Biopesticides Market Size, Share & COVID-19 Impact Analysis, By Type (Bioinsecticide, Biofungicide, Bionematicide, and Others), By Source (Microbials and Biochemicals), By Mode of Application (Foliar Application, Seed Treatment, Soil Treatment, and Others), By Crop (Cereals, Oilseeds, Fruits & Vegetables, and Others), and Regional Forecast, 2022-2029

The global biopesticides market size was valued at USD 5.61 billion in 2021 and is projected to grow from USD 6.51 billion in 2022 to USD 18.15 billion by 2029, exhibiting a CAGR of 15.77% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with biopesticides experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 4.86% in 2020 as compared to 2019.

Intensifying efforts by government and market players to incite the use of efficient and eco-friendly agri-inputs are likely to boost the biopesticides market growth in the forthcoming years. Moreover, several governments are supporting the usage of environment-friendly agri-inputs even in this pandemic situation. Governments are introducing various schemes and subsidiaries to ensure the increase in the adoption of eco-friendly agri-inputs, including bio-based crop protection chemicals. For instance, in March 2020, the Reserve Bank of India (RBI) introduced a new measure, crop loans and agriculture terms have been granted a pause of three months by banking organizations with a 3% reduction on the interest rate of crop credits up to USD 4,022.29.

COVID-19 IMPACTS

Disruption in Global Supply Chain due to COVID-19 has Negatively Affected Market Growth

The sudden outbreak of the coronavirus pandemic is affecting the global market as governments undertake lockdown actions and limit the movement of their masses. These actions are having a significant effect on biopesticide production as factories are facing supply chain interruptions and worker scarcities. The overall market growth is expected to observe interruptions and production decline due to raw material scarcity, labor shortages, and government-mandated plant shutdowns.

The global market remains to be challenged by the logistical and associated economic impacts of the pandemic. However, the effects are uneven across markets, and not all are negative. For instance, the time-being shutdown of Chinese biopesticide manufacturing plants can help producers based in India, Europe, and North America to fill the void and increase their order intakes. Nevertheless, supply chain disturbances have led to raw material procurement issues for several producers, especially that of companies’ dependent on Chinese raw materials are expected to face significant logistical challenges.

LATEST TRENDS

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New Product Development with Microbial Ingredients to Fuel Market Growth 

Microbes are expected to emerge as an inexpensive yet effective yield-enhancing input despite unpredictable weather conditions. Metagenomics, metabolomics, and strain enhancement efforts are underway to expand biopesticides to help optimize production of the acre, along with an increase in investments from the institutional sector and venture capital. The ongoing research regarding the new microbial pesticide development is likely to support the market growth in forthcoming years.

DRIVING FACTORS

Ever-rising Demand for Organic Food to Play a Crucial Role in Product Growth

Organic farming is increasingly advocated as an ideal alternative to conventional techniques to reduce the overall impact on the environment. The promising growth trajectory of organic agriculture practices is expected to benefit the future growth of bio-based pesticides with stronger demand dynamics for natural plant protection products. The strong emphasis from governments and other stakeholders on the organic and sustainable mode of farming has increased the acceptance of the product.

Countries, especially with a strong agriculture base, are gradually transitioning from a “green-revolution” toward an “ever-green revolution.” The role of agri-bio inputs will thus be crucial in driving this transformation owing to their eco-friendly, cost-effective, and farmer and consumer-friendly traits. Moreover, rising buyers’ demand for foods devoid of any chemical pesticides is predicted to further propel the market growth.

Phase-out of Key Chemical Active Ingredients to Support Market Growth

The usage of synthetic pesticides has recorded large-scale and widespread damage to the environment. Therefore, several government organizations have banned or set limitations on the use of some active chemical ingredients to avoid their adverse effect on the environment and human & animal health. Several governments and government bodies are highly supportive and provide funds to leverage the uses of bio-based crop protection chemicals to lessen the environmental impact of pesticides. The increasing concerns regarding the use of chemical pesticides are expected to positively leverage the sales of other sustainable solutions such as biopesticides.

RESTRAINING FACTORS

Sub-optimal Commercialization of Product to Hamper Market Growth

The low adoption rate of the product compared to chemical agri-inputs in developing nations can restrict the growth of the market. The traditional and conventional agri-inputs market is well-structured at a global level with a prominent presence of key giants. However, the biopesticides space is characterized by several start-ups that struggle with adequate funding, appropriate infrastructure, and market penetration. R&D activities undertaken by these small players also fail to sense the demand dynamics of a particular geography, which can further restrain the market growth.

SEGMENTATION

By Type Analysis

Biofungicides Segment to Grow at a Significant Pace due to Rising Resistance for Several Chemical Fungicides among Fungi

The biofungicides segment is likely to grow at a significant pace in the forthcoming years. The increasing resistance to various chemical fungicides among fungi is expected to boost the demand for alternative efficient products such as bio fungicides. Moreover, the regulatory ban or limitation on the usage of some active ingredients for the production of chemical agri-inputs is expected to be a favorable factor for product growth.

In addition, 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 nematode population density in the soil. Considering the economic losses, industry stakeholders 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 market.

By Source Analysis

Microbe's Ability to Enhance the Nutrient Uptake to Support Substantial Growth of Microbial Segment

Microbes have proven the ability to enhance nutrient uptake and encourage the development of residential microbiota of plants. Microbes can thus ensure optimum yield enhancement and stress tolerance without the need for genetic modification, the long-term impact of which is unsustainable. Microbes containing 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.

By Mode of Application Analysis

Foliar Application to Hold Highest Biopesticides Market Share due to its Sufficient Potency to Increase Plant Growth and Productivity

Foliar spray application is expected to secure a larger revenue chunk in the global marketplace with strong growth projections during the forecast period. The application of the product through this method can result in quick growth of seedlings after germination. Foliar spray treatment is also an easy to apply method that can act as curative and preventive treatments for specific plant diseases and deficiencies.

Crop protection agricultural biologicals are extensively utilized in seed treatment to complement the chemical agri-inputs. Biopesticides utilized for seed treatment are gaining popularity among growers owing to the increasing awareness regarding microbe-based agri products treatment for reinstating the microbial variety and improving the seed quality.

By Crop Analysis

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Cereals Segment to Exhibit Notable Growth Attributed to the Rising Demand for Organic Cereals

The increasing cultivation of cereals as they are consumed as a staple across the globe, along with the high profit associated with the cultivation of organic cereals, is projected to boost the utilization of biopesticide among cereal growers. Moreover, the increasing area under the cultivation of organic fruits and vegetables due to rising awareness regarding the usage and long-term benefits of the product owing to their eco-friendly and economic nature is anticipated to increase the utilization of biopesticides for the production of various high-value crops.

REGIONAL INSIGHTS

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North America is the largest market at present, and it is expected to account for a significant proportion of the market during the forecast period as well. Stringent rules and regulations regarding the usage of synthetic crop protection chemicals to protect the environment from hazardous effects are driving the growth of the regional market. The rigorous search for greener inputs for crop cultivation is driving the sales of the product in the regional marketplace. Moreover, the strong focus on utilizing microbe-based pesticides for yield-enhancements and pest-resistance improvements is expected to positively impact the market growth and product demand.

The demand is high in the Asian agriculture sector. The population rise, which is bound to create pressure on food security, is expected to be more prominent in the Asia Pacific region. Therefore, the products are advertised as economic, safe, and effective crop inputs to support yield enhancements from the limited cultivable land. Row crops such as wheat, soy, and rice are witnessing greater utilization of these biopesticides to increase their crop yield in an eco-friendly manner.

Europe is exhibiting slow but gradual growth in the use of the product and is the second-largest consumer of these products across the world. A large number of organic food consumers and strict regulatory restrictions related to the use of synthetic pesticides are some major factors boosting the growth of the market in the region. Among the European nations, France is one of the fastest-growing users. The government has adopted an efficient regulatory framework and drug approval system, which promoted the rapid development of the market. The French Agency for Food, Environmental, and Occupational Health & Safety (ANSES) completes the review of biological control products such as biopesticides within six months. This timeframe is much faster compared to the rest of the European Union and helps the companies easily market their products.

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The bio-based pesticides used in South America are still in the nascent phase of development. Lack of technical expertise and limited availability of biopesticides are major restraints of the market growth in the region. Specific regulations related to the commercialization of bio-pesticide crop protection products have not been developed, which, in turn, affects the efficacy, quality, and purity of the product.

KEY INDUSTRY PLAYERS

Industry Focus on New Product Development and Collaboration to Favorably Aid Market Growth

Biopesticide products are essential components in modern integrated pest management concepts to achieve the required level of crop protection from pests and diseases without causing damage to the environment and human health. The increasing demand for these products is gravitating market’s key players to diversify their product portfolio and distribution network to increase their market reach and consumer base. Syngenta AG and Marrone Bio Innovations are some of the leading operating companies in the market. Innovations and expansion of business are the key strategies adopted by the companies to compete in the global market.

June 2021 - Marrone Bio Innovations entered into a partnership with ATP Nutrition of Manitoba, Canada to distribute Stargus Biofungicide on Canadian broadacre crops, primarily canola, dry beans, peas, soybeans, and sunflower. 

April 2020 - Syngenta AG along with Novozyme announced the launch of its unique bio fungicide, TAEGRO in the Latin American and European markets.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• Syngenta AG (Switzerland)


• Bayer CropScience (Germany)


• Marrone Bio Innovations (U.S.)


• Novozymes (Denmark)


• Koppert Biological Systems (Netherlands)


• BioWorks Inc. (U.S.)


• Gowan Group (Ireland)


• Sumitomo Chemical Co., Ltd. (Japan)


• Certis USA LLC., (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2022: Syngenta Crop Protection AG announced the acquisition of two next-generation bioinsecticides, NemaTrident and UniSpore, from leading biocontrol technology developer Bionema Limited.


• March 2021: Bayer AG announced the launch of Vynyty Citrus, a new biological and pheromone-based crop protection product to control pests on citrus farms.


• May 2021: FBSciences announced the expansion of the biopesticide category, which includes innovation as well as commercialization of biologicals. The company aims to commercialize and expand the sales of the recently approved nematicide FBS Defense 500.


• February 2020: Stockton Bio Ag collaborated with ADAMA Agricultural Solutions Ltd. for the sale of its bio fungicides in the Ecuadorian marketplace.

Report Coverage 

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The report provides qualitative and quantitative insights and a detailed biopesticides market analysis with market size and growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key industry trends.

Report Scope & Segmentation