Generic Agrochemical Market 2017
The description ‘generic’ is used as shorthand to cover a wide range of different types of company however such a business will manufacture active ingredients and attribute the majority of its sales to products that are off-patent, and thatwere researched, developed or first introduced by another company. A key common theme of such companies is that they do not invest a high percentage of sales towards research and development activities; such companies also generally do not engage in the invention or discovery of new active ingredients. As eluded above, the principle focus of such companies is towards the development of products for which the patents have lapsed. Beyond this however, ‘generic’ company activities can differ widely; some place a core focus towards the manufacture of products while others are engaged in activities common with the major R&D driven companies including manufacture, registration, development of new formulations and mixtures, marketing and sales.
For the purpose of the analysis in this report;
In 2017, the global market for crop protection products increased by 2.5% toreach $54,219 million; across the combined crop and non-crop usage, the total market for agrochemicals increased by 2.6% to reach $61,530 million. The following table lists the sales results in 2017 for the leading agrochemical companies whose sales are based mainly on generic products.
|Leading Generic Company Agrochemical Sales 2017|
|4||Platform (Arysta LifeScience)||1,816||1,897||+4.5|
Albaugh’s growth in sales is attributed to a strong performance in the NAFTA region thanks to improvements in the price of glyphosate, with the company being a leading manufacturer of the active ingredient. Nanjing Red Sun’s growth is also attributable to strong glyphosate sales; additionally, the company expanded its export operations in 2017, with a 36% increase in sales from international markets compared to 2016.
Key merger and transaction activity by generic companies in 2017 include:
Due to product acquisitions, there is now a proprietary element to sales within the leading ‘generic’ companies, however this still equates to a relatively low share of turnover overall.
The following graph indicates the share of the global agrochemical market attributable to the sales of generic companies since 1998. For China, India and South Korea where the sales of some smaller companies are not known, the generic sector of these countries has been assumed to be the value of the entire market minus imports; imports being the primary source of proprietary chemistry in these countries.
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