Source: Kynetec news release
Kynetec’s Dr Nomman Ahmed recently presented “Development Trends and Prospects of the Global Agrochemical Market” at the 2024 China Pesticide Exporting Workshop (CPEW) in Hangzhou, China.
Dr Ahmed, Executive Director, Global Practice Advanced Analytics & sigma at Kynetec says “The global crop protection market is dynamic as ever. Presenting at CPEW allowed us to share the latest trends and market drivers, as well as market dynamics and industry analysis with upstream clients and highlight opportunities for them in the micro-downstream segment of the market (the farmer). The event is an excellent opportunity to showcase and share industry knowledge with a diverse group of decision makers in the agrochemical space and also gain crucial insights from their sourcing perspective.”
Key takeaways from the session include:
Global Crop Protection Trends and Market Drivers
โขFuture growth prospects: crop protection market forecasts indicate shorter recovery time and a growth momentum post 2024, mainly driven by a halt to the price declines that have been observed for the last 15 months
โขRegional outlook (APAC, LATAM, EMEA, North America): CAGR growth/decline regional variation +5% to -1%
โขMarket drivers: commodity prices projected to trend lower for all major crops over the next decade. Nomman also shared the impact of crop area projections & productivity; oil, ethanol & fertilizer prices; freight index; agricultural policy; GMO adoption as market drivers
Trade, price and off-patent market dynamics
โขHerbicide import prices down high single digit, followed by insecticide and fungicides with unit prices down between -2% and 8% for key import markets
โขChina leads the way in herbicide exports, albeit at 2021 levels
โขMultiple active ingredients due to come off patent by 2029; price pressure for commoditized chemistry expected to grow
Industry analysis
โขTop 9 industry players accounted for US$75 billion in sales in 2022, this figure is down by -6% in 2023
โขGlobal performance in 2024 shows the key global 5 and other key players’ performance continued to decline in Q1, however price improvements on crop protection products show promise for a recovery, given other market fundamentals like area and volumes are more or less stable
โขOne reason for the drop is cautious farmer purchasing behavior and persistently high channel inventories
Opportunities
โขBiological crop protection market value boom coming into focus, yet important to understand that to deliver on its promise, the farmer adoption triggers will have to be watched closely
โขRNA based crop protection products growth expected to pick up
โขFormulation tech: Liquid and Granule formulation growth has been positive, also driven by uptick in drone-based spraying. New formulation types present opportunities for the wider industry, upstream to downstream
If you’d like further insight into the global crop protection market click here or contact Dr Ahmed at [email protected]
About Kynetec:
Kynetec is a global provider of data, analytics and insights in agriculture, animal health & nutrition. We empower agribusinesses and animal health and nutrition companies to make data-driven decisions, from strategy to execution, through predictive analytics and advanced insights. What sets us apart is our direct access to the markets we serve – farmers, veterinarians, pet owners, and agricultural experts – and our deep understanding of the complex dynamics that shape those markets. We regularly undertake data and analytics projects in all the major agricultural and animal health/ nutrition markets, spanning more than 80 countries, to provide the insights that enable our clients to build winning strategies and brands.
Further information is available at www.kynetec.com
