Demand for Pesticides in China to Reach 2.3 MLN Tons in 2015

Demand for formulated pesticides in the agricultural market in China is forecast to increase 5.3% per annum to 2.3 million tons in 2015. In value terms, formulated pesticide demand is expected to grow 7.1% per year to RMB60 billion. Market gains will be primarily driven by increases in agricultural production as measured by the total area of sown land, and ongoing expansions in the production of fruits and vegetables, which are by far the most intensive users of pesticides relative to most other crops. Improvements in pesticide variety and quality, especially those that result from a domestic industry that is becoming technically more proficient, will stimulate additional pesticide usage and further contribute to demand growth. These and other trends are presented in Agricultural Pesticides in China, a new study from the Beijing office of The Freedonia Group, Inc., a Cleveland-based industry research firm.
   Insecticides will remain the largest product type through 2015 despite a relatively slow growth rate of 3.7% per year. Established products will continue to dominate the market going forward while the trend toward using less-toxic insecticides will contribute to the slow rate of growth. Herbicides will see strong growth in both shipments and demand through 2015, driven by a decrease in farming manpower and growth in export markets. Fungicides will post the fastest growth as farmers contend with resilient fungal problems.
   The outlook for the Chinese formulated pesticide industry remains good.  Shipments are expected to increase 5.2% annually and net exports are forecast to grow to 717 000 tons, due to the competitive price of domestic products and improvements in their quality.
   Pesticide active ingredient sales will advance 4.8% annually through 2015 to 765 000 tons. By weight, active ingredients comprised 26% of formulated pesticide shipments in 2010. Growth will be stimulated primarily by rising exports of pesticide active ingredients, while increasing domestic production of formulated pesticides will further boost demand.                           

Pesticide Demand in China (kt, %)
Item    2005    2010    2015    YoY growth2005-2010    YoY growth 2010-2015
Formulated Pesticide Demand    1305    1795    2320    6.6      5.3
Insecticides    895    1105    1325    4.3      3.7
Herbicides    105    215    325    15.4      8.6
Fungicides    80    160    260    14.9    10.2
Other Pesticides    225    315    410    7.0      7.0