Analysis of the development of the global and Chinese fine chemical industry from 2023 to 2028

Fine chemical industry refers to the industry that produces fine chemicals, commonly known as the fine chemical industry.Products in this industry refer to chemical products with specific application functions, technology-intensive, strong commercial nature, and high product added value.

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

Technical analysis of the global fine chemical industry-----Technical cycle: in the growth period

From 2013 to 2020, the number of patent applicants and the overall number of patent applications in the global fine chemical industry have shown an increase year by year. Although the number of fine chemical patent applicants and the number of patent applications have declined slightly in 2021, it can still be seen that the global fine chemical industry is in a state of continuous development.Overall, the global fine chemical technology is in a period of growth.

Patent competition in the global fine chemical industry------Distribution of countries of origin of technology: China accounts for the highest proportion

At present, the world's largest source of fine chemical technology is China, and China's fine chemical patent applications account for more than 60% of the world's total fine chemical patent applications; followed by the United States, the United States fine chemical patent applications account for about 9% of the world's total fine chemical patent applications.

Industry development status

Market size: The market size has exceeded 5.5 trillion yuan in 2021

Over time, people's demand for electronics, automobiles, machinery industries, new construction materials, etc. will further rise, stimulating the further transformation and upgrading of fine chemical sub-industries such as pharmaceuticals, coatings, dyes, and pesticides, and the global fine chemical market will be further expanded. The scale of the market will be further expanded.

From 2015 to 2021, the market size of China's fine chemical industry will increase year by year.According to the "Vision and Countermeasures for the Development of the Fine Chemical Industry from 2017 to 2025" released by the China Chemical Industry Association in March 2019, the total output value of China's fine chemical industry will exceed 5 trillion yuan in 2021, with an average annual growth rate of more than 15% and a refinement rate of more than 50%.Combined with the promotion factors of various segments of China's refining industry, after preliminary estimates, the market size will exceed 5.5 trillion yuan in 2021, with a compound annual growth rate of about 8%.

Comparison of listed companies in the fine chemical industry

—-Comparison of fine chemical business performance of listed companies in the fine chemical industry

Judging from the performance of representative companies in the fine chemical industry, the average gross profit margin of representative companies in the fine chemical industry has reached 24%.Judging from the situation of individual companies, the gross profit margin of most companies' fine chemical business is between 20% and 30%, and the gross profit margin of a small number of companies is less than 20.Judging from the revenue related to the fine chemical business, the business scale gap of major listed companies in the industry is obvious, and there are hierarchical differences due to different business priorities.

Industry development prospects and trend forecasts

1. Impact of the 14th Five-Year Plan: Policy guidance to further promote the integration of industry production capacity

According to the ”14th Five-Year Plan" for the development of the chemical industry, the healthy development of the fine chemical industry can be promoted from two major aspects in the future.One is to continue to promote the integration of production capacity and eliminate backward production capacity; the other is to realize the upgrading of the industrial value chain through clean production, green development and technological innovation.Driven by this industry development trend, the market share of leading companies in the industry and the proportion of high value-added products are expected to continue to increase in the future.

2. The impact of the strategic planning of "carbon neutrality” and "Carbon peak": the industry will have a disruptive impact

The ”dual-carbon" strategy actually continuously optimizes the industry structure, improves the technical level of the industry, and promotes the development of the economy in a higher quality and more sustainable direction through the development of constraints.According to the analysis released by the 2021 Petrochemical Industry Development Conference, the proposal of the “dual-carbon” strategy in the future will have a disruptive impact on the operating model and product structure of the fine chemical industry, and will also promote the improvement of the prosperity of market segments in the industry.

3. Future market size forecast: The market size is expected to exceed 11 trillion yuan in 2027

According to the "2021 Global Fine Chemicals Market Report" released by Marketupdate, Marketupdate predicts that the global fine chemicals market will grow at a considerable rate.The Asia-Pacific region will occupy more market share in the coming years, especially in China. It is expected that the compound annual growth rate of the industry will exceed the compound annual growth rate of the global refining industry in the future.Combined with the 2019 forecast of the China Chemical Industry Association for the total output value of the fine chemical industry in 2021, the preliminary forecast is that the market size of China's fine chemical industry will increase year by year from 2022 to 2027, and the market size in 2027 is expected to exceed 11 trillion yuan.