The Middle East & Africa Biopesticides Market is projected to grow at a CAGR of 7.0% during the forecast period (2020-2025).
- There is an increase in demand for organically grown food, due to severe adverse health effects caused by the rampant usage of chemical fertilizers in the region. This, in turn, has stimulated farmers in these regions to look for safe farming practices, such as the usage of biologically extracted plant growth promotors, such as biopesticides, which has a minimal effect on the environment.
- The high cost associated with the usage of biopesticides is restraining the market’s growth. The lack of infrastructure for commercial mass production of biopesticides in the region is contributing to the high cost for these fertilizers.
- BASF SE, FMC Corporation, Sumitomo Chemical Co. Ltd, and Bayer AG are some of the major players who are operating in this market.
Key Market Trends
Increase in Organic Farm Practises is Driving the Market
The increasing levels of health consciousness among people in the region is boosting the demand for organic foods, in order to avoid adverse health effects caused by chemical substances, or genetically modified ingredients in inorganic food. In order to address the growing need for organic and safe food, the growers are following safe farming practices, which have minimal impacts on the environment. The growers prefer biologically extracted plant growth promoters in place of synthetic products. Notably, the organic acreage in the Middle East & Africa region was recorded at 1.74 million hectares in 2015, which significantly increased by about 20.1% by 2017, reaching 2.09 million hectares. Thus, the notable increase in the organic acreages in the region, indicates the increasing importance of organic farming practices, such as the usage of biopesticides in the region.
Bioinsecticides is Dominating the Market
The area harvested under cereals was reduced in Africa, owing to the increased incidence of pests and insects across the crops. The area harvested reduced drastically from 124.59 million hectares in 2016 to 122.56 million hectares in 2017 (FAO). Thus, to address the growing concern for reduced harvest, along with environmental and human health, the farmers are increasingly switching to bioinsecticides for their crops, thereby, fueling the overall revenue of the biopesticides market. Major companies, such as BASF SE, are investing in the development of bioinsecticides in Africa. Thus, the farmers in the Middle East & Africa are resorting to bioinsecticides to decrease crop damage in order to prevent the loss of yields from insects.
The market studied is consolidated with major players holding a prominent market share in the market. BASF SE, FMC Corporation, Sumitomo Chemical Co. Ltd and Bayer AG are the major players in the market studied. These players have an extensive distribution network in the Africa region, which gives them an edge over their competitors. Further, they are also launching custom-tailored products that fulfill the farmer requirements in the region.
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