Global Agricultural Adjuvants Market - Analysis & Forecast (2017-2021)

Agrochemicals and agricultural adjuvants are interconnected with each other as the high consumption of agrochemicals will support the growth of the adjuvants market. The continuous development in the adjuvant field is changing the consumer’s perception of its usage. Due to factors such as improper supervision system, high price sensitivity, and substantial research fund requirements, less number of players are entering into the adjuvant business. Adjuvants are majorly used in the agricultural industry to improve the performance of insecticide, pesticide, and herbicide which further improve the effectiveness of the solution and help in providing better distribution and drift reduction. As per the American Society for Testing Materials (ASTM) adjuvant is a material which is added to the tank mix modify the action of an agrochemical.

The report is a compilation of the different segments of the global agricultural adjuvants market, including a market breakdown by the product offering, crop type, method of propagation, application and different geographical areas. Herein, the revenue generated from the different product type, namely, activators, utility and other modifiers; method of propagation, namely foliar spray, boom spray, stump paint and others; crop type, namely fruits & vegetables and cereals & oilseeds and applications, namely, herbicide, fungicide, insecticide and others are tracked to calculate the overall market size. While highlighting the key driving and restraining forces for this market, the report also provides a detailed summary of the market. It also includes the key participants involved in the manufacturing and distribution of these products. 

The report puts special emphasis on the market share of the leading companies in the agricultural adjuvants market, owing to the changing paradigms in the industry. The report further includes a thorough analysis of the impact of the five major forces to understand the overall attractiveness of the industry. The report also focuses on the key developments and investments made in the agricultural adjuvants market by the players.

The commonly used strategy adopted by the key players to enhance their geographical presence is product launch, followed by partnerships & collaborations. Moreover, the company profiles section highlights significant information about the key companies involved, along with their financial positions, key strategies & developmental activities for the past few years. 

Further, the report includes an exhaustive analysis of the geographical split into North America, Europe, Asia-Pacific (APAC), and Rest of the World (RoW). Each geography details the individual push and pull forces in addition to the key players from that region. The prominent players operating in the global agricultural adjuvants market are Adjuvants plus Inc., Nufarm Ltd., Momentive Performance Materials, Lamberti S.p.A, Monsanto Company, Oro Agri, Syngenta, Elkem, Winfield solutions LLC and Helena Chemical Company, among others.

The plant and crop protection have become one of the key concerns while meeting the never-ending food demand prevalent across the globe. Based on the data from 2007 to 2013, the Weed Science Society of America (WSSA) estimated the annual potential loss in value due to weeds and pests for crops such as corn and soybean at $27 billion and $16 billion, respectively. In the past, such cases resulted in the loss of around 20-40% of the agricultural productivity. Identifying this increasing demand of crop/ plant safety, companies have come up with the agricultural adjuvants, which assist in maximizing the quality, productivity, and sustainability in agricultural production systems, disease vector management in public health systems, and in other industrial and residential areas.

Adjuvants are majorly used in the agricultural industry to improve the performance of insecticide, pesticide, and herbicide which further improve the effectiveness of the solution and help in providing better distribution and drift reduction. As per the American Society for Testing Materials (ASTM), an adjuvant is a material which is added to the tank mix in order to modify the action of an agrochemical.

Increasing adoption of the “green crop protection” concept across the globe is driving the demand of the agricultural adjuvants since these are important for managing the increasing concern over pesticide residues on food and the problem of pest resistance. Significant lowering of Maximum Residue Limit (MRLs) by regulators in many countries is a trend that is expected to continue. Additionally, agricultural adjuvants products are a valuable option because these provide sustainability, crop quality and harvest flexibility benefits. The companies present in the agricultural adjuvants market across the globe have launched a wide range of products, and have entered into numerous agreements, collaborations, and partnerships to improve their market presence. It is expected that by 2020 more traditional agrochemical companies will enter the agricultural adjuvants industry and resources will consolidate further. 

Agrochemicals and agricultural adjuvants are both interconnected as the high consumption of agrochemicals will support the growth of the adjuvants market. The regular development in the adjuvant field is continuously changing the consumer’s perception of its usage. Due to factors such as improper supervision system, high price sensitivity, and substantial research fund requirements, less number of players are entering into the adjuvant business.

The growth of this market is driven by certain other factors such as:

•    Increasing demand for agrochemicals
•    Awareness regarding hazards of chemical pesticides
•    Development of IPM techniques 

However, there are certain challenges that are inhibiting the overall growth of the agricultural adjuvants market:

•    Regulatory framework
•    Rising environmental concerns

The agricultural adjuvants market is expected to reach $3,594.1 million by 2021 at a CAGR of 5.5% from 2016 to 2021. 

This growth is attributed to the increasing demand for integrated pest management (IPM) techniques and adoption of green crop protection concept. Moreover, the increasing demand for organic food products among consumers is driving the growth of the market. Rising precision farming techniques is driving the growth of the adjuvants market. Precision farming techniques use the adjuvants in the appropriate agrochemical application. Protected agriculture practices and crop protection agents such as emulsifiers, surfactant, oils, and salts are some of the factors supporting the growth.

High growth in the market is also driven by rising awareness among governments about the need to elevate the use of agricultural adjuvants while taking care of the environment. Further, the rising concerns over global food security and sustainability have led to substantial investments by the governments across the world. 

The trends of the agriculture adjuvant market vary with different geographical regions. The agricultural adjuvant market holds a prominent share in various countries of North America, Europe, Asia-Pacific (APAC) and Rest of the World (RoW). Presently, North America is at the forefront of the agricultural adjuvants market, with high penetration in countries like the U.S., Canada, and Mexico. However, during the forecast period, the Asia Pacific region is projected to display the fastest market growth from 2016 to 2021. The region presents immense scope for market development, owing to the increasing urban population size, and favorable investments by the government, among others.

Competitive Landscape

The competitive landscape for the agricultural adjuvants market demonstrates an inclination towards companies adopting strategies such as product launch and development, and partnerships and collaborations. The major established players in the market are focusing on product launches and developments to introduce new technologies or developing further on the existing product portfolio. Adjuvants plus Inc., Nufarm Ltd., Momentive Performance Materials, Lamberti S.p.A, Monsanto Company, Oro Agri, Syngenta, Elkem, Winfield solutions LLC and Helena Chemical Company are some of the prominent players in the agricultural adjuvants market. The market is severely fragmented with the presence of a number of small-sized to medium-sized companies that compete with each other and the large enterprises.

The key players operating in this market have ramped up their product launch activities over the recent years, in order to generate public awareness about their existing and new products and technologies and compete with the competitors’ product portfolio. This has been the most widely adopted strategy by the players in this market. For instance, Nufarm launched Gesaprim 500 CG an herbicide in the Brazilian market; the product is used for the control of infested plants in pre and post-emergency situations, in the early stages, in crops, such as sugarcane, corn, and sorghum. Earlier, in September, 2016, AkzoNobel N.V. launched Adsee 1629 and Agrilan 788, which are used in safeguarding food supply by helping herbicide producers to improve quality and efficiency. 

Business expansion and contracts strategies have also been significantly employed for expansion in the agricultural adjuvants market. With the increasing growth in the global market, companies operating in this industry are compelled to come up with collaborative strategies in order to sustain in the intensely competitive market. For instance, in September, 2017 BRANDT signed a distribution agreement with SiteOne Landscape Supply. In this agreement, the company will supply BRANDT and BRANDT iHammer turf and ornamental products. Earlier in June 2017, Clariant invested in a state-of-the-art R&D greenhouse to be used for tackling current and future agricultural challenges and meet the growing food demand. In May, 2017, the company signed an agreement with Solvay for the distribution and sale of their agriculture products in Australia, Malaysia, New Zealand and Thailand. 

Moreover, extensive R&D activities and appropriate regulatory environments are also a prerequisite for the sustained growth of this market. Various government and private research institutes, and favorable trade policies are putting in substantial efforts to identify the benefits of these advanced agricultural adjuvants for augmenting the global food production. The need for sustainable farming techniques is necessary to bridge the demand & supply gap along with attaining sustainability in the production.