Demand in China will benefit from increases in agricultural production of sown land, and ongoing
gains in the production of pesticides-intensive crops such as fruits and vegetables.
Pesticide demand in China
to grow 5.3% annually
through 2015
Demand for formulated pesticides in the
agricultural market in China is forecast to
rise 5.3 percent per annum to 2.3 million
metric tons in 2015. In value terms,
formulated pesticide demand is expected
to rise 7.1 percent per year to 60 billion
yuan. Market gains will be driven primarily
by increases in agricultural production
as measured by the total area of sown
land, and ongoing expansions in the
production of fruits and vegetables,
which are by far the most intensive users
of pesticides relative to most other crops.
Farmers will continue to see steadily
increasing income, the result of rising
crop prices and government subsidies
designed to supplement their revenues
and reduce their material costs. Subsidies
aimed directly at cutting the cost of
pesticides will encourage additional use.
Furthermore, increased pesticide usage
has become more feasible from an investment
standpoint, as use of additional
pesticides can greatly boost crop yield,
which in turn bolsters farmers’ income.
The improved revenues attributable to
higher crop prices more than compensate
for the cost of the pesticides.
Pesticide active ingredient sales will
advance 4.8 percent annually through
2015 to 765,000 metric tons. By weight,
active ingredients comprised 26 percent
of formulated pesticide shipments in
2010. Growth will be heightened mainly
by greater exports of pesticide active
ingredients, while increased domestic
production of formulated pesticides will
further stimulate demand.
Insecticides to remain
largest market, fungicides
to grow fastest
Insecticides will remain the largest product
type through 2015 despite a relatively
slow growth rate of 3.7 percent per
year. Established products will continue
to dominate the market going forward
while the trend toward using less-toxic
insecticides will contribute to the slow
rate of growth. Herbicides will see strong
growth in both shipments and demand
through 2015, driven by a decrease in
farming manpower and growth in export
markets. Fungicides will post the fastest
growth as farmers contend with resilient
fungal problems.
Northwest to be fastest
growing regional market
The size, growth and composition of
pesticide demand in China’s six regions
vary considerably. The Central-East and
Central-South will remain the two largest
regional pesticide markets, together
accounting for 70 percent of total
demand in 2015. Demand in these
regions will be driven by increasing
output of high value crops. Growth in
sales of pesticides in the Northwest will
outpace that of other regions through
2015, benefiting from the Great Western
Development Strategy.
Study Scope
This study analyzes the 1.8 million metric ton agricultural pesticides industry in China, with forecasts for 2015 and 2020 for formulated pesticides and pesticide active ingredients by type (e.g., insecticides, herbicides, fungicides, plant growth regulators, rodenticides, biopesticides), class, crop and geographic region.
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 32 industry participants, including Jiangsu Kwin Group, Shenzhen Noposion Agrochemicals, and Syngenta.
