China ranks among the fastest growing global markets for biopesticides, with forecast CAGRs of 18.5% for volume consumption and 19.4% for value demand over the 2014-2020 analysis period. Chinas grasp over key technologies and production processes of biopesticides has continued for over five decades now, though practical utilization of the same has gained momentum only recently, prompted by a global shift towards the same. China has been innovating in the area of biopesticides, more so after the strategic acquisition of Israel-based Makhteshim Agan by ChemChina in 2011, which has been renamed as Adama Agricultural Solutions Ltd. Utilization rates of biopesticides in China have reached a coverage area of 26.7 million hectares, accounting for nearly 5% of the overall pesticide use. A major proportion of the biopesticide manufacturing companies in China also produce synthetic pesticides.
More than 90 biopesticide active ingredients have been registered in the region, which accounts for about 11% to 13% of total registered pesticides. However, biopesticides come at a higher cost in China, offering highly targeted specificity compared to synthetic pesticides, which have been deterring factors for farmers in using biopesticides.
These are some of the key indicators provided in a new report on the Chinese biopesticides market from Mordor Intelligence. Companies planning to invest in this area would do well to gain strategic insights regarding the burgeoning Chinese market for major growth areas.