CACW 2024: Kynetec’s Xu Feng Presents Long-Term Trends in the Chinese Agrochemicals Market

By Kynetec|17 March 2024
Xu outlined merger and acquisition trends in China’s agrochemical industry at the recent China International Agrochemical Conference.

Xu Feng, Senior Director of Customer Insights at Kynetec, outlined merger and acquisition trends in China’s agrochemical industry at the recent China International Agrochemical Conference in Shanghai.

Xu Feng, Senior Research Director of Customer Insights at Kynetec, presented at China International Agrochemical Conference Week on March 13, 2024, in Shanghai.

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Kicking off the presentation by summarizing the global market over the last 10 years, Xu highlighted a relatively stable crop protection market, with a global CAGR of 1.2%.

Recapping regional differences:

  • North America benefitted from continued high price levels for some key pre-planting product segments, which helped balance losses seen later.
  • LATAM, Europe, and APAC experienced contractions, but there was a promising growth trajectory in almost all biologicals segments and PGRs.
  • The Americas, after a stellar 2022, were hit hardest by readjustments in 2023.
  • The Asian market was hampered by sustained high temperatures and an erratic monsoon.

EMEA and LATAM are on track for significant growth. NA growth is expected to be flattish and APAC slight, with overall global growth projected to be moderate.

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Taking a deep dive into future trends, attendees benefitted from significant insight into regional developments from Kynetec’s renowned global data and insights, including:

  • Importance of agricultural policy in all regions. The USA is negotiating the 2024 Farm Bill, APAC countries focus on food security but benefit from free-trade policies. LATAM continues to orient to export and sustainable practices, while EMEA implements policy such as CAP, Green Deal and SFI.
  • A mixed bag of bioproduct innovation in an off-patent era, where advancements continue but pest pressure remains serious due to erratic weather patterns.

Xu outlined merger and acquisition trends in China’s agrochemical industry:

  • M&As allow players in the industry to strengthen their competitive advantage, expand product categories horizontally and expand sales channels and increase global reach.
  • Factors driving M&As include overcapacity, diversification of profit, desire to match strategic strengths, and a need to overcome shortcomings.

Summarizing the investment trends in the Global CP industry, Xu concluded:

  • The venture capital brands of multinational crop protection companies, as well as R&D companies partnering with multiple CP brands to utilize AI technology to create agriculture-facing biological products.
  • An example of the Brazilian market value boom in biologicals, where Kynetec’s data shows a leap of 51% in value during harvest year 2022-3 vs. 2021-2, to around US$827 million.

Kynetec is the global leader in agricultural and animal health data, analytics and insights. Backed by a team of insights specialists, interviewers, data analysts, marketing scientists and data visualization experts, our number one priority is to ensure that we deliver the highest-quality insight and foresight at the right time to enable our clients to confidently make the best decisions for their business. Across the globe, our employees are located across 30 major agriculture and animal health countries. Our coverage extends to major and niche sectors of our industry, where we regularly undertake research projects in more than 80 countries. See all author stories here.

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