As their name suggests, biopesticides are pesticides derived from natural or bio-based materials such as plants, animals, bacteria, and certain minerals. Since biopesticides are completely natural, they do not have any adverse impact on the environment, unlike the synthetic pesticides.
The adverse effects of synthetic pesticides on the environment and human and animal health are a major concern, which has prompted many countries to adopt stringent regulations regarding the use of synthetic pesticides. This is one of the most important reasons behind the increasing adoption of biopesticides across the world and this factor will continue to play a key role in the growth of the global biopesticides market.
The global biopesticides market is projected to grow at a high CAGR of 15.9% during 2019 to 2023. By the end of 2023, the market is expected to reach USD 6.4 billion. The growth of the market will be driven by increasing awareness about the harmful effects of synthetic pesticides and growing adoption of organic farming. Increasing demand for organically grown food will give a major boost to the growth of the global market.
Biopesticides have become an important component in Integrated Pest Management (IPM) systems and simple residue management techniques. The consumption of biopesticides has increased considerably in vegetable farming, organic agriculture, and orchard crops & berries. This in turn, is driving the growth of the global market for biopesticides.
Factors such as increasing investments by leading crop protection companies, growing environmental concerns related to the use of synthetic pesticides, and favorable government policies will affect the growth of the global market positively.
Registration of biopesticides usually takes less time than chemical pesticides, as biopesticides pose fewer risks compared to synthetic or chemical pesticides. Moreover, many countries, especially the developing countries have simplified the registration process for biopesticides in order to promote their use. This factor will also affect the market positively.
However, the size of the biopesticides market is still very small and so, is the profit margin. Further, the cost of manufacturing biopesticides is comparatively higher than the cost of manufacturing synthetic pesticides. So, achieving the profitability level that can help it sustain in the global pesticides market can be a major challenge for the biopesticides market. However, the rising adoption of biopesticides and advancement in manufacturing technology will provide growth opportunities in the coming days.
Presently, North America is dominating the global biopesticides market, mainly due to increasing interest in green agricultural practices in the region, simple registration process for biopesticides, growing demand for organic products, and new product development. The North American market is expected to maintain its dominance in the global market in the coming years as well.