BIOCONTROL AGENTS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

• Increasing Demand for Sustainable Agriculture Practices: The demand for sustainable agriculture practices is rising globally due to concerns around soil health, environmental safety, pest resistance and food safety. Excessive use of chemical pesticides and fertilizers has led to issues like soil degradation, water contamination, and development of resistance in pests. This has resulted in growing emphasis on integrated pest management and use of bio control agents as natural solutions.

 For instance: According to the data published by the Food and Agriculture Organization (FAO) of the United Nations in 2022, the global area of organic agricultural land has grown steadily by over 25% between 2014-2021, reaching almost 73 million hectares.

• Favorable Government Policies and Support: Governments across several countries are introducing policies to promote sustainable agriculture practices. There are strong incentives and subsidies to motivate farmers to adopt eco-friendly solutions like bio pesticides. For example, the Indian government launched the National Mission on Sustainable Agriculture in 2014 that focuses on promoting integrated farming, organic agriculture and use of environment friendly techniques. The EPA in the U.S. is also encouraging fast tracking of registrations for biological pesticides. Such favorable regulations and policies are expected to encourage bio control agents adoption among farmers.

For instance: Ministry of Agriculture and Farmers Welfare in India launched the Paramparagat Krishi Vikas Yojana scheme in 2015 which supports clusters of organic producers and promotes the use of biocontrol methods. Under this scheme, financial assistance upto INR 25,000 per hectare is provided to farmers for adopting organic farming practices including use of bio pesticides.

• Advancements in Product Innovation and Technology: Product innovation through advanced technologies is enhancing the effectiveness and adoption of bio control solutions. New microbial strains, novel modes of application, improved shelf life and combination biopesticides are witnessing significant R&D. For instance, companies like Vestaron have developed peptides-based bioinsecticides that act faster than microbials. Adoption of CRISPR gene editing has also opened possibilities for precision breeding in biocontrol strains. Such product developments are expected to overcome limitations of bio pesticides. According to the World Bank, pilots using digital tools to strengthen integrated pest management practices in Indonesia have led to 50% reduction in chemical pesticide usage between 2018-2020.

• Growth in Organic Food Industry: The organic food industry has witnessed exponential growth in the past decade due to rising consumer demand for chemical-free products. According to Research Institute of Organic Agriculture, the global organic food market crossed US$ 120 Mn in 2021. This has created lucrative opportunities for biocontrol agents market players. North American and European countries are the major organic food markets demonstrating potential for biopesticide suppliers. The launch of dedicated organic farming policies in countries like China, India and Brazil also points to significant future potential. For instance : According to the European Commission's Eurostat Data, European Union’s organic crop area has expanded from 11.1 million hectares in 2018 to 13 million hectares in 2020.

Global BioControl Agents Market- Opportunities

• Developing Countries Emerging as High Growth Markets: Developing countries across Asia Pacific, Latin America and Africa are poised to drive significant growth of biocontrol agents market. Large agricultural economies like China, India, Brazil, Indonesia and Mexico are promoting sustainable agriculture practices due to increasing environmental concerns. Government policies are also favorable in these countries for promoting biologicals. Moreover, factors like abundance of diverse climatic conditions, rapidly growing population and low labor costs make developing regions highly conducive for biopesticide adoption. For instance : According to the data published in 2020 by Indian government, the area under organic cultivation in the country rose more than four-fold between 2014-15 to 2019-20. African Development Bank's flagship Agriculture Fast Track Program aims to enhance sustainability and resilience of African agriculture using biocontrol agents and other natural method.
• Strengthening Distribution Channels: There is significant scope for biocontrol agents companies to establish strategic distribution partnerships and strengthen supply networks, especially in developing regions. Tie-ups with agri-input companies, local distributors and state departments can enhance product accessibility for farmers in remote areas. Companies can also leverage digital technologies like mobile apps, social media and e-commerce platforms to improve distribution reach. This can help in addressing infrastructural challenges and improve adoption.
• Investments in Product Development: R&D investments to improve product efficacy, shelf life, and ease of use can expand adoption of biocontrol solutions. Technologies like biotechnology, nanotechnology, microencapsulation are opening new possibilities for product innovation. Companies are also working on combination biopesticides and biofungicides to provide effective, broad spectrum pest control. Development of credible eco-labels and standards can also build trust and acceptance among farmers for new biocontrol products. For instance : the UN Food and Agriculture Organization's " SAVE Food" initiative aims to significantly reduce food loss and waste by 2030 through partnerships to support post-harvest management and infrastructure in developing nations (FAO, 2022).
• Growth of Vertical Farming: The rising vertical farming industry, especially in urban areas also presents an important growth avenue. As vertical farms utilize integrated pest management and sustainable practices, they offer a natural market for biocontrol solutions. Players can develop customized biocontrol products as per needs of protected farming environments. Strong growth projected in hydroponics and soil-less farming can also benefit biopesticide manufacturers. For instance : According to the data from the UN Department of Economic and Social Affairs, 68% of the global population is projected to live in urban areas by 2050, up from 56% in 2018.

Global BioControl Agents Market- Restraints

• High Costs and Short Shelf Life: The high costs of production, storage, transportation and short shelf life of biopesticides are significant adoption barriers, especially in price sensitive markets. According to EPA Environmental Protection Agency estimates, biopesticides can cost 7-20 times more than synthetic chemicals. Maintenance of efficacy during field application given dependence on living organisms is also a technical challenge. Targeted investments will be required to overcome such cost and stability limitations. For instance : According to the data from European Commission in 2020, the average cost of biocontrol agents per hectare was found to be 2-3 times higher as compared to chemical pesticides.

Counter balance: Encourage producers to scale up production to achieve economies of scale. As production volume increases, the cost per unit typically decreases, which can make biocontrol agents more competitively priced in the market.

• Lack of Awareness Among Farmers: Despite the growing demand for sustainable agriculture, a major section of farmers globally lack awareness on biocontrol agents. They continue using traditional chemical pesticides given their low prices, perceived efficacy, ease of use and widespread availability. Overcoming lack of knowledge through effective promotional initiatives will be crucial for improving adoption of biopesticides.

Counter balance: Develop educational material in local languages, and use local media channels, including radio, television, and print media, to reach a wider farming audience. Partnership with Agricultural Dealers  Work together with suppliers of agricultural inputs who can serve as informational hubs for farmers buying other inputs by providing biocontrol agent information.

• Slow Regulatory Approval Process: The registration and approval timelines for biopesticides are comparatively longer due to involvement of living organisms and lack of defined regulatory guidelines. The complex registration process also requires substantial investments. For instance, in the U.S. and EU, biopesticide registration can take over 3 years as compared to 6-12 months for synthetic products. Policy reforms with accelerated risk assessment frameworks can help overcome this bottleneck. For instance: According to the data  from UN Environment Programme in Southeast Asia and sub-Saharan Africa between 2020-2022, majority of the farmers are unaware of integrated pest management techniques involving selective use of biocontrol agents.

Counter balance: Collaborate with regulatory bodies to streamline the process for data submission, ensuring that all the necessary documentation is provided in a clear and organized manner to facilitate quicker review times.