After a period of overall slow growth, US demand for formulated pesticide products is forecast to increase 2.6 percent per year to $12.1 billion in 2016. Over the same period, demand for active ingredients will grow by 1.4 percent per year to 945 million pounds, valued at $4.8 billion. The pricing climate is expected to continue to stabilize, after a period of erratic pricing for glyphosate, the leading active ingredient. These and other trends, including market share and product segmentation, are presented in US Pesticides, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Herbicides will remain the dominant product type, accounting for over half of the market in value terms and 66 percent in volume terms in 2016. Herbicides will also show the strongest growth, with increases of 2.8 percent per year at the active ingredient level. Although glyphosate will continue to lead the market as the largest active ingredient, farmers will be looking to supplement their glyphosate use with herbicides using different modes of action. Atrazine and 2,4-D, both commonly used herbicides, will expand their market presence as farmers use them for secondary treatment.
Insecticides are expected to exhibit slow growth, with demand increasing 1.0 percent per year to almost $1.4 billion in 2016. Volume demand is projected to increase slightly, but gains will be limited by little change in the average price. The best growth prospects will be for products that can replace organophosphates and carbamates. Fungicide active ingredients are projected to show growth of 1.0 percent per year to $510 million in 2016. Gains will be largely due to increases in the number of resistant diseases that are affecting crops, particularly fruit crops.
The agricultural market is expected to register the fastest growth for active ingredients, growing 2.1 percent per year to almost $3.5 billion in 2016. Gains will be fueled by an increase in demand for herbicides in particular, as farmers continue to battle weed resistance. The consumer market will be the next fastest growing segment, particularly as the economy continues to recover and homeowners become more willing to spend money on home and garden products. The commercial market will show slow growth through 2016; growth will be largely due to slight increases in square footage for commercial and industrial uses, but will be constrained by increased concern over pesticide use in public spaces.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.