In 2022, China’s output of pesticide intermediates is expected to reach 5.3 million tons.
Release Date:
2021-11-22
At present, China and India have become the world’s leading producers of agrochemical intermediates and active pharmaceutical ingredients. Since 2017, China’s output of agrochemical APIs has been declining, while prices have been rising. In 2019, API production rebounded to 2.2539 million tons, up 8.2% year on year. According to forecasts by the China Business Industry Research Institute, China’s agrochemical API output is expected to fall to 1.0693 million tons by 2022.

Data source: Compiled by the China Business Industry Research Institute.
The downstream sector of pesticide intermediates comprises the active‑ingredient and formulation industries, and high‑quality pesticide intermediates serve as a key enabler for the rapid development of pesticide products. With the expiration of pesticide patents, generic products are poised to capture new market opportunities; adjustments in pesticide formulations and agricultural protection policies will further drive market growth and bolster the pesticide intermediate industry. It is projected that China’s production of pesticide intermediates will reach 5.3 million tonnes in 2022.

Data sources: Compiled by GF Securities and the China Business Industry Research Institute.
Future Development Trends
First, policies on environmental protection and safety are further driving industry consolidation, with overseas markets set to become the primary engine of growth for the sector.
Second, driven by rising R&D costs, the launch of new agrochemicals and intermediates has slowed; coupled with the impending peak in the expiration of pesticide patents and production‑structure adjustments among multinational agrochemical giants, capacity for high‑value‑added pesticides and pesticide intermediates will continue to shift to China and other regions.
Third, companies with robust R&D capabilities and a strong pool of technical talent will rapidly stand out.
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