China Business Intelligence Network News: The refinement rate is an important indicator of the technological level of a country and region's chemical industry. China attaches great importance to the development of the fine chemical industry and regards it as one of the strategic priorities for the development of the chemical industry. With the support of national policies and funding, as well as the guidance of market demand, China's fine chemical industry is showing a rapid development trend.
1、 Industrial chain
Fine chemical industry, also known as fine chemical industry, is the industry that produces fine chemicals. The upstream of the fine chemical industry chain includes organic and inorganic chemical raw materials; Midstream fine chemicals can be divided into 11 categories, including pesticides, dyes, coatings, pigments, reagents and high-purity substances, information chemicals, food and feed additives, etc; Downstream, it is widely used in industries such as agriculture, food, medicine, textiles, new energy, and electronic manufacturing.
Data source: Compiled by China Academy of Commerce Industry
2、 Upstream analysis
1. Ethylene
Ethylene is an organic compound composed of two carbon atoms and four hydrogen atoms, and is the simplest alkene in structure. Ethylene is the world's largest petrochemical product and one of the most important chemical products, occupying an important position in the national economy. Using ethylene as raw material can produce a wide variety of derivative products, providing necessary material sources for economic and social development. Data shows that as of the end of December 2022, the national ethylene production reached 28.975 million tons, a year-on-year increase of 2.54%.
Data source: Compiled by the National Bureau of Statistics and the China Academy of Commerce Industry Research
2. Sulfuric acid
Sulfuric acid is an inorganic compound that can react with the vast majority of metals. Sulfuric acid is an important industrial raw material that can be used to manufacture fertilizers, drugs, explosives, pigments, detergents, batteries, etc. It is also widely used in industries such as purifying petroleum, metal smelting, and dyes. In recent years, the national sulfuric acid production has been relatively stable. As of the end of December 2022, the national sulfuric acid production reached 95.046 million tons, a year-on-year increase of 1.3%.
Data source: Compiled by the National Bureau of Statistics and the China Academy of Commerce Industry Research
3. Soda ash
Sodium carbonate, also known as soda ash, is an important basic chemical raw material. The industrial products of soda ash mainly include two types: light soda ash and heavy soda ash. Light soda ash is mainly used in industries such as metallurgy, papermaking, and printing and dyeing, while heavy soda ash is mainly used in the production of flat glass, glass products, detergents, and ceramic glazes. In recent years, the national production of soda ash has not fluctuated significantly and is in a relatively stable upward and downward trend. As of the end of December 2022, the national production of soda ash reached 29.202 million tons, a year-on-year increase of 0.24%.
Data source: Compiled by the National Bureau of Statistics and the China Academy of Commerce Industry Research
3、 Mid stream analysis
1. Global fine chemical market size
Fine chemical products have the characteristics of high added value, low pollution, and low energy consumption. Currently, they have become a key development target for major chemical enterprises around the world. Countries around the world have made the development of fine chemical products a key development strategy for upgrading and adjusting the traditional chemical industry structure. According to relevant data, the global fine chemical market size increased from 1547.5 billion euros to approximately 1689 billion euros from 2018 to 2020, with a compound annual growth rate of approximately 4.47%.
Data source: Compiled by Bloomberg and China Business Industry Research Institute
2. Scale of China's fine chemical market
China attaches great importance to the development of the fine chemical industry, which has become one of the important development directions of the chemical industry. At present, China's fine chemical industry has formed more than ten categories, including feed additives, food and pharmaceutical additives, leather chemicals, papermaking chemicals, oilfield chemicals, and electronic chemicals. According to relevant data, the size of China's fine chemical market was approximately 5.5 trillion yuan in 2021, with a compound annual growth rate of about 6% from 2016 to 2021. It is expected that the market size will reach 11 trillion yuan by 2027.
Data sources: Compiled by the Bureau of Statistics, the Chinese Chemical Society, and the China Academy of Commerce and Industry Research
3. Output of main fine chemical products
(1) Pesticides
Pesticides are essential production materials for ensuring stable agricultural production, abundant harvests, and ensuring global food supply. They can be divided into chemical pesticides and biological pesticides based on the source of raw materials. Data shows that in recent years, the national production of chemical pesticide raw materials has shown an overall downward trend after reaching its peak in 2017, and has rebounded in 2019 and 2021. In 2021, the national production of chemical pesticide raw materials was 2.4985 million tons, a year-on-year increase of 7.8%, and the production resumed growth. The China Academy of Commerce predicts that the production of chemical pesticide raw materials in China will reach 3 million tons by 2023.
Data source: Compiled by the National Bureau of Statistics and the China Academy of Commerce Industry Research
(2) Coatings
Coatings are a type of liquid or solid material that can form a solid coating film with protective, decorative, or special properties when applied to the surface of an object. They are widely used in industries such as construction engineering and decoration. According to the different types of coatings and their uses, coatings can be divided into building materials and industrial materials. Data shows that in 2021, China's paint production was approximately 25.07 million tons, a year-on-year increase of 1.95%. In the first half of 2022, the total production of coatings in China reached 16.81 million tons, a year-on-year decrease of 2.2%.
Data source: Compiled by China Commercial Industry Research Institute
(3) Food additives
The food additive industry in China has developed rapidly and has become one of the most active and fastest-growing industries in the food industry. With the rapid improvement of China's economic development level and national living standards, the demand and supply of food additives in China have achieved two-way growth, and the scale of the food additive industry is constantly expanding. According to data, the total production of major food additives in China reached 14.09 million tons in 2021, and it is expected that the total production will increase to 15 million tons in 2023.
Data source: Compiled by China Commercial Industry Research Institute
4. China's Top 100 Fine Chemical Enterprises
Data source: Compiled by the National Collaborative Group on Fine Chemical Raw Materials and Intermediates Industry and the China Commercial Industry Research Institute
4、 Downstream analysis
1. Food manufacturing industry
Food consumption is the primary demand for human survival, and China's food is highly characteristic of Chinese culture. Therefore, the food manufacturing industry is not only an industry with strong rigid demand, but also an important way to promote Chinese food culture, and is also an important industry related to national economy, people's livelihood, and national health. Data shows that from January to October 2022, the operating revenue of the national food manufacturing industry was 1819.44 billion yuan, a year-on-year increase of 5.1%.
Data source: Compiled by the National Bureau of Statistics and the China Academy of Commerce Industry Research
2. Textile industry
The textile industry is a traditional pillar industry and an important livelihood industry of China's national economy, as well as an industry with obvious international competitive advantages. In recent years, driven by strong demand from domestic and international markets, China's industry has entered a fast lane of development, with continuous growth in industry scale and economic benefits. Data shows that from January to October 2022, the operating revenue of textile enterprises above designated size in China reached 42839 billion yuan, a year-on-year increase of 1.6%.
Data source: Compiled by the National Bureau of Statistics and the China Academy of Commerce Industry Research
3. The pharmaceutical industry
The government encourages the integration and development of R&D, production and sales of pharmaceutical enterprises with emerging information technologies such as Internet big data and cloud computing, so as to inject new momentum into the development of the pharmaceutical industry and promote the leapfrog development of the industry. According to Frost Sullivan's analysis, the size of the Chinese pharmaceutical market reached approximately 1591.2 billion yuan in 2021, and it is expected that the size of the Chinese pharmaceutical market will reach 1797.7 billion yuan by 2023.
Data source: Frost Sullivan, compiled by China Business Industry Research Institute
Source: China Commercial Industry Research Institute
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