Auxins Market - Forecast(2023 - 2028)

Auxins Market Overview

The global auxins market size is forecast to reach US$1.1 billion by 2027, after growing at a CAGR of 4.5% during 2022-2027. Globally, the increasing demand for auxins for the purpose of root initiation, cell enlargement, and bud formation is driving the market growth. Auxins along with cytokinins are used to control the growth of stems, roots, and fruits, and are also utilized for the promotion of the production of plant hormone. The growing demand for medicinal plants for herbal medicine at global level is on rise, which is also driving the market growth. Additionally, the growing organic food and textiles industries are focusing on increased organic food cultivation and cotton plantation, respectively, by utilizing auxins in natural and synthetic forms such as indole-3-acetic acid and naphthalene acetic acid (NAA), for increasing their yield. Owing to such factors, demand for auxins is expected to grow significantly over the forecast period.

COVID-19 Impact

The COVID-19 outbreak widely affected the textile, organic food, and herbal medicine industries over 2020. Owing to the nationwide lockdown, the production process of various plantations in these industries declined due to the non- availability of plant growth regulators such as auxins and cytokinins. Economies of each sector got affected and resulted in stagnation of activities across the sectors that use auxins. Business communities even faced several issues related to raw material shortage, labour shortage, temporary closure of operations, supply chain disturbance, and many more. However, the rising demand for herbal medicines and organic food emerged as a driving factor for the global auxins market during the challenging period.

Report Coverage

The report: “Auxins Market Report – Forecast (2022 - 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the auxins industry.

By Type: Natural (indole-3-acetic acid, 4-chloroindole-3-acetic acid, phenylacetic acid, indole-3-butyric acid, indole-3-propionic acid), Synthesized (Naphthalene acetic acid (NAA), 2, 4-dichlorophenoxyacetic (2, 4-D), Others), and Others
By Application: Cereals & Grains (Rice, Wheat, Maize, Sugarcane, Others), Fruits & Vegetables (Oilseed & Pulses, Sunflower, Soyabean, Ground nut, Others), Plantation Crops, Grasslands, and Others
By Geography: North America (U.S.A., Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East and Africa)

Key Takeaways

• The North American region dominates the global auxins market owing to the rising growth and increasing investments in the organic food industry. For instance, according to the Government of Canada, in 2022, the government announced an investment of up to US$103,400 for the Organic Federation of Canada to enable a new collaboration that will promote sustainability and growth for Canada's organics industry.
• Rapidly rising demand for global auxins to meet the growing demand for high-quality and quantity of crops has driven the growth of the global auxins market.
• The increasing demand for global auxins in textile sector, due to its usage in cotton production, has been a critical factor driving the growth of the global auxins market in the upcoming years.
• However, the usage of conventional agricultural products can hinder the growth of the global auxins market.

Figure: North America Auxins Market Revenue, 2021-2027 (US$ Billion)

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Auxins Market Segment Analysis – By Type

The natural segment held the largest share in the global auxins market in 2021. Natural auxins are found naturally in plants such as indole-3-acetic acid (IAA), indole butyric acid (IBA), phenylacetic acid, and others. NAA (naphthalene acetic acid) and 2, 4-D (2, 4-dichlorophenoxyacetic) are synthetic auxins. Both natural and synthetic auxins are used in agriculture, home gardening, horticulture, and plant science for the promotion of fruit setting, rooting, fruit-drop control, and fruit thinning. However, in many cases the natural plant hormone (IAA) is known to interact with the plant’s lipids strongly than its synthetic derivative (NAA). Thus, the rising need for natural auxins for plant growth regulation, is estimated to further drive the global auxins market over the forecast period.

Auxins Market Segment Analysis – By Application

The fruits and vegetables segment held the largest share in the global auxins market in 2021 and is expected to grow at a CAGR of 4.9% during 2022-2027. The rise in the demand for organic fruits and vegetables, changes towards the preference for healthy lifestyle and standard living, are driving the fruits and vegetables segment growth. Auxins are utilized in fruits and vegetables to prevent diseases, increase post-harvesting shelf life, and control ripening. Auxins and cytokinins are used to reduce pre-harvest losses by promoting plant productivity which increases yield with better quality produce. The rising growth of organic farming, will drive the auxins market growth. For instance, according to the Indian Brand Equity Foundation (IBEF), the Indian Organic Sector is forecasted to reach the Rs 75,000 crore (US$ 10.73 billion) by 2025 from Rs 2,700 crore (US$ 386.32 million) in 2015. Thus, with the growth of the organic fruits and vegetables segment, the market growth for global auxins will further rise over the forecast period.

Auxins Market Segment Analysis – By Geography

North American region dominated the global auxins market with a share of 38.7% in the year 2021. The North American region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for auxins in Canada and USA. Canada is expected to continue its dominance in the global auxins market during the forecast period. This is due to the growth of the organic food industry in the country. For instance, according to government of Canada, in 2021, the government invested up to US$297,330 for the Prairie Organic Development Fund (PODF) to enable farmers to adopt best practices in organic farming production. The demand for organics in Canada is increasing at a rate of 8.7% annually. Auxins are also applied in textile, herbal medicines and other sectors. They are used in agriculture and horticulture to promote the production of plant hormone. They are primarily used to help plants grow and also to stimulate plant cells to elongate. Thus, the increasing demand and growth in applicable sectors, will drive the global auxins market growth in the forecast period.

Auxins Market Drivers

Rising Demand for High-Quality and Quantity of Crops is Driving the Market Growth

Increasing population and income have led to rise in demand for high quantity and quality of crops. For instance, according to the United Nations, the world’s population is forecasted to rise by 2 billion persons in the next 30 years, from 7.7 billion in 2021, to 9.7 billion in 2050. Globally, farmers are increasing the crop production, either by increasing the agricultural land to grow crops or by improving the production of crops on existing agricultural lands, by using fertilizer, irrigation, and adopting new products such as plant growth regulators. Rising demand for freshly produced, high-quality crops have increased the demand for auxins, for enhancing the crop productivity. Auxins as plant hormones are used to protect crops and improve crop yield. The rising government initiatives for increasing the yield of high-quality crops, will drive the market growth. For instance, according to the Indian Brand Equity Foundation, in september 2021, the Union Ministry of Agriculture and Farmers’ Welfare signed five MoUs with CISCO, Ninjacart, Jio Platforms Limited, ITC Limited and NCDEX e-Markets Limited, in order to help farmers, make decisions on the kind of crops to grow, variety of seeds to use and best practices to adopt to maximise the yield. Thus, growing demand for high-quality and quantity of crops will drive the global auxins market.

Upsurge in the Cotton Production for the Textile Industry is Driving the Market Growth

The textile industry uses auxins as substitute for hazardous fertilizers that are applied in the production processes in textile industry. The industry utilizes more than 98 million tons of non-renewable resources annually, including fertilizers for cotton plantations for creating and finishing yarns and fabrics. Since, cotton is an important fibre for clothing therefore, its cultivation includes the usage of auxins. The increasing growth of cotton production for textile industry is driving the global auxins market growth. For instance, in 2021, according to the Indian Brand Equity Foundation (IBEF), cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by the increasing demand from consumers. Thus, the rising growth in cotton production for textile industry is estimated to drive the growth of the global auxins market.

Auxins Market Challenges

The Use of Conventional Agricultural Products Will Hamper the Market Growth

The rising usage and popularity of substitute such as fertilizers will continue to hamper the global auxins market growth. A number of farmers especially in the Asian countries, continue to practice the conventional agricultural technique, despite the popularity of auxins and also rely on conventional agricultural products in the form of fertilizers for plant growth promotion in order to increase the plantations and crops yield. According to Food and Agriculture Organization (FAO), world fertilizer demand has increased from 197.9 million tonnes in 2021 to 200.9 million tonnes in 2022. Thus, the usage of conventional agricultural products will hinder the market growth.

Auxins Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies players adopt in the global auxins markets. Global auxins top 10 companies include:

1) Crop Care Australasia Pty Ltd.
2) DuPont
3) Nufarm Ltd.
4) Redox Industries Limited
5) Xinyi (H.K.) Industrial Co. Ltd.
6) Sichuan Guoguang Agrochemical Co. Ltd.
7) BASF SE
8) Bayer Crop Science
9) Sumitomo Chemical Co., Ltd.
10) Dow Chemical

Recent Developments

• In April 2020, Sumitomo Chemical Co., Ltd. acquired South African subsidiaries of Nufarm Ltd. that are present in Brazil, Argentina, Chile and Colombia, to develop its own sales and development network to distribute plant growth regulator products in the region.

Relevant Reports

Plant Growth Regulators Market – Forecast (2022 - 2027)

Report Code: AGR 0011

India Plant Growth Regulators Market – Forecast (2022 - 2027)

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Cytokinins Market – Forecast (2022 - 2027)

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