Chinese competitive fungicide market expected to see solid growth due to product innovation
Date:12-11-2014
China's fungicide market is expected to experience high growth numbers in the near future, due to the increase in usage of competitive fungicides. The total output of China's pesticide market in 2013 was almost 3.2mn tonnes, a YoY increase of 1.6%, with the biggest rise expected to come from technical fungicides, which saw a YoY increase of 33% to 203,000 tonnes. There are a number of reasons for the continuous growth in the Chinese fungicide market, with the key market drivers being the high amount of insects and crop diseases in the country.
One of the biggest problems that crops in China face is the prevalence of diseases that now effect more than 110mn ha of land per year. However, the rise in grape, rice and GM crops in China being planted will see the fungicide market going from strength to strength. When all of the positive factors are taken into account China's fungicide market leading product carbendazim reached US$76mn in 2013 and second place mancozeb is close behind with a market of just over US$74mn in 2013. There are high expectations for azoxystrobin as this product is growing very fast in China and has a wide appeal across the world.
The Chinese fungicide market is expected to innovate by lowering the toxicity of its products, increasing their effectiveness and ensuring that the environment is protected. It can often be difficult for Chinese fungicide producers to adapt their product to the changing market environment because customer habits and technology are always changing.
The biggest challenge to China's fungicide market is the increasing concern in Chinese society of damage to the environment caused by fungicides. This issue has caused many fungicide producers to make their products as environmentally friendly as possible, with competitive fungicides that offer a better performance expected to receive indirect support from the government and more interest from consumers.
Now that China has become both the largest fungicide producer and exporter globally the market is entering an adjustment stage. As the market has grown so quickly there is excess capacity in some areas, which will lead to major companies in the marketplace changing the way they operate and produce.
China's fungicide market has massive potential, as the country creates almost half the world's vegetables and over 500% more than the United States produce. The conditions in China are perfect for competitive fungicides with product innovation remaining the key to growth.
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