May 22, 2024
Biopesticides Market

The Growing Popularity of Organic Farming is Driving the Biopesticides Market

Biopesticides are products that contain living microorganisms or natural substances like herbivores or plant extracts to control pests. They offer farmers an environment-friendly alternative to chemical pesticides for crop protection. With growing awareness about adverse effects of chemical residues on health and ecology, biopesticides are gaining popularity among growers. Common biopesticides contain bacteria, fungi, viruses or protozoa to prevent damage from weeds, insects and other pests. Some examples include Bacillus thuringiensis (Bt), spinosad, milky spore, and nematodes. Their mode of action involves mechanisms like toxins, competition for food or space, predation etc.

The global biopesticides market is estimated to be valued at US$3.5 billion in 2023 and is expected to exhibit a CAGR of 3.4% over the forecast period 2024 to 2028, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends driving growth in the biopesticides market is the rising demand for organic food. With increasing health consciousness, consumers are opting for pesticide-residue free produce which is boosting demand for organic farming worldwide. According to the Organic Trade Association, sales of organic food grew by 5.9% in 2019 to reach $47.9 billion in the US. This rising preference for chemical-free food is propelling growers to adopt eco-friendly biocontrol methods and biopesticides. Another key trend is the growing acceptance of integrated pest management (IPM) among farmers to reduce pest resistance and input costs. IPM utilizes biopesticides along with other control strategies to keep pests below economically damaging levels. This multifaceted approach of IPM supports sustainable agriculture and is anticipated to drive further demand for biopesticides in the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as biopesticides require extensive research and development to formulate effective products. However, the market is growing which provides opportunities for new players.

Bargaining power of buyers: The bargaining power of buyers is high owing to the presence of numerous global manufacturers and the option for organic alternatives. Buyers can negotiate on price and demand quality services.

Bargaining power of suppliers: The bargaining power of suppliers is moderate since raw material suppliers have influence over pricing but manufactures can find alternative suppliers as raw materials are available.

Threat of new substitutes: The threat of new substitutes is high because of shifting consumer preference towards organic farming and environment friendly solutions. Alternative technologies are being researched.

Competitive rivalry: The competitive rivalry is high among existing players due to their adoption of expansion strategies to increase market share and profitability.

Key Takeaways

The Global Biopesticides Market Share is expected to witness high growth over the forecast period of 2024 to 2029.

Regional analysis: North America is currently the largest market for biopesticides. Favorable government initiatives and growing environmental concerns are supporting market growth in the region. Asia Pacific is projected to be the fastest growing market attributed to widespread adoption of organic farming practices and expansion of cultivable areas.

Key players: Key players operating in the biopesticides market are BASF SE, Bayer AG, Syngenta, FMC Corporation and Valent BioSciences LLC. BASF SE and Bayer AG hold major share of the market and are investing in new product launches. FMC Corporation is focusing on expanding its product portfolio through acquisitions. Valent BioSciences LLC partners with distributors and farmers to promote biopesticides.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it