Asia-Pacific to retain its dominant in the global insecticides market by 2020

Asia-Pacific accounted for about 44% of the overall insecticides market value in the year 2013. During the same period, Indian subcontinent had the largest capture, mostly due to large production of crops such as cotton, paddy and sugarcane. Whereas, in regions such as North America, the insecticides consumption simultaneously came down due to growth of genetically modified crops. The debate over harmful effects of residual insecticides in crops, as compared to those of genetically engineered crops have not yielded any definitive answer till date. Unless, countries shift to traditional farming formats from GE cultivation, the insecticides industry shall maintain its low. A report by Allied Market Research forecast the global insecticides' market to have a market value of $16.7 billion by year 2020 with a CAGR of 5% during 2014-2020.

Anti-malarial thrust to insecticides market
Most successful case scenario for Asia-pacific market is observed in insecticides-treated nets. The climate conditions over the region fosters a growth habitat for multiple disease spreading insects. For instance, people dying of malaria in the region grew to equal a couple of millions each year. Treated mosquito nets gradually, yet effectively, helped lower cases of death to almost one-third of earlier figures. 

Despite the success, technical challenges present themselves against malaria elimination. These include cross-border malarial spread, transfer from animals, developing insecticide resistance, and limited options for treating the parasite, Plasmodium vivax. Manufacturers need to deal with these challenges with great dynamism to maintain the achieved anti-malarial success.

Insecticides market and regulatory frameworks
Stricter government regulation potentially hampers the growth of Global Insecticides Market. In September, 2014, a new rule was formulated, which banned the use of Chlorpyrifos insecticide because of its harmful effect on children. However, Bloomberg’s report on a new UN study in 2016, contradicted earlier reports by citing that glyphosate and two other insecticides are unlikely to pose carcinogenic risk to human beings when released in their body in dietary form. 

Owing to high-level regulatory control, the bio-insecticides market is getting a shot in the arm as compared to synthetic chemical alternatives. In the year 2015, Montana Department of Commerce, U.S., will back a project to produce new fungal bio insecticide in order to control bark beetles. 

Bayer AG’s plan to take over @MonsantoCo held possibilities of becoming a turning point for the insecticides industry. Proposed bid, on gaining approval, would place the duo as the largest supplier of farm chemicals, including insecticides. Companies, in such situations, face resistance from antitrust claims, challenging the effect their strategic acquisitions can have on overall market. It is crucial to consider the portfolio overlap in such mergers that could lower competition and limit options for the consumer segment. 

Insecticides market: fragmented analysis
Organophosphate holds the maximum share of 30% in terms of value in the overall market due its multi-applications such as fumigant, contact insecticide or systemic. It is expected to grow at a CAGR of 5.3% during the analysis period. Giant firms such as Syngenta, BASF, and DOW produce ‘Organophosphate’ insecticides via brand names - Dursban, Curacron and Lorsban. Large scale availability and growing demand are driving the growth of the ‘Organophosphate’ insecticides globally.
Household insecticides alone, account for almost half of the net annual revenue generated around the globe. One leading into the other, rapid urbanization of cities and their improving economic conditions have encouraged consumers be a part of the growing industry. Added to that, there has been a rise in awareness regarding vector-borne diseases among the same population, which opts for possible measures of prevention. 

In terms of value and volume, cereals & grains under the crop type continue to consume more than 50% of the overall market share. In terms of value, Europe and North America account for 40% of the overall market share. In terms of revenue, Latin America contributes 30% of the market share. Asia-Pacific is forecast to have a value of $7.2 billion by 2020 registering a CAGR of 4.5%, maintaining its lead in the industry. Geographies apart from Asia-Pacific have growth potential post certain significant reforms.

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