China’s fungicides industry reveals promising prospects for the future 07-19-2017

According to market intelligence firm CCM, China’s fungicide market is looking to a promising future, backed up by the optimisation of the industry. Growing demand, improving producers and better R&D are the main reasons for the prospect.


 

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China, the largest production base and exporter of pesticides in the world, has produced 3.74 million tonnes of pesticide technical, according to the National Bureau of Statistics of China in 2015, including more than 182,000 tonnes of fungicides, which are accounting for 4.87% of the national total output of pesticides. Most fungicides produced in China are generic products, and the whole Chinese fungicide industry is confronting some problems, like the plight of overcapacity, irrational competition, weak brand recognition and low added value of products.  


China’s demand for fungicides has been fluctuation during the last years, but showing a growth from 2013 to 2016 in average. Now, the National Agro-Tech Extension and Service Centre in China has made the prediction, that the fungicide demand will rise again in 2017, due to the demand for new fungicides to counter resistance as well as the enlarged planting areas for crops.  


In addition, the domestic manufacturers for fungicides are developing quickly and many are considering to go public in the near future. Listed Chinese enterprises have the advantage to easier capital for innovations and improvements and it will also strengthen the position in the global markets.  


Finally, many domestic research institutions and enterprises have invented outstanding fungicides. For example, Shanghai Nongle Biological Products is preparing for a series of fungicide innovation programs currently. Besides, Shenyang Sinochem Pesticide Research and Development has independently developed several new fungicides and is to cooperate with Syngenta in the near future.  


The demand for fungicides is especially rising across China, as the growing middle class and wealth of the population in the country is continuously striving to increase the agricultural production to feed the increasing population and satisfy the demand.  


In 2016, enterprises in China have registered 271 pesticides technical, of which fungicides registrations ranked second behind herbicides. This includes 4 fungicides, which have been registered for the first time in China. The most common fungicides for registration have been pyraclostrobin, boscalid, trifloxystrobin, and epoxiconazole.  


The development of fungicides in China is anticipated to expand the growth of the global fungicide active ingredients market for the next years as well. The rising population along with increasing the education level in China is anticipated to back up the growth of the fungicide active ingredients market.  


SDHI fungicide market

The global market value of SDHI fungicides in 2014 has been more than USD1.37 billion. Hence, these fungicides are accounting for about 8.4% of the total fungicide market value. However, SDHI fungicides are growing fast, showing a growth rate of 27.2% CAGR from 2009 to 2014.  


China. Which is the largest pesticides supplier in the world, has of course also a huge part in this emerging section of fungicides. According to experts’ opinion, China’s SDHI fungicides business is going to enjoy a fast development in the next years, inheriting a new trend for China’s fungicides industry. The major benefit of SDHI fungicides lays in the higher efficiency and low resistance, whose justify the higher costs for farmers.  


About CCM

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets.  


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