The global biological control market is projected to register a CAGR of 14.7% during the forecast period (2021 - 2026). The global Covid-19 pandemic has caused a negative impact on the biological control market. The global lockdowns and restrictions on travel have decreased the accessibility and availability of biological control agents in the market. The production efficiency is constricted due to shortage of labor, scarce availability of raw materials, and slow or lack of transportation. The increasing area under organic cultivation, less stringent regulations, increasing need for food security are the few major market drivers that are boosting the sale of biologicals. However, the less shelf life of the product and low awareness among the farmers is likely to restrain the market growth. Microbials hold the largest share in the market accounting for around 65.0% in 2019, microbials are projected to grow at a faster rate due to the increasing use of microbials in various applications such as seed treatment, on-field, and post-harvest applications. Owing to the faster adoption rate of biological controls by North American and European farmers, both regions act as the major markets for biological controls. The global biological control market is expected to be a fragmented market during the forecast period due to the easy product registration and low capital investment which makes it easy for a new entrant to enter the market.
Key Market Trends
Increasing Organic Farming
Organic farming represents a unique, fast-growing segment of the food industry. As is the case for any emerging technology approach, various factors alternately drive and inhibit the growth of biopesticides. The area under organic farming is rapidly growing across the globe. According to FiBL statistics, the area under organic cultivation across the globe was 58.1 million hectares in 2016, which has increased by 24.4% and reached 72.3 million hectares in 2019. Being less harmful than synthetic pesticides, microbial pesticides typically affect only the target pest and other organisms closely related to it, as against broad-spectrum conventional pesticides, which can be harmful to other organisms, such as birds, insects and mammals. Ease of handling attributes like low-to-no re-entry intervals and post-harvest intervals also drive adoption of biopesticides, mainly by serving as a stark alternative to existing synthetic options and restrictions over their usage. Similarly, innovations in the area of biological control products, coupled with a growing consumer awareness about the negative impact of synthetic pesticides, are expected to boost the adoption rate of biological controls in the near future.
North America Dominates the Global Biological Control Market
North America dominates the market as of 2019, with around 37.0% share of the biological control market. In North America, the United States holds the largest market with around half of the North American market, owing to the plenty of available arable lands. Rising concerns over organic labeled products and awareness of microbial pesticides efficiency have driven the market in North America. United States with its highly evolved agricultural sector, has been adopting to the natural and organic way of farming lately. Therefore, the biological control product consumption is the growing trend there. The increasing cost of chemical inputs, their adverse effect on soil mass and environment and the increasing awareness regarding balanced plant nutrition are the major factors driving the market demand in the country. Demand for biological control products in Canada is largely driven by conventional agriculture, recent changes to municipal and provincial laws governing cosmetic use of pesticides, and legislation and ensuing promotion for lower risk pest control products. The rise in cost of pesticides, which also has in turn led to high usage of biological control products.
Global biological control market is a fragmented market with the presence of various small and regional players operating in the market. In terms of market share dominance, Certis accounted for a substantial market share, followed by BASF and Sumitomo Corporation which have a second and third-largest market share, respectively. The greater market share of these players can be attributed to a highly diversified product portfolio. The major players are focusing on mergers and acquisitions to acquire a large market share during the forecast period.
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