India Biopesticides Market Size, Share & COVID-19 Impact Analysis, By Type (Bioinsecticides, Biofungicides, Bionemacides, and Others), Source (Microbial and Biochemical), Mode of Application (Foliar Application, Seed Treatment, and Soil Treatment), and Crop Type (Cereals, Oilseeds, Fruits & Vegetables, and Others), 2022 – 2029

The India biopesticides market size was USD 64.73 million in 2021. The market is projected to grow from USD 69.62 million in 2022 to USD 130.37 million by 2029, exhibiting a CAGR of 9.38% during the forecast period. The impact of COVID-19 has been unprecedented and staggering, with experiencing lower-than-anticipated demand in India compared to pre-pandemic levels. Based on our analysis, this market exhibited a decline of 5.10% in 2020 as compared to 2019.

Biopesticides are type of pesticides derived from natural elements such as animals, plants, bacteria, and certain minerals. The growing consumer shift toward biological and organic products is the major factor increasing the India biopesticides market share. Another factor influencing the biological pesticides industry is the emerging trend of sustainable agriculture. Agricultural biologicals, including biopesticides balance sociocultural relevance, environmental protection, and economic productivity. These factors are considered very vital for sustainable agriculture trends.

Opportunity for the growth of the Indian biological pesticides industry lies in designing agri system that is less dependent on chemical pesticides. Biological pesticides are a desirable alternative to synthetic pesticides, but a wider range of bioproducts needs to be made available to prosper the industry in India.

COVID-19 IMPACT

Disruption in Supply Chain led to Decline in the Market Value in India

In March and April of 2020, the government of India implemented a 21-day nationwide lockdown to tackle the issues arising due to the pandemic. This factor caused economic disruption all over the country in almost every sector. Although agricultural activities were not restricted in the lockdown, the agricultural value chain faced large-scale disruptions in the initial phases. However, biopesticides were classified under essential commodities due to their requirement for high agricultural production. Many agrochemical companies anticipated setbacks during the first half of 2020. However, the demand continued to increase steadily despite supply-chain disruptions.

LATEST TRENDS

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Growing Inclination toward Crop Protection to Influence Market Growth

India is one of the fastest-growing economies globally owing to rise in industrialization and urbanization in recent years. With the rise in disposable income of the population, the demand for high-quality food products is increasing rapidly in the region. This increase in demand for food products has resulted in increased application of crop protection, including biological pesticides solutions to improve the crop yield per hectare. This further fuels the demand for advanced crop protection solutions in the region. Furthermore, the agrochemical industry in India has been observing structural changes, owing to the rising demand for crop protection chemicals, heavier supply from China, and substantial opportunities to explore due to increasing number of pesticide products going off-patent.

Moreover, the adoption of favorable government policies such as ‘Aatmanirbhar Bharat’ to support farmers and the growth of indigenous agro-chemical manufacturing companies are expected to boost the agriculture sector of India. Policies, such as increasing the credit available to farmers up to USD 2.23 million, are expected to escalate the adoption of agri-chemicals, including biopesticides among farmers. Additionally, the availability of products through online channels such as e-commerce platforms is also expected to boost the sales of agro-chemicals in the market.

DRIVING FACTORS

Growing Demand for Eco-friendly Substitutes of Chemical Pesticides to Support Market Growth

Over the past few years, awareness regarding the negative implications of chemical pesticides use has increased significantly among Indian farmers and consumers. This factor has provoked farmers to seek other environment-friendly alternatives and condense the reliance on conventional pesticides. Furthermore, chemical pesticides have considerably diminished the quality of crops cultivated in Asian countries. Moreover, crops with high and toxic chemical residues cannot clear the export quality standards in certain countries, especially in the European Union. This factor has considerably increased the demand for eco-friendly agricultural products across India.

High Efforts of Manufacturers and Governments for the Adoption of Biopesticides to Foster Market Growth

Through the help of local organizations, farmers are working on identifying and using non-chemical pesticides to control pests. Neem has been traditionally used in various forms in the country to control pests and bacterial infections.

Additionally, several companies in India are collaborating with academic institutions and government bodies to develop new biopesticides formulations for different varieties of crops. This factor has considerably increased biopesticides production in India. The companies are also investing in marketing activities to increase the adoption of such products among farmers. The government has established digital platforms providing information about biopesticides and their utilization to increase awareness among farmers. This also acts as a major factor propelling the long term growth of this market.

RESTRAINING FACTORS

Lack of Knowledge among Farmers and High Cost of Biopesticides to Obstruct Market Growth

Farmers in India lack a clear and concise understanding regarding the benefits of biopesticides for crop protection. The adoption and use of biological pesticides require technical awareness among farmers. Poor knowledge about the technical aspects related to the use of biopesticides results in a low adoption rate in India. Despite several policies from the central government, several state governments have yet to develop specific guidelines related to implementing these policies. Lack of proper accreditation, certification agencies, strong infrastructure facilities, and marketing channels for distribution also hamper the market growth.

Moreover, the cost of biopesticides is comparatively higher than chemical pesticides. This factor makes the product unaffordable for farmers, negatively impacting their adoption.

SEGMENTATION

By Type Analysis

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Biofungicides to Dominate Market Owing to its High Usage in India

Based on type, the market is segmented into bioinsecticides, biofungicides, bionemacides, and others.

Biofungicides are witnessing promising growth in India due to the wide product availability and enormous consumption of biofungicides, owing to the high prevalence of fungal infections. Trichoderma viride is one of the chief biofungicides used for controlling fungal diseases in India. The product is available in 250 different formulations in the market.

Insecticide manufacturers in India are inclined toward investing in the research and development of biological insecticides. The growing knowledge regarding biological crop protection products among Indian farmers is projected to drive the growth of other sub segments, including bioinsecticides and bionemacides.

By Source Analysis

Microbial Biopesticide Holds Major Share Attributed to its Eco-friendly Nature

Pesticides based on microorganisms and their products have proven to be highly effective. These pesticides are species-specific, ecological, and sustainable, leading to their higher adoption in crop protection strategies in Indian agriculture. The development of various technologies and investment in the research of novel species have increased the scope of microbial biopesticides products.

Biochemical pesticides are based on naturally occurring substances that control agricultural pests by non-toxic means. Biochemicals include semiochemicals, plant extracts, and organic acids. The biochemical segment is witnessing strong growth due to increased demand for pheromone lures, traps, and plant-based formulations.

By Mode of Application Analysis

Foliar Application Segment to Remain Dominant Due to its Uniform Application on Crops

The market is segmented into foliar application, seed treatment, and soil treatment based on the mode of application. Foliar application of biopesticides is much more effective than soil application due to its even spread. The process includes applying these products directly onto the leaves instead of integrating them into the soil. This method works well for pest control as it is applied externally, directly on the crop.

Seed treatment is also growing substantially attributed to its easier utilization techniques. Seed treatment includes the application of fungicide, insecticide, nematicides, and a combination of the three on seeds. This factor protects the crop from seed-borne or soil-borne pathogenic organisms and storage insects.

By Crop Type Analysis

Fruits & Vegetables Segment to Hold Highest Share Attributed to their Strong Demand

In the past few years, high-quality fruits & vegetables’ demand has significantly increased across the India market due to its nutritious value, which, in turn, amplified the demand for biological pesticides. The growing concerns related to health and diet among consumers are expected to propel the demand for such high standard fruits and vegetables. 

Wheat, rice, and corn are the most consumed cereals across the country. This factor is expected to increase the use of biopesticides for cereals in the coming years.

KEY INDUSTRY PLAYERS

Key Players Investing in Strategic Agreements to Strengthen their Market Position

Major players operating in the market include BASF SE, T. Stanes & Co. Ltd., Coromandel International, and Tagros Chemicals India Limited. The major companies in the country are investing in strategic agreements with well-established players to strengthen their business capabilities. For instance, in March 2021, BASF SE and AgBiome signed an agreement to bring a new biological fungicide to the market in Europe, the Middle East and Africa, and key countries in Asia, including India. This product, developed by AgBiome, has multiple modes of action that provide preventive, long-lasting activity on a broad spectrum of soil-borne and foliar diseases. This agreement is expected to support BASF SE to expand its footprint in this market. The major players in the country are focusing on new product launches and mergers & acquisitions to consolidate the market. The arrival of small players significantly contributes to the competition within the market, which positively impacts the India biopesticides market growth.

LIST OF KEY COMPANIES PROFILED:

• T. Stanes & Company Limited (Coimbatore)


• Coromandel International (Hyderabad)


• Tagros Chemicals India Ltd. (Chennai)


• Ajay Bio-tech (India) Ltd. (Pune)


• Som Phytopharma (India) Limited (Hyderabad)


• International Panaacea Limited (Gurgaon)


• Biotech International Limited (Delhi)


• Sumitomo International Co. Ltd. (Delhi)

KEY INDUSTRY DEVELOPMENTS:

• March 2020: BASF SE announced its collaboration with Delair to scale up the company’s research and development projects for seeds, traits, and crop protection. This agreement is anticipated to enable BASF’s agricultural research stations worldwide to use “delair.ai” cloud platform to streamline and standardize the information gained through drone-based field studies.  


• October 2019: Bayer AG announced its investment of USD 27.22 billion in crop science research & development over the period of next 10 years. The company has several crop protection, breeding, and biotech product in its pipeline.

REPORT COVERAGE

An Infographic Representation of India Biopesticides Market

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The market research report provides a detailed analysis of the market and focuses on key aspects such as competitive landscape, types, sources, mode of application, and crop type. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market's growth in recent years.

Report Scope & Segmentation