BASF, one of the largest chemical manufacturers, got approval for the fungicide, Revysol, for improved farm management. Revysol is the first isopropanol-azole that has been approved to be used in the European market. Revysol would be used for cereal crops, and the first usage of Revysol in cereal crops is expected by 2019–2020. Its usage would help the farmers in managing their farm more efficiently and in reducing weather-related risks. It also delivers higher and more consistent yields, which would maximize the income of the farmers.
MarketsandMarkets™ View Point:
Nagesh Manepalli - Head of Research : Food, Beverage, Animal Nutrition & Agriculture, at MarketsandMarkets™, shares his Point of View as mentioned below:
BASF was founded in 1865 and is headquartered in Ludwigshafen, Germany. The company manufactures various crop protection products under its agriculture segment. With the approval of Revysol and its consequent launch in the European market, where 50% of all the cultivated land is covered by cereal crops, the company is expected to have potential revenue surge in the coming years. Further, approval of Revysol would also provide momentum for approval and usage in other regions also such as Asia Pacific and America. Further, with lower product availability to address the problem of increasing resistance in crops, Revysol is expected to bring relief to the farmers of the European countries and steadily to the whole world with better and improved fight resistance against pathogens such as Septoria triciti and diseases such as rust in cereals crops. Moreover, strict government regulation regarding the usage of chemical pesticides is expected to fuel the demand for this product in Europe.
Impact of Product Launch:
BASF has introduced various products for crop protection. However, with the introduction of Revysol in the European market, it has expanded its product offerings to cater to the increased demand for an effective solution for protecting crops against fungi. Further, the availability of active ingredient in customized formulations would help the farmers in protecting their crops under various environmental conditions. The below figure shows the current market opportunity in the biopesticides market. It also showcases the growth rate and future opportunities in the market. China, India, and Australia are projected to be potential markets in the next five years.
FIGURE 1 BIOPESTICIDES MARKET SIZE, 2018 VS. 2023 (USD BILLION)
e - Estimated; p - Projected
Source: Company Website, Annual Reports, and MarketsandMarkets™ Analysis
Impact on Top Competitors:
Some of the major competitors in the biopesticides market include Bayer (Germany), Marrone Bio Innovations (US), Isagro (Italy), Valent BioSciences (US), and Certis (US), Koppert (Netherlands), Arysta LifeScience (US), BioWorks (US), Stockton Group (Israel), and Camson Bio Technologies (India).
BASF stands a chance to capture a small yet promising market share in this business, as a result of this product approval in Europe. The competitors would also witness an increase in the product offerings of the company, as it plans to expand Revysol application in crops such as oilseed rape, corn fruits, grapes, and vegetables.
The launch of Revysol is expected to have a profound impact on the visibility of BASF in Europe. The approval and launch are expected to help BASF to achieve a sale of around EUR 1 billion and expand in other regions as well. Increase in demand for organic food and growth in awareness about the harmful effects of chemical pesticides drive the demand for biopesticides.