact.

The second is the development of genetically modified foods. Biotechnology has become one of the major limiting factors in the development of crop protection agent markets. Through genetic modification, some major crops can already incorporate some useful features, such as resistance to pests, weeds, etc., without the need for crop protection agents. However, the development of genetically modified foods is also faced with many ethical aspects and restrictions on policies and regulations. Therefore, in the short term, GM foods will not pose a major threat to the crop protection agent market.

Looking into the future, due to the increasing environmental pressure, the relevant laws and regulations of the government on the development and use of crop protection agents will become increasingly stringent. Leading innovative companies will pay more attention to environmentally friendly and biologically-based crop protection agents. R&D-based companies will increase their investment in R&D for seed processing related products.

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