Fine Chemical Industry Market Status and Challenges in 2023


Release time:

2023-11-30

Fine chemical industry refers to the production of fine chemicals industry, known as fine chemical industry. Products in this industry refer to chemical products with specific application functions, technology-intensive, commercial and high added value. There are many types of fine chemical products and a wide range of downstream applications.

Fine Chemical Industry Market Status and Challenges in 2023

Overview of 1. fine chemical industry

1. Definition and classification

Fine chemical industry refers to the production of fine chemicals industry, commonly known as fine chemical industry. Products in this industry refer to chemical products with specific application functions, technology-intensive, commercial and high added value. There are many types of fine chemical products and a wide range of downstream applications. Because some chemical products have a variety of chemical properties such as stability, lubricity, film formation, thickening, and corrosion resistance, they have irreplaceable catalytic and auxiliary functions in a certain link in the industrial chain of many industries.

At present, China's fine chemicals can be roughly divided into: pesticides, dyes, pigments, reagents and chemicals (raw materials), including eleven categories of subdivided products. With the development of the national economy, the development and application of fine chemicals are constantly expanding, and new categories will continue to increase.

2. Industry chain analysis

The fine chemical industry includes fine chemicals and special chemicals. Unlike general and semi general chemicals, which are bulk products, fine chemical products have the characteristics of small production, relatively specific application fields, long and complex industrial chain. Through a series of chemical reactions on basic chemical raw materials, the products are mainly used in medicine, pesticides, dyes, liquid crystal and other fields.

The upstream industry of the industry is mainly the basic chemical industry, including inorganic chemical raw materials and organic chemical raw materials. The middle reaches of the industry include chemical intermediates and chemical preparations. The former includes fine chemicals and special chemicals, while the latter includes fine chemical preparations and special chemical preparations. The downstream application scenarios of the industry mainly include application markets such as medicine, pesticide, dye and daily chemical.

The upstream of the fine chemical industry is dominated by traditional petrochemical enterprises such as Sinopec, Enjie and Rongsheng Petrochemical, with high market concentration and relatively stable share supply. The middle reaches are fine chemical manufacturing enterprises with enhanced professionalism and high degree of subdivision. For example, Xinhe Chenghe is mainly engaged in pharmaceutical fine chemical products, while Lianhua Technology is mainly engaged in pesticide fine chemical products. Downstream industries are mainly operators of finished products, such as Procter & Gamble Daily Chemical and Haoye Pharmaceutical.

Development History of Fine Chemical Industry in 2.

Fine chemical industry is an important part of petrochemical industry. China's fine chemical industry started late. The "Eighth Five-Year Plan" proposed to focus on the development of fine chemicals. The "Ninth Five-Year Plan" established fine chemicals as the key area of structural adjustment. During the "Twelfth Five-Year Plan" period, due to the constraints of key technologies, the domestic fine Chemical industry and new materials developed relatively slowly. Based on this development background, the "Twelfth Five-Year Plan" clearly pointed out that the fine chemical industry should actively innovate technology, vigorously produce environmentally friendly products and high value-added new chemical materials in order to shorten the technological gap with developed countries.

During the "13th Five-Year Plan" period, the development theme of the fine chemical industry has become the transformation and upgrading of the petrochemical industry, based on the original industrial foundations of various provinces and cities, adapting measures to local conditions, with the goal of building an important national strategic petrochemical industry base, and further expanding oil and gas processing, The production scale of ethylene production and new coal chemical industry extends the industrial chain and promotes the coupled development of petrochemical and coal chemical industries.

During the current "14th Five-Year Plan" period, according to the speech of the vice chairman of the China Petroleum and Chemical Industry Federation, the high-quality development of the petrochemical industry and the deepening of supply-side structural reforms should also be adjusted and optimized in the industrial structure and product structure. Work hard should also work hard on the high-end and differentiation of products, and should continue to regard fine chemicals as a key area and important direction for the high-quality development of the petrochemical industry; the fine chemical industry as an important segment of the petrochemical industry, the industry is in the transition period from the early and intermediate stage to the fine chemical industry, the proportion of traditional bulk general-purpose products will gradually decline, the development of high-tech and high-quality products is an important development direction of the industry.

3. fine chemical industry policy background

1. National level

The national policies for the fine chemical industry mainly include "Several Opinions on Accelerating the Development of my country's New Material Industry", "Guiding Opinions on Promoting the Healthy Development of my country's New Material Industry", "Several Opinions on Accelerating the Development of my country's New Material Industry", "Guiding Opinions on Promoting the Healthy Development of my country's New Material Industry", etc, these policies are all aimed at promoting technological innovation, product upgrading, industrial agglomeration and market expansion in the fine chemical industry, and improving the international competitiveness of the industry.

2. Local level

Local policies on the fine chemical industry mainly include relevant plans and support measures formulated by provinces and cities based on their own industrial foundation and regional advantages, such as Jiangsu Province's "Implementation Opinions on Accelerating the Development of New Materials Industry", Zhejiang Province's "Implementation Opinions on Accelerating the Development of New Materials Industry", Shandong Province's "Implementation Opinions on Accelerating the Development of New Materials Industry", etc, these policies are designed to guide and support the development of the fine chemical industry in the region, creating distinctive advantages and regional brands.

Analysis on the Development Status of Fine Chemical Industry in 4.

1. Market size

In 2022, the total output value of China's fine chemical industry is about 5.7 trillion billion yuan, an increase of 16.3 percent over the same period last year, accounting for 43.7 percent of the total output value of the chemical industry. In 2023, with the economic recovery at home and abroad and the increase in demand for fine chemical products, my country's fine chemical industry has maintained a rapid growth momentum. It is expected that the total annual output value will reach 6.1 trillion billion yuan, a year-on-year increase of 7%, and its proportion in the total output value of the chemical industry Increased to 44.2 percent.

From 2023 to 2027, my country's fine chemical industry will maintain an average growth rate of about 10%. By 2027, the total output value of my country's fine chemical industry is expected to exceed 11 trillion yuan.

2. Market Segmentation

China's fine chemical industry covers a number of market segments, the most important of which are pharmaceutical raw drugs, pesticide raw drugs, dyes and pigments, food additives, coatings and so on. Pharmaceutical raw drugs, pesticide raw drugs, dyes and pigments, food additives and coatings are five important market segments. It is estimated that the production of pharmaceutical raw materials in 2023 may reach 3.1 million tons, an increase of 1.6 percent over 2019. The output of pesticide technical drugs may reach 2.4 million tons, an increase of 6.5 percent from 2019. The production of dye pigments may reach 1.4 million tons, an increase of 6.5 percent from 2019. The production of food additives may reach 1.5 million tons, an increase of 6.7 percent from 2019. Production of coatings could reach 26 million tonnes, an increase of 10.2 per cent over 2019.

From the perspective of the output changes of the market segment, the output of pharmaceutical raw drugs, food additives and coatings showed a steady growth trend, while the output of pesticide raw drugs and dye pigments showed a downward trend. This is related to domestic and foreign market demand, environmental protection policy, technical level and other factors.

3. Competitive landscape

China's fine chemical industry competition pattern is more scattered, there is no unified industry leader. In 2022, the number of enterprises above designated size in my country's fine chemical industry will be 28500, of which there are more than 400 enterprises with an annual output value of more than 1 billion yuan, accounting for less than 1.5 percent. In 2023, under the influence of the national "double carbon" goal and supply-side structural reform, the number of enterprises above scale in China's fine chemical industry is expected to be reduced to about 27000, of which there are more than 350 enterprises with an annual output value of more than 1 billion yuan, accounting for less than 1.3 per cent. In the first quarter of 2023, the number of enterprises above designated size in my country's fine chemical industry was about 26000, of which there were more than 300 enterprises with an annual output value of more than 1 billion yuan, accounting for less than 1.2 percent.

From the perspective of market segments, the competition pattern of the pharmaceutical raw drug market is relatively concentrated, with the market share of the top ten enterprises exceeding 30%, represented by Xinhe Hecheng, Huahai Pharmaceutical and Haizheng Pharmaceutical. The competition pattern in the pesticide raw drug market is relatively scattered, with the market share of the top ten enterprises less than 20%, represented by Lianhua Technology, East China Medicine and Nanjing Chemical Fiber. The competition pattern in the dye and pigment market is relatively concentrated, the market share of the top ten enterprises exceeds 40%, represented by Qixiang Tengda, Tianci Materials, Yongtai Technology, etc. The competition pattern in the food additive market is relatively scattered, with the market share of the top ten enterprises less than 10%, represented by Fujian Strait, Dalian Chemicals, Juhua shares, etc. The competition pattern in the paint market is relatively concentrated, with the market share of the top ten enterprises exceeding 50%, among them, Saiwei Technology, Garberry, American paint and so on.