What Drives a Triple-Digit Growth of the Nematicides Market in China?

The nematicides market in China registers a triple-digit growth in 2018 from 2016. This exceptional growth is primarily driven by an increased demand for nematicides, which is the result of the growing awareness of nematode issues among peasants in China. Moreover, this growth is supported by a pesticide management policy issued in 2017 which is beneficial to the legitimate nematicides companies and drives the price increase of the pesticides that offer good quality, such as the low-toxic and environmentally friendly nematicides.

In 2018, fosthiazate and abamectin are the leading active ingredients used for nematicides, together accounting for 70% of the total sales of nematicides. Efficacy and low toxicity are the most important qualities emphasized by the government and suppliers. The Ministry of Agriculture of China has accelerated the pace of eliminating utilization of highly toxic chemicals in agricultural production in the past few years. Two announcements were issued in July 2017 and August 2018 to impose much tighter control on utilization of highly toxic chemicals and set a clear timeline for full prohibition of eight toxic chemicals’ application in agriculture.

The Chinese nematicides market is fragmented and dominated by local Chinese suppliers, most of which are pesticides companies with various product lines, nematicides usually accounting for a small portion of their business. International companies have very limited presence in the Chinese nematicides market. Ishihara entered the Chinese market about 10 years ago with the Fuqiduo product (10% fosthiazate granule) but has been losing market share to local fosthiazate suppliers. Bayer’s nematicide product, LUFUDA (41.7% fluopyram), was introduced in 2015. The reputation and sales of LUFUDA have grown quickly in recent years but due to the high pricing, market presence is still limited.

 

 

Share this
Follow Us
Select Category
Recent Posts
Play Video
Play Video