Homepage > CMRC understandings > 【CMRC understanding】Characteristics of pesticide industry in China
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China's?pesticide?industry?has?obvious?market?characteristics,?mainly?including:
1.?Industry?periodicity
Pesticide?is?a?necessity?of?agricultural?production,?with?small?demand?elasticity?and?strong?rigid?demand.?Therefore,?it?is?less?affected?by?macro-economy?and?belongs?to?a?weak?cyclical?industry.?After?the?outbreak?in?2020,?the?restoration?of?domestic?and?foreign?grain?prices?will?drive?the?return?of?planting?profits.?In?addition,?the?policy?attaches?importance?to?food?security?and?the?recovery?of?crops?and?grain?sown?area?will?drive?the?increase?of?pesticide?demand.?In?the?future,?the?annual?output?of?pesticides?will?show?a?stable?upward?trend.
2.?Industry?regionality
China's?pesticide?production?has?obvious?regional?characteristics.?The?production?area?is?mainly?concentrated?in?East?China,?where?many?provinces?with?large?output?have?been?attacked.?Among?them,?Jiangsu,?Sichuan?and?Shandong?occupy?the?top?three?places?in?domestic?pesticide?production.?In?2021,?the?pesticide?output?of?Jiangsu,?Sichuan?and?Shandong?will?be?549?thousand?tons,?308?thousand?tons?and?292?thousand?tons?respectively,?accounting?for?22%,?12.3%?and?11.7%?of?the?national?total.

Figure?1?top?ten?regions?of?pesticide?production?in?China
The?output?of?East?China?accounts?for?44%?of?the?national?output,?of?which?Jiangsu?Province?is?the?first?(accounting?for?49%),?Zhejiang?Province?and?Anhui?Province?are?almost?the?same,?ranking?the?second?(accounting?for?21%),?Jiangxi?Province?is?less?(accounting?for?8%),?and?Shanghai?is?the?least?(accounting?for?1%).

Figure?2?proportion?of?pesticide?output?of?provinces?and?cities?in?East?China
3.?Industry?seasonality
Affected?by?the?seasonality?of?agricultural?production,?the?production?and?consumption?of?pesticides?also?show?obvious?seasonality.?In?China,?the?first?and?second?quarters?of?each?year?are?the?peak?of?pesticide?production?and?sales,?and?the?second?and?third?quarters?are?the?peak?of?pesticide?use.?The?time?other?than?the?above?seasons?is?generally?the?low?season?for?pesticide?demand.?From?the?perspective?of?the?global?market,?the?seasonality?of?the?single?market?is?obvious,?but?the?seasonal?effects?of?different?markets?can?offset?each?other?due?to?the?differences?in?the?seasons?and?natural?conditions?in?the?northern?and?southern?hemispheres.?The?seasonality?of?the?global?market?as?a?whole?is?not?obvious.