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Adoption of Thiamethoxam Market to Surge During the Forecast Period Owing to Increased Consumer Demand

Persistence Market Research (PMR)

Persistence Market Research (PMR)

Thiamethoxam are insecticides which belong to the class of neonicotinoids having a wide spectrum of activity against different types of insects. It is a systemic insecticide, absorbed quickly by plants and then transported to various parts of the plant, while also acting as a deterrent for feeding insects. Thiamethoxam becomes active through direct, and in the stomach of insects. The chemical interferes with transfer of information between nerve cells which makes the insets paralyzed. Thiamethoxam was initially developed by the chemical corporation, Syngenta AG. However due to a patent dispute between Bayer and Syngenta on account of the former already having the rights of other neonicotinoids, Syngenta acquired the worldwide rights to thiamethoxam as per a dispute settlement of USD 120 million in 2002.

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The global market for thiamethoxam has been witnessing a significant increase on account of technological developments as well as advancements over the recent years. Stringent environmental regulations, improving farming practices, rising agricultural trade and changing buyers’ preferences are prompting research efforts and innovations in the thiamethoxam insecticide industry. North America currently dominates the global insecticide market thereby having the largest market share for thiamethoxam, followed by Europe. These developed regions serve as matured markets which are dominated by several key players such as Syngenta AG. In order to survive the intense competition, manufacturers are focused on new product development. Several major manufacturers of the thiamethoxam industry have entered into certain collaborations, joint ventures, strategic alliances and agreements with other companies for the marketing of new products as well as acquiring a larger share in the market. North America dominates the global herbicide market and has the largest market share in terms of volume and revenue. Europe is the second largest market for herbicides. North America and Europe are mature markets and are dominated by a few major players. To survive intense competition, companies in these regions are focused on new product development.

Reduction of arable land in recent years, rising population as well as growing need to enhance crop yields are anticipated to drive the demand for crop protection chemicals such as thiamethoxam over the forecast period. However, increasing regulations from authorities such as EPA (Environment Protection Agency) to ban the use of pesticides in order to decrease the impact on the environment and rising consumer awareness from the use of pesticides, due to residues is anticipated to slow down the growth for thiamethoxam in the next five years. Restriction of thiamethoxam in Europe due to hazardous effect of the chemical on bees is also expected to hamper the growth of the market. The European Food Safety Authority in January 2013 mentioned that neonicotinoids pose high risk to bees. Again, in April 2013, the European Union voted for the ban of neonicotinoid insecticides for two years. The ban will restrict the use of thiamethoxam, clothianidin, and imidacloprid for use on crops that are attractive to bees. Focus on research and development activities towards developing innovative products as well as focus on market expansion in emerging region such as Latin America and Asia Pacific is expected to provide new opportunities for the growth of the market.

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Agro-care Chemical, Bayer AG, Bonide Products Incorporated, Central Garden & Pet Company, Syngenta AG, Sigma Aldrich Corporation, and Sumitomo Chemical Company Limited are some of the key players present in the thiamethoxam industry.

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