Market Trends of North America Acaricides Industry
This section covers the major market trends shaping the North America Acaricides Market according to our research experts:
Need For Increasing Agricultural Productivity
Agricultural production is likely to grow in two-folds, over the next few years, in order to meet the demand from the growing population, which, in turn, increases the usage of acaricides. According to the Food and Agriculture Organization (FAO), the arable land in the United States is decreasing significantly from 902,680 acres in 2016 to 897,400 acres in 2019. The need to feed an ever-growing population, decreasing arable land, and increasing demand for sustainable agricultural practices, are some of the major drivers for the increasing demand of acaricides. Certainly, technology is expected to play a major role in the manufacturing of acaricide products. An increase in urbanization and less availability of arable land is motivating farmers to adopt efficient crop-protection techniques. There are a broader acceptance and recognition of the increasing benefits of acaricides. With the steep decline in the per capita arable land, contrasting to the rising population, the crop yields must be increased to meet the increasing food demand in the region. Owing to the above factor, an increase in demand for acaricides products and agricultural production is being witnessed.
Raising Demand For Bio-based Acaricides
Acaricides, because of their harmful effects on the environment are being used in a limited quantity in the region. Acaricides because of the safety concerns and increased organic land has led to the development of organic or biobased acaricides like "ESTEN 80" a bio-based acaricide developed by the TENSAC (AR), a South American company, is a fatty acid derivative from vegetable oil and sucrose. The biodegradable property and safety advantage gains more popularity for such products in a region that is more supportive of organic farming. According to FiBL a Research Institute of Organic Agriculture, organic farming has gained prominence as an alternative farming system in North American agriculture, with the area under organic farming increasing to 3,335.1 thousand ha in 2018, as compared to 3,223.0 thousand ha in 2017 and 3,130.3 thousand ha in 2016. The region represents approximately 40.0% of the total demand generated for bio-based pesticides like acaricides across the world. Moreover, as per CropLife America, it takes nearly 10-12 years and an investment of USD 300.0 million for developing a chemical pesticide. On the contrary, a bio-based pesticide/Acaricide can enter the market in 3-5 years, with roughly USD 3.0-5.0 million development cost.
