Global pesticides industry expected to rebound from sluggish period
Following a period of declines in overall market values, the global pesticides industry is expected to recover and register modest growth through 2009. Although difficult pricing environment and market maturity will substantially limit gains, this will represent a dramatic improvement over the past few years, when pesticide market value dropped off considerably, in large part due to the patent expiration for some major products.
Regulatory considerations continue to reshape the product mix
Regulatory forces have a more pervasive influence on the pesticide industry than they do in most other segments of the chemical industry. The perpetual effort to replace more environmentally damaging products with more benign alternatives leads to an ever-evolving array of active ingredients. This evolution has led to drastic reductions in the use of some products. As a result, growth of replacement products has been considerable. These products, such as those designated by the US
Environmental Protection Agency as "reduced risk pesticides" include glyphosate, upon which the wellknown ROUNDUP products are based. The US, Japan, Western Europe and a few other areas have the most stringent regulatory requirements for pesticides. However, nearly every country has some sort of regulatory framework in place.
Industry concentration
The global pesticide industry is fairly concentrated. Although a few hundred companies around the world produce active ingredients, the top six producers account for a large share of demand. These six firms compete in nearly every part of the world. However, other suppliers -- especially producers of generic actives whose patent protection has expired -- occupy important market positions.
Study coverage
Details on these and other key findings are contained in World Pesticides, a new Freedonia study available for $5100. This study presents historical data (1994, 1999, 2004) plus forecasts through 2009 and 2014 by type and market for 31 countries and 6 regions worldwide. Data is provided in metric tons and US dollars. The study also assesses agricultural trends and analyzes environmental and regulatory issues. In addition, it assesses market shares and profiles over 25 global industry competitors.
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