Biopesticides market to reach $1 Billion in 2010

The demand for natural biopesticides is rising steadily in all parts of the world. Public awareness about the environment is increasing, while pollution and health hazards due to synthetic chemicals are growing. Extensive and systematic research has enhanced the effectiveness of biopesticides, and as a result farmers and growers are using them in greater quantities.

According to a soon-to-be-released and updated technical market research report, RC-204R The New Biopesticides Market from Business Communications Company, Inc, the total market for global and synthetic pesticides is valued at $26.7 billion in 2005, and is expected to decline at an average annual growth rate (AAGR) of 1.1%, to $25.3 billion in 2010.

While the overall market for pesticides is showing a decline, the biopesticides market is growing rapidly, increasing from $672 million in 2005 to over $1 billion in 2010, at an AAGR of 9.9%. These pesticides are seeing increased usage because they are environmentally friendly. Biopesticides include microbial pesticides, plant-incorporated protectants, and others, which include natural predators, entomopathogenic nematodes, and parasitoids.

Biopesticides offer several advantages that make them attractive to the environmentally conscious consumer. First and foremost, they are much safer than conventional pesticides which, often doled out in large quantities, are hazardous and dangerous chemicals. Biopesticides are very effective in smaller quantities and they decompose at a much faster rate than synthetics, which minimizes their impact on the environment. Finally, biopesticides can supplement the conventional pesticides used in Integrated Pest Management (IPM) programs.

Biopesticides currently has 2.5% of the overall pesticides market, but its share of the market will increase to over 4.2% by 2010. Orchard crops, with a 55% share, is the largest component of the overall biopesticides market.

Types of synthetic pesticides include herbicides, insecticides, fungicides, and others (nematicides, fumigants, and miscellaneous pesticides). Herbicides dominate the market, with 44% of the total global share of synthetic pesticides, followed by insecticides, which hold 28% of the market. Fungicides hold approximately 19% of the total global market for synthetic pesticides.

Use of conventional pesticides seems to be declining for a number of reasons, not the least of which is growing consumer awareness of the effect of pesticides on the global environment. Many regulatory agencies have placed restrictions on the maximum residue level (MRL). This restricts or even negates the use of certain kinds of synthetic pesticides.

The region that will see the most growth in biopesticides is Europe. The market is $135 million in 2005, rising to $270 million by 2010, growing at an AAGR of 15.0%. This generous growth is followed closely by Asia, which will reach $120 million in spending on biopesticides, with an AAGR of 12%. Latin America has the smallest increase of all the regions. The market is nearly $70 million in 2005, and will grow to only $88 million in 2010, an AAGR of 5.0%.