At $1.6 billion, the biopesticide segment of the market is still less than five per cent of the global crop protection industry, but is projected to increase its share over the next 10 years. All countries are projected to grow in the double digits or high single digits during this period.
The main driver behind current growth is the advent of microbial seed treatments on field crops, such as corn, soybeans, and cotton.
The report covers microbial species acting as pesticides, natural materials with pesticidal properties, plant extracts and biological seed treatments and covers field crops, fruit and veg, turf, ornamentals, forestry, mosquito control, seed treatment and over-the-counter consumer markets.
Microbials are growing faster due to the high use in the field crop seed treatment. The field crop use of biopesticides has grown from a barely measurable position to the leading segment in end-user value in the past decade, now accounting for approximately 34 per cent of the total biopesticides market. Vegetables rank second.
The high growth rate for field crops is based on the potential for expanding biological seed treatments further into soybeans and cotton. Field crops and consumer segments offer opportunities for manufacturers due to the receptivity to alternatives if performance can be documented, and the resources of manufacturers to influence behavior.
Biopesticides are much more fragmented in terms of products and companies than the traditional crop protection chemical segment. Kline identifies over 150 companies with measurable market shares across the nine countries surveyed. The top 48 companies, mainly smaller specialized firms, only account for 60 per cent of the biopesticide market, offering plenty of room for consolidation.
In addition, the entrance into the market by Bayer and BASF through acquisition tends to legitimize the category. Bayer is now the leading identifiable supplier of biopesticides globally. The Sumitomo subsidiary Valent BioSciences has had a long-term presence in the sector, ranking a distant second. Many others are showing signs of interest.