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    2018 China Pesticide Market Analysis Report


    Release Date:

    2018-06-23

    1. “Food security” is the cornerstone for the sustained and stable development of the agrochemical industry. The Draft Outline of the 13th Five-Year Plan for National Economic and Social Development explicitly calls for strengthening the capacity to ensure agricultural product safety, guaranteeing basic self-sufficiency in grain and absolute food security, adjusting and optimizing the agricultural structure, enhancing overall agricultural productivity and quality‑safety standards, and establishing an effective supply of agricultural products that is more reasonably structured and better secured. It also emphasizes improving grain production capacity and security, accelerating agricultural structural adjustment, promoting the integrated development of primary, secondary, and tertiary industries in rural areas, ensuring the quality and safety of agricultural products, fostering sustainable agricultural development, and engaging in international agricultural cooperation.

    1. “Food security” is Pesticide A guarantee for the industry’s sustained and stable development
      The Outline of the 13th Five-Year Plan for National Economic and Social Development (draft) explicitly states that it is necessary to strengthen the capacity to ensure the safety of agricultural products, guarantee basic self-sufficiency in grain and absolute food security, adjust and optimize the agricultural structure, enhance the overall production capacity and the level of quality and safety of agricultural products, and establish an effective supply of agricultural products characterized by a more rational structure and stronger safeguards. It also calls for raising the level of grain production capacity and security, accelerating the adjustment of the agricultural structure, promoting the integrated development of the primary, secondary, and tertiary industries in rural areas, ensuring the quality and safety of agricultural products, fostering sustainable agricultural development, and expanding international cooperation in agriculture.

      China is the world’s most populous country, and its population continues to grow at a steady pace; from 2006 to 2016, the annual net increase averaged 6.823 million people. According to projections by the National Population and Family Planning Commission, China’s population will peak around 2033, reaching approximately 1.5 billion.

    Chart: China’s Population, 2006–2016

      Over the past decade, driven by urbanization, China’s rural population declined from 731.6 million in 2006 to 589.7 million in 2016, while the urban population increased from 582.9 million in 2006 to 793.0 million in 2016. According to the “2016 China Land and Resources Bulletin” released by the Ministry of Land and Resources, as of the end of 2016, the country’s total area of cultivated land stood at 134.96 million hectares (2.02 billion mu). In 2015, the nation lost 336,500 hectares of cultivated land due to construction, natural disasters, ecological conversion of farmland, and adjustments in agricultural structure, while gains from land consolidation and agricultural restructuring amounted to 293,000 hectares, resulting in a net reduction of 43,500 hectares for the year. From 2011 to 2016, China’s cultivated land area remained broadly stable, with only a slight decline.

    Chart: Changes in National Cultivated Land Area, 2011–2016
      Due to the conflict between population growth and limited arable land, China’s food security has become a pressing issue; currently, the country’s self-sufficiency rate in grain has fallen below 90%. On the other hand, according to the white paper “China’s Food Issue,” “by 2030, when China’s population reaches its peak, per capita grain availability will be around 400 kilograms, with over 200 kilograms allocated to staple grains.” At that time, the nation will face a rigid demand for nearly 300 million tons of grain. Therefore, in order to raise China’s grain self-sufficiency rate and meet the growing demand for food, it is imperative that the country further enhance agricultural productivity, and… Pesticide The scientific and rational use of [it] is of great significance in enhancing agricultural productivity, thereby ensuring… Pesticide The industry’s development prospects.
      2. Pesticide Under the backdrop of zero growth in usage, highly toxic and persistent substances… Pesticide Phased-out to favor low-toxicity, low-residue options. Pesticide Free up vast amounts of space
      In order to advance Pesticide By reducing inputs and controlling risks, and by exploring a path toward modern agricultural development that is highly productive, ensures the quality and safety of agricultural products, safeguards the ecological environment, conserves resources, and is environmentally friendly, the Ministry of Agriculture has formulated the “Plan to 2020.” Pesticide The Action Plan for Zero Growth in Pesticide Use sets the following overarching goal: By 2020, a preliminary technical system for sustainable pest and disease management that is resource-efficient and environmentally friendly will be established, with a marked improvement in the scientific application of pesticides, striving to achieve… Pesticide Total consumption will remain at zero growth, and this plan has been incorporated into the Outline of the 13th Five-Year Plan.

      And Pesticide Demand growth and Pesticide The contradiction between declining usage can only be resolved by increasing… Pesticide Efficiency is addressed through utilization, thereby enhancing… Pesticide The efficiency of its use is in our country. Pesticide An inevitable trend in industry development. Enhance Pesticide The efficiency of its use is primarily achieved through two approaches: first, by… Pesticide Starting from the dosage form itself, enhance Pesticide Product quality. Environmentally friendly, with low toxicity, high efficacy, and minimal residue. Pesticide The product will gradually replace those with high toxicity and high residue levels. Pesticide Second, to change the widespread situation that currently exists. Pesticide The current situation of waste caused by improper pesticide use. To address this, it is essential to apply pesticides appropriately—timely and in the right amounts—based on accurate diagnosis of pests and diseases and a clear understanding of their resistance levels. Relying on pest and disease monitoring and forecasting, select appropriate formulations and timing for application, and avoid indiscriminate use, arbitrarily increasing application rates, or escalating the frequency of treatments. This will require… Pesticide Formulation companies should provide appropriate guidance, establish specialized plant protection service organizations for prevention and control, and encourage users to adopt rational and efficient application practices. Pesticide , by promoting professional, unified pest management and scientifically precise application of pesticides, to enhance Pesticide Utilization rate.

    Chart: Currently Prohibited and Restricted Uses in China Pesticide variety
      The aforementioned highly toxic and persistent substances Pesticide The gradual reduction and phase-out of [something], for our country… Pesticide It has had a significant impact on the industry, with some varieties showing signs of aging. Pesticide Enterprises face the challenges of halting production and shifting to new lines, but for Zhongxun Agricultural Science, which focuses on efficient, low-toxicity, low-residue, environmentally friendly… Pesticide For leading enterprises that prioritize variety, this translates into broader opportunities for market substitution.
      3. With increasingly stringent environmental regulations, industry entry barriers and market concentration have risen significantly.
       Pesticide The environmental issues involved mainly fall into two categories: on the one hand, … Pesticide Environmental issues associated with the active‑ingredient manufacturing process, Pesticide The production process involves numerous chemical synthesis steps, resulting in low yields and substantial emissions of the three wastes, with wastewater discharge being particularly significant. In China, Pesticide Each year, wastewater discharge accounts for 2%–3% of the nation’s total industrial wastewater emissions. Although this share is relatively small, the effluent is highly concentrated, highly toxic, and difficult to treat. China Pesticide Enterprises’ environmental protection costs remain relatively low; as societal awareness of environmental issues continues to grow, Pesticide Corporate environmental protection costs are expected to continue rising, posing challenges for small and medium-sized enterprises that fail to meet environmental standards and have weak profitability. Pesticide For enterprises, their growth will hit a bottleneck, which in turn favors merger‑driven expansion by industry leaders. On the other hand, it… Pesticide The environmental issues associated with its use have, over the years, become increasingly pressing as the challenges of controlling pests and diseases have continued to mount in China. Pesticide Overall usage has been on the rise. According to statistics, from 2012 to 2014, China’s crop pest and disease control… Pesticide The average annual usage was 311,000 tons (in terms of 100% active ingredient), an increase of 9.2% compared with the 2009–2011 period. In 2012, China’s vegetable and fruit production… Pesticide Operating costs have all increased by approximately 90% compared to 2002. At present, in China… Pesticide The average utilization rate is only 35%, with the majority… Pesticide It is lost through runoff, leaching, and drift, contaminating soil and the aquatic environment and compromising the ecological safety of farmland. Although the state has gradually banned certain highly toxic substances… Pesticide its application; however, some small and medium-sized manufacturers continue to produce related products in violation of laws and regulations, resulting in phytotoxicity and Pesticide Poisoning incidents occur from time to time.
      The Environmental Protection Law, revised in April 2014, has strengthened environmental penalties by removing the upper limit on fines. Specifically, when enterprises, public institutions, and other producers or operators illegally discharge pollutants and are subject to monetary penalties and ordered to make corrections, if they refuse to comply, the administrative authority that issued the penalty decision may, starting from the day following the date of the order to correct, impose daily consecutive penalties equal to the original fine amount. People’s governments at all local levels shall be responsible for the environmental quality within their respective administrative areas.
      In June 2017, the Department of Crop Production of the Ministry of Agriculture issued the “Notice on Strengthening Management and Promoting…” Pesticide Opinions on the Healthy Development of the Industry (No. 4, 2017, issued by the Ministry of Agriculture and Rural Affairs) explicitly stipulate the need to phase out highly toxic substances in an orderly manner. Pesticide , actively develop biotechnology Pesticide , as well as efficient, low-toxicity, and environmentally friendly Pesticide Pesticide Industrial development will achieve the following objectives: 1. Optimize industrial layout: By 2020, chemical enterprises will be located within chemical parks or industrial parks. Pesticide More than 60% of active‑ingredient manufacturers will meet the required standards; 2. Optimize the product mix: by 2020, the number of newly registered homogeneous products will be reduced by 30%; by 2025, this reduction will reach 50%. High‑toxicity products will be phased out in an orderly manner. Pesticide , actively develop biotechnology Pesticide , as well as a new type that is efficient, low-toxicity, and environmentally friendly Pesticide ;3. Enhance product quality: By 2020, Pesticide The pass rate of quality spot checks has remained stable at over 95%, agricultural products Pesticide The pass rate for residue testing has remained stable at over 96%. Pesticide Production and business operations have been further standardized, Pesticide Market order remains stable and improving.
      The tightening of environmental standards and the imposition of stricter market access requirements will enable large, well‑equipped enterprises to gain a competitive edge, while accelerating the phase‑out of outdated, small‑scale production capacity—aligning with the objectives of China’s supply‑side structural reform.
      4. The Trend Toward Integrated Development of Technical Grades and Formulations
      With foreign countries Pesticide The integrated production model of active ingredients and formulations adopted by major players differs; in China, Pesticide Intermediate, Pesticide Technical grade material, Pesticide The formulation industry exhibits a relatively clear division of labor: API manufacturers are generally large in scale, followed by formulation companies, while intermediate‑product producers tend to be smaller. The primary reason for this is that, over the long term, China has… Pesticide The technical grade material is supplied to overseas markets. Pesticide Primarily engaged in OEM/ODM manufacturing, with no established proprietary brands; China Pesticide The low barriers to entry in formulation processing and compounding have resulted in low industry concentration and an unregulated competitive landscape; key… Pesticide The low level of intermediate‑product R&D has constrained the industry’s expansion.
      Currently, domestically Pesticide Industry profits in the market are clearly shifting toward Pesticide R&D of active ingredients and formulation sales channels have become increasingly concentrated. Formulation companies, by engaging in deep processing of their products, gain control over distribution channels, while some well‑capitalized API manufacturers are beginning to enter the formulation sector. Meanwhile, several large formulation firms are also gradually expanding upstream into the API segment, seeking to secure a competitive edge within the industry.
      5. Pesticide The variety and dosage-form structure are continuously being optimized.

      As people’s environmental awareness grows, Pesticide The industry’s requirements for the development of environmentally friendly formulations are steadily increasing. At present, “water-based, granular, and controlled-release” dosage forms have become… Pesticide R&D hotspots in the pharmaceutical formulation field, Pesticide The industry is evolving toward greater efficiency, safety, cost-effectiveness, convenience, and environmental sustainability.

    Chart: China’s Registrations in 2008 and 2016 Pesticide Distribution of Major Dosage Forms of Finished Products (Based on Registered Products)
      The “2018 China” report released by Guanyan Tianxia Pesticide The “Market Analysis Report—In-Depth Industry Research and Prospects for Development” is characterized by its rigorous content and comprehensive data, complemented by numerous clear and intuitive charts to help companies in the sector accurately grasp industry trends, market prospects, and formulate effective competitive and investment strategies. This report draws on authoritative data released by sources such as the National Bureau of Statistics, the General Administration of Customs, and the State Information Center, as well as our center’s field research on the industry. By integrating an analysis of the industry’s external environment, it conducts market research and analysis from multiple perspectives—spanning theory to practice and from macro to micro levels.
      It serves as one of the key decision‑making foundations for industry players, related investment firms, and government agencies to accurately grasp industry development trends, gain deep insights into the competitive landscape, mitigate operational and investment risks, and formulate sound competitive and investment strategies. This report is an indispensable tool for gaining a comprehensive understanding of the industry and for making informed investment decisions. Guanyan Tianxia is a well‑known domestic industry information consulting firm with a team of seasoned experts. Over the years, it has provided professional industry analysis reports to tens of thousands of enterprises, consulting firms, financial institutions, industry associations, and individual investors, serving such leading domestic and international companies as Huawei, China National Petroleum Corporation, China Telecom, China State Construction Engineering Corporation, HP, and The Walt Disney Company, and earning widespread recognition from its clients.
      This research report primarily relies on data from national statistical databases, the General Administration of Customs, questionnaire surveys, and data collected by the Ministry of Commerce. Macroeconomic data are sourced mainly from the National Bureau of Statistics, while industry‑specific statistics are drawn in part from the National Bureau of Statistics and market research sources. Corporate data are chiefly obtained from the NBS’s database of large enterprises and from stock exchanges, and price data are derived from various market‑monitoring databases. The industry analysis methods employed in this report include Porter’s Five Forces model and SWOT analysis. Pesticide The T‑analysis method conducts a comprehensive internal and external environmental assessment of the industry. At the same time, seasoned analysts evaluate current national economic trends, market development trajectories, and prevailing industry hotspots, enabling forecasts of the industry’s future direction, emerging opportunities, market potential, technological trends, and strategic development plans.

     

    Author: China Report Network Source: China Report Network

     

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