Agrow Non-Crop Pesticides 2013 Chapter 1. Table 1.1. Categories of biocides recognised under the EU Biocidal Products Regulation 528/2012

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1 Agrow Non-Crop Pesticides 2013 Chapter 1 Table 1.1. Categories of biocides recognised under the EU Biocidal Products Regulation 528/2012 Disinfectants Preservatives Pest control Other biocides Human hygiene use (skin or scalp) Use in storage of non food/cosmetics/medicines (eg pesticides) Rodenticides Antifouling products Products not for direct application to humans or animal (eg use in buildings, materials, swimming pools) Film preservatives (eg paints and other coatings) Avicides Veterinary hygiene use Wood preservatives Molluscicides, vermicides and other products to control invertebrates Food and feed equipment and area use Drinking water use Fibre, leather, rubber and polymer preservatives Use in construction material Use in liquid coolants Slimicides Piscicides Insecticides, acaricides and other products to control arthropods Repellents and attractants Use in cutting fluids Control of other vertebrates Embalming and taxidermist fluids USA In the USA, pesticides are subject to registration requirements under the EPA s Federal Insecticide, Fungicide and Rodenticide Act (FIFRA). Based on product application, the Food & Drug Administration (FDA) may have jurisdiction over certain antimicrobial products. The EPA position on pesticides is explained here and here. In the US, the EPA categories pesticide use patterns into 12 types: Commodity Analysis 2013 Informa UK 15

2 Agrow Non-Crop Pesticides 2013 Chapter 2 2. Non-crop pesticide markets 2.1 Summary The global non-crop pesticides market is valued at around 12.5% of the total pesticide market, being worth over $6 billion (ex-manufacturer) in Market sectors for products in descending order of value (end-user) are: Home & Garden, Turf & Ornamentals, Pest Control Operations, Industrial Vegetation Management, Forestry, Public Heath, Aquatic. Another medium sized sector is timber preservation. The US is by far the largest geographic market sector. 2.2 Introduction The overall market for non-crop pesticides in terms of its value and various sectors is described in this chapter. Having considered the various published market segmentations, a set of sectors is defined and these are used consistently throughout the rest of this report, as far as possible. These are Aquatic, Forestry, Home & Garden, Pest Control Operations, Public Health, Timber Preservation and Turf & Ornamentals. The key drivers for growth, factors affecting variability and uncertainty, and some particular features of the market are discussed. 2.3 Overall market value Sales of non-crop pesticides represent a significant portion of the overall market for pesticide agrochemicals. However, the value chain from manufacturers to the end-users of non-crop products reaches either to consumers or to professional applicator companies who also offer services. This adds a lot of downstream value. Therefore, when separate estimates of the values of the market and of the total agrochemicals market are compared, it is important to recognise the level at which a valuation is made, eg manufacturer, distributor, retailer. Phillips MacDougall valued the total global pesticides market at $50,305 million in 2011 (sales by manufacturers), of which $6,290 million was contributed by non-crop pesticides (12.5%). Over the past decade, the value of the crop sector has increased faster than that of the non-crop sector (Fig. 2.1). Commodity Analysis 2013 Informa UK 17

3 Chapter 2 Agrow s Non-Crop Pesticides 2013 Sales ($ million) Crop Non-Crop Figure 2.1. Value of pesticides in crop and non-crop markets at the distributor level in 2011 Source: Phillips MacDougal, Another recent valuation of the 2011 non-crop market by GfK Kynetec, but made at the end-user level, put the overall market value at more that $21,000 million. This indicates the scope for adding downstream value where branding is important to differentiation, pack-sizes are small and there is a great deal of potential for innovative ready-to-use formulations and combined packs and applicators. Geographic markets are overwhelmingly dominated by N. America, in particular the US (Table 2.1). GfK Kynetec estimated that the per capita annual spend on non-crop pesticides in Canada is $26, compared to the global average of around $3. Japan is another high spending country at $19 per capita. In Europe, a typical annual spend is around $10 per capita. In 2010, the Chinese market for non-crop pesticides was valued at almost $2 billion, according to a recent survey by CCM. Glyphosate and paraquat are the most popular herbicides for non-crop use, with values of $20.73 million and $10.98 million in 2009, respectively, and gibberellic acid is the most widely used PGR, according to CCM. Seasonal and ornamental crops, turf and forestry are the largest market segments for non-crop fungicides. Chlorothalonil, carbendazim and mancozeb are the best selling fungicides for non-crop use in China, accounting for 32% overall share. Pyrethroids comprise the largest class of insecticides capturing over 70% share of the total non-crop insecticide market. Important drivers of growth in non-crop pesticide markets are: Urbanisation Quality of life priorities, eg concern for public/family health (greater public awareness of problems/threats eg West Nile Virus, hantavirus) Leisure time Some factors that introduce variability into particular market sectors are: Disposable income 18 Commodity Analysis 2013 Informa UK

4 Agrow Non-Crop Pesticides 2013 Chapter 2 Weather (eg for gardening) Housing market Key features of non-crop markets in general include: Product proliferation Rise of generics Pest resistance Interest in biopesticides and other natural products 2.4 Market segmentation Markets for non-crop pesticides can be described by sectors based on users, distribution channels, entities to be protected or targets for control; and they can be defined geographically. There are, therefore, many different ways in which the total market can be segmented. The market intelligence company AIS described the market as comprising 45 different sectors and these were the basis for the 2007 Agrow Report on Noncrop Pesticides. Clearly, some simplification is necessary and various different segmentations of the overall market have been defined. However, these have been made from various perspectives and when attempting to overview the whole market it is often impossible to make consistent, relevant and concurrent comparisons. Nevertheless, based on the more commonly used market sectors and on the information available as to their value, a set has been defined for the purposes of this report. The segments together with a summary of collated information as to their values are summarised in Table 2.1. Table 2.1. Overview of non-crop pesticide market sectors and their values Sector Value (US $ million end-user level) Aquatic 26 (US 68%) N/A Forestry 286 (US 33%) 420 Industrial Vegetation Management 305 (US 61%) 630 Home & Garden 5,496 (US 55%) 13,860 Pest Control Operations 682 (US 53%) 1,260 Public Health 242 (US 27%) 420 Timber Preservation 476 (US 63%) 1,470 Turf & Ornamentals 1,271 Turf: 812 (US 75%) Ornamentals: 459 (US 36%) Source: 2003 AIS, reported in Agrow Non-crop Pesticides 2007; GfK Kynetec N/A = Not available 2,940 Turf: 1,680 Ornamentals: 1,260 Commodity Analysis 2013 Informa UK 19

5 Chapter 2 Agrow s Non-Crop Pesticides 2013 The more recent end-user market sector values estimated by GfK Kynetec are also shown in Fig 2.2. Figure global noncrop pesticide markets (end- use level) Source: GfK Kynetec (2011) A number of other segments are sometimes used. For example, amongst the agrochemical majors, only Syngenta reports its financial results broken-down by sector, and it uses the term lawn and garden. Others include amenity, build-environment, farm hygiene, and pet care. 2.5 Market sectors In this section, each main market sector for non-crop pesticides as used in this report is described. Where applicable, the various relationships between sectors are pointed out. These often result in some blurring between them. Various sub-sectors are also described. Making side-by-side and like-for-like comparisons is virtually impossible without a complete bottom-up market survey. However, each discrete sector is described as carefully as possible and in relation to others Aquatic The aquatic sector can be split into sub-sectors covering applications made in the water or on the banks of water bodies. It covers the use of herbicides to control weed growth in and along rivers, canals, irrigation ditches, and ponds and lakes. Weeds can impede access and block waterways, restricting passage, slowing drainage or causing flooding, and affecting fish and other wildlife. Often the problem is caused by invasive exotic species and control must not be at the expense of the native flora and must be applied with due regard to all biodiversity. This, and the fact that access for treatment is often difficult, makes for complex control programmes in which pesticides may be used alongside other methods such as cutting and dredging. Home & Garden Turf Timber Pest Control Operations Ornamentals Industrial Forestry Public Health Specialty Products Consultants (SPC) have stated that US Government and private applicators spent nearly $120 million at the manufacturer level on aquatic herbicides and algaecides in They note that there is a critical need for new herbicides to control aquatic weeds in the US because resistance is becoming a major problem. Resistance or reduced susceptibility to the herbicides, 2,4-D, diquat and endothall have been documented in recent years. The expansion of fluridone and endothall resistant hydrilla (Hydrilla verticillata), in particular, is expected to create opportunities for existing products, as well as for new products, SPC points out Commodity Analysis 2013 Informa UK

6 Agrow Non-Crop Pesticides 2013 Chapter Arysta Arysta is a medium-sized, largely generic agrochemical company, which also specialises in niche proprietary active ingredients. In the non-crop sector, the company is particularly focused on turf in the US with a small range of herbicide, fungicide and insecticide products (Tables ). Table 3.3. Arysta s herbicide portfolio Active Ingredient Products Sectors Key Targets and Features Amicarbazone Xonerate Turf Controls Poa annua and a range of BLW Table 3.4. Arysta s fungicide portfolio Active Ingredient Products Sectors Key Targets and Features Polyoxin-D zinc Endorse Turf Controls turf diseases, including both basal and foliar anthracnose, brown patch, fairy ring, red thread and other leaf spots, snow moulds and zoysia patch (Rhizoctonia solani) Fluoxastrobin Disarm Turf, Controls all major turf grass diseases, including ornamentals anthracnose, brown patch, zoysia patch, summer Disarm C (+ chlorothalonil) Mycobutanil adds preventative and curative Disarm M (+ myclobutanil) Table 3.5. Arysta s insecticide portfolio patch, grey leaf spot, and Pythium spp. control by a different mode of action Chlorothalonil adds contact activity Active Ingredient Products Sectors Key Targets and Features Clothianidin + bifenthrin Aloft Turf Provides fast knockdown and systemic seasonlong control of all major turf grass insects and surface-feeding pests, including white grubs and red imported fire ants. Commodity Analysis 2013 Informa UK 29

7 Agrow Non-Crop Pesticides 2013 Chapter 3 One of Bayer s newer active ingredients is the alkylazine herbicide indaziflam (Specticle, Marengo). First registered in the US in 2010, it is a residual herbicide applied pre-emergence or early post-emergence to control weeds including crabgrass (Digitaria spp.), goosegrass (Eleusine indica), annual bluegrass (Poa annua) and many other grasses and BLW. Indaziflam is selective to warm season turf grasses including bermudagrass (non over-seeded), zoysia grass, St Augustine grass, centipede grass, and seashore paspalum. Application rates of g ai/ha are recommended as a single or split treatment in spring, summer or autumn. The target markets are in Turf & Ornamentals and IVM. Bayer forecasts peak global annual sales of products based on indaziflam as approaching $200 million. Indaziflam Bayer has a very comprehensive range of non-crop products, focused largely on the Turf & Ornamentals market and on golf in particular. Important herbicides include older products such as those containing fops (ACC-ase inhibitor grass weed killers) and several sulfonylureas, to Specticle and Marengo, which contain the recently registered active ingredient indaziflam. The fungicide range covers a variety of chemistries representing triazoles and strobilurins, together with older actives such as chlorothalonil and iprodione. Mainstays of the insecticide range include the neonicotinoid imidocloprid and the pyrethroid deltamethrin. The PGR ethephon is sold into golf markets as Proxy. There are also biopesticides based on Bacillus thuringiensis (Bt) used in public health and B. firmus for the control of nematodes. Bayer s product portfolio is covered in Tables Commodity Analysis 2013 Informa UK 35

8 Chapter 3 Agrow s Non-Crop Pesticides 2013 Table FMC s insecticide portfolio Active Ingredient Products Sectors Key Targets and Features Bifenthrin Baseline, Onyx, Talstar (several formulations) Talstar XTRA (+zetacypermethrin) Transport (various brands and formulations) (+ acetamiprid) Fungus gnat larvae, mealybugs, weevil larvae, white grubs, ants Zeta-cypermethrin adds accelerated knockdown and kill Acetamiprid adds fast speed of kill Deltamethrin D-Force, D-Foam 8 weeks residual control of pests in cracks and crevices, including ants, bed bugs, termites and cockroaches Disodium octaborate tetrahydrate Esfenvalerate Mop-up Controls cockroaches, waterbugs, palmettobugs, ants and silverfish though contact then grooming and consumption IGR fogger, fogger Flonicamid Aria Nursery ornamentals Geraniol 3 Orthoboric acid Permethrin Topia (+ cedar oil + sodium lauryl sulphate) Borid, Drax (various formulations) Astro, Dragnet SFR Control of cockroaches, fleas, flying and crawling insects in confined spaces by fogging Contact and ingestion control of aphids, thrips, whiteflies, leafhoppers, mealybugs, stinkbugs Organic, low odour control of household pests: bedbugs, crawling insects, ants, termites, fleas, spiders, flying insects Dust treatment against crawling insects, eg cockroaches, ants and silverfish Termites Propoxur Invader Fast knockdown and residual control of cockroaches, spiders, ants and beetles in food handling areas Pyrethrins + piperonyl butoxide synergist Purge III, CB 123 Extra, and other brands Kills and repels flies, mosquitoes, gnats and small moths Sulfuramid FirstLine GT Plus bait station Termites Zeta-cypermethin Cynoff (various formulations) Fast kill and long lasting residual effect on ants and stinging insects 48 Commodity Analysis 2013 Informa UK

9 Chapter 3 Agrow s Non-Crop Pesticides 2013 In 2013, Syngenta and DuPont agreed access to new fungicides developed by each other. Syngenta will develop products based on DuPont s oxathiapiprolin for global markets including lawn and garden. Oxathiapiprolin comes from the piperidinyl thiazole isoxazoline class of chemistry. DuPont has exclusive access to Syngenta s benzovindiflupyr (Solatenol) for use in mixtures for crops in Brazil. Syngenta has applied to register benzovindiflupyr alone and in combination with azoxystrobin, difenoconazole and propiconazole for use on turf, ornamentals and food crops in the US. Oxathiapiprolin Benzovindiflupyr 64 Commodity Analysis 2013 Informa UK

10 Agrow Non-Crop Pesticides 2013 Chapter Valent Valent USA Corporation is a wholly owned subsidiary of Sumitomo Chemical Company Ltd, based in California, USA. In 2009, Valent USA Corporation and Valent BioSciences Corporation, formerly a unit of Abbott Laboratories, became aligned under common leadership. In spring 2013, the US EPA approved Valent s new fungicide fenpyrazamine (V-10135) for uses including on ornamentals. Valent have added lawn and golf course use in the US to the markets for SureGuard herbicide (flumioxazin). The product has been well established for use on trees, shrubs and ornamentals for nearly 10 years. A single late-season application on dormant Bermudagrass provides season-long control of weeds including goosegrass (Eleusine indica), crabgrass (Digitaria spp.). Fenpyrazamine In 2012, it was announced that Valent would sell its Green Light garden pesticides business to Scott s Miracle-Gro. Valent will supply Scott s with products for the lawn and garden sector. Later in the year the US EPA announced that Valent BioSciences had applied to cancel all registrations of their allethrin pyrethroid insecticides. These include bioallethin, d-allethrin, esbiol and esbiothrin. They are used for the control of flying and crawling insects in commercial and residential applications. Sumitomo, through Valent, is the sole US registrant. Valent s portfolios of herbicides, fungicides and insecticides are presented in Tables , respectively. Commodity Analysis 2013 Informa UK 69

11 Chapter 4 Agrow s Non-Crop Pesticides 2013 Bayer herbicides Active ingredient Preemergence Postemergence Grasses BLW Residual effect Dicamba Diclofop-methyl Ethofumasate Fenoxyprop-ethyl Foramsulfuron Indaziflam Metribuzin Oxidiazon Syngenta herbicides Active ingredient Preemergencemergence effect Post- Grasses BLW Residual Mesotrione Prodiamine S-metolachlor Simazine Trifloxysulfuron 80 Commodity Analysis 2013 Informa UK

12 Agrow Non-Crop Pesticides 2013 Chapter 7 Table 7.1. PGRs used in Turf & Ornamentals Active Ingredient Leading brands Class/Mode of action Uses Ancymidol A-Rest Gibberellin biosynthesis inhibitor Retardant for ornamentals Chlormequat (CCC) Cycocel Gibberellin biosynthesis inhibitor Retardant for ornamentals Daminozide B-Nine, Dazide Gibberellin biosynthesis inhibitor Retardant for ornamentals Dikegulac-sodium Atrimemec Uncertain Enhances the appearance of ornamentals by promoting branching, creating a fuller, more compact shape while reducing trimming and pruning; for chemical 'pinching' of flowering plants Ethephon Ethrel, Proxy Ethylene generator Turf for reduction of mowing frequency, creates a denser sward with suppression of seedheads of Poa annua and white clover etc; flowering effects on ornamentals Mefluidide Embark Uncertain Supression of seedheads and vegetative growth; reduced frequency of mowing; reduced trimming of ornamentals Paclobutrazol Bonzi (ornamentals) Trimmit (turf) Gibberellin biosynthesis inhibitor Trinexapac-ethyl Primo Maxx Gibberellin biosynthesis inhibitor Uniconazole Sumagic Gibberellin biosynthesis inhibitor Root absorbed PGR slowing vegetative growth to reduce frequency of mowing, increase greenness and create more compact, sturdy plants Slows vegetative growth to reduce frequency of mowing, increases greenness, increases tolerance to drought Root absorbed PGR slowing vegetative growth to reduce frequency of mowing, increase greenness and create more compact, sturdy plants Commodity Analysis 2013 Informa UK 105