L-Glufosinate Ammonium Market

Market Overview

Glufosinate is a naturally occurring herbicide that is produced by different species of soil bacteria. It is often sold as an ammonium salt and produced from phosphinic acid. Glufosinate ammonium is used globally on all types of crops and fruits. It has a wide variety of applications in agriculture and non-agriculture areas. The product is also used as a fungicide to protect crops against diseases. These benefits of L-glufosinate are expected to upsurge the growth of the market in the near future. It is an excellent alternative to conventional herbicides, such as glyphosate and paraquat. In addition, the development of genetically modified glufosinate-tolerant crops is expected to drive market growth.

The global l-glufosinate ammonium market is expected to grow at a CAGR of 8.0% during the forecast period, 2023–2031.

Market Dynamics

Manufacturing Process of L-glufosinate Ammonium

The technology of L-glufosinate ammonium is the main factor for the price and production of L-glufosinate ammonium.

L-glufosinate ammonium is manufactured by various methods, such as the Grignard-Straker method and the Bayer method. Most of the Chinese manufacturers use the Grignard-Straker method for the production of L-glufosinate ammonium. In the Grignard-Straker method, the raw materials used include phosphorus trichloride and triethyl phosphate. The average yield of this method is approximately 42%. This method involves 8 to 13 steps, and a large amount of waste-water is produced in this method.

The Bayer method, on the other hand, is more advanced. The average yield of this method is approximately 92%, and this method involves only three steps. The main raw material in this process is methyl phosphonic dichloride.

Weed Controlling Capabilities of L-glufosinate Ammonium to Drive the Market Growth

The growth of unwanted weeds during crop production has surged the demand for L-glufosinate ammonium. Other substitutes for L-glufosinate ammonium include paraquat and glyphosate. However, the farmers are dependent on L-glufosinate ammonium as it provides more protection and works on only the applied part of the weed.

Governments have banned the use of various herbicides for their toxic nature across the globe. As L-glufosinate ammonium is a chemical product, it has toxic effects on plants and animals. It should be carefully applied to unwanted plants or weeds as excessive exposure to it can impact crop growth.  Moreover, several governments, including China and Brazil, have banned the use of paraquat, glyphosate, and 2, 4-D. 

Increase in Demand For Genetically Modified (GM) Crops to Drive the Market

The demand for genetically modified crops is increasing, owing to their cost-effectiveness. Also, genetically modified crops have a longer shelf-life. Genetically modified crops grow faster with high productivity and yield. These crops reduce the need for environmentally harmful pesticides and insecticides. Genetically modified crops can produce more in a small area of land. These benefits of genetically modified crops are inclining consumers towards it. GM crops' increasing demand is driving the market, as L-glufosinate ammonium can be easily applied to GM crops.

L-Glufosinate Ammonium Market: Pricing Analysis

The price of glufosinate is increasing across the globe on account of its surging demand. The production is not meeting the demand, which is why the manufacturers are increasing the price of glufosinate. The limitation in supply has also increased the product price in recent times. In 2016, the glufosinate price was around 46 USD/Kg. In 2015, Bayer CropScience reduced the price of glufosinate to 23 USD/Kg, which was further reduced to 14 USD/Kg in late 2019. However, the COVID-19 outbreak and the disruption caused in the supply chain have surged the L-glufosinate prices across the globe.

Regional Analysis

India, China, and South Korea to Spearhead Asia-Pacific's Market Growth

Asia-Pacific's l-glufosinate ammonium market is largely driven by the increasing consumption and production of cereal and grains in the region. As per the Ministry of Food Processing Industries (MOFPI), India is the second-largest producer of food grains globally. The production of cereals and food grains in 2016–17 was 44.4 million tons and 273.4 million tons, respectively. India, China, and South Korea are the prime countries contributing to regional market growth. In India, around 70% of the population earns from the agricultural sector. The presence of various manufacturers of L-glufosinate ammonium in China and India strengthens the regional market growth.

Segmental Analysis

Aqueous Suspension Segment Dominates the L-Glufosinate Market

The aqueous suspension segment dominates the L-glufosinate market. The high productivity of the aqueous suspension is expected to drive its demand in the coming years. In terms of an aqueous suspension, it is used in half quantity compared to the liquid herbicide across the designated crop area. This is likely to favor the demand for aqueous suspension herbicides over other formulation types.

Cereals and Grain Segment to Witness Significant Growth during the Forecast Period

The demand for the L-glufosinate is high in the cereals and grains crop segment. Among all crop types, cereals and grains contribute most to the human supply, and the production of these crops is higher than other crops. Rice, wheat, maize, and pulses are the most grown crops across the globe, further driving the market growth.