747 active ingredients have been registered, but overcapacity has become a new challenge for the industry’s development.

At the 38th China Plant Protection Information Exchange and Pesticide & Equipment Trade Fair, Director Huang Xiuzhu of the Pesticide Inspection Institute of the Ministry of Agriculture and Rural Affairs delivered a report titled “Analysis and Prospects of the Pesticide Industry.” Director Huang examined the current state of China’s pesticide industry by analyzing trends in registration, production, and exports, and outlined his reflections and plans for future work.

1 Overview of Pesticide Registration

China boasts a diverse portfolio of registered pesticide products, with an increasingly optimized product mix. From 2013 to 2023, the annual average growth rate in the number of registered pesticide products was 4.38%. From January to October 2024, 2,078 new pesticide products were registered (excluding exports; the same applies hereinafter), including 1,995 for field crops and 83 for public health applications. Among these, 657 were herbicides, 811 insecticides, 399 fungicides, 184 plant growth regulators, and 27 other types.

As of October 31, 2024, we have registered 747 active ingredients in pesticides (excluding exports, the same applies hereinafter) and 47,127 pesticide products, including 44,171 field-use products and 2,956 public‑health pesticides. Among these, there are 12,980 herbicides, 19,962 insecticides, 11,976 fungicides, 1,729 plant growth regulators, and 480 public‑health and other products.

In 2024, China has issued two registration announcements, approving 12 new pesticides (active ingredients) and 17 new product registrations. Among these, there are 9 herbicides, 6 fungicides, and 2 insecticides.

The number of registrations for low‑toxicity, biopesticides has been steadily increasing. As of October 31, 2024, China has 140 active ingredients approved for biopesticides (excluding antibiotic‑based products), with over 2,000 registered formulations. In 2024, newly registered biopesticides accounted for 50% of all new pesticide varieties, and 100% were independently or collaboratively developed by domestic enterprises.

Low-toxicity and slightly toxic pesticides have become the mainstream in China’s pesticide registration. The share of such products has risen from 78.3% in 2013 to 86.2% in 2023, and all newly registered pesticides in 2024 are classified as low-toxicity or slightly toxic.

2 Overview of Pesticide Production

China’s pesticide production capacity is severely overcapacity, with inventories remaining persistently high, demand weak, and market competition intense.

Due to factors such as the westward relocation of production capacity, competition for markets dominated by products nearing patent expiration, and indiscriminate investment, China’s pesticide industry suffers from severe overcapacity, leading to intense internal competition among firms. From January to August 2024, national pesticide output totaled 1.4947 million tons, up 22.42% year on year. In 2022, the five major categories— insecticides, fungicides, herbicides, plant growth regulators, and public‑health pesticides—experienced significant overcapacity, with capacity utilization rates ranging only from 30% to 60%. Among these, herbicides recorded the highest utilization rate, at 58.1%.

According to statistics from the China Pesticide Industry Association, from January to August 2024, the top five herbicide active ingredients in terms of production volume were glyphosate, 2,4‑D, atrazine, glufosinate, and paraquat; the top five insecticide active ingredients were chlorpyrifos, acephate, imidacloprid, dichlorvos, and cartap; and the top five fungicide active ingredients were chlorothalonil, mancozeb, tebuconazole, carbendazim, and azoxystrobin.

Key investment targets in China’s agrochemical industry include the herbicides glufosinate, proglumide, and sethoxydim; the insecticides chlorantraniliprole, acetamiprid, and bifenthrin; and the fungicides prothioconazole and pyraclostrobin, among others.

3 Overview of Pesticide Exports

China’s pesticide exports increased year on year, while pesticide prices continued to decline, leading to a substantial drop in profits.

China’s pesticide exports account for roughly 85% of its total production. In the first eight months of 2024, the export share reached 89%, representing more than 60% of global pesticide demand.

From January to August 2024, China’s pesticide exports totaled 2.662 million tonnes, up 26.8% year on year; the equivalent 100% active ingredient volume reached 1.331 million tonnes, a 34.3% increase over the same period. While export volumes surged, export values rose only slightly, and pesticide export prices continued to decline gradually.

4 Reflections and Plans

According to Director Huang, during a symposium convened by the Ministry of Agriculture and Rural Affairs to strengthen the role of agricultural enterprises as the main drivers of scientific and technological innovation, it was emphasized that deep integration among industry, academia, and research—led by enterprises—must be reinforced to provide robust support for achieving a high level of self-reliance and self-strengthening in agricultural science and technology.

To address overcapacity in the pesticide industry and build core competitiveness among pesticide enterprises, the Ministry of Agriculture and Rural Affairs places great emphasis on innovation in this sector. Director Huang pointed out that priority should be given to key areas: new chemical pesticides that are both highly effective and low‑risk; biopesticides developed through modern biotechnology; novel formulations supported by advanced materials and processing technologies; safe production processes and technologies integrated with high‑end manufacturing and cutting‑edge equipment; efficient, reduced‑dose, precision application techniques combined with new machinery and innovative uses; and green, low‑carbon R&D, production, and application technologies for pesticides that leverage new energy sources and digital innovations. In addition, a series of effective short‑, medium‑, and long‑term measures will be implemented to further optimize the business environment for pesticide companies and promote high‑quality development of the industry. The Ministry will also continue to strengthen pesticide registration and review, advance the modernization of pesticide production, refine the pesticide distribution system, upgrade pesticide registration testing facilities, and encourage the scientific and efficient use of pesticides—among other initiatives—to drive the sector’s sustained, high‑quality growth.

Source: Pesticide Information Network