Glyphosate Market Analysis

Glyphosate Market Analysis

GM crop application is anticipated to witness significant gains over 7.5% by 2024. Increasing consumer awareness relating to advantages of genetically modified crops accompanied by negligible effect of the product on plant will escalate the product demand. Large share of genetically engineered crops is developed to be herbicide resistant to glyphosate so that herbicide is used to kill only weeds around the crop. According to the Canadian Biotechnology Action Network (CBAN), around 88% of the global GM crops are tolerant to herbicide growing at around 400 million acres of land.

Conventional crop application dominated the global glyphosate market, accounting for over 50% share in 2015. Necessity to increase the agricultural output has augmented the use of glyphosate for crops such as citrus, cereal grains, orchards, legume vegetable and oilseed crops. As per FAO, the global population is projected to cross 9.1 billion people by 2050, requiring 70% growth in overall food production between 2007 and 2050. High cost effectiveness along with rising awareness on varied functionalities of the product to support yield growth for conventional crops is further expected to create long-term positive impact.
 

North America is expected to witness growth of more than 6.5% by 2024. Strong agricultural support programs by various agencies including FAO, and EPA to address growing concerns and consumer perception on environment and health effects of glyphosates is anticipated to fuel market growth for the projected timeframe. Also, presence of large multinational players involved in production of genetically modified crops will further aid in market expansion. The U.S. holds around 40% of the global biotech crops production area in 2017 and is anticipated to dominate the global production owing to high regional spending on research & development.
 

Asia Pacific accounted for over 35% market share by volume in 2015. China and India are among the leading agricultural nations and hold a substantial share in the regional glyphosate market. Robust growth in the regional GM crops production supported by government policies will drive the regional share over the forecast timeframe. For instance, India’s agricultural area for biotech crops increased from 10.8 million hectares in 2016 to 11.4 million hectares in 2017. Also, South Korea government has introduced national program for developing biotech crops. Moreover, considerable population growth supported by economic development has fuelled the demand for food & beverage products, creating a necessity to improve the regional agricultural productivity.