2024 Chinese Agrochemical Market Overview：Accelerated industry upgrading, regulation and innovation across multiple domains

This article is first published in the "2025 China Pesticide Industry Watch" magazine. To read more articles from the magazine, please click picture in below.

After experiencing significant volatility in recent years, the international pesticide market is gradually stabilizing in 2024, demonstrating a rational and normal development trend marked by a relatively balanced supply and demand. 

In contrast, the Chinese pesticide market continues to grapple with declining product prices, leading to increased production cost pressures for companies and presenting unprecedented challenges for the entire industry.

At the same time, the government is strengthening regulatory measures and promoting high-quality development. Relevant agencies, including the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs, have implemented regulations to restrict certain pesticide production facilities, phase out outdated production capacities, and steer the industry towards green, efficient, safe, and environmentally friendly practices.

In terms of products, pesticide companies are ramping up their research and development investments to drive technological innovation and enhance product competitiveness. New chemical pesticide varieties innovated by Chinese companies are being widely adopted in the domestic market and gaining international recognition, showcasing their strong innovative capabilities. The proportion of highly toxic and high-residue pesticides has significantly decreased, while efficient and eco-friendly pesticide products are becoming the norm. Currently, the Ministry of Agriculture and Rural Affairs has registered more than 2,000 biopesticide products. In 2024, China registered eight new pesticides (including ten new active ingredients and 17 products), with new biopesticides accounting for 62.5% of these new offerings.

In the realm of international expansion and market development, China’s pesticide exports have continued to grow year-on-year despite a persistent decline in pesticide prices in 2024 that has significantly impacted profits. Exports account for approximately 85% of total pesticide production (source: ICAMA), highlighting the strong competitiveness of Chinese pesticide products in the global market. Additionally, obtaining overseas registrations has become a crucial strategy for Chinese companies looking to expand internationally, with leading firms establishing a wide global presence to provide customers with more timely and flexible products and services.

As supply-side structural reforms progress in 2025, concentration within China’s pesticide industry is expected to increase further. Industry resources and market shares will gradually consolidate among leading enterprises. These key players will capitalize on their strengths in technology, capital, and branding to enhance their competitive position in the market, thereby unlocking greater development opportunities and profit margins.

However, the pesticide industry is also experiencing differentiation and increasing involution. The competition among companies is intensifying. More substantial enterprises are actively expanding both upstream and downstream within the industry chain to establish a comprehensive business model that enables them to control pricing and achieve higher profits. In contrast, smaller and weaker firms are grappling with mounting survival pressures, particularly those weighed down by financial struggles stemming from reckless investments, putting them at risk of bankruptcy. In this market environment, mergers, acquisitions, and restructuring are anticipated to continue evolving, optimizing the industry structure and concentrating resources among leading companies, thereby steering the entire sector toward high-quality and sustainable development.

The domestic pesticide market is fiercely competitive, with many companies and fragmented market shares; the top ten firms together hold just 36.5% of the total sales of the top 100 companies (source: China Crop Protection Industry Association). On the international stage, Chinese pesticide companies are contending with challenges from countries like India, where products are being offered at lower prices. There is a pressing need to bolster brand development in order to increase the global presence and influence of Chinese pesticides.

In the following sections, we will summarize and highlight the most trend-setting and influential events shaping the development of the Chinese pesticide industry in 2024, as observed by industry observers. This overview will cover changes in policies and regulations, trends in product variety and pricing, and company activities, with the aim of providing industry players, investors, and readers interested in the Chinese market with a deeper understanding of industry dynamics and insights into future development directions.

Glyphosate, glufosinate, and various other pesticides included on restricted category list

At the end of 2023, the National Development and Reform Commission (NDRC) released the ″Guidance Catalogue for Industrial Structure Adjustment (2024 Edition),″ which came into effect on February 1, 2024. This Catalogue identified 28 pesticide production facilities as restricted items, including glyphosate, chlorpyrifos, triazophos, chlorothalonil, abamectin, imidacloprid, acetochlor, chloropicrin, alachlor, 2,4-D, acetamiprid, thiamethoxam, atrazine, butachlor, 2-methyl-4-chlorophenoxyacetic acid, ametryn, dicamba, diquat, glufosinate, clethodim, mancozeb, trichlorfon, triadimenol, propiconazole, iprodione, paclobutrazol, and calcium polysulfide. 

The new regulations prohibit the establishment of new production facilities for these pesticides and require existing capacities to be upgraded within a specified timeframe. Additionally, 43 highly toxic pesticide products, such as aqueous solution containing glyphosate at levels below 30%, nitrofen, and chlordimeform, have been added to the list of items slated for phase-out. Investments in these products are prohibited, and they must be eliminated within the designated timeframe.

The updated catalog significantly increases the number of restricted items in the pesticide industry compared to the previous version. This expansion primarily targets highly toxic and high-residue pesticide technical materials (TCs) that pose risks to environmental and agricultural product safety. It includes production facilities for compounds such as omethoate, tetrachlorvinphos, methidathion, glyphosate, chlorpyrifos, triazophos, paraquat, chlorothalonil, and abamectin. The goal is to address the persistent issue of overcapacity in these products. 

The catalog clearly states that ″new constructions of restricted items are prohibited, while existing production capacities may be upgraded within a designated timeframe.″ This approach allows companies producing restricted pesticides to enhance their competitiveness through upgrades, ensuring their continued viability. The adjustment aims to steer the industry toward greener, more efficient, and sustainable development, promoting resource conservation and environmental protection while also supporting the objectives of carbon peaking and carbon neutrality.

In recent years, China’s pesticide industry has struggled with overcapacity issues. This problem has primarily arisen from stricter safety and environmental regulations in developed coastal provinces, prompting smaller chemical enterprises to relocate hastily. Additionally, uninformed investments driven by the rapid securitization of private agrochemical companies have contributed to this situation. As a result, the utilization rate of existing production capacities remains below 50%, leading to reckless investments in sub-new products.

To address the issue of overcapacity, it is essential to raise technical barriers, avoid reckless expansion, and establish self-regulatory mechanisms within the industry. Currently, the pesticide sector faces several challenges, including a prevalence of small, fragmented production enterprises, which complicates efforts to phase out high-pollution and energy-intensive capacities. Additionally, there is an urgent need to modernize the aging product variety structure, which suffers from significant homogeneity. As regulations on dual control of energy consumption—both in terms of quantity and intensity—as well as safety and environmental protection become increasingly stringent, China’s pesticide sector is still developing its original innovation capabilities. This situation places considerable pressure on companies to undergo transformation and upgrade their operations.

Pesticide industry poised for significant restructuring with introduction of ‘One Certificate for One Product’ policy

To further enhance and refine the pesticide management system, the Ministry of Agriculture and Rural Affairs of China released the ″Decision on Revising the ‘Measures on the Management of Pesticide Registrations’ and Four Other Regulations (Draft for Public Comment)″ on November 4, 2024. Article 31, Paragraph 1 specifies that the label of a pesticide product associated with the same registration certificate can only feature one trademark rather than being restricted to the trademark of the manufacturer. This policy mandates that each pesticide product be linked to a unique certificate, making the ″One certificate for one product″ policy a reality in the domestic pesticide market.

The practice of certificate leasing and swapping is currently widespread in the domestic agri-inputs market, with manufacturers launching multiple brands for the same product, resulting in considerable homogeneity. As the ″One Certificate for One Product″ policy gradually comes into effect, 2025 is expected to be a crucial ″year of elimination″ for pesticide products. Current statistics indicate that there are approximately 40,000 pesticide registration certificates in China, while the actual number of pesticide brands stands at around 200,000. With the implementation of this policy, it is anticipated that up to 80% of products in the industry may be pushed out of the market. This significant restructuring will realign the industry with core principles of quality and innovation in pesticide products.

The ″One Certificate for One Product″ policy is essential for the standardized development of the pesticide industry, promoting healthy competition among manufacturers while ensuring the quality and safety of pesticides for farmers. Certificate resources are a key competitive advantage for pesticide companies. Enterprises that possess original factory certificates are likely to succeed, while those that depend on ″borrowed″ or ″substitute″ certificates may face elimination. In the short term, smaller companies may experience a period of upheaval lasting two to three years; however, in the long run, this will significantly enhance the overall health and development of the industry.

In response to the new policy, pesticide companies are proactively adjusting their strategies. They are streamlining their product lines by reducing the variety and specifications, concentrating on core offerings. Simultaneously, they are actively seeking certifications for high-demand products. From a marketing standpoint, they are consolidating distributor resources to safeguard their channels and adapting their product launch strategies to align with the ″One certificate for one product″ policy.

Moreover, this policy is encouraging pesticide manufacturers to invest in research and development. However, the implementation of the new policy brings various uncertainties in distribution; distributors may conduct initial assessments of their warehouse inventory, while manufacturers will focus on preserving certificate reserves to enhance their market competitiveness.

New pesticide compound developed by Chinese Companies successively obtain registration certificates

In 2024, China recorded a notable total of 167 registrations for pesticide TCs (TKs), which includes the 13th batch of pesticides to be approved for the year. As illustrated in Figure 1, the overall number of new pesticide TC (TK) registrations has shown a consistent upward trend over the past five years. Remarkably, the registration figures for 2024 are nearly equal to the combined total of registrations from 2020 to 2023.

Figure 1. The overall number of new pesticide TC (TK) registrations from 2020 to 2024

Being the first registered new pesticide is vital for market sales. In China, new pesticide registration refers to pesticides with active ingredients that have not yet been approved for registration, which includes both new pesticide TCs (TKs) and new formulations. For the industry and companies, ongoing product innovation and iterative upgrades are essential trends and necessary pathways for the growth and strengthening of the Chinese pesticide sector.

In 2024, eight new pesticides were registered in China, which included ten new active ingredients and 17 products. This comprised two insecticides (with four active ingredients and two products), three fungicides (three active ingredients and six products), and three herbicides (three active ingredients and nine products). Additionally, six TCs, TKs, and formulations were registered simultaneously, making up 75% of the newly registered pesticides. Domestic companies like Cynda, KingAgroot, and CAC Group are actively seeking approval and first registration for new pesticides.

Key features of new pesticide registrations are as follows:  

All registered new pesticide varieties are from domestic enterprises, with most being patented products developed independently or through collaboration. Notably, the three chemical herbicides—flufenoximacil, flusulfinam, and pyraquinate—have each received ISO common names for pesticides. Table 1 lists the newly registered innovative pesticide products in 2024.

Table 1. The newly registered innovative pesticide products by Chinese companies in 2024

New biopesticides make up 62.5% of the recently registered pesticide varieties, representing a 44% decrease compared to 2023. One biochemical pesticide, the corn borer pheromone, is an insect pheromone; the remainder consists of microbial pesticides.

Out of the 17 new pesticide products, 70.6% are classified as low toxicity, while the others are categorized as moderate toxicity. Most of the formulations are environmentally friendly, including options such as aqueous suspension concentrate (SC), oil-miscible flowable concentrate (OF), and dispensers.

Several products have been approved for export only in China's recent pesticide registrations. KingAgroot’s new pesticides, Fluorochloram 98% and Fluorochloropyridine 95% have both received their first registrations for export only to Cambodia. Additionally, Nantong CAC International Chemical Co., Ltd.’s Cypermethrin 98% has also been registered domestically for export only to Cambodia.

The registration of pesticide products developed independently by Chinese companies plays a crucial role in encouraging these firms to increase their R&D investments, promote technological innovation, and drive industrial upgrades. This shift enhances the competitiveness of China’s pesticide industry in the global market, transforming the country from a major pesticide producer into a leading powerhouse. Moreover, the introduction of innovative products from Chinese companies helps diversify pesticide offerings, catering to the diverse needs of global agriculture and providing safer, more efficient, and environmentally friendly solutions for agricultural production. This ultimately supports the green and high-quality development of the farm sector.

Pesticide prices remain generally low, but some products are starting to see a recovery

The pesticide market in 2024 is gradually stabilizing after the significant fluctuations experienced over the past two to three years. In terms of pricing, the downward trend observed throughout 2023 has started to show differences within the market. Demand-driven procurement has become the primary strategy for both domestic and international markets; however, temporary imbalances between supply and demand have occasionally led to substantial price fluctuations in specific products, such as pyraclostrobin, prothioconazole, and tebuconazole, creating both opportunities and challenges for market participants. Meanwhile, several key herbicide varieties have been operating at low levels for an extended period, which has somewhat limited industry development.

According to the technical material price index from Sino-Agri Leading Biosciences Co., Ltd., of the hundreds of varieties monitored, 64% continued to decline, 14% remained stable compared to the same period in 2023, and 22% experienced price increases. Among the three main categories, insecticides saw the most significant average drop at -10.21%, followed by herbicides with an average decrease of -9.73%, while fungicides had the smallest decline at -6.95%.

In 2024, only three herbicide products saw price increases: clethodim, sethoxydim, and 2,4-D, while other varieties remained stable or declined to varying degrees. Among the ten insecticides that experienced price hikes, the top five were cartap at 61.54%, molosultap at 52%, pyridaben at 30%, abamectin at 27.03%, and emamectin benzoate at 24.27%. The four fungicides that increased in price were chlorothalonil at 47.22%, dimethomorph at 18.18%, prochloraz at 6.25%, and azoxystrobin at 5.26%. Except for chlorothalonil and dimethomorph, which saw significant increases, other varieties only experienced modest growth, suggesting that the fungicide market still faces challenges in gaining upward momentum. Figure 2 shows the top five varieties from three categories that saw growth in 2024:

Figure 2. Top five varieties of herbicide, insecticide, and fungicide that saw growth in 2024

The top five products with the most significant price drops all saw reductions of over 10% (figure 3), with some herbicide and insecticide varieties experiencing declines of more than 30%. The market is still volatile and undergoing consolidation, reflecting an overall trend of divergence.  

Figure 3. Top five varieties of herbicide, insecticide, and fungicide that saw a decline in 2024

Looking ahead to 2025, the entire industry is expected to remain in a phase of bottom consolidation. While the agrochemical sector's fundamental demand characteristics remain stable, the market must patiently wait for potential opportunities that may arise from a recovery in demand. This will test companies' resilience and endurance. At the same time, the ongoing expansion of domestic production capacity will lead to more significant product differentiation.

Frequent anti-dumping cases are prompting companies to shift away from price competition

In 2024, the global pesticide market faces dual challenges: increased trade protectionism and intensified market competition. The pesticide trade has seen a rise in anti-dumping investigations and rulings as countries implement these measures to safeguard their domestic industries. This trend underscores the escalating tensions in international trade and highlights significant shifts in the supply chain and trade patterns within the pesticide industry amid globalization.

Over the past year, Chinese export companies have encountered numerous anti-dumping investigations and rulings, with high tariffs significantly undermining the price competitiveness of Chinese products in international markets. Simultaneously, China has effectively managed international trade frictions through anti-dumping policies, safeguarding its domestic industries. By reducing the impact of low-priced imported goods, the Chinese pesticide industry is accelerating its consolidation and increasing industry concentration. Additionally, these anti-dumping measures are encouraging companies to enhance technological innovation and refine their global supply chain strategies.

Table 2. Chronological list of the significant anti-dumping cases for 2024

Note

1. Compiled by AgroPages, not exhaustive.

2. In the "Anti-Dumping Cases" section, some cases have not yet reached a final ruling; thus, only the current status of the investigations or any known provisional measures are included.

3. Some cases involve multiple downstream products, so only the main application areas are highlighted.

Trade frictions can cause fluctuations in the supply and prices of certain agrochemicals, which may indirectly impact agricultural production. For instance, the U.S. has launched anti-dumping and countervailing duty investigations into 2,4-D herbicides from China and India, with Chinese companies facing tax rates as high as 127.21%. This could increase planting costs for American farmers, affecting agricultural productivity and the stability of the farm product supply. However, in the long run, it may also motivate farmers to adopt more scientific and rational approaches to pesticide use, promoting greener development.

Anti-dumping policies are also compelling Chinese agrochemical companies to increase their R&D investments, improve product value and technological sophistication, optimize industry structure, and move towards higher-end and differentiated products to enhance their core competitiveness in the international market and reduce the negative impacts of price competition. 

Industrialization of nano-pesticides advancing rapidly, with notable products and brands emerging in international market

China has made remarkable progress in the field of nano-pesticides, with rapid advancements in industrialization. Since 2015, nano-pesticides have been extensively used in various sectors, including formulation products and drone-assisted plant protection, demonstrating significant application potential. After years of ongoing development, China has not only developed a variety of new nano-pesticide formulations but has also emerged as a global leader in technology transformation and industrialization.

China has made significant progress in establishing standards. In 2021, it introduced the world’s first officially approved standard for nano pesticides: the ″Rules for Drafting Specifications for Nanopesticide Products,″ which came into effect on May 1, 2024. This standard not only establishes clear regulations for the development of nano-pesticides in China but also serves as an essential reference for the global standardization of nano-pesticides.

In 2024, Chinese pesticide companies collectively introduced several new nano-pesticide brands, showcasing their strong capabilities in technological innovation and market expansion. By exporting high-end nano-pesticide formulations and promoting branded products, these companies are significantly enhancing China’s influence in the global pesticide industry.

Pilarquim is a leader in China’s formulation industry, having made significant breakthroughs in the application of nanotechnology across various domains, including pesticide adjuvants, formulations, production processes, engineering, quality control, and equipment utilization. In 2024, Pilarquim officially launched its upgraded Pilarnano^® nano-pesticide brand globally. The enhanced Pilarnano^® series features particle sizes as small as 300nm and includes innovative ″nano-microsphere″ adjuvants along with cosmetic-grade moisturizing agents, significantly improving product stability and absorption efficiency.

In terms of market performance, Pilarquim’s nano products, such as ″Nano PILARTEP,″ have established a premium brand image on the global stage. For the Pilarnano^® series, the company introduced 10 new products in 2024, with over 20 more expected in 2025. By 2026, Pilarquim aims to empower most of its formulation products with nanotechnology and increase its annual submissions for overseas product registrations to 300. This strategic move will enable the company to gradually enter high-barrier markets like the EU, North America, and Australia, thereby advancing global agriculture.

Jiangsu Aijin Agrochemical Co., Ltd. is an innovative leader in China’s pesticide formulation industry. It spearheads the development and application of next-generation nano-loading technology, known as ″Nano 2.0 Technology,″ and drives technological advancements across the sector.

Aijin’s ″Nano 2.0 Technology″ utilizes the self-assembly of surfactant molecules to create templates, followed by a sol-gel reaction that forms a mesoporous structure around organic silicon precursors. This groundbreaking approach opens up new possibilities for the development of nano-pesticides. Aijin’s ″Nano 2.0 Technology″ has already yielded significant results in several key areas and has been widely applied in seed treatment, control of boring pests, and management of pine wood nematodes, among others.

Shanghai Yuelian, a pesticide formulation company, has established a distinct position in the nano sector through its innovative nano-microemulsion technology. In 2024, the company successfully launched a series of high-concentration microemulsion nano-pesticides under its ″Yuelian Mijia″ brand. These nano microemulsions have particle sizes ranging from 10 to 100 nanometers, offering substantial advantages such as enhanced efficacy and utilization, reduced pesticide consumption, improved stability and compatibility, and increased safety and environmental sustainability. 

Industry platforms promote collaborative efforts, fostering mutually beneficial partnerships among enterprises

In recent years, the shifting global political and economic landscape has led to increased uncertainties in the supply chain, prompting a transformation of the agrochemical value chain. Domestic agrochemical companies are actively adjusting their strategies to adapt to market changes. Looking back at 2024, these companies are undertaking various initiatives – whether to strengthen their competitive advantages or to explore new sectors – in order to stand out in a highly competitive market. This year, AgroPages has observed a notable rise in collaboration among domestic agrochemical companies, with partnerships becoming both broader and more profound. They are forming strategic alliances, integrating resources, and optimizing industry structures to enhance their market competitiveness.

Large leading enterprises with resource advantages are increasingly adopting a platform approach. In 2024, Sino-Agri Leading Biosciences Co., Ltd. (SAL), China’s largest agrochemical distribution platform, launched the ″non-selective herbicide value platform,″ aiming to serve core upstream and downstream clients by providing comprehensive strategies and foster strategic complementarities.

By harnessing significant financial resources, professional information services, and a robust supply chain, SAL collaborates with high-quality domestic suppliers to ensure a stable supply of top-notch products. To mitigate procurement risks, the company integrates both internal and external resources to establish a ″one-stop″ pesticide supply platform. This platform offers a wide range of product options and minimizes reliance on individual suppliers. Additionally, by updating the technical material price index, SAL provides channel partners with market trend insights to support informed procurement decisions. The company also delivers support and value-added services to downstream distributors, thereby enhancing the efficiency and resilience of the supply chain.

SAL has made significant strides in optimizing inventory management and improving operational efficiency. By closely collaborating with both upstream and downstream partners, the company has streamlined its supply chain processes, enabling its channel partners to reduce operational costs. Leveraging its status as a centrally administered state-owned enterprise (SOE) and its strong resource integration capabilities, SAL provides effective logistics and warehousing support to its partners, which significantly decreases inventory backlogs and capital tied up in stock. The ″non-selective herbicide value platform″ developed by SAL is designed to empower the entire supply chain, promoting a win-win philosophy across the industry to collectively navigate market fluctuations.

Another noteworthy trend in corporate development is the swift entry of companies primarily focused on chemical pesticides into the agricultural biotechnology sector through strategic partnerships. In 2024, Liming Group Co., Ltd. entered into strategic cooperation agreements with three high-tech firms in the agricultural biotechnology space: Lvxinno Biotech, Shanghai Plant Science Biotechnology Co., Ltd., and CANCO. These companies are dedicated to the research and promotion of new peptide biopesticides, RNA biopesticides, and bacteriophage biopesticides, respectively. These collaborations aim to develop green, efficient, and environmentally friendly biopesticides, expand product offerings, and enhance technical capabilities.

At the end of 2024, Qingdao Kangqiao Pharmaceutical Group teamed up with the Hubei Biopesticide Engineering Research Center to launch an industrialization platform named Wuhan Kanghoufeng Biotechnology Co., Ltd. They also held a ceremony to mark the transformation of achievements related to a new strain of Bacillus thuringiensis. Looking ahead, both parties plan to collaborate on commercializing several innovations, including the country's first microbial acaricide, NBIF-001, as well as Bacillus thuringiensis strains designed to target the diamondback moth and the corn borer. Through these initiatives, they aim to establish a strong foothold in the global biopesticide market.

Collaboration among agrochemical companies is increasingly focused on expanding the industrial chain. For instance, Nantong Jiangshan Agrochemical & Chemicals Limited Liability Co., Ltd. has partnered with Wengfu Group to invest RMB22 billion in developing a circular integrated industrial chain for phosphate chemicals. This initiative includes multiple sub-projects that create a comprehensive framework from phosphate resource extraction to final products, enhancing resource utilization efficiency and increasing product value. Huilong Co., Ltd. has strengthened its partnership with Xingfa Group in areas such as phosphate ore, ammonium phosphate, and potassium fertilizers, further integrating upstream and downstream resources.

In terms of technological innovation, Hailir Pesticides and Chemicals Group Co., Ltd. has collaborated with Qingdao Agricultural University to tackle key technologies related to prothioconazole, with a target annual production of 10,000 tons, aiming to elevate China’s position in the international market. Nanjing Red Sun Co., Ltd. and Zhejiang Avilive Chemical Co., Ltd. have leveraged synthetic biology and digital technology to transform the traditional pyridine industry, creating a more competitive industrial chain. Additionally, Rainbow Agro and Sichuan Hebang Biotechnology Co., Ltd. have expanded their global presence in the glyphosate market through resource integration, enhancing their competitiveness.

These collaborations not only enable companies to reduce operational costs and boost market competitiveness through the expansion of the industrial chain and resource integration but also accelerate industry upgrades. This elevates China’s agrochemical sector in the global market while promoting sustainable development.

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