L-Glufosinate Ammonium Market

Market Overview

The global L-glufosinate ammonium market was valued at USD 450.53 billion in 2023. It is estimated to reach USD 900.61 billion by 2032, growing at a CAGR of 8.0% during the forecast period (2024–2032). Several key factors have contributed to the recent growth in the L-Glufosinate Ammonium market. The surging use of genetically modified crops that are resistant to L-Glufosinate Ammonium has boosted demand for the herbicide. Furthermore, with rising environmental concerns, there has been a shift towards the adoption of bio-based herbicides, which is estimated to create opportunities for global market growth.

L-Glufosinate Ammonium is a broad-spectrum herbicide used primarily to control weeds in several agricultural and non-agricultural settings. It works by inhibiting an enzyme involved in the synthesis of glutamine, an essential amino acid in plants, leading to the rapid desiccation and death of treated weeds. Chemically, it consists of the active ingredient glufosinate ammonium, which is highly effective against a wide range of annual and perennial weeds, including those resistant to other herbicides.

This herbicide is notable for its non-selective action, meaning it can affect a broad spectrum of plant species, making it versatile for weed control in fields, orchards, vineyards, and non-crop areas like roadsides and industrial sites. L-Glufosinate Ammonium is formulated for application in liquid or granular form, allowing for both foliar and soil application methods. Due to its mode of action and efficacy, it is widely utilized in integrated weed management strategies globally, contributing to sustainable agricultural practices by reducing reliance on more environmentally harmful herbicides.

Highlights

• Genetically Modified (GM) Crops dominate the crop type segment.
• Liquid dominates the form segment.
• Agriculture dominates the application segment.
• North America is the highest shareholder in the global market.

Market Dynamics

Market Drivers

Growing Use of Genetically Modified (GM) Crops Resistant to Herbicide

One of the primary drivers propelling the global L-Glufosinate Ammonium market is the increasing adoption of genetically modified (GM) crops engineered to withstand this herbicide. The development of glufosinate-resistant crops, such as Liberty Link soybeans, corn, and cotton, has significantly boosted the utilization of L-Glufosinate Ammonium as a versatile weed management solution. These crops have been genetically altered to tolerate the herbicidal effects of glufosinate, allowing farmers to enhance weed control while minimizing crop damage.

According to the International Service for the Acquisition of Agri-biotech Applications (ISAAA), the global cultivation area of herbicide-resistant biotech crops, including glufosinate-resistant varieties, reached 98.9 million hectares in 2019, constituting approximately 28% of the total biotech crop area worldwide. This adoption not only improves agricultural productivity and supports sustainable farming practices by reducing herbicide applications and promoting conservation tillage but also meets the escalating demand for food production. Consequently, the demand for L-Glufosinate Ammonium is expected to continue growing robustly as farmers seek effective solutions for efficient weed management and higher crop yields.

Market Restraint

Growing Environmental and Health Concerns and Regulations

The use of herbicides, including L-Glufosinate Ammonium, faces escalating scrutiny and regulatory constraints due to significant concerns over their impact on non-target organisms, soil integrity, and water quality. Public apprehensions about long-term herbicide residues in ecosystems and potential human health risks have intensified, prompting stringent regulations and restrictions globally. Increasing consumer demand for chemical-free and environmentally sustainable food products further limits the market for synthetic herbicides like L-Glufosinate Ammonium.

Countries like those within the European Union enforce rigorous regulatory frameworks, like Regulation (EC) No 1107/2009, mandating thorough risk assessments and restricting pesticide usage to safeguard human health and the environment. Moreover, resistance and legal challenges against genetically modified crops engineered for herbicide resistance, including glufosinate, have led to bans or stringent controls on their cultivation, reducing demand for L-Glufosinate Ammonium in affected markets. This evolving landscape underscores a broader shift towards sustainable and organic farming practices, significantly restraining the growth prospects of the L-Glufosinate Ammonium market amidst heightened environmental and health concerns and regulatory pressures.

Market Opportunities

Shift towards Bio-based Herbicides

The shift towards bio-based herbicides presents a significant opportunity for the L-Glufosinate Ammonium market. As consumers and regulatory bodies increasingly prioritize sustainability and environmental safety, bio-based herbicides like those containing L-Glufosinate Ammonium are gaining traction. These herbicides are derived from natural sources and often offer lower environmental impact compared to conventional chemical alternatives. The bio-based nature of L-Glufosinate Ammonium aligns with global trends towards sustainable agriculture and organic farming practices, driving demand among environmentally conscious farmers and agricultural producers.

Moreover, bio-based herbicides are perceived as safer for human health and wildlife, further boosting their appeal. To capitalize on this opportunity, manufacturers can emphasize the eco-friendly attributes of L-Glufosinate Ammonium, invest in research to enhance its efficacy and safety profiles and collaborate with certification bodies to ensure compliance with stringent organic farming standards globally. This strategic focus can position L-Glufosinate Ammonium as a preferred choice in the evolving landscape of sustainable agriculture.

Regional Analysis

North America Dominates the Global Market

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America commands a dominant position in the global L-Glufosinate Ammonium market, poised for substantial expansion throughout the forecast period. This leadership is underpinned by the region's extensive adoption of genetically modified (GM) crops, particularly those engineered to tolerate glufosinate-based herbicides. According to the United States Department of Agriculture (USDA), herbicide-resistant crops are widely cultivated, with adoption rates reaching 94% for soybeans, 92% for cotton, and 89% for corn as of 2022. Additionally, a significant proportion of these crops are specifically engineered to resist glufosinate, thereby driving up the demand for L-Glufosinate Ammonium herbicides. Furthermore, in 2019, the International Service for the Acquisition of Agri-biotech Applications (ISAAA) reported that the United States alone planted 71.5 million hectares of biotech crops, including glufosinate-resistant varieties, representing 39% of the global biotech crop area. This underscores the United States' pivotal role in GM crop adoption and, consequently, in the utilization of complementary herbicides like L-Glufosinate Ammonium.

Moreover, key industry players such as Bayer CropScience and BASF contribute significantly to North America's market dominance. These companies have made substantial investments in research and development to develop and promote glufosinate-based herbicides tailored for the North American market. Their robust distribution networks and strategic alliances with regional agricultural retailers and suppliers further bolster their market presence and stimulate overall market growth. Also, North America's supremacy in the L-Glufosinate Ammonium market is reinforced by its favorable regulatory environment, advanced agricultural practices, and strong infrastructure supporting biotechnology adoption. These factors collectively position North America as a leader in driving the expansion and innovation within the global L-Glufosinate Ammonium market landscape.

Latin America plays a significant role in the global L-Glufosinate Ammonium market, driven by the widespread adoption of genetically modified (GM) crops, particularly glufosinate-resistant varieties. In Argentina, a leading soybean producer, glufosinate-resistant soybeans accounted for an impressive 64% of the 2021/2022 planting season, according to the Ministry of Agriculture. Similarly, in Brazil, the world's second-largest soybean producer, approximately 25% of the soybean area planted in 2021 utilized glufosinate-resistant varieties, as reported by ABRASEM. These adoption rates underscore the region's commitment to enhancing agricultural productivity through effective weed management solutions like L-Glufosinate Ammonium herbicides.

Latin America's strategic position is bolstered by initiatives promoting sustainable agricultural practices, supported notably by the Inter-American Institute for Cooperation on Agriculture. This support not only facilitates widespread adoption but also underscores the region's pivotal role in global agricultural innovation. As Latin America continues to leverage these advancements, it consolidates its influence in the global market, offering robust growth opportunities for L-Glufosinate Ammonium manufacturers and stakeholders. This dynamic landscape positions Latin America as a key player, contributing significantly to the evolving dynamics of the global L-Glufosinate Ammonium market.

Segmental Analysis

The global market is bifurcated into crop type, form, and applications.

Based on crop type, the market is segmented into genetically modified (GM) crops and non-GM crops.

The Genetically Modified (GM) Crops segment dominates the Global L-Glufosinate Ammonium market, owing to the growing adoption of glufosinate-resistant crop varieties. Glufosinate-resistant GM crops, also known as Liberty Link crops, have been engineered to withstand the herbicidal effects of glufosinate, the active ingredient in L-Glufosinate Ammonium. This genetic modification enables farmers to use glufosinate-based herbicides for effective weed control without harming the crop itself. The introduction of glufosinate-resistant genetically modified crops has transformed weed management practices in modern agriculture. This trait has been developed in major crops such as soybeans, corn, cotton, and canola, giving farmers a valuable tool for weed control while minimizing crop losses and increasing yields. The benefits that GM Crops provide to farmers contribute to their dominance in the L-Glufosinate Ammonium market. These crops offer a more efficient and targeted approach to weed control, reducing the need for multiple herbicide applications while also encouraging sustainable agricultural practices such as no-till or conservation tillage. Furthermore, the development of stacked-trait GM crops, which combine glufosinate resistance with other desirable traits such as insect resistance or drought tolerance, has increased demand for L-Glufosinate Ammonium in this market.

Based on form, the market is segmented into Liquid and Dry.

The liquid form of L-Glufosinate Ammonium dominates the global market in terms of form segmentation. Liquid formulations of L-Glufosinate Ammonium are popular among farmers and agricultural professionals due to their ease of application and better absorption by plant foliage. These formulations typically contain the active ingredient glufosinate in a concentrated liquid solution, which is frequently combined with adjuvants and other inert ingredients to improve their performance and stability. Several factors contribute to the liquid formulation's dominance in the global L-Glufosinate Ammonium market. Liquid L-Glufosinate Ammonium is easily absorbed by plant leaves and stems, resulting in effective herbicide translocation and weed control. Additionally, the Liquid formulation's efficient absorption contributes to its superior performance in weed management. Liquid formulations can be easily mixed with water and applied with traditional spraying equipment, making them a convenient option for farmers in various crop settings. Furthermore, the liquid form of L-Glufosinate Ammonium can be combined with other liquid herbicides, insecticides, or fertilizers in tank mixes for more efficient and cost-effective applications. Also, the liquid form of L-Glufosinate Ammonium has traditionally been used, and its dominance in the global market is supported by established distribution channels and infrastructure among agricultural input suppliers and retailers.

Based on applications, the market is bifurcated into agriculture, forestry, and non-agricultural.

The agriculture segment dominates the L-Glufosinate Ammonium market in terms of applications, owing to the herbicide's widespread use in various crop production systems. Several key factors contribute to agriculture's dominant position in the L-Glufosinate Ammonium market. For starters, the growing global population and subsequent demand for food and feed have necessitated higher crop yields, necessitating the use of effective weed management solutions such as L-Glufosinate Ammonium to ensure maximum crop productivity. Second, L-Glufosinate Ammonium is a viable option for farmers using sustainable farming practices like conservation tillage or no-till farming because it reduces the need for intensive mechanical weed control methods. Furthermore, major agribiotech companies are constantly diversifying their portfolios by developing new glufosinate-resistant crop varieties, which expands the market opportunities for L-Glufosinate Ammonium in agriculture. These factors all contribute to agriculture's dominance in the L-Glufosinate Ammonium market.

Recent Developments

• June 2024- BASF and Encina Development Group, LLC (Encina), a manufacturer of ISCC PLUS certified circular chemicals, have signed a long-term supply agreement for chemically recycled circular benzene that is derived from post-consumer end-of-life plastics.
• June 2024- BASF aims to utilize the bacterium Basfia succiniciproducens to convert sugar and carbon dioxide into fumaric acid, a crucial compound in chemical manufacturing. In pursuit of this objective, the company is engaging in a collaborative research initiative called FUMBIO (FUMarsäure BIObasiert) with Saarland University, University of Marburg, and the University of Kaiserslautern-Landau.