Beneath the vibrant prosperity of the pesticide market, undercurrents are quietly brewing—so what will the future hold?

On May 16, within the city of Jinling, where dragons coil and tigers crouch, Pesticide Leading figures from across the industry gathered at the Nanjing Grand Metropark Hotel to jointly attend an event hosted by China. Pesticide The fifth edition hosted by the Industrial Association Pesticide Industry Economic Performance Analysis Conference and the 2018 Top 100 Industry Sales Rankings Release and Awards Ceremony.

of 2017 Pesticide The market is brimming with promise and boasts impressive data, but what is the reality? In China, Pesticide Has spring truly arrived for the market? Beneath the profusion of blossoms, undercurrents are quietly brewing—China’s… Pesticide As for how the industry will evolve in the future, attendees at this conference undoubtedly gained valuable insights and takeaways, however modest they may be.

2018 China Pesticide The prestigious Top 100 Companies in the Industry Sales Ranking has been officially unveiled, with Hubei Shalonda Co., Ltd. claiming the top spot thanks to sales of RMB 22.0336 billion, becoming China’s first… Pesticide Companies with main-business sales exceeding RMB 10 billion. Beijing Yingtai Jiahe Biotechnology Co., Ltd. and Shandong Weifang Runfeng Chemical Co., Ltd. secured second and third place, respectively, with revenues of RMB 6.0832 billion and RMB 5.0465 billion.

According to statistics, from 2013 to 2017, Pesticide The industry’s total output value rose from RMB 191.4 billion to RMB 265.5 billion, with main business revenue increasing from RMB 281.3 billion to RMB 308.0 billion and total profits growing from RMB 22.9 billion to RMB 26.0 billion. Meanwhile, the industrial layout has become more concentrated, and the product mix has been further optimized. Nationwide… Pesticide The total value of import and export trade has exceeded US$5 billion, nationwide. Pesticide The trade surplus exceeded US$4 billion. Over these years, numerous… Pesticide Enterprises’ entry into the capital markets has injected strong momentum into the industry and enabled outstanding companies to grow larger and stronger.

At present, domestically involved in Pesticide There are now more than 50 listed companies in the sector, with industry concentration steadily increasing and corporate strength further strengthening nationwide. Pesticide The total sales of the top 100 companies in the industry rose from RMB 79.11 billion to RMB 109.87 billion nationwide. Pesticide The entry threshold for the industry’s top 100 sales list has risen to RMB 387.5 million, an increase of RMB 84.5 million from last year, representing a growth rate of 27.89%.

Last year, driven by policy measures, Pesticide Product prices have risen sharply, and industry sentiment has improved markedly. The supply‑demand dynamics in the active‑ingredient market have reversed, with some products now in short supply. The top ten companies recorded total sales of RMB 61.0472 billion, a substantial year‑on‑year increase of 90.82%, outpacing the overall growth rate of the top 100 firms; their combined sales account for nearly 40% of the top 100’s total. Among the top ten ranked companies, sales have climbed to RMB 3 billion per firm. Furthermore, 50 companies reported sales exceeding RMB 1 billion, up 11 from the previous year, representing 50% of the top 100.

    It is not easy for pharmaceutical companies to survive.

Transforming toward service is imperative.

This 2018 China Pesticide In his acceptance speech, Wang Shihao, Deputy General Manager and Board Secretary of Shenzhen Nuopuxin Agrochemical Co., Ltd.—the No. 1 company on the industry’s top‑50 list for formulated‑product sales—admitted that, despite holding the top spot, he felt deeply apprehensive. He noted that life is far from easy for formulation manufacturers: last year, a sharp surge in active‑ingredient prices left them in a difficult position, with gross margins plummeting. China’s vast territory and rich biodiversity support an enormous variety of crops; Nuopuxin currently has more than 1,000 registered products, requiring substantial investment in registration—but few truly blockbuster items. Moreover, because formulation sales are directly tied to farmers, the sales process is challenging, and even a minor misstep can lead to inventory buildup.

Wei Zhijun, general manager of Guangxi Tianyuan, also noted that formulation companies face extremely challenging operating conditions, and there are virtually no single brands in the Chinese market with annual sales exceeding RMB 700 million. This is because the Chinese consumer market is characterized by extreme fragmentation—farmers and crops are highly dispersed—and this fragmentation has persisted over the long term.

So, what path should pharmaceutical formulation companies take going forward? The responses of the two CEOs of such companies happened to be strikingly similar.

Wang Shihao said that Nuopuxin is pursuing transformation, visiting leading international companies to learn from their practices. Starting three years ago, the company began shifting toward agricultural services and has already begun to see tangible results; it plans to stay the course.

Wei Zhijun stated that rural China is facing a severe aging population, which has presented an opportunity for Guangxi Tianyuan. The company believes that offering high-quality, specialized agricultural services holds significant market potential in the future.

Data analysis for scientific transparency

Guide the industry toward sound development.

Ministry of Agriculture and Rural Affairs Pesticide Wu Houbin, Director of the International Exchange and Services Division of the Testing Institute, shared at this conference… Pesticide Registration and import/export status.

In 2017, China Pesticide The total number of registrations reached 38,247, up 7.4% year over year, including 37,448 formal registrations, 509 temporary registrations, and 290 re‑packaging registrations. Among the total, active‑ingredient registrations numbered 4,515, accounting for 11.8%, while formulated‑product registrations totaled 33,732, representing 88.2%. Within this breakdown, insecticide registrations stood at 14,865, or 38.9%; fungicide registrations were 9,857, or 25.8%; herbicide registrations amounted to 9,675, or 25.3%; plant growth regulator registrations numbered 927; rodenticide registrations were 133; public‑health insecticide registrations totaled 2,545; and other registrations accounted for 245. Compared with the previous year, herbicides and plant growth regulators recorded the largest increases in registration numbers, rising by 12.7% and 12.6%, respectively.

In 2017, in our country Pesticide Among the top ten registered active ingredients, abamectin ranks first with 1,728 registrations, followed by imidacloprid with 1,332, and chlorpyrifos with 1,097. Glyphosate comes in fourth with 1,085 registrations, showing a substantial increase of 13.5% compared to 2016. In addition, atrazine, difenoconazole, tebuconazole, nicosulfuron, azoxystrobin, thiamethoxam, glufosinate, mesotrione, and pymetrozine all recorded significant growth in registration numbers.

In 2017, China Pesticide The top-ranked formulation type in terms of registrations is emulsifiable concentrate, with 9,534 entries; the second most common is wettable powder, with 6,860 entries; and the third is suspension concentrate, with 4,210 entries. In 2017, China… Pesticide The top-ranked crop is rice, with 9,794 entries; the second-ranked is… Cotton , there are 3,761; the third place is Wheat , there are 3,428 of them.

Newly added in 2017 Pesticide A total of 3,885 products have been registered, including 434 active ingredients and 3,451 formulated products. Among these, 967 are new insecticides, 1,186 are fungicides, 1,417 are herbicides, 124 are plant growth regulators, 2 are rodenticides, 163 are public health insecticides, and 26 fall into other categories.

In 2017, there were 17 new Pesticide (A total of 30 products) have been registered. Among them: 6 insecticides—imidacloprid‑guanidine (Zhongnongda), ethiprole (Wuhan Engineering), cyflumetofen (Nissan), triflumuron (DuPont), Bacillus thuringiensis G033A, and Harmonia axyridis; 5 fungicides—cyflufenamid (Cao Da), β‑lupin seed protein peptide (Portugal), Bacillus amyloliquefaciens B1619, Bacillus amyloliquefaciens Lx‑11, and Bacillus amyloliquefaciens PQ21; 4 plant growth regulators—14‑hydroxybrassinolide, 22,23,24‑epibrassinolide, iron‑dihydrochlorophyllin, and kinetin; and 2 herbicides—2,4‑D butyl ester and flumioxazin (Bayer).

Director Wu said, in 2018… Pesticide The number of registrations will show a rapid upward trend, followed by a more gradual increase in the coming years, owing to the revised version of the … promulgated in March 2017. Pesticide Management Regulations,” and promulgated “ Pesticide the Measures for Registration Administration, along with five other regulations and six normative documents. In particular, on September 13, 2017, the Ministry of Agriculture and Rural Affairs issued Announcement No. 2569… Pesticide “Requirements for Registration Information,” which will take effect as of November 1. And “… Pesticide The requirements for registration information have been raised. Pesticide The registration threshold, along with clear provisions on data authorization and the determination of identical products, is specified. Pesticide Registration will become increasingly stringent.

Driven by export demand. The global acreage of genetically modified (GM) crops is expanding, leading to increased use of herbicides such as glyphosate, glufosinate, dicamba, and 2,4-D; non-agricultural applications Pesticide Increase.

Driven by domestic policies: increasing farmers’ incomes, developing facility agriculture, expanding the cultivation of cash crops, and promoting fungicides. Pesticide , Use for small crops Pesticide The number of registrations has increased; adjustments have been made to the domestic area under cultivation, Soybean Used on oilseed crops Pesticide Increase, while Corn Use Pesticide Reduce; Pesticide Promoting biodiversity through the Zero Growth Initiative for Resource Use Pesticide Non-chemical, etc. Pesticide The number of registrations has increased; Ministry of Agriculture Announcement No. 2552 lists five substances, including endosulfan, methyl bromide, acephate, carbofuran‑butyl, and dimethoate. Pesticide Management measures have been implemented, and the registration of corresponding alternative products has increased.

Driven by technological capabilities. With the advancement of plant health concepts, plant growth regulators such as brassinosteroids and elicitors, along with insecticides and fungicides… seed Treatment agents, etc. Pesticide Increase; the promotion of drone-based pesticide application technology, along with the corresponding formulation types. Pesticide Increase.

2017 China Pesticide Export situation

2017 China Pesticide Overall, exports are on an upward trend. Pesticide Higher prices boosted the annual export value, which rose by 20.4% to US$6.76 billion. Export volume increased by 6.9% to 1.4676 million tonnes. Meanwhile, during that year… Pesticide Import value, meanwhile, declined by 4.1%. Over the past three years, the share of active ingredients in total exports has continued to fall year after year; in 2017, the value of active‑ingredient exports accounted for 56.3% of total export value, while their volume represented 34.5% of total export volume. In 2017… Pesticide Among export categories, plant growth regulators posted the strongest growth, with export value rising 37.5% year over year. They were followed by insecticides and herbicides, whose export values increased by 26.5% and 21.0%, respectively, compared with the previous year.

From the perspective of individual products, the top 20 exporters in 2017 remained largely unchanged, with glyphosate, paraquat, and imidacloprid occupying the top three spots. However, the data clearly show that while export volumes declined for most products, export values continued to rise. Notably, in 2017, glufosinate attracted widespread attention in international markets, with its export volume and value increasing by 52.7% and 29.2%, respectively. Meanwhile, the export volume of another product, chlorantraniliprole, also saw a substantial rise, up 48.5%.

From the perspective of destination, Asia and South America remain China’s… Pesticide The two largest export regions together account for 58% of total exports. In 2017, the export growth in North America and Africa was particularly noteworthy, with year-on-year increases of 35.1% and 31.6%, respectively, making them the fastest-growing regions that year. Looking at specific destination countries, the top 20 export markets posted robust growth rates in both value and volume, with exports to Nigeria… Pesticide Both the quantity and the amount have doubled.

Faced with such robust growth momentum, Director Wu predicted that in 2018… Pesticide Exports will continue to grow, with an increase exceeding double digits; domestic… Pesticide The reduction in demand will drive Pesticide Export development; furthermore, to Pesticide The intensification of environmental inspections for chemical enterprises, coupled with corporate mergers and restructurings, will curb cutthroat price competition in the industry, thereby driving prices higher and boosting… Pesticide The international competitiveness of enterprises.

   Environmental inspections have triggered a reversal in supply and demand.

     Pesticide It’s even harder for businesses to survive.

In China Pesticide Big Data Analysis by Duan Yousheng, Assistant Secretary-General of the Industrial Association Pesticide In the course of industry development, Dr. Duan pointed out that 2017 was Pesticide A year of transformation for the industry, the new… Pesticide The issuance of the “Administrative Regulations,” coupled with sustained environmental‑protection pressure, frequent safety incidents, stringent management in local industrial parks, and rising raw‑material prices—among other factors stemming from policy, the environment, and supply‑demand dynamics—will… Pesticide Supply-side reform in the industry has entered deep waters.

In 2017, China's chemical industry Pesticide Production totaled 2.941 million tonnes, down 8.7% year on year; herbicide output reached 1.148 million tonnes, a 19.5% decline from the previous year; insecticide production stood at 597,000 tonnes, up 10.5% year on year; and fungicide output amounted to 170,000 tonnes, an increase of 14.6% compared with the same period last year.

In the aforementioned reports, the figures may appear impressive, but unfortunately, this is far from a springtime scenario. In fact, the 2017 environmental inspections targeting the chemical industry are driving a reversal in supply and demand. Pesticide The industry is about to undergo a migration process, Pesticide Enterprises are no longer welcomed in various regions.

Dr. Duan cited an example, noting that the price of imidacloprid technical grade in 2017 could be described as “heart‑stopping.” The reason for such dramatic price swings was that many manufacturers of imidacloprid technical grade were unable to maintain normal production due to environmental‑compliance issues, driving prices higher. At the same time, multinational corporations stated they would not absorb these price increases caused by China’s environmental regulations, pointing out that their neighbor, India, already possesses the capacity to produce these technical grades and could readily continue sourcing affordable, high‑quality products from there.

Such cases must serve as a wake-up call for our active‑ingredient manufacturers: stricter environmental regulations do not necessarily translate into higher prices; more likely, they could result in lost market share.

Hear from the top 100 entrepreneurs on how to innovate

The road ahead is difficult, but we must keep moving forward.

At the conclusion of the 16th conference, the organizers also hosted the Top 100 Entrepreneurs Forum, which brought together Wang Quan, Deputy General Manager and General Manager of the China Business Unit at Sinochem Crop Protection Co., Ltd.; Zhu Qinghua, Head of Sustainable Business Development for Greater China at Syngenta (China) Investment Co., Ltd.; Wu Chengwei, General Manager of Jiangsu Kesheng Group Co., Ltd.; Wang Shihao, Deputy General Manager and Board Secretary of Shenzhen Nuopuxin Agrochemical Co., Ltd.; and Zhang Banglin, Executive Deputy General Manager of Anhui Fengle Agrochemical Co., Ltd.

When discussing how his company fosters innovation, Wang Shihao stated that he views innovation as a culture—a kind of corporate DNA. Noposin adheres to two core principles: first, all innovation must serve production; second, products must be crafted with a true craftsman’s spirit. He further emphasized that Noposin has always placed great importance on scientific and technological R&D, investing heavily in talent recruitment and allocating 80 to 90 million yuan annually to product development.

Wu Chengwei also stated that innovation is currently the most important development philosophy at Kesheng, and the company is committed to creating… Pesticide Research is given high priority, and studies on green production processes are continuously being conducted. In addition, due to the development of… Pesticide He believes that, given the high level of difficulty involved in research and development, one should avoid being overly ambitious and focus on original innovation rather than mere imitation. Pesticide It is also a direction for development. Furthermore, as for… Pesticide Kesheng has consistently been committed to research in applied technologies.

Zhu Qinghua stated that Syngenta places innovation at the core of its strategy. Last year, the company reported total revenues of US$13 billion, with R&D expenditures accounting for 10% of its annual revenue—US$650 million allocated to crop protection and another US$650 million to the seed business.

Regarding the challenges of innovation, Wang Quan stated that developing new products is highly difficult, requires a longer time to bring them to market, and incurs substantial registration costs. Wang Shihao added that when creating a new… Pesticide When developing a product, you’ve already taken 99 steps—only to realize you’ve gone in the wrong direction, or that a superior product has already emerged in the market. By then, you’ve already invested substantial effort and capital, with no way to recoup those costs. This is the challenge of creating something new. Pesticide The biggest challenge.

Indeed, innovation is no easy feat, and it is becoming increasingly difficult to identify new compounds. However, as Director Wu Houbin pointed out, in the past our primary strategy was low‑price competition, but that approach has now reached an impasse. New… Pesticide Creating something new is challenging, but no matter how difficult it may be, we must find a way to keep moving forward. We can achieve breakthroughs through innovations in craftsmanship or technology, thereby opening up new possibilities. Pesticide Nevertheless, major corporations must continue to explore innovative pathways.

The day-and-a-half-long conference flew by in the blink of an eye. During the event, we also heard presentations titled “The Impact of Macroeconomic Trends on the Petrochemical Industry” by Zhu, Director of the Information and Market Department of the China Petroleum and Chemical Industry Federation, and “Procurement Strategies of Multinational Corporations and…” by Chen Daning, Procurement Director for North Asia at BP’s Lubricants Business Unit. Pesticide “Industry Implementation Characteristics” report, “Data Empowers New Agricultural Enterprises, Technology Reconfigures New Marketing” by Jin Mingde, CEO of Xin Nong Bao, and “Under Stricter Environmental Regulations,” by Jian Wei, Deputy Chief Engineer of Zhejiang Qicai Environmental Technology Co., Ltd., Pesticide “How should enterprises respond?” presented by Zhu Yue, Vice President of Marketing at Nantong Taihe Chemical Co., Ltd.; “An Analysis of the Global Agrochemical Market and Key Products,” delivered by Gao Yong, President of Monsanto China; “Digital Agricultural Technologies Empowering Modern Agriculture,” by Gao Yong; and “New Trends in Agrochemical Pricing,” by Lu Jian, Director of Procurement and Strategic Supply at Longdeng Global Agricultural Technology Co., Ltd.

We also witnessed the 2017 China Plant Protection Market Best-Selling Brand Awards Ceremony and the 2017 Recognition Ceremony for Outstanding Correspondents and Outstanding Statistical Professionals.

     Pesticide Though the industry is not yet in spring, we must press on with determination and prepare to welcome the true arrival of spring.

Author: Pesticide Market Information Source: Pesticide Market Information