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.
Source: Pixabay
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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