Company Collaboration Trends in Crop Protection Market

The crop protection market in agriculture is primarily based on the use of a variety of pesticides and related products. Based on their composition, pesticides may be classified as bio pesticides or synthetic pesticides. Plant infestations generally treated include insects, fungus, weeds, etc. The industry is huge with the variety of applications in both crop and non-crop based applications. The increasing demand for food to satisfy the exponentially expanding populace of the world is one of the core drivers of the future scope of the market. Globally, the consumption by volume is anticipated to cross 3.5 million tons by the end of 2021, starting at 2.1 million tons in 2016, growing at an approximated CAGR of 6.4 percent during the forecast period. On the basis of value, the market was valued at USD 55.6 billion in 2016 and is expected to grow at a CAGR of almost 7 percent to cross a market value of USD 82.4 billion by 2021.

The major players in the market, primarily in the manufacture and distribution of pesticide products include Arysta LifeScience, American Vanguard, Bayer CropScience, BASF SE, Cheminova, BioWorks, Chemtura Corp, Dow AgroSciences, Chr Hansen, DuPont, Isagro SpA, FMC Corp, Ishihara Sangyo Kaisha, Marrone Bio Innovations, Makhteshim Agan, Natural Industries, Novozymes A/S, Monsanto, Nufarm Ltd, Syngenta AG, Sumitomo Chemical, and Valent Biosciences.

In this market companies generally collaborate to gain a greater market share. This is primarily because the market is dominated by established global players and hence, smaller and local players collaborate in order to gain leverage in a particular segment of the market. Generally, companies tend to trust in their strategies in the case of regions like North America and Europe. Collaborations and mergers are good for the health of the market as they lead to further innovations and feasible solutions to the problems companies face in the market.

Other strategies in the market include the obtaining of licenses of development or/and distribution from local manufacturers or also the acquisition of product lines. This technique provides small and big companies a good exposure and also leads to brand expansion.

  • BASF was granted a development license agreement by Mitsui Chemical Agro in June of 2014, for the insecticide named MCI-8007, for its global commercialization, excluding some countries like Japan. The deal is beneficial for BASF to expand its offerings as well as brands.

Other collaborations of value in the industry include:

  • AgraQuest and Bayer CropScience agreeing for the expansion of their agreement for garden and home fungicides further than the US to Italy, France, and Germany
  • AgraQuest and DuPont collaborated for the distribution and development of DPX RNP31, a new bio pesticide based on the patented ingredient by AgraQuest, Bacillus pumilus QST 2808.

The global pesticides market was led by Syngenta, which is a Switzerland based company and has a market capitalization of more than 20 percent, in the year 2016. Bayer closely followed Syngenta with a market share of about 17 percent. The application of collaborative and cooperative policies among the close competitors helps them to maintain their leadership at the global level. The major activities of the companies include the strategies of collaboration, approval, agreements and acquisitions. In the future, it is mandatory to suggest that aside from the above, it would do the companies greater good to focus on product development while keeping an eye out for constraints and regulations. The major focus of the industry has always been to finally develop proactive techniques which are easy to manage and are also sustainable in the long run, causing no environmental damage.

Check out Market Data Forecast’s comprehensive reports with in-depth analysis about the Crop Protection Pesticides Market a free research sample can also be availed. Stay tuned for trending news stories about the latest technologies and interesting Agriculture tit-bits.

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