Kynetec: The Global Crop Protection Market Is ‘Dynamic As Ever’
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:
Kynetec’s Dr. Nomman Ahmed presenting at the 2024 CPEW.
Global Crop Protection Trends and Market Drivers
- Future 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.
- Regional outlook (APAC, LATAM, EMEA, North America): CAGR growth/decline regional variation +5% to -1%.
- Market drivers: commodity prices projected to trend lower for all major crops over the next decade. Nomman also shared the impact of crop area projections and productivity; oil, ethanol and fertilizer prices; freight index; agricultural policy; GMO adoption as market drivers.
Trade, price and off-patent market dynamics
- Herbicide import prices down high single digit, followed by insecticide and fungicides with unit prices down between -2% and 8% for key import markets.
- China leads the way in herbicide exports, albeit at 2021 levels.
- Multiple active ingredients due to come off patent by 2029; price pressure for commoditized chemistry expected to grow.
Industry analysis
- Top 9 industry players accounted for US$75 billion in sales in 2022, this figure is down by -6% in 2023.
- Global 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.
- One reason for the drop is cautious farmer purchasing behavior and persistently high channel inventories.
Opportunities
- Biological 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.
- RNA based crop protection products growth expected to pick up.
- Formulation 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].
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