The Generics Revolution and the New Economic Geography of the Global Pesticide Industry

The global pesticide industry transformed from one dominated by patented products and legacy multinationals with strong manufacturing bases in the United States and EU to one dominated by generic products produced in India and China. We use proprietary market research data, data from regulatory filings, industry press and bilateral trade data to map how the ‘generics revolution’ transformed production and trade in pesticides. Tracing significant changes in sourcing over two decades, we show the emergence of major agribusiness multinationals focused on the generics market as producers, exporters or both. Industrial policy and firm strategy among Chinese firms, which now dominate the generics market, have had a global impact on the industry. Legacy R&D companies maintain dominance through strong positions in the production and marketing of generics as well, blurring the traditional distinctions between these two sectors. Overall, our analysis raises serious questions for regulation and efforts to reduce pesticide dependence.