Companies across the agrochemicals sector are familiar with market volatility, particularly in the years leading up to the unprecedented outbreak of COVID-19. The ability to adapt and thrive in times of change has been demonstrated by this segment throughout the pandemic, now in its last phase.

How the agrochemicals landscape looked before COVID-19

In July of 2018, experts predicted new opportunities for external custom fine chemical manufacturers. Agrochemical majors sought acquisitions and mergers to expand their portfolios. This proved to be a valuable move for the likes of Syngenta, Bayer, BASF, and Corteva. There were notable changes for the rest of the sector as well. For example, Adama Agricultural Solutions grew into a full portfolio provider of agrochemicals and seed treatment products, reflecting the move towards consolidation.

While the largest players looked to diversify and expand, there was a clear move away from vertical integration in favor of sub-contracting to experienced fine chemical custom manufacturing partners. This move towards outsourcing resonated throughout the sector, and in doing so, refreshed the pipeline for service providers, themselves undergoing M&A activity.

Checking in with the realignment of agrochemical companies

Bayer CropScience, Syngenta, BASF, Corteva, FMC, and UPL lead the agro sector by revenue and growth, with Bayer and Syngenta regularly vying for the pole position. But how have other agrochemicals players fared since the outbreak of COVID-19?

  • Adama Agricultural Solutions: ADAMA emerged with a strong growth trajectory, recently releasing a new pre-mixed fungicidal formulation created to meet the changing demands of crop disease control in the Canadian market.
  • Sumitomo Chemical: After a series of collaborations and a merger with Excel Crop Care, Sumitomo Chemical has continued to leverage strong partnerships to deliver high-quality products to a global market. Most recently, Sumitomo announced a collaboration with Ginkgo Bioworks to develop more sustainable and efficiently manufactured bio-based products.
  • Nufarm: Maximizing value through robust collaboration, Nufarm has similarly experienced enormous success during 2021. The Australian company experienced a 20% jump in revenue to $1.65 billion, attributed to growth in the Asia-Pacific and European regions, as channel restocking in critical markets continues.
  • Others: An increasing presence from China has emerged, with Yangnong Chemical, Shandong Weifang Rainbow Chemical, Beijing Nutrichem, Nanjing Red Sun, Lier Chemical and Hubei Xingfa Chemicals among the most notable companies.

Agrochemical custom manufacturing services from CABB

CABB Group offers custom fine chemical manufacturing services with transatlantic expertise in complex, multi-step synthesis, ideal for the outsourcing of active ingredients (AIs), and intermediates for a range of sustainable agrochemical products.

If you have any questions about manufacturing partnerships with the CABB team, simply contact us today.