Agricultural chemical industry outlook

Trends—and questions—in agrochemicals

The agricultural chemical industry outlook is being shaped significantly by new developments such as integrated pest management (IPM), precision farming, and off-patent products, all of which have the potential to reduce agrochemical revenues. Long-term developments are also proving disruption, including genome editing, food waste management, improvements in animal feed digestibility, decreasing biofuels demand, and the growing popularity of indoor farming.

At the same time, recent revenue and margin declines in agrochemicals (2014–2016) continue to raise questions, including:

• How can companies keep creating and capturing additional value for agrochemicals products and services? 
• What alterations do agrochemicals companies need to make to operational and business models to hedge against currency risks, climate change, evolving regulatory requirements, and end-market disruptions?

This paper explores the current landscape and analyzes trends most likely to shape the future trajectory of the agrochemical industry.

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