Exclusive extracts from this 131-page-long report:
- What is the business?
Agrochemicals in the strict sense mostly comprise crop protection pesticides such as insecticides, herbicides, fungicides, as well as seed treatment products. However, major agrochemical companies also derive large shares of revenue from agricultural biotechnology (e.g. seed genomics or plant biotechnology). Agrochemicals and seeds enhance crop yields by reducing the effects of harmful agents (weeds, insects, etc.). The segment has enjoyed strong demand, particularly in light of past decades' decline in arable land per capita combined with soaring demand for food and feed amid emerging markets' growing and increasingly wealthy populations. […]
- What are the main markets?
Most of the leading companies in the agrochemical industry come from the developed world, especially the U.S. The industry's champions in terms of revenue are Monsanto, DowDupont, Syngenta and Bayer. Companies such as FMC, Adama, Sumitomo and Nufarm are smaller players who generally enjoy leading positions in a few markets (Nufarm in Australia and New Zealand, Sumitomo in Asia, etc.). The next tier of agrochemical businesses is made up of national champions in India, China and other large agrochemical markets such as Brazil and Argentina. […]
- How intense is competition?
Key players are specialised agrochemical groups or large chemical companies based in Western Europe and North America such as Monsanto, DowDupont, Syngenta, and Bayer. Together, these four groups accounted for 57% of the global agrochemical and commercial seed market value in 2017. Agrochemical competition is based on the strength and scope of products and geographies, innovation, price and customer service. Additionally, in many countries, producers of off-patent compounds such as Adama, FMC, UPL, Nufarm and Albaugh, are increasing rivalry. In 2018, consolidation was the main industry trend, as highlighted by record deals involving the world's largest seed and agrochemicals businesses (Bayer-Monsanto, Dow-Dupont, ChemChina and Syngenta). […]