Management Report & Annexes | Basic Information About the Group

4. Economic Environments of the Subgroups

The economic environments in which the subgroups operate are outlined below. (The economic environment for the Bayer Group as a whole is described in Chapter 1.6 “Corporate Environment.”)

Economic Environments of the Subgroups[Table 3.4.1]
in 2012
in 2013
Pharmaceuticals +3% +3%
Consumer Care +4% +5%
Medical Care 0%** -2%
Animal Health +4% +3%
Seed and crop protection market >10% ≥5%


(Main customer industries)

Automotive industry +6% +3%
Construction industry +2% +3%
Electrical/electronics industry +3% +4%
Furniture market +5% +3%

* Bayer’s estimate, excluding pharmaceuticals market, source: IMS Health. IMS Market Prognosis. Copyright 2014. All rights reserved, currency-adjusted; 2013 data provisional

** revised
as of Febrary 2014


Growth in the pharmaceuticals market was based mainly on increased demand in the emerging economies. In the United States and a number of European countries, growth continued to be impeded by ­restrictive health policies.

The consumer care market expanded somewhat faster than in the previous year, mainly due to continuing high demand for non-prescription medicines in the emerging markets. A strong cold season in the first half of 2013 facilitated market growth in North America and Europe. The slight downturn in the medical care market was due to a weaker diabetes care market, while the market for contrast agents and medical equipment (Radiology & Interventional business unit) was flat year on year. The animal health market expanded at a slightly slower pace than in the previous year.


The seed and crop protection market continued its dynamic development in 2013. Farmers benefited from a positive market environment due to persistently low inventory levels for most agricultural commodities. This in turn led to strong demand for high-value seeds and for crop protection products.

Growth in the global seed and crop protection market last year was again driven by Latin America, particularly Brazil and Argentina. In North America, we also registered above-average growth rates in 2013 despite persistently cold weather and a drought at the beginning of the year. In Asia/Pacific, too, the positive overall market trend continued in 2013 with slightly higher growth than in the previous year. The Chinese and Indian crop protection markets displayed the strongest growth momentum in the region. In Europe, on the other hand, growth rates were below the world market average, mainly as a result of the late start to the season and adverse weather conditions in northern Europe. Growth rates were moderate in the Mediterranean countries but higher than average in Eastern Europe.


Global development in the principal customer industries of importance to MaterialScience (automotive, construction, electrical/electronics and furniture) was at a generally low level in 2013 as expected due to the continuing economic weakness in the eurozone and the downturn in Asia.

The automotive industry registered considerably weaker global growth compared with the previous year. Volumes continued to decline in Europe as a result of ongoing weak demand in nearly all countries. Growth momentum also slowed in North America. The very dynamic trend continued in China, however, while growth in the other Asian countries slowed.

Growth in the global construction sector improved compared with the previous year. While construction investment in the United States showed signs of recovering and growth in the principal Asian countries remained stable, demand in Western Europe again declined.

The global electrical/electronics industry again posted robust growth in 2013. While the previous year’s solid growth rates persisted in North America and Asia, slight growth was recorded in Europe (mainly driven by the Eastern European countries), following the downward trend in the prior year.

Global development of the furniture industry was weaker in 2013 than the year before. The pace of growth in Asia slowed due to weaker domestic and export demand. Austerity programs and consumer reticence in Europe caused the sector to shrink once again, though at a much slower rate than the year before.

Last updated: February 28, 2014  Copyright © Bayer AG