The landscape of the generic crop protection market is preparing to undergo substantial expansion within the next five years, offering a grand opportunity for retailers, distributors, and growers alike. From 2023 to 2028, 19 active ingredients (AIs) – including 11 fungicides, four herbicides, and four insecticides – are estimated to come off patent, according to S&P Global.
This shift in availability introduces a resurgence of fresh chemical technology in the market – the upcoming “expiry wave” holds significant promise not only for the global agrochemical industry but in international markets such as India.
A Paradigm Shift towards Generic Active Ingredients
The expiration signifies a significant market opportunity for generic manufacturers, allowing them to rejuvenate their portfolios, as well as access new chemical technology. It is a particularly exciting time in global industries like India, significantly expanding offerings and potentially boosting revenue.
These off-patent molecules hold lucrative potential for commercial development in the agrochemical sector, fostering opportunities for generic manufacturers to provide agrochemicals at more affordable prices. This prospect is beneficial for farmers, unlocking a range of effective substances to safeguard their yield from pests and diseases.
The prevalence of generic producers is currently estimated to be about 30% of the global pesticide industry, largely driven by an increase in the number of off-patent molecules and a decrease in new active ingredients. Such dynamics have set the stage favoring the generic pesticides industry, fostering a faster growth trajectory compared to inventor or RD-based companies.
However, with these opportunities came challenges; the “red ocean” of competition in China’s pesticide supply market subjects every supplier into a prisoner’s dilemma scenario.
Retuning the Dynamics of the Generic Active Ingredient Market
What exactly contributes to the dynamic shifts in the market for generic active ingredients? An amplified willingness to pay less by global farmers, coupled with a decrease in the price of generic products, is reshaping the boundaries of generic active ingredient productivity. The field of generic pesticide product alternatives is concurrently putting pressure on the overall value of the generic active ingredient market.
To put this into context, we can focus on some active ingredients that would soon be off-patent. For instance, Bixafen, a fungicide invented by Bayer Crop Science set to expire in 2023, is used for a broad spectrum of cereals. Cyantraniliprole, an insecticide class patented by Syngenta and set to expire in 2026, is effective against the larval stages of lepidopteran insects, among many others, across a variety of crops.
The impending ‘expiry wave’ urges the agrochemical industry to rethink its strategies and brace for the competition. Generic manufacturers have to optimize their assets and streamline output to fulfill the increasing global demand for generic active ingredients. Keeping an eye on regulatory landscapes and potential market drivers will be paramount in staying afloat amid fluid marketplace conditions.
The Road Ahead
As these 19 active ingredients prepare to transition towards their off-patent stage within the next five years, the generic crop protection market is on the verge of a significant boom. This potential expansion brings substantial opportunities for generic manufacturers, retailers, and distributors globally. Savvy market players will be vigilantly planning their moves, ready to capitalize on these opportunities and conquer the intrinsic challenges that lie ahead.
The future facilitates growth for the generic pesticide industry, marking it as a space to watch in the unfolding arena of global agrochemicals.
Here’s a full look at these 19 AIs and the year their patents expire:
- Benzovindiflupyr (Fungicide) – 2028
- Bixafen (Fungicide) – 2023
- Chlorantraniliprole (Insecticide) – 2024
- Cyantraniliprole (Insecticide) – 2026
- Flubendiamide (Insecticide) – 2024
- Fluopicolide (Fungicide) – 2024
- Fluopyram (Fungicide) – 2024
- Isopyrazam (Fungicide) – 2023
- Mandipropamid (Fungicide) – 2023
- Penflufen (Fungicide) – 2024
- Penthiopyrad (Fungicide) – 2024
- Pinoxaden (Herbicide) – 2026
- Pyriofenone (Fungicide) – 2024
- Pyroxsulam (Herbicide) – 2024
- Saflufenacil (Herbicide) – 2024
- Sedaxane (Fungicide) – 2024
- Sulfoxaflor (Insecticide) – 2027
- Thiencarbazonemethyl (Herbicide) – 2024
- Valifenalate (Fungicide) – 2024
- Pyroxasulfone (Herbicide) – 2025