Allelochemical Market - Forecast(2023 - 2028)

Allelochemical Market Overview

The global Allelochemical Market size is forecast to reach US$1.5 billion by 2027, after growing at a CAGR of 5.3% during 2022-2027. Globally, the increasing demand for allelochemicals for the purpose of biological control of plant pathogens and diseases is driving the market growth. Allelochemicals such as phenolics, steroids, and saponins are used to control the plant growth and are also utilized for the promotion in the production of plant hormones. The growing demand for medicinal plants for herbal medicine at global level is on rise, which is also driving the market growth. Additionally, the growing organic food industry is keen on increased organic food crops, by utilizing allelochemical in natural as well as synthetic forms for increasing their yield. Owing to such factors, demand for allelochemical is expected to grow significantly over the forecast period.

COVID-19 Impact

The COVID-19 outbreak widely affected the agriculture, organic food, and herbal medicine industries over 2020. Owing to the nationwide lockdown, the production process of various plantations in these industries declined due to the non- availability of plant disease and pathogen controller such as allelochemical. Economies of each sector got affected and resulted in stagnation of activities across the sectors that use allelochemical. Business communities even faced several issues related to raw material shortage, labour shortage, temporary closure of operations, supply chain disturbance, and many more. However, the rising demand for herbal medicines and organic food emerged as a driving factor for the global allelochemical market during the challenging period.

Report Coverage

The “Allelochemical Market Report – Forecast (2022 - 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the global allelochemical industry.

Key Takeaways

• The North American region dominates the global allelochemical market owing to the rising growth and increasing investments in the organic food industry. For instance, according to the Government of Canada, in 2022, the government announced an investment of up to US$103,400 for the Organic Federation of Canada to enable a new collaboration that will promote sustainability and growth for Canada's organics industry.
• Rapidly rising demand for allelochemical to meet the growing demand for high-quality and quantity of crops has driven the growth of the global allelochemical market.
• The increasing demand for global allelochemical in agriculture sector, due to its usage to protect the crops from infectious diseases, has been a critical factor driving the growth of the market in the upcoming years.
• However, the usage of conventional agricultural products can hinder the growth of the global allelochemical market.

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

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Allelochemical Market Segment Analysis – By Function

The mating disruption segment held the largest share in the global allelochemical market in 2021. Mating disruption has emerged as the leading function due to its higher effectiveness in low or moderate pest infestations in comparison to other functions such as mass trapping, detection and monitoring. The technique of mating disruption in pests includes releasing high quantities of synthetic female sex hormones to alter the mating behaviour of males. Moreover, mating disruption controls target species, and therefore, greatly reduces the number of mating, and hence, reducing species reproduction. Thus, with the growing demand for mating disruption function, the market for global allelochemical will further rise over the forecast period.

Allelochemical Market Segment Analysis – By Crop Type

The orchard crops segment held the largest share in the global allelochemical market in 2021. Allelochemical are mainly applied on orchid crops as compared to other crops such as field and vegetable crops, due to the growing demand for high value crops among consumers. Moreover, orchid crops are more susceptible to pests such as fruit flies, codling moths, and peach-tree borers. The growing popularity of organic crop protection products, has increased the demand for biological pesticides among farmers. The emerging trend of consuming organic and clean-label foods is expected to boost the utilization of these crops. The rising growth of organic farming of these crops, will drive the allelochemical market growth. For instance, according to the Indian Brand Equity Foundation (IBEF), the Indian Organic Sector is forecasted to reach Rs 75,000 crore (US$ 10.73 billion) by 2025 from Rs 2,700 crore (US$ 386.32 million) in 2015. Thus, with the growing demand for the orchard crops, the market growth for global allelochemical will further rise over the forecast period.

Allelochemical Market Segment Analysis – By Geography

North American region dominated the global allelochemical market with a share of 45% in the year 2021. The North American region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for allelochemical in Canada and USA. Canada is expected to continue its dominance in the global allelochemical market due to the growth of the organic food industry in the country. For instance, in 2021, the Canadian government nvested up to US$297,330 for the Prairie Organic Development Fund (PODF) to enable farmers to adopt best practices in organic farming production. The demand for organics in Canada is increasing at a rate of 8.7% annually. Allelochemical are also applied in herbal medicines and other sectors. They are used in agriculture and horticulture for biological control of plant diseases and plant pathogens. Additionally, allelochemical such as phenolics, steroids, and saponins are primarily used as growth regulators and natural herbicides, to promote sustainable agriculture. Thus, the increasing demand and growth in applicable sectors, will drive the global allelochemical market growth in the forecast period.

Allelochemical Market Drivers

Rising Demand for High-Quality and Quantity of Crops is Driving the Market Growth

Increasing population and income have led to rise in demand for high quantity and quality of crops. For instance, according to the United Nations, the world’s population is forecasted to rise by 2 billion persons in the next 30 years, from 7.7 billion in 2021, to 9.7 billion in 2050. Globally, farmers are increasing the crop production, either by increasing the agricultural land to grow crops or by improving the production of crops on existing agricultural lands, by using fertilizer, irrigation, and adopting new products such as plant growth regulators. Rising demand for freshly produced, high-quality crops have increased the demand for allelochemical, for enhancing the crop productivity. Allelochemicals are used to protect crops and improve crop yield. The rising government initiatives for increasing the yield of high-quality crops, will drive the market growth. For instance, according to the Indian Brand Equity Foundation, in september 2021, the Union Ministry of Agriculture and Farmers’ Welfare signed five MoUs with CISCO, Ninjacart, Jio Platforms Limited, ITC Limited and NCDEX e-Markets Limited, in order to help farmers, make decisions on the kind of crops to grow, variety of seeds to use and best practices to adopt to maximise the yield. Thus, growing demand for high-quality and quantity of crops will drive the global allelochemical market.

Increase in the Demand for Allelochemical in the Agriculture Sector

The demand for allelochemicals to protect the crops from infectious diseases caused by insects and pests such as bacterial panicle blight and bacterial leaf scorch is expected to drive the allelochemicals market growth. Additionally, the increasing population with decreasing arable land generates the necessity for using pesticides to prevent the damage of the food crops. Moreover, increasing government initiatives to strengthen the agrochemicals sector is anticipated to surge the demand for biological pest controls such as allelochemical. For instance, according to the Indian Brand Equity Foundation, in 2021-2022, the government plans to introduce production-linked incentives (PLI) scheme to promote domestic manufacturing of agrochemicals such as pesticides and fertilizers, with an allocation of US$ 32.2 million to the department of chemicals and petrochemicals. Thus, to protect the farm yield, the need to control the damage of farm output, and with the increased investments by the government, the growth of the global allelochemical market is forecasted to rise. 

Allelochemical Market Challenges

The Use of Conventional Agricultural Products Will Hamper the Market Growth

The rising usage and popularity of substitute such as fertilizers will continue to hamper the global allelochemical market growth. A number of farmers especially in the Asian countries, continue to practice the conventional agricultural technique, despite the popularity of allelochemical and also rely on conventional agricultural products in the form of fertilizers. Moreover, for plant growth promotion and biological control of plant diseases and pathogens, in order to increase the plantations and crops yield. According to Food and Agriculture Organization (FAO), world fertilizer demand has increased from 197.9 million tonnes in 2021 to 200.9 million tonnes in 2022. Thus, the usage of conventional agricultural products will hinder the market growth.

Allelochemical Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies players adopt in the global allelochemical markets. Global allelochemical top 10 companies include:

1. Shin-Etsu
2. Pacific Biocontrol Corp
3. Bedoukian Research
4. Corteva Agriscience
5. Suterra
6. Pherobank
7. Certis
8. Koppert Biological Systems
9. Isagro Group
10. Rusell IPM

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