Market Trends of insecticide Industry
Increased pest proliferation due to global warming is increasing the usage of insecticides
- The average global consumption of chemical insecticides is 918.7 g per hectare of agricultural land. It has been increasing over the years owing to factors like the intensification of agriculture, increasing pest populations, and the need for higher yield and crop productivity to ensure global food security. According to the data provided by the Food and Agriculture Organization, 40% of global crop production is lost to pests annually, resulting in an average economic loss of around USD 70.0 billion.
- Europe witnessed higher insecticide applications compared to other regions of the world, with Germany having a higher per-hectare consumption of 3,028.0 g, which may be attributed to its highly intensive agricultural practices, with a significant focus on maximizing crop yields. Intensive agriculture often involves the use of higher inputs, including insecticides, to manage pests and ensure optimal crop production. Europe is followed by Asia-Pacific, with an average insecticide application of 975.1 g per hectare.
- Among the North American countries, the United States witnessed the largest consumption of insecticides per hectare, with 791.7 g in 2022, attributed to the large area under the cultivation of crops and increased exposure to insect pest infestations due to constantly changing climatic conditions.
- Changing climatic conditions due to global warming have created favorable conditions for certain pests, resulting in severe outbreaks. For instance, a locust outbreak in 2020 severely affected 23 countries, i.e., nine in East Africa, 11 in North Africa and the Middle East, and three in South Asia, causing an estimated loss of USD 8.5 billion. These circumstances necessitate farmers to use higher amounts of insecticides in agriculture.
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Imidacloprid is the most affordable insecticide with a broad spectrum of activity
- Lambda-cyhalothrin belongs to the class of pyrethroid insecticides, which are synthetic chemicals modeled after natural pyrethrins found in chrysanthemum flowers. Lambda-cyhalothrin is used to control pests such as aphids, thrips, leafhoppers, whiteflies, and various caterpillar species in crops like cotton, corn, soybean, vegetables, and fruits. This active ingredient acts as a neurotoxin, targeting the nervous system of insects. It disrupts the normal functioning of nerve cells, leading to paralysis and, ultimately, the death of the pests. In 2022, it was priced at USD 22.7 thousand per metric ton.
- Cypermethrin is a non-synthetic pyrethroid used to control flea beetles, boxelder bugs, cockroaches, termites, ladybugs, scorpions, and yellow jackets. It was priced at USD 21.0 thousand in 2022. Brazil ranks among the top three importers of cypermethrin globally, with the European Union being a major exporter to Brazil under the EU-Mercosur deal.
- Emamectin benzoate is an insecticide belonging to the chemical class of avermectins. It kills the pests by targeting the nervous system. It binds to specific receptors in nerve cells, leading to paralysis and the eventual death of the pests. Emamectin benzoate is majorly used in European countries to control various insect pests in agriculture. It was priced at USD 17.3 thousand per metric ton.
- Imidacloprid is a neonicotinoid insecticide used to effectively manage various pests, including aphids, leafhoppers, whiteflies, thrips, and certain beetle species. This active ingredient was priced at USD 17.17 thousand per metric ton in 2022. Malathion is the most affordable chemical among the insecticides. It was valued at USD 12.5 thousand per metric ton in 2022.
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