The Global Biopesticides Market was valued at USD 3147.1 million in 2018 and is expected to register a CAGR of 14.1% during the forecast period (2019-2024). Of all the regions, South America is expected to witness the fastest growth in the forecast period, recording a CAGR of 16.4%. In addition, the United States is likely to be the largest individual market over the forecast period.
While the prevalence of chemical or synthetic pesticides in crop protection continues; human, animal, and environmental health concerns are still playing key roles in driving the growth of biopesticides. Several countries are adopting a stringent approach concerning the amount of imports, with a special focus on regulating the quantity of pesticide residues. Emerging economies in Asia-Pacific are likely to take the lead in the adoption of biopesticides.
Biopesticides are certain types of pesticides, derived from natural materials as; animals, plants, bacteria, and certain minerals. It is important to take into consideration both microbial and organic pesticides. The market is broadly segmented into bioinsecticide, bioherbicide, biofungicide, and others. This presents a wideranging analysis of market share, size, and volume of the biopesticide market on a global scale.
Why Biopesticides
Currently, major challenges of humanity are population growth, food security, and concerns over pesticide residue in the food products. Aberrant usage of crop protection chemicals has resulted in the occurrence of pesticide residues in food products above the level (MRLs) set by the governing bodies. Hence, it is vital to identify and promote the environment for sustainable growth in the agriculture to achieve global food security.
Biopesticide products/technologies are essential components in modern integrated pest management concept. They can also be used to complement the synthetic chemicals used in the protection of crops to achieve the maximum residue level (MRL).Increasing awareness about pesticide residues in food has led consumers to shift towards organic food products. Even the government bodies around the world are now putting policies in place with the intention to reduce the use of conventional synthetic origin crop protection chemicals.
Limited availability of quality products, low shelf-life of products, limited awareness about the benefits of biopesticides among crop producers, and weakness of the supporting policy network are some of the inhibiting factors for the growth of the biopesticides industry.
The growth of biopesticides is projected to outpace the demand for synthetic chemical pesticides in coming years considering the benefits they offer in protecting the crop from pest and diseases apart from other advantages such as residue level and resistance management, biodegradability, investments, and development of products (limited timeline and cost associated).
It is important to understand the qualitative and quantitative insights on the biopesticides industry analysis of biopesticides market size and growth rate for all possible segments in the market. The market is segmented by type, source, mode of application, and crop type. On the basis of type, the global market is categorized into bioinsecticides, biofungicides, bionematicides, and others. The global biopesticides industry is segmented into microbial and biochemicals.
Key Drivers
Easy Registration Procedures
Given that biopesticides tend to pose fewer risks than chemical pesticides, registration in many countries generally requires less data to register a biopesticide than to register a chemical pesticide. As a result, new biopesticides are often registered in less time, compared to an average of more than three years for chemical pesticides. To promote the use of biopesticide, developing countries have simplified the requirement for the registration of biopesticides. These countries are also providing grants for R&D and production unit setups. All these activities are creating an opportunity for the development of the biopesticide market, globally.
Increased Demand
Some countries have registered around 41.6% of the chemical market for biopesticides. Demand is driven by a number of factors, including the increased interest in green agricultural practices and the loss of many conventional products to reregistration and/or performance issues. Product development has also driven up the demand for biopesticides. Today more and better biological active ingredients and products are available which can complement conventional chemical pesticides.
According to the Research Institute of Organic Agriculture (one of the world’s leading organic farming information and research centres), 50.9 million hectares of agricultural land is under organic farm practices (as of 2015) and witnessed a CAGR of 7.4% during the period, 2010 to 2015. The increasing area under organic farming is projected to demand more biopesticide products which will, in turn, boost the biopesticides market value.
Competitive Landscape
In the global biopesticide market, companies are not only competing based on product quality and promotion but are also focused on strategic moves, to hold larger market shares. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the global biopesticide market. Companies not only compete on new product launches but also focus on strategic moves, to acquire larger market shares. The results of the market share analysis indicate a highly fragmented market. The major acquisitions taking place between companies to develop biopesticides, indicates that the focus on bio-based products are increasing rapidly. The players in the market are investing heavily in this market, to diversify their biological research divisions in the expanding market place.
Other key factors driving the global market are the involvement of start-up companies in the R&D of biopesticide active ingredients. The limited time required for R&D of biopesticide products and the reduced investment costs compared to synthetic chemical active ingredients are the key factors that attract the start-up companies to involve in the development of biopesticide products
Market Segmentation
“Bionematicides to Emerge as the Most Attractive Product Type due to the Elevating Demand for Appropriate Solutions for Pathogenic Nematodes Control”
Biofungicides and bioinsecticides segments cumulatively accounted for nearly 92-95% of the global market in 2017. High-value fruits & vegetable crops accounted for the highest share in the consumption of biopesticide products globally. This factor will propel the biopesticides market growth moving forward. Current share of global market is limited but is projected to witness strong growth during the forecast period. Around 10% of all the nematodes species are plant-parasites and the crop losses valued nearly USD 80-100 billion annually. Horticultural crops grown under protected cultivation are more prone to damage by pathogenic nematodes. Increasing shifts in patterns of tillage of soil and adoption of zero or minimum tillage farm practices are leading to the enlargement of pathogenic nematodes population density in the soil.
This factor is predicted to contribute to the biopesticides market growth. Considering the economic losses, industry stakeholders (including a large number of start-up companies) are actively exploring the opportunities to identify the biological pesticides that are effective in controlling the pathogenic nematodes, and the same is projected support for the strong growth of the bionematicides market. Bacillus firmus, Pasteuria spp, and Purpureocillium lilacinus are currently identified as potential nematicides.
Microbial segment is projected to witness strong growth
Microbial such as bacteria and fungi account boasts of the highest share in the biopesticides market and are projected to witness strong growth in the biopesticides Industry during the forecast period. Microbial-based biopesticides are popularly used to protect the crops from a wide range of plant pathogens in various cultivated environments such as fields, nurseries, and protected cultivation systems (such as greenhouse and glasshouses).
Proven efficiency in the control of various types of pests in a wide range of crop types (especially horticulture crops) is contributing to the growth of microbial biopesticides. In April 2018, Isagro USA received approval by the California EPA for Taegro-2 broad-spectrum biofungicide (with active ingredient Bacillus subtilis var. amyloliquefaciens Strain), which is recommended for use in a wide variety of horticulture crops and the product provides protection of major soil-borne and foliar diseases.
North America and Europe are the two largest biopesticides users at present and they are expected to account for a significant proportion of the biopesticides market during the forecast period as well.
Stringent regulations on the usage of synthetic crop protection chemicals to protect the environment from hazardous effects are driving biopesticides Industry in North America and Europe. South America and Asia Pacific are emerging markets in biopesticides and are projected to witness strong growth during the forecast period to hold a significant market share in global market.
Key Market Drivers
“New products launches and acquisitions are the key strategies adopted in the market”
New products launches and acquisitions were the preferred strategies during the period from 2014 to 2017 gained access to the global market. Moving ahead, new product launches and agreements strategies are projected to uplift biopesticides market value during the forecast period. For instance, Stockton STK specializes in the development of botanicalbased pesticides, have signed several longterm distribution agreements for its innovative product Timorex Gold biofungicide with key companies in the agrochemicals industry.
