The Japanese Biopesticide market is estimated to grow at a CAGR of 17.4% during the forecast period 2020-2025. Biopesticides offer a unique and innovative approach to the management of agricultural pests using formulated microbial agents as an active ingredient. Microbes that have been used in this approach include fungi, bacteria, viruses, and nematodes. Each microbial biopesticide is unique, not only the organism or active ingredient but also the host, the environment in which it is being applied, and the economics of production and control. Biopesticides give a good opportunity to the pesticide firms in Japan, as its synthetic pesticides market is mature and slow-growing. In Japan, increasing cases of public illness due to higher pesticide residues in crops is changing farmers’ and public choice towards the use of pesticides on crops. Among Asian countries, Japan has one of the best-established systems for pesticide registrations and, research and development, which has enabled in accelerating the processes of developing and commercializing biopesticides. A few agricultural cooperative federations in the region are also producing and distributing indigenously made biopesticides. However, limited cultivable land, aging farmers, limited reach and non-availability of biopesticides for all the diseases and crops is restraining the growth of the market in the country.
Key Market Trends
High Adoption of Biopesticides
Owing to the escalating demand for food safety and quality, biopesticides are gaining popularity over their synthetic counterparts. Relatively low R&D costs associated with the former is also a major factor that is driving the biopesticides market. Being less detrimental to humans, animals, and environment, highly target-specific with no danger to non-target species, and biopesticides' capability to rapidly decompose without leaving any noxious residues are the other principal factors, which are contributing to the growth of the market. Valent Biosciences Corporation, Koppert BV, Certis USA LLC, Bayer Cropscience AG, and Syngenta are the leading companies, which are operating in the biopesticides market.
The lower residual toxicity levels of biopesticides against synthetic crop protection chemicals make them ideal inputs to be used in organic agriculture. The demand for organic fruits and vegetables has been witnessing an upward trend over the years, which in turn, led to the increment in the prominence of organic farming with the area under organic farming accelerated from 48.8 million ha in 2014 to 69.8 million ha in 2017 across the globe. Therefore, this has boosted the demand and production of biopesticides.
Favorable government policies
Japan in the earlier days faced many health accidents due to pesticides, including a case of dead producers which led to strict regulations on pesticide usage and composition. The countermeasures for reducing the environmental loads from the chemical pesticide consists of levying a monetary penalty on the polluters or paying them a subsidy to implement the conversion of eco-friendly farming methods. Japan's tops in the nitrogen input and pesticide input per hectare in terms of pollution caused by cultivation. Henceforth the Japanese government has come up with various policies concerning the protection of Soil, Water, Biodiversity, rural landscape and Food Security for creating a sustainable farming environment in the region.
In the Japanese biopesticide market, companies are not only competing based on product quality and promotion but are also focused on strategic moves, to hold larger market shares. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the global biopesticide market. Companies are investing heavily in developing new products and are collaborating and acquiring other companies, which is expected to increase their market shares and strengthen R&D activities. Along with innovations and expansions, investing n R&D and developing bio-based product portfolios are likely to be the crucial strategies over the forecast period. Involvement in agreements, with other biopesticides and technology providing companies, is one of the most prominent strategies followed by market leaders in the global biopesticide market.
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