The report titled “Survey of Pesticide Industry in China” provides a comprehensive analysis of the pesticides market in China. The report covers China’s agriculture production, awareness of pesticides, technological innovations, industrial upgrading, mergers and acquisitions, phosphorous fertilizers, leading players, environmentally friendly formulations, and continuing growth over the coming years.
China is an agriculture country and is therefore, the largest production base of pesticides in the world. The country has a crop area of over 160 million hectares which demands for more pesticides. The Chinese government is aware about the pesticides production and also recognizes that conservation along with innovation is necessary in caring for the Earth’s limited resources. Majority of the pesticides manufactures are trying adopt sustainable practices that are more satisfying to the public and to the Earth. They also ensure that these pesticides maintain food production levels and earnings. Due to the increase in the natural calamities the use of pesticide is increasing rapidly. The extensive use of pesticides usually leads to the potential environmental hazards that resulted in awareness among population as well as manufacturers.
Industry Overview: Pesticides is never a totally green industry, however, the industry embraces sustainable practices that incorporate modern, social, economic and environmental needs. The use of harmful pesticides has awakened the global consciousness and conscience leading to the Green movement globally. The global green movement on pesticides will surely create many problems for the pesticide manufacturers who are not making efforts to manufacture sustainable products. According to a global survey, all the developing countries which encouraged biotechnology are planting more biotech crops compared to the industrialized countries. Majority of the global population are aware about the food issues such as eco-friendly farming, health and safety. There is also awareness about the organic foods, non-organic foods, green foods and non-green foods.
Technological Advancements: It was observed that there are more than 2,400 pesticide manufactures in China. These producers are small or medium sized with poor R&D capability. Almost all the manufactures in China made substantial progress in the adjustment of industrial structure and product structure. They embraced technological innovation and industrial upgrading. However, the domestic pesticide industries still face problems such as low industrial concentration, small enterprise scale, overcapacity of some products, serious product homogeneity, weak innovation ability, less advanced technology and equipment, and lagging technologies in the treatment of three wastes namely waste, gas and residues. Many medium and small pesticides manufacturers are unable to adapt to the fierce competition, increasing pressure from environmental protection, safety, and R&D ability. Therefore, large business groups are acquiring and merging with the smaller manufacturers to eliminate inefficient capacities and improve industry concentration along with the adjustment of national macro policies. It is believed that mergers and acquisitions (M&A’s) are becoming a common practice among Chinese international agrochemical leading players.
The depressing global economy and the need for eco-friendly pesticide products have resulted in the decline of supply and demand of domestic pesticides in the recent years. It was studied that there is a pesticide abuse in crops causing increase in horrible food safety. The Chinese government is releasing stricter policies for environmental protection, raising threshold, phasing out highly toxic and highly residual pesticides.
China produces 500 kinds of pesticides technically, out of which 300 pesticides have the actual productive capacity which is generic products. The largest proportion of China's pesticide products are traditional pesticides like glyphosate and chlorpyrifos. Traditional pesticides comprise of simple production technologies, mature production processes, stable market demand and sufficient raw material supply, and easier registration approval. The country also produces 100 kinds of insecticide active ingredients and over 1,500 types of insecticide formulations. The leading insecticides are organophosphorus insecticides, carbamate insecticides and pyrethroid insecticides in the organic insecticides category.
The chemical element, phosphorous is used in various products such as detergents, water treatment, flame retardants, batteries, chemical intermediates, and phosphorous fertilizers. 71% of the phosphate rock is used for the production of phosphorous fertilizers. There is a huge demand for the derivatives of phosphorous such as yellow phosphorous. Phosphorous industry in China is well established with complete industrial systems enabling various products manufacturing. The industry starts from mining of phosphate rock to the production of basic and fine phosphorous chemicals. The increase in the demand for phosphate fertilizer has initiated an increase in the production capacity which resulted in overcapacity and oversupply of phosphate fertilizers in the recent years. Yellow phosphorus is a very important basic industrial raw material used for the production of red phosphorous, phosphoric acids, phosphorous compounds, and various pesticides. The increasing consumption of phosphorous fertilizers will witness a steady growth in the production of phosphorous fertilizers over the coming years.
Major Players in China’s Pesticide Market: The leading competitors in China’s pesticides industry are Nanjing Redsun Co., Ltd.Zhejiang Wynca Chemical Industry Group Co., Ltd.Jiangsu Yangnong Chemical Group Co., Ltd.Jiangsu Lanfeng Biochemical Co., Ltd.Jiangsu Sevencontinent Green Chemical Co., Ltd. The country has banned few pesticides that are harmful and is promoting the eco-friendly pesticides. The growth in the Chinese pesticides technical began to rise in August 2016 and it became a steady growth by the start of the year 2017. The pesticides market in China is sure to grow at a very slow pace in the coming years. China's pesticides sector is under control with an increase in the proportion of environmentally friendly formulations.
Way Forward for China’s Pesticide Market: The government is supporting the pesticide sector assisting with continuous development plans to improve technology and eco-friendly pesticides. Environmental protection, rising raw material prices, increasing labor cost, transportation cost, increase in the market prices of herbicides are the major factors affecting the herbicides sector. The Chinese pesticides manufacturers possess highly integrated supply chain that is able to generate their needed raw materials by themselves to avoid high purchase costs. Chinese government has proposed the environmental inspections and safety inspections as a normal routine in the near future. The updated processing technology and market consolidation will encourage the growth of the pesticides market over the coming years.
Key Topics Covered in the Report:
China Pesticides Industry Research Report
China Insecticides Industry Research Report
China Herbicides Market Revenue
China Fungicide Market Revenue
Trends China Pesticide Industry
Future Outlook China Insecticides Industry
China Herbicides Market Output
China Fungicides Industry Future Outlook
Industrial Policies for Pesticide Industry China
Chinese Industrial Waste Discharge Regulations
Chinese Phosphorous Fertilizers Market Analysis
Chinese Phosphorous Fertilizers Market Overview
Chinese Yellow Phosphorous Fertilizers Market Analysis
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Ankur Gupta, Head Marketing & Communications
Ken Research provides bespoke industry intelligence, equity research reports and business consulting services on gamut of sectors across the globe.