Summary:The organophosphorus pesticide market has distinct features. In 2023, it was 38.358 billion yuan globally and is set to reach 45.40 billion yuan by 2029, with a 3.07% CAGR. The industry is competitive. Prices, affected by various factors, are volatile. Upstream, phosphate rock and yellow phosphorus have different trends. Downstream, planting area growth drives demand. The 2024 sales in farming may hit 30 billion yuan, up 3% YoY. However, stricter residue standards bring challenges and changes.
Market Situation
According to the statistics of the BIS
Research, the global market size of organophosphorus insecticides reached
38.358 billion yuan in 2023.
It is expected that the global market size
of organophosphorus insecticides will reach 45.40 billion yuan by 2029, with an
estimated compound annual growth rate of 3.07%.
The major manufacturers in the global
organophosphorus pesticide industry include ADAMA Agricultural, BASF, Bayer,
Dow Chemical, FMC Corporation, Nufarm, Sumitomo Chemical, Syngenta, etc.
In the Chinese market, there are numerous
organophosphorus pesticide enterprises, and the competition is fierce. Large
enterprises such as Jiangsu Kwin Group Co., Ltd. and Shandong United Pesticide
Industry Co., Ltd. occupy a certain share in the market.
Affected by factors such as fluctuations in
raw material prices, changes in market supply and demand relationships, and
environmental protection policies, the prices of organophosphorus pesticides
fluctuate rather frequently.
According to the observations of the CCM
market intelligence platform on the market, in recent years, with the
improvement of environmental protection requirements, some small enterprises
that fail to meet the standards have suspended or reduced production, resulting
in a reduction in market supply. Under the circumstance that the demand remains
relatively stable, the prices of some organophosphorus pesticide products have
shown an upward trend.
Upstream Market
As a key raw material for the production of
yellow phosphorus, the price of phosphate rock is affected by market supply and
demand relationships and resource scarcity.
Since 2024, the price of phosphate rock has
generally shown a steady upward trend. -CCM Industry Information
Taking the Hubei region as an example, the
prices of some grades of phosphate rock have increased by approximately 10% -
15% compared to the beginning of the year.
The price of yellow phosphorus fluctuates
greatly. Due to its high energy consumption in production and strict
environmental protection requirements, there are sometimes tight supply
situations. From the beginning of August to September, the price of yellow
phosphorus has cumulatively increased by 1,500 yuan per ton compared to the
beginning of August.
China is one of the major producers of
phosphate rock. From January to October 2024, the national phosphate rock
output was approximately 80 million tons, with a year-on-year increase of about
3%. However, due to factors such as mine integration and environmental
protection inspections in some regions, the output has been somewhat
restricted.
For example, some small phosphate mining
enterprises in Guizhou region have suspended production for rectification,
resulting in a reduction of about 20% in the local phosphate rock output.
The production of yellow phosphorus is
mainly concentrated in Yunnan, Guizhou, and Sichuan. Affected by power supply
and environmental protection policies, the output fluctuates significantly. In
the first half of 2024, the national yellow phosphorus output was approximately
400,000 tons, with a year-on-year decrease of about 5%.
In terms of the import and export of
phosphate rock and yellow phosphorus in China, from January to September 2024,
the export volume of phosphate rock was approximately 1 million tons, with a
year-on-year decrease of about 15%, mainly exported to countries such as India
and Brazil; the import volume was approximately 500,000 tons, with a
year-on-year increase of about 8%, and the main source countries for imports
were Morocco and others.
The export volume of yellow phosphorus was
approximately 20,000 tons, with a year-on-year decrease of about 10%, mainly
exported to countries such as the United States and Japan; the import volume
was extremely small, only about 1,000 tons.
Downstream Market
According to relevant statistics, the
global planting area of major crops is expected to increase by approximately 2%
in 2024 compared to 2023. Among them, the planting area of grain crops such as
rice, wheat, and corn is expected to increase by about 1.5%, and the planting
area of economic crops such as vegetables and fruits is expected to increase by
about 2.5%.
This has driven the growth in demand for
organophosphorus pesticides. It is expected that the sales volume of
organophosphorus pesticides in the agricultural planting field worldwide will
reach approximately 30 billion yuan in 2024, with a year-on-year increase of
about 3%.
In the field of agricultural product
processing and trade, as countries around the world have been paying increasing
attention to the quality and safety of agricultural products, agricultural
product processing and trading enterprises have become stricter with the
testing standards for organophosphorus pesticide residues.
For example, the European Union has
increased the limit standards for organophosphorus pesticide residues in
imported agricultural products by approximately 30% compared to before, and
countries such as the United States and Japan have also revised the residue
limit standards for some organophosphorus pesticides, with more stringent
requirements.
According to investigations, the number of
agricultural product return incidents caused by excessive organophosphorus
pesticide residues in 2024 has decreased by approximately 20% compared to 2023.
However, some enterprises still face risks such as a decline in market share
and economic losses due to pesticide residue problems.
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