China’s pesticide intermediates output to reach 5.3 million tons in 2022

At present, China and India are the world’s main producers of pesticide technical and intermediates. From 2017, China’s pesticide technical production began to decline, but the prices of pesticide technical began to rise. In 2019, the production of pesticide technical started to pick up, which was 2.2539 million tons, an increase of 8.2% year on year. According to the forecast of a Chinese business research institute, China’s pesticide technical production may fall to 1.0693 million tons in 2022.

The downstream of pesticide intermediates includes pesticide technical and formulation, which are dependent on high-quality pesticide intermediates. As pesticide patents expire, generic pesticides usher in a new market prospect. The pesticide structure adjustment and crop protection policies will drive the market growth and the development of pesticide intermediates, China’s pesticide intermediates production is expected to reach 5.3 million tons in 2022.

Future trend

Firstly, the environmental compliance regulation and work safety policies will promote a further industry concentration, which will focus on the overseas markets acting as a driver to the industry growth.

Secondly, due to the impact of higher research and development costs, the slowdown of new capacity launches of pesticides and intermediates, the off-patent pesticide peak and the product restructuring of agrochemical giants, it is foreseen that high value-added pesticides and pesticide intermediates production capacity will continue to move into China.

Thirdly, enterprises with strong research strength, rich human resource and technical reserves will quickly stand out prominently.