April 28, 1995
Growth in 1994 World Agrochemical Market
The 1994 world agrochemical market experienced the largest
increase since 1984, reversing the 1993 market decline,
according to a new report from Allan Woodburn Associates. The
value of the end-user market worldwide rose by US$25,885
million, up 7.4% from 1993. (Taking into account the effects
of inflation and currency fluctuations, the increase in real
terms was approximately 5.1%.)
The Woodburn report attributed the 1994 increase in Western
European sales (following substantial decreases in 1992 and
1993) to a stabilization of the market after implementation
of the 1992 Common Agricultural Program (CAP) reforms. In the
U.S., agrochemical sales increased as the market recovered
from losses sustained in flood-affected regions during 1993.
In other regions, growth trends continued in many Asian
countries and in some Latin American markets.
The leading agrochemical company in 1994 was Ciba-Geigy, with
sales of nearly US$2,800 million, followed by Zeneca, DuPont
and AgrEvo, all with sales of more than US$2,000 million.
They were followed by Monsanto, Bayer, Cyanamid, DowElanco,
Rhone-Poulenc and BASF.
The findings of the Woodburn report supported the conclusions
of another recently released report from the Freedonia Group,
which predicted an annual growth rate of 4.4% in world demand
for pesticide active ingredients between 1993 and 1998.
Freedonia forecasts that this growth will be driven by
developing markets such as China and Brazil, as well as a
movement towards higher priced products. The Freedonia report
forecasts over 70% of demand will be for herbicides and
insecticides, with biopesticides continuing to gain a share
of the market as safer alternatives to existing products.
Although Freedonia forecasts the value of the world pesticide
market to increase by 4.4% a year until 1998, volume
consumption is expected to grow by less than 1% a year,
reaching 2.6 million tonnes in 1998. Growth will be
constrained by low or declining demand in industrialized
countries and the substitution of new, stronger compounds.
During the 1993-1998 period, Freedonia predicts that Latin
America, the Africa/Middle East region, and that Western
Europe will have the highest growth rates of 5.4%, 5.1% and
4.6% respectively. The Asia/Oceania region is expected
increase consumption by 4.2% during the period, with China as
the most rapidly growing market, increasing its share of
regional demand to over 26% by 1998. The Freedonia report
also estimates that insecticides account for more than 40% of
demand in Asia/Oceania, with herbicides at 32% and fungicides
Source: Agrow, February 3 and March 3, 1995.
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