Pesticide intermediate is a kind of intermediate medium which combines two or more kinds of substances together. In the pesticide can be understood as a synergist, is the production of pesticide intermediate materials.

Size of market

At present, China and India have become the main production places of pesticide intermediates and apis in the world. From 2017, the output of pesticide apis began to decline, but the price of pesticides began to rise. In 2019, the output of pesticide apis began to pick up, reaching 2,253,900 tons, up 8.2% year on year. China Commercial Industry Research Institute forecasts that the country's output of pesticide raw materials will reach 1,0669,300 tons in 2022.

Data source: Zhongshang Industrial Research Institute

The downstream of pesticide intermediates is the pesticide API and preparation industry. High quality pesticide intermediates are the guarantee for the rapid development of pesticide products. Pesticide patent expiration, new market opportunities for generic drugs, pesticide structure adjustment and agricultural protection policies will drive the growth of the market and promote the development of pesticide intermediates industry, and the output of pesticide intermediates is expected to reach 5.3 million tons in 2022.

Data source: Sinolink Securities, Zhongshang Industrial Research Institute Collation

Future Development Trend

First, policies such as environmental protection and safety will further promote the industry concentration, and overseas markets will become the main driving force for industry growth. Second, the production capacity of high value-added pesticides and pesticide intermediates will continue to shift to China due to the impact of rising R&D costs, slowing down the release of new pesticides and intermediates, the coming of a small peak of pesticide patent overprotection and the adjustment of the production structure of multinational agrochemical giants. Third, enterprises with strong R&D strength and rich personnel and technical reserves will quickly stand out.