The glyphosate market continues to expand and industry concentration continues to increase

Glyphosate, whose chemical name is N-(phosphomethyl)glycine and whose chemical formula is C3H8NO5P, is a non-selective, non-residue herbicide that is very effective against perennial root weeds. It has good systemic conductivity and is It has the advantages of low human toxicity and long weeding effect. It is the pesticide with the largest production volume and sales volume in the world.

The upstream of the glyphosate industry chain is the supply of raw materials such as methanol, hydrocyanic acid, and calcium hydroxide; the midstream is the production of products, and the downstream is mainly used in agricultural production.

There are two main types of glyphosate production processes: glycine method and IDA method. Among them, the glycine method can be divided into two types: hydrocyanic acid method and chloroacetic acid method. The IDA method can be divided into two types: hydrocyanic acid IDA method and diethanolamine-IDA method. At present, the glycine method is the main production method of glyphosate in China. In 2022, the domestic production capacity of glyphosate produced by the glycine method will account for nearly 70%, and the production capacity of glyphosate produced by the IDA method will account for about 30%.

According to the “2023-2027 Glyphosate Industry In-depth Market Research and Investment Strategy Suggestions Report” released by the Industrial Research Center, With the continuous advancement of agricultural modernization and the strengthening of national policy support, farmers’ enthusiasm for planting has increased, and the demand for pesticides has continued to increase, which has promoted the continuous increase of glyphosate production and the continuous expansion of the market scale. In 2022, my country’s glyphosate output will exceed 660,000 tons, and the market size will exceed 18.6 billion yuan.

In recent years, the state has issued a number of policies to strengthen the supervision and management of pesticide production and use. In March 2021, the Ministry of Agriculture and Rural Affairs issued the “Implementation Plan for Agricultural Non-point Source Pollution Control and Supervision Guidance (Trial)”, proposing to use on-site surveys, ledger spot checks, smart terminal collection and other methods to conduct comprehensive monitoring of chemical fertilizer and pesticide inputs, livestock, poultry and aquatic products. Conduct random inspections and verifications on the discharge of pollutants from farming and other industries. In May 2022, the Ministry of Agriculture and Rural Affairs issued the “Notice on Strengthening Pesticide Supervision and Inspection”, proposing to increase daily supervision, inspection and guidance of pesticide production, operation, use, registration testing and other entities to ensure that pesticide risk prevention responsibilities are fulfilled. In practice, we will create a good environment for safe production in the pesticide industry. As one of the important subdivisions of pesticides, glyphosate has a good development environment.

Industry analysts said that with the continuous advancement of supply-side reform and the tightening of national environmental protection policies, backward glyphosate production capacity has gradually withdrawn from the market. , new production capacity is also restricted. Large enterprises occupy most of the market share by virtue of their advantages in technology and scale. Industry concentration continues to increase and the competitive landscape gradually improves. At present, domestic glyphosate production companies include Hubei Xingfa Chemical Group Co., Ltd., Nantong Jiangshan Pesticide Chemical Co., Ltd., Zhejiang Xin’an Chemical Group Co., Ltd., etc. Among them, Hubei Xingfa Chemical Group Co., Ltd. accounts for nearly 30% of the glyphosate market share, ranking first, and Sichuan Province Leshan Fuhua Chemical Co., Ltd. accounts for about 20%, ranking second.