The pesticide industry is poised to face five major trends in the future!
Release Date:
2019-10-23
Trend one: Pesticide Entering the era of stock-based competition
Global Pesticide The market size is approximately USD 100 billion, and by 2030 the population will reach its peak, increasing by 1 billion compared to today, while each year… Pesticide The increase will be around 2% to 3%, whereas China has explicitly set a target of zero growth.
Countermeasures: In a market characterized by intense competition for existing customers, identify and leverage your unique, irreplaceable strengths to secure a foothold. Even when overall market size remains stagnant, certain niche segments—such as shrimp‑rice farming, underground markets, small‑scale insect products, and soil‑related solutions—continue to grow. Whoever moves fastest to stake their claim and capture consumers’ minds will emerge as the winner.
Trend Two: Growers Are Entering the Era of Large-Scale Operations
With large-scale operators now accounting for 60% of the land‑transfer market—44% being individual large farmers and 16% corporate farms—smallholders will remain stable at around 40% in the long term. As a result, the bargaining power of distribution channels is steadily eroding, marking the end of the “channel‑is‑king” era.
Countermeasure: The era when channels reigned supreme has come to an end; we have entered a new age of brand marketing. The key to success will be becoming the go-to choice for growers in specific contexts—this will define the next battleground of competition. We must recalibrate our mindset, develop new capabilities, and compete on entirely new dimensions.
Trend 3: Strengthened Regulatory Oversight of Safety and Environmental Policies
Under the guidance of new economic development principles, safety and environmental protection measures have been strengthened to an unprecedented degree. Large-scale rectification efforts in upstream intermediate‑ and technical‑grade pesticide production parks have led to production shutdowns, resulting in tight supply and rising costs. Meanwhile… Pesticide The implementation of the new policy, particularly the several-fold increase in registration fees and time costs, has raised the barriers to entry for the industry.
Countermeasures: Strictly adhere to industry standards, make precise investments, and minimize failure costs.
Trend Four: Accelerated Industry Consolidation and Elimination
Whether upstream in the active‑ingredient segment, midstream in the formulation stage, or downstream in distribution, large‑scale consolidation has already begun. The number of industry players will decline sharply, and the pace of elimination and restructuring is accelerating.
Countermeasures: Recognize your own strengths—strengthening is more important than simply expanding. Go global while attracting investment, forge strategic alliances with industry leaders, and join forces to create synergy.
Trend Five: Small trends are bound to become major trends.
Patented compounds have declined sharply, while emerging micro‑trends—such as bundled packages, agro‑chemical‑fertilizer combos, high‑quality agriculture, and online sales—are taking shape; these micro‑trends are bound to evolve into major industry trends.
Countermeasures: Capture user needs, gain deep insights into emerging trends and opportunities, and align with these trends.
Pesticide The era of profound transformation in the industry has arrived, and as professionals, we need new insights, fresh thinking, and enhanced capabilities.
Source: Agrochemicals & Markets Magazine Author: Shanrenzhai Editor: bianji2
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