Biopesticides Market Size, Share & COVID-19 Impact Analysis, By Type (Bioinsecticide, Biofungicide, Bionematicide, and Others), Source (Microbials and Biochemicals), Mode of Application (Foliar Application, Seed Treatment, Soil Treatment, and Others), Crop (Cereals, Oilseeds, Fruits & Vegetables, and Others), and Regional Forecast, 2020-2027

The global biopesticides market size was USD 4.40 billion in 2019 and is projected to reach USD 10.63 billion by 2027, exhibiting a CAGR of 13.1% during the forecast period.

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

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

The sudden outbreak of the coronavirus pandemic has affected the global market as the governments are implementing lockdown actions and limiting the movement of the masses. These actions are having a significant effect on biopesticides production as factories are facing supply chain interruptions and workers’ unavailability. The overall market growth is expected to observe interruptions and production decline due to raw material scarcity, labour 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 biopesticides manufacturing plants can help producers based out of 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 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 is a Prominent Trend

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

DRIVING FACTORS

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

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

Countries, especially with strong agriculture bases are gradually transitioning from ‘green-revolution’ towards ‘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 (organic food products) devoid of any synthetic pesticides is predicted to further propel the market growth.

Phase-out of Key Chemical Active Ingredients to Support 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 chemical active ingredients to avoid their adverse effects on the environment, human, and animal health. Numerous governments and government bodies are highly supportive and provide funds to leverage the uses of biopesticides to lessen the environmental impact of pesticides. The increasing concerns regarding the use of chemical pesticide is expected to positively leverage the sales of the other sustainable solutions such as bio-based crop protection chemicals.

RESTRAINING FACTORS

Sub-optimal Commercialization of Biopesticides to Hamper Growth

The low adoption rate of the product, as compared to chemical agri-inputs in the 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 space of biopesticides is characterized by several start-ups that are struggling with adequate funding, appropriate infrastructure, and market penetration. The 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 Hold Major Share Backed by Rising Demand for Alternative Products

The biofungicides segment held the largest biopesticides market share in the global market in 2019. The increasing resistance for various chemical fungicides among fungi is expected to boost the demand for alternative efficient products such as biofungicides. 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, several horticultural crops that are grown under sheltered cultivation are more susceptible to damage by pathogens, especially pathogenic nematodes. 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 to support the strong growth of the bionematicides market.

By Source Analysis

Microbial Segment to Exhibit Substantial Growth in Global Market

Microbes have proven their ability to enhance the nutrient uptake and encourage the development of residential microbiota of plants. They can thus ensure optimum yield enhancement and stress-tolerance without the need of genetic modification, the long-term impact of which are unsustainable. Microbes containing biopesticides are popularly used to protect crops from a wide range of plant pathogens in various cultivated environments such as fields, nurseries, and protected cultivation systems.

By Mode of Action Analysis

Foliar Application Segment to Secure Larger Revenue Fueled by Ability to Prevent Plant Diseases

The foliar application segment is expected to secure larger revenue in the global marketplace with strong growth projections during the forecast years. The application of biopesticides through this method can result in a quick growth of the seedling 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.

The crop protection agricultural biologicals are extensively utilized in seed-treatment to compliment the chemical agri-inputs. These type of pesticides utilized for seed treatment are gaining popularity among growers owing to the increasing awareness regarding microbe-based biopesticides treatment for reinstating the microbial variety and improving the seed quality.

By Crop Analysis

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Cereals Segment to Showcase Robust Growth in the Upcoming Years

The increasing cultivation of cereals as they are consumed as staples across the globe along with the high profit associated with the cultivation of organic cereals are projected to boost the utilization of biopesticides amid cereal growers. The increasing area under the cultivation of organic fruits and vegetables due to the rising awareness regarding the usage and long-term benefits of the product is predicted to aid and driving the growth of the biopesticides industry. Moreover, the eco-friendly and economical nature of several bio-based crop type protection chemicals is anticipated to increase their utilization in the production of various high value crops.

REGIONAL INSIGHTS

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Favourable Policies and Regulatory Framework in North America to Support Increased Use of Biopesticides in Agriculture

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 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 for biopesticides 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 Asia Pacific. 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 showcasing greater utilization of these type of pesticides to increase their crop yield in the possible eco-friendly manner.

The demand for these chemicals in South America is growing at a considerable pace attributed to the rising area under organic farming and the amplifying demand for organic food across countries such as Brazil and Argentina. Advancement of biological technologies and increasing investments by major players of this market in developing bio-based crop protection chemicals in South America is anticipated to boost the market growth within the region.

KEY INDUSTRY PLAYERS

Key Players Focus on New Product Development and Collaboration to Compete in the Market

Biopesticide products are essential components in the modern integrated pest management concept 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 players to diversifying their product portfolio and distribution network to increase their market reach and consumer base. Syngenta AG is one of the leaders operating in the market. Innovations and expansion of business are the key strategies adopted by the company to compete in the global market.

April 2020 - Syngenta AG along with Novozymes announced the product launch of its unique biofungicide, TAEGRO in the Latin American and European market.

March 2019 - Syngenta AG announced that its first bioinsecticide, Coaster is ready to be launched in the Portugal market. The new product is formulated based upon the active strain Bacillus thuringiensis and it can be used to control all types of caterpillars.

LIST OF KEY COMPANIES PROFILED:

• Syngenta AG (Basel, Switzerland)


• Bayer CropScience (Leverkusen, Germany)


• BASF SE (Ludwigshafen, Germany)


• DowDuPont (Delaware, United States)


• Marrone Bio Innovations (Davis, United States)


• Koppert (Rodenrijs, Netherlands)


• Valent BioSciences (Illinois, United States)


• BioWorks Inc. (New York, United States)


• Isagro S.p.A(Italy)


• Certis USA LLC., (Columbia, United States)

KEY INDUSTRY DEVELOPMENTS:

• In March 2020, Marrone Bio Innovations collaborated with a Chile-based company Anasac to manufacture and distribute Venerate and Grandevo bioinsecticides in Chile.


• In March 2020, Sweden and Israel permitted the usage of Madex, Andermatt Biocontrol AGs’ product in pome fruit orchards to regulate the codling moth.


• In February 2020, Stockton Bio Ag collaborated with ADAMA Agricultural Solutions Ltd. for the sale of its biofungicides in the Ecuadorian marketplace.

REPORT COVERAGE

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The biopesticides market research report provides qualitative and quantitative insights on this market and the detailed analysis of market size and growth rate for all possible segments in the market. Along with this, the report includes an elaborative industry 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.

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