Biorationals Market - Forecast(2023 - 2028)

Biorational Market Overview

Biorational market size is forecast to reach US$ 9.1 billion by 2027, after growing at a CAGR of 12.5% during 2022-2027. Biorationals are biopesticides that are effective against pests and are obtained from natural sources such as plant extracts and pathogens. The growing demand for sustainable biopesticides that are non-toxic to people with a few environmental concerns are driving demand for biorational products. According to the Research Institute of Organic Agriculture (FiBL) & IFOAM - Organics International, a total of 71.5 million hectares of land is under production by 2018, with a growth of 2.9% compared to 2017. According to World Bank, Agriculture accounted for 4% of global GDP. Therefore the growing agricultural production will boost the biorational market during the forecast period.

COVID-19 Impact

The Covid-19 pandemic has impacted the global economy directly affecting the manufacturer's supply chain across the globe and shutdown had a severe impact on the the production facilities, minimizing the risk of virus spread. Due to the COVID-19 pandemic, the core industries such as agriculture, the food industry have been impacted significantly. The covid-19 affected the agriculture sector badly due to inaccessibility of seed, shortage of laborers which has decreased the demand for production. According to The Food and Agriculture Organization, world hunger has been increased from 8.4% to around 9.9% in 2020 due to the Covid-19 pandemic. The government and private sectors are taking necessary action and working for the growth of development of different industries which results in the boom of the Biorational market.

Report Coverage

The report: “Biorational Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Biorational industry.

By Product Type: Insecticides, Fungicides, Nematicides, Herbicides, and Others

By Source Type: Botanicals, Microbial, Minerals, Semiochemical, and Others

By Formulation Type: Liquid and Dry

By Propagation Method: Foliar Spray, Soil Treatment, Trunk Injection, Seed Treatment, and others

By Application: Agriculture(Cereals and Grains, Fruits and Vegetables, Oilseeds and Pulses and Others), Non-Agricultural (Industrial, Commercial, Residential, Livestock, and Others), Forestry, Public health, Aquaculture, Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium, Russia, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, and New Zeeland, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World: the Middle East(Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa(South Africa, Nigeria, Rest of Africa)

Key Takeaways

• The Asia Pacific is one of the major regions for biorational market.  The increasing demand for bio-based products in Asian countries such as China, India, Japan, and South Korea is driving the market demand for Biorational.
• Biorational is used in plant focalization, giving resistance from various types of pests and pathogens is helping in the growth of the Biorational market during the forecast period.  
• The increased research & development activities to increase crop production with minimal environmental hazard is fueling the biorational market during the forecast period.

Figure: North America Biorational Market Revenue, 2021-2027 (US$ Billion)

Biorational Market Segment Analysis – By Product Type

The Insecticides type segments accounted for around 32% of the market share in  2020 and are estimated to grow at a significant CAGR during the forecast period. The factor that is helping in the growth of biorational insecticides are awareness about the hazardous effects of chemical pesticides, growing demand for pest control technique, and increasing production of organic food. According to the Directorate of Plant Protection, Quarantine & Storage, the consumption of biopesticide formulation in 2020 in India is around 8847 Metric Ton. Therefore the growing demand for biopesticides will boost the market for biorational during the forecast period.

Biorational Market Segment Analysis - By Source Type

The Semiochemicals type segments accounted for approximately 20% of the market share in 2020 and is estimated to grow at a significant CAGR during the forecast period. The Semiochemicals are used in pest management in reducing insect populations by preventing them from procreating. According to  WHO, infectious disease has accounts for 17% of annually and 7,00,000 deaths are caused annually due to bacteria, parasites, or any other viruses. Therefore the growing demand for pest control is driving the in the Semiochemicals type segments during the forecast period.

Biorational Market Segment Analysis - By Propagation Method

The Foliar Spray segment accounted for approximately 23% of the market share in 2020 and is estimated to grow at a significant CAGR during the forecast period. The Foliar Spray is widely used onto the foliage of plants and in the event of a nutrient lockout issue in the plant to prevent the plant from pests and disease. The Foliar Spray is also used in residential & commercial space for pest control. According to WHO, 219 million cases are reported of malaria of which 400,000 death occur every year and most of the death occurs in children under the age of 5 years. Therefore the growing demand for pest control in agriculture and residential are boosting the growth of the Biorational Market during the forecast period.

Biorational Market Segment Analysis – By Application

The Agriculture segment accounted for more than 70% of the market share in 2020 and is estimated to grow significantly during the forecast period. Population growth is increasing the demand for food across the globe. The growing research and development activities in agrochemical and acceptance of advanced technology of agriculture segment in developing countries like India, China is increasing demand for environmental-friendly agrochemical products. The bio-based agrochemical increases the production of crops, fruits and flowers are driving the market for Biorational during the forecast period. According to Organic Trade Association, US. Organic fruit and vegetable sales have been increased by 5%  with amounted to US$ 18 billion in 2019. According to Invest India, Agriculture contributes 16.5% of India’s GDP and 58% of the total population is into farming. Agriculture is the backbone of India’s economy and Gross Value Added (GAV) is 20.2% in 2020-21. The increase in demand for the agricultural product is fuelling the market for Biorational during the forecast period.

Biorational Market Segment Analysis - By Geography

North America region held the significant share in the Biorational market in 2020 up to 26%, owing to the presence of a large amount of agricultural production land and growing food industry. The comprehensive use of Biorational in the production of organic food and the implementation of strict regulation for the use of a hazardous chemical is increasing the demand for Biorational. The demand for bio-based pesticides is increasing due to the high yield is driving the Biorational market in this region. According to OECD-FAO Agricultural Outlook 2021, Food consumption per capita in North America is the highest of all due to the highest per capita income of US$ 54 280 and with the highest urbanization rate of 83%, which affects both the level and composition of food intake. Therefore, the growing urbanization and shifting towards the good quality of food intake is growing the demand for Biorational pesticides.

Biorational Market Drivers:

The growing use of pest control in the Public Health

Public Health is one of the major sectors to use bio-based pest controls to get rid of mosquitoes, cockroaches, and other insects. According to WHO World Health Statistics 2020, there has been an increase in the use of insecticide-treated mosquito nets, indoor residual spraying, diagnostic testing, and artemisinin-based combination therapy observed since 2000. The NTD response has increased from 36% in 2010 to 65% in 2018, representing more than 1.1 billion people treated in 2018. The growing concern towards public health is driving the Biorational market during the forecast period. 

Increasing demand for organic Products

The consumption of organic products has increased rapidly across the globe due to their eco-friendly nature. Plant-based products are extracted from organic agriculture practices, can be grown anywhere. The growing number of lactose-intolerant populations across the globe is increasing the demand for Biorational. According to Organic Trade Association survey 2020, Organic food sales accounted for US$ 50.1 billion with a growth rate of 4.6% in 2019 and organic non-food accounted for US$ 5 billion for same period. Furthermore, increasing demand for food and beverages with organic ingredients is growing in demand for Biorational in coming years.

Biorational Market Challenges:

Higher Price of Biorational Pesticides

The cost of Biorational is much higher as compared to traditional pesticides. The reason behind this is its production cost while producing Biorational products. Owing to this factor, the Biorational comes at a higher price as compared to its alternative materials, which tends to constrain the growth of the market. In addition, even if the Biorational provides better results, the customer usually prefers the less cost and lack of awareness for natural growth substances in developing countries uses many fertilizers which increases the total production rate of a product. Such factors have become the major challenge of Biorational in terms of consumption, which constrains the growth of the market. On the other hand, limited product availability and less time durability of Biorational pesticides are other factors responsible to restrain the market growth.

Biorational Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Biorational top 10 companies include:

1. Bayer AG
2. BASF
3. Valent Biosciences
4. Gowan Company LLC
5. McLaughlin Gormley King
6. Suterra, LLC
7. Russell IPM Ltd.
8. Agralan Ltd.
9. Isagro Spa
10. Summit Chemical

Recent Developments

• In August 2020, GROPRO Company launched Awakening Pollination, a biostimulant that stimulates the plant's natural processes to enhance flower development while increasing stamen hold and pollinator activity. Awakening also contains auxins, Biorational, and additional supportive biostimulants.
• In October 2020, Sumitomo Chemical has announced that its group subsidiaries would be realigned in order to improve its biorational business. Sumitomo Chemical Group's biorational-related business responsibilities will now be handled by Valent BioSciences LLC (VBC) in the United States. Valent U.S.A. LLC (Valent), Sumitomo Chemical's crop protection business's US headquarters, has opened a new state-of-the-art facility that unites Valent's headquarters and R&D operations. Sumitomo Chemical Group will be able to accelerate its commitment to sustainable agriculture while also upgrading and extending its worldwide crop protection business as a result of these initiatives. 

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