Cyclosulfonone is a benzoyl cyclohexanedione herbicide developed by Bayer in 2007. It is an inhibitor of p-hydroxyphenylpyruvate dioxidase (HPPD), which catalyzes the conversion of p-hydroxypyruvate to homogentisic acid. It is then transformed into plastoquinone and tocopherol, which are required for electron transfer in photosynthesis. The effect of HPPD inhibitors is to cause a reduction in plasticone and tocopherol in plants, leading to symptoms such as chlorosis and discoloration, tissue necrosis, and ultimately the death of plants within two weeks.

Cyclosulfonone is mainly used in corn and is highly effective against many annual grass weeds and broadleaf weeds. In addition, it also has control effects on some resistant weeds. Compared with the same variety of mesotrione, cyclosulfonone has higher activity, is more resistant to rain erosion, and has a longer suitable period for control.

To delay the development of its resistance, Bayer has compounded it with multiple varieties, among which the combination of cyclosulfonone and thiazone sulfonone has been particularly successful. At present, cyclosulfonone has been launched in many countries and regions such as the United States, Europe and Latin America, achieving remarkable results.

Since its listing in 2007, cyclosulfonone has maintained a high growth rate overall. From 2009 to 2014, its compound annual growth rate was as high as 51.6%, far exceeding that of other HPPD inhibitor varieties. In 2015, its global sales were 230 million US dollars, a slight decrease compared with the previous year.

In 2015, cyclosulfonone ranked 7th among cornfield herbicides and 2nd among HPPD inhibitor herbicides. In 2019, according to Kleffmann data statistics, the global sales of cyclosulfonone were 184 million US dollars, basically at a similar development pace to triketone herbicides such as mesotrione.

1.1 Market Overview

Since its launch in 2007, cyclosulfonone has been well-received by the market and its sales have been on the rise. In 2014, the global sales of cyclosulfonone reached 240 million US dollars. In 2015, affected by the global pesticide market, its sales slightly declined. The compound annual growth rate from 2010 to 2015 was 19.3%. In 2016, its global market continued to decline, with sales dropping to 210 million US dollars. Cyclosulfonone is one of the top ten best-selling products of Bayer, and its sales volume is shown in Table 1.

Among the regional markets of cyclosulfonone, the Latin American market holds the most significant position, followed by Europe and the North American Free Trade Area (NAFTA) in sequence. In 2016, the sales of cyclosulfonone in Latin America were 97 million US dollars, an increase of 26.0% compared with the previous year, accounting for 46.2% of the total market. The sales in Europe and NAFTA were 0.46 billion US dollars and 0.26 billion US dollars respectively, among which the sales in the NAFTA region decreased significantly compared with the previous year.

In 2016, cyclosulfonone had the highest sales in Brazil, reaching 96 million US dollars, accounting for 45.7% of the total market. It ranked second in sales in the United States, reaching 22 million US dollars. Compared with 2015, sales decreased by 57.7%, which was also the main reason for the decline in the global market of cyclosulfonone in 2016. It ranks third in sales in Hungary.

According to Kleffmann's statistics, the sales situation of cyclosulfonone from 2017 to 2019 is shown in Table 2.

It can be seen from the sales situation that from 2017 to 2019, the average price of cyclosulfonone changed significantly, and the sales volume also changed considerably, with a considerable growth in volume. From the sales data of cyclosulfonone in various countries, it can be seen that the sales volume in major market countries such as the United States, Brazil, and Mexico has remained stable over the years, and the price has fluctuated in the same amplitude as that of other triketone corn herbicides. However, since 2018, the application of cyclosulfonone in minor crops has seen a significant increase. In 2019, the sales volume per 100 tons of the formulation for minor crops rose from over 90 tons in 2018 to approximately 360 tons, and the sales volume distribution on minor crops has reached about 30% of the total cyclosulfonone.

This demonstrates the potential for the promotion of cyclosulfonone as a herbicide on crops other than corn. However, Bayer's vigorous promotion on minor crops is not conducive to the development of imitation products by generic enterprises on similar crops and further raises Bayer's patent barriers.

1.2 Sales of cyclosulfonone in major countries and regions

According to the Kleffmann database, the sales figures of cyclosulfonone by country and by crop from 2017 to 2019 are detailed in Table 3. Only countries with sales exceeding 500,000 US dollars are counted.

At present, the sales regions of cyclosulfonone are mainly in the following areas.

(1) Latin American market. Latin America is one of the most important markets for cyclosulfonone, accounting for approximately 25% of the global market share. The main crop is corn from Brazil and Mexico, with sales amounting to 42 million US dollars. In recent years, due to cost reasons, the sales of cyclosulfonone in Brazil have declined, while those in Mexico have remained basically stable.

(2) North American market. North America is the second most important sales market for cyclosulfonone, accounting for 25% of the global market share. The main crop is corn, and the sales country is the United States. Over the past three years, sales volume, sales volume and price have all remained stable.

(3) European market. Fourteen countries in Europe, including Hungary, Germany, France and Bulgaria, are currently the main sales markets for cyclosulfonone, accounting for about 40% of the global market share. The main crop is corn. In Romania, cyclosulfonone is also used in small quantities on sunflowers, with sales amounting to approximately 50 million US dollars. In Eastern European countries such as Romania and Bulgaria, the growth of cyclosulfonone is relatively rapid.

(4) Indian market. In recent years, the sales of cyclosulfonone in the Indian market have consistently remained above 20 million US dollars, accounting for 10% of the global market. Indian cyclosulfonone is an original drug imported by Bayer of the United States to India, where the formulation is processed locally. The purchasing season is concentrated from April to July each year.

1.3 Sales on major crops

From the perspective of crop distribution, cyclosulfonone is currently mainly used in corn in the global market, with sales reaching 162 million US dollars. Since 2017, the sales of cyclosulfonone on minor crops have continued to increase. The sales of cyclosulfonone on non-crops have been considerable, reaching as high as 43 million US dollars, and currently account for about 30% of the global sales of cyclosulfonone.

At present, the sales of mesosulfonone are still mainly active in corn crops. However, due to the competition from mesosulfonone, the growth in corn is very limited at present, and it is basically in a situation of price competition with mesosulfonone.

Although the sales of Xiaozong Crops are active, all the preparations are distributed by Bayer, and the participation of generic enterprises is limited.

It is worth noting that almost all cyclosulfonone preparations require the use of dibenzoxazole acid, which is equivalent to 50% of the mass ratio of cyclosulfonone, as a safety agent. This safety agent requires special attention from cyclosulfonone development enterprises.

In addition, currently in the US and Brazilian markets, the development of cyclosulfonone preparations in forage cultivation is very active. In the future, this crop sector needs to be given special attention. At present, the product range of herbicides for pastures is relatively limited, with over 50% of the sales being on 2, 4-drop + atrazine preparations.

1.4 Hotspots in Overseas Markets in recent years

For domestic enterprises, the following markets are currently the hotspots that attract more attention in terms of registration and overseas expansion:

(1) EU equivalent registration of active pharmaceutical ingredients. It mainly focuses on the development of cornfields in Europe and is used in combination with Tebutine (currently the only triazine herbicide that can be used).

(2) Brazil. The main focus is on alternative and competing products of mesotrione. Currently, most of the Brazilian enterprises with mesotrione registration have submitted or are preparing to submit the registration of the original drug and formulation of cyclosulfonone.

(3) India. The cyclosulfonone from India is imported by Bayer. Local enterprises in India hope to obtain the registration of imported raw materials from China or synthesize cyclosulfonone in India based on China's core intermediates and synthesis technologies.

(4) Turkey. The main consideration is to process the local preparations in Turkey, with Chinese trading enterprises providing the raw materials. After the preparations are processed, they will be sold to the existing cyclosulfonone markets in Romania, Bulgaria, etc.

Domestic enterprises need to pay attention to the above-mentioned market directions.