Procurement News Notice |
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| PNN | 618 |
| Work Detail | The global market for piperonyl butoxide (PBO) is rather consolidated and is primarily driven by the ever increasing demand for food. The rapid increase in the global population has raised food security concerns and several underdeveloped and developing countries still lack proper infrastructure for the storage and distribution of food grains. A significant rise in yield is possible through the usage of crop protection chemicals such as insecticides. This has resulted in the high demand for piperonyl butoxide. In terms of revenue, the piperonyl butoxide market was valued at US$10.02 mn in 2015 and is projected to reach US$15.45 mn by 2024, expanding at a steady CAGR of 5.0% from 2016 to 2024. The demand for PBO, on the other hand, is likely to increase at a CAGR of 3.9% during the forecast period. The piperonyl butoxide (PBO) market in Asia Pacific is moderately consolidated, with the top three manufacturers - ENDURA P.IVA, Wujiang Shuguang Chemical Co., Ltd., and Sumitomo Chemical Co. Ltd. - accounting for a 38.0% share in the market in 2015. Transparency Market Research has observed that the dynamics of the market are mainly dependent on long term contracts and the goodwill of companies. Large-scale manufacturers of piperonyl butoxide with integrated operations possess a competitive advantage owing to easy access to raw materials and protection from volatility in the prices of raw materials. India and China present the most lucrative investment options for players in the PBO market and companies have been focusing their resources in expanding business operations and production capacities in these two countries. A case in point would be ENDURA P.IVA. The company has been collaborating with several China-based and India-based companies to expand its footprint in Asia Pacific. In 2014, the company invested US$8 mn in Solex Chemicals Private Ltd., an India-based company, to manufacture chemicals used in the production of insecticides. Loss of Crops Owing to Pests and Insects Spurs Demand for Piperonyl Butoxide "An increasing threat of pest infestation and a subsequent rise in the adoption of pesticides and insecticides are the primary factors driving the piperonyl butoxide market in Asia Pacific," the author of the study reports. TMR has found that every year, an estimated 25% of the total crop production is lost due to the damage caused by insects and pests in Asia Pacific. The climatic conditions in the region are extremely conducive for insects to thrive in, especially in the tropical and sub-tropical regions. This has spurred the demand for crop protection chemicals, consequently driving the piperonyl butoxide market. Availability of Low-price Insecticides Threatens Growth The prices of insecticides that contain piperonyl butoxide are much higher than those of traditional insecticides such as organophosphate, organochlorine, benzoylurea, and organosulfur. Farmers primarily use low-price insecticides as they are just as effective in eliminating pests. This use of traditional insecticides is likely to impede the piperonyl butoxide market in Asia Pacific during the forecast period. The various challenges and complexities in producing piperonyl butoxide are also anticipated to hamper the growth of the market, TMR finds. |
| Country | United States , Northern America |
| Industry | Chemicals & Fertilizer |
| Entry Date | 02 Sep 2016 |
| Source | http://www.prnewswire.com/news-releases/piperonyl-butoxide-pbo-market-is-anticipated-to-reach-us1545-million-by-2024-at-cagr-of-50-from-2016-to-2024---asia-pacific-industry-analysis-size-share-growth-trends-and-forecast-2016---2024-tmr-591579121.html |
