Bans on pesticides, along with negative sentiments surrounding chemicals used in foods, are sending sales of biopesticides into a seemingly unstoppable upswing. In fact, the industry even thrived during the pandemic.
“Over the past two years, when COVID-related lockdowns caused major economic disruptions, many industries took a major hit,” says Aneesa Moolla, Project Manager in our Agrochemicals sector. “But the biopesticides industry remained resilient, and growth was positive overall.”
According to Moolla, global sales are still strongest in the United States, but there are many other territories that have massive growth potential. Here’s a breakdown of the regions with the most promise:
- Latin America: Brazil has become the frontrunner for the agrochemical sector due to its vast production scales; in addition, many suppliers are investing heavily in biological inputs. The average growth of Brazilian pesticide companies has been approximately 30% per year in the last two years, despite the pandemic, and the country registered a record 92 new biological products in 2021, the highest in a single year. Why has Brazil been so successful in creating brand-new products? “The timeframe to register a biopesticide is much shorter there, a factor which is helping to push new technologies on the market,” says Moolla.
- Asia: China had double-digit growth over the past two years at 14% and is forecast to grow by about 12% annually over the next five years, reaching an estimated value of over USD 600 million by 2025. “A big push for biopesticides is coming from the Chinese government,” says Moolla. “After getting stringent about the amount of chemical residue that is left on crops, the government is offering tax incentives to biopesticide manufacturers — and even more environmental protection regulations will be implemented.”
- The European Union: The farm-to-fork strategy is a major factor driving biologicals in the European Union, which contains numerous countries that have large portfolios of biopesticide products for sale. Farm-to-fork is part of the Green Deal, which aims to reduce the overall use and risk of chemical pesticides in the region by 50% by 2030. Already, the Green Deal’s effects can be seen in countries such as Spain and Italy, where sales of biopesticides are forecast to grow by a CAGR of 12% and 10% over the next five years, respectively. Combined, those two countries are estimated to have sales of more than USD 600 million by 2025.
- Africa: While Africa is lagging behind many major western countries, its development of the biological industry has massive potential in some regions, especially when considering the high costs to import chemical pesticides. Currently, bacteria-based products — in particular, those with the ingredient Bacillus Thuringiensis — rank as the leading active ingredient in both South Africa and Morocco. Those countries are forecast to grow by 6% and 6.4%, respectively, over the next five years.
For more information on the biopesticides market, be on the lookout for our Global Biopesticides: An Overview of Natural Pesticides reports. They will include technology descriptions, company profiles, and end-use analysis of product pest targets, along with an appraisal of the biopesticides market for each country covered, sales segmented for each country by crop or application, information on key diseases and pests treated with biopesticides, and sales of biological insecticides, nematicides, fungicides, herbicides, and seed treatment products. In addition, an interactive database will allow manufacturers and marketers to customize data to fit their needs.
Global Biopesticides: An Overview of Natural Pesticides will cover Argentina, Brazil, Chile, China, France, Germany, India, Italy, Japan, Mexico, Morocco, South Africa, Spain, the United Kingdom, and the United States; the reports will begin debuting next month.