Biopesticides Market

Biopesticides: The Natural Solution for Safer Agriculture

Pest control has been an ongoing challenge for farmers and agriculture professionals for centuries. The conventional method of using synthetic pesticides has helped to manage crop damage caused by pests, but has raised concerns over their safety and environmental impact. The need for a safer and sustainable alternative led to the development of biopesticides, which have been gaining popularity among farmers and agricultural experts in recent years.

Biopesticides are derived from natural sources, such as bacteria, fungi, viruses, and plant extracts, and are used to control pests and diseases in crops. Unlike chemical pesticides, biopesticides pose minimal risk to human health and the environment. They are effective, economical, and leave no harmful residues on crops, making them a safe and sustainable solution for modern agriculture.

One of the main advantages of biopesticides is their ability to target specific pests, leaving beneficial insects unharmed. For example, Bacillus thuringiensis (Bt) is a bacteria commonly used in biopesticides, which produces proteins toxic to certain pests such as caterpillars and mosquitoes, while being harmless to other insects, animals, and humans.

Biopesticides have also shown promise in managing pesticide resistance in pests, which is a growing concern in the agricultural industry. The overuse of synthetic pesticides has resulted in pests developing resistance to these chemicals, making them less effective in managing crop damage. Biopesticides, on the other hand, have a unique mode of action, which reduces the likelihood of pest resistance.

In addition to their effectiveness and safety, biopesticides are also environmentally sustainable. Chemical pesticides have been known to contaminate soil, water, and air, causing harm to wildlife and ecosystems. Biopesticides, on the other hand, are biodegradable and have minimal environmental impact, making them a more sustainable alternative for agriculture.

The global market for biopesticides is rapidly expanding, with an increasing number of farmers and agricultural professionals recognizing their benefits over traditional chemical pesticides. According to market research, the biopesticides market is expected to grow at a steady rate over the next few years, driven by factors such as increasing demand for organic food products, rising awareness of environmental concerns, and the development of innovative biopesticide formulations.

In conclusion, biopesticides are a natural, safe, and sustainable solution for pest control in agriculture. They offer numerous advantages over traditional chemical pesticides, including targeted pest control, reduced pesticide resistance, and minimal environmental impact. With the growing demand for safer and more sustainable agricultural practices, biopesticides are set to become an essential tool for farmers and agriculture professionals in the years to come.

Market Dynamics of Biopesticides Market

Drivers in Biopesticides Market

The development of synthetic crop protection products requires extensive research and development activities along with strict regulatory approvals which make them expensive to produce. As compared to biopesticides, synthetic products have a longer development process and are relatively more expensive. This cost-effectiveness of biopesticides has attracted smaller companies/startups to venture into this market, leading to intense competition for major players in the biopesticides market. Additionally, with the focus on sustainable solutions, major companies are shifting towards alternatives, leading to a projected increase in demand for biopesticides during the study period.

Restraints in Biopesticides Market

Biological products have limitations in their use due to their short or limited shelf life and a high probability of contamination. The survival of microorganisms during storage is a major concern, and exposure to sunlight, culture mediums, physiological state of microorganisms when harvested, temperature maintenance during storage, and water activity of inoculants are some of the problematic parameters that affect their shelf life. Furthermore, the efficiency of biological products is sometimes hindered by the bioavailability of the active ingredient in the host. The major technological constraints with the use of biological products include the use of improper and inefficient strains for production, lack of experienced and skilled technical personnel, unavailability of high-quality carrier materials, or the use of different carrier materials by producers without ascertaining their quality, leading to a short shelf life due to the influence of various abiotic and biotic stress factors.

Opportunities in Biopesticides Market

The market for biopesticides is experiencing growth due to the rising awareness of the negative impacts of chemical pesticides. Key players in the crop protection industry, such as Bayer AG, are advancing microbial and RNAi technology, providing farmers with better alternatives for applying biological products. Research conducted by these industry leaders has led to the use of biological signals to trigger RNAi-specific genes, contributing to disease and pest resistance, increased yield and quality. These breakthroughs offer multiple opportunities for market players. Biopesticides are derived from natural sources, such as plants, minerals, and microorganisms, making them a safe and sustainable substitute for chemical pesticides, which pose threats to human health and the environment. The industry's growth is further attributed to precision farming practices, which incorporate cutting-edge technologies such as GPS, drones, and remote sensing. However, the high cost of production and limited availability of biopesticides may hinder industry growth. Nonetheless, the industry's potential for sustainable agriculture and a healthier planet presents an exciting opportunity.

The biopesticides industry is characterized by the growing use of biopesticides in organic farming, increased demand for environmentally-friendly pest control methods, advancements in technology leading to larger scale and cost-effective production, a stringent regulatory framework, growing adoption in developing countries, and high development and registration costs that pose a challenge for small companies entering the market. In terms of formulation, the dry form segment dominates the global market, as it is the most commonly available form. Dry biopesticides are advantageous for users, as they can last for multiple uses, be applied directly to crops, or blended in a solution and applied using a spray. The dual application of dry biopesticides has grown in popularity among users.

Challenges in Biopesticides Market

The preference for chemical pesticides over biopesticides among farmers in developing countries poses a challenge to the growth of the biopesticides market. Farmers in developing markets such as Asia-Pacific have small landholdings and are focused on efficient production to generate quick results due to economic fluctuations and low purchasing capacities. They are not aware of organic practices and biopesticides, and prefer chemical pesticides, despite moderate government regulations that are not strict in developing markets. However, increasing awareness among cultivators and import regulations are driving the demand for biopesticides, which is expected to increase steadily during the forecast period.

Biopesticides are available in dry and liquid formulations, with the liquid formulation dominating the market and expected to continue doing so during the forecast period. The ease of application and rise in the growth of foliar mode of application are driving the demand for liquid formulations, which are convenient and easy to apply. Spraying liquid formulations leads to even application of biopesticides and is considered more efficient as the microbial active ingredients are more viable in liquid formulations compared to dry. As a result, the liquid formulation segment is projected to grow at a higher compound annual growth rate (CAGR) of 16.1% during the forecast period.

The global biopesticides market is dominated by foliar spray, which is the most widely used method of application, accounting for a value of USD 2,348.8 million in 2022. Foliar sprays involve the direct application of microbial pesticides to the leaves of plants to control pests. This method is quick, effective, and convenient, making it the most popular method for short-term pest control. Additionally, the rise in demand for horticultural crops, such as organic fruits and vegetables, has further fueled the growth of this market. Foliar sprays offer an even distribution of biopesticides, making them a preferred choice for farmers. Thus, foliar spray is expected to continue dominating the market in the years to come.

Microbial biopesticides are the most widely used source of biopesticides, accounting for a value of USD 3,537.8 million in 2022. These biopesticides are specific to particular pests and do not harm the environment. Microbes can be cultured in favourable media within a short period of time, have longer lifecycles than beneficial insects, and can be stored for later use. The cost of developing microbial pesticides is also relatively low, making them a popular choice for farmers. Due to these advantages, microbial biopesticides have dominated the market and are expected to continue to do so during the forecast period.

In 2022, North America held a significant market share of around 41.3% in the global biopesticides market, with the US, Canada, and Mexico being the countries studied. The adoption of biopesticides in the region is driven by the loss of conventional products to registration or product performance issues. To overcome this, key players like FMC Corporation and Marrone Bio Innovations are focusing on research and development of better active ingredients. Among the different crop types, orchards have seen the highest usage of biopesticides as they are susceptible to spoilage by pests and insects. Emerging economies like India and China have witnessed a significant adoption of orchard farming, leading to an increase in the use of biopesticides in these regions.

The biopesticides market's growth is being driven by the demand for sustainable agriculture that addresses environmental and social concerns while providing economically viable opportunities for growers, laborers, and consumers. The growing consumer demand for organic food is another factor contributing to the market's growth. Consumers are increasingly avoiding conventional food to avoid adverse health effects caused by chemical preservatives, which is shifting growers toward organic cultivation that uses biopesticides instead of chemicals. Additionally, there is a growing concern about the environment, which has led to the development of bio-based pesticides. As per the Research Institute of Organic Agriculture (FiBL) statistics, the organic area in Europe has increased from 14.4 million hectares in 2017 to 17.1 million hectares in 2020.

Countries worldwide are making significant strides towards promoting the use of biopesticides, by simplifying the requirements for registration of biopesticides and providing grants for R&D and production unit setups. This has resulted in an opportunity to develop the biopesticide market globally. In May 2020, the European Union (EU) announced a plan to decrease the use of 505 chemical pesticides in the future and promote the usage of biopesticides, which may increase the demand for biopesticides in the EU during the forecast period.

In North America, the demand for biopesticides is primarily driven by an increased interest in green agricultural practices and the loss of many conventional products to reregistration and/or performance issues. Currently, more than 60 companies are developing and/or selling biopesticide products in the United States alone, with over 420 registered biopesticides. In 2019, nearly 13 active PIP active ingredients were registered for corn, 9 for cotton, and 5 for soybean. Organizations such as Biological Products Industry Alliance (BPIA), Environmental Protection Agency (EPA), and many others are actively involved in the development of biopesticides for the majority of the pests in North America.

Canada also presents itself as a potential market for biopesticides and their regulation, with strong R&D, registration, and advancements as inherently risk-reduced pesticides. Currently, there are more than 200 registered biopesticide products in Canada, with microbial products being the largest category among all others. Biofungicides and bioinsecticides also cover the majority of the North American biopesticides market.

Key Players in Biopesticides Market

• BASF SE
• BAYER AG
• SYNGENTA AG
• UPL LIMITED
• FMC CORPORATION
• MARRONE BIO INNOVATIONS
• NOVOZYMES A/S
• NUFARM
• ISAGRO S.P.A
• CERTIS BIOLOGICALS
• KOPPERT BIOLOGICAL SYSTEMS
• BIOBEST GROUP NV
• SOM PHYTOPHARMA INDIA LTD
• VALENT BIOSCIENCES LLC
• STK BIO-AG TECHNOLOGIES
• ANDERMATT BIOCONTROL AG
• IPL BIOLOGICALS LTD
• VEGALAB S.A
• BIOWORKS, INC.
• BIONEMA
• VESTARON CORPORATION
• INNOVATE AG
• BIOTALYS
• FYTOFEND S.A.
• BIOLOGIC INSECTICIDE

Recent Developments in Biopesticides Market

Several recent developments in the biopesticides market have been observed. In March 2021, BASF launched a new biofungicide called Howler in Europe, the Middle East, and Africa. Howler is a formulation of Pseudomonas chlors, oraphistrain AFS009, which can control Pythium, Fusarium, Rhizoctonia, and Botrytis in turf and golf courses. The launch of Howler expands BASF's BioSolutions portfolio in Europe and strengthens its position in the market.

In March 2020, Bayer AG launched Serenade, its first biofungicide in China. Serenade contains QST713, a biocontrol microorganism that helps plants absorb more effective nutrients and enhances plant immunity to reduce disease incidences. This launch enabled Bayer AG to expand its product offering to the Chinese market.

In March 2021, Botanical Solution Inc. (BSI) in the US and Syngenta entered into an agreement to commercialize BSI's first product, BotriStop, in Peru and Mexico. BotriStop is a biofungicide that effectively controls Botrytis cinerea in blueberries, vines, and vegetables. The partnership aimed to help both the companies with innovation and performance efficiency and target the fresh food production demand in Peruvian and Mexican markets.

In May 2022, UPL Limited and AgBiTech (US) announced a strategic partnership. Under this collaboration, UPL would distribute AgBiTech's biosolutions, starting with two bioinsecticides, Heligen and Fawligen. This partnership would ultimately help UPL expand its bioinsecticides portfolio and offer more sustainable solutions to its customers.

The biopesticides market is experiencing significant growth due to rising awareness about the harmful effects of chemical pesticides and increased demand for environmentally-friendly pest control methods. Several key players in the market, such as Bayer AG, are making advancements in microbial and RNA interference (RNAi) technology, allowing farmers to adopt better alternatives for applying biological products.

The use of cutting-edge technologies such as GPS, drones, and remote sensing in precision farming practices is also contributing to the market's growth. Furthermore, the emerging economies of India and China have witnessed significant adoption of orchard farming, owing to increased use of biopesticides for crop protection.

North America accounted for a significant market share of around 41.3% in 2022, with the US, Canada, and Mexico being the major countries in the region. Loss of conventional products to registration or product performance issues is one of the key reasons driving the adoption of biopesticides in the North American market. Key companies in the region, such as FMC Corporation and Marrone Bio Innovations, are focusing on research for product development with better active ingredients.

The biopesticides industry is characterized by several key features, including the growing use of biopesticides in organic farming, a stringent regulatory framework, and the high cost of development and registration, which presents a challenge for small companies to enter the market.

Overall, the biopesticides market offers innovative and economically viable opportunities for sustainable agriculture and a healthier planet, driven by consumer demand for organic food and increased concern about the environment.