Companies use different strategies to gain a competitive edge in the fast-growing organic pesticide industry. This is one area where most companies have placed their focus. Some firms invest heavily in R&D to come up with environmentally friendly pesticides that can be used while observing principles set out for organic farming. During the review period, the FRV segment will register the highest CAGR amongst crop-type segments as per the worldwide Organic Pesticides Market 2023 Forecast report. Additionally, this part took home 50.32% of total sales during 2018, making it the largest player in this crop protection sector. An increase in demand for consumer health has led to an increase in demand for natural fruits and vegetables, which is a reflection of this particular section's robustness. Pricing is a significant positioning factor when differentiating within the Organic Pesticides industry. A few companies might choose competitive pricing so as to make sure that people are able to buy them widely. Therefore, they may also brand them as superior items due to their nature being natural and eco-friendly.
Market segmentation is another key aspect of market share positioning in the Organic Pesticides market. Companies target specific consumers based on factors such as crop type, pest infestation, and regional preference. Nowadays, strategic partnerships and collaborations are common in the organic pesticide sector. Companies may partner with organic farming associations, research centers, or distributors to enhance their complementary strengths. Market expansion is a popular approach by which companies aim to increase their market share within the Organic Pesticides industry. Geographical expansion is one-way companies can increase their presence in this field, where they enter new markets or expand into existing ones but across different regions. Successful geographical expansion necessitates a deep understanding of local organic farming practices, regulatory landscapes, and prevalent pest challenges. In order to offer solutions that can fit the particular requirements of specific areas wherever they go, companies should consider designing such products specifically for those locations, thereby cutting on reliance on few markets and raising their overall shares.
Marketing and branding strategies contribute significantly to positioning within the market share of the organic pesticides industry. Businesses build up strong brand identities and carry out targeted marketing campaigns on product promotion through various media. To wrap it up, the emergence of monopolistic competition has made several people employ numerous strategies in an effort to improve their market share positions. Personal differentiation process involves making certain changes regarding the price list. Segments that are identified by enterprises on the basis of crop types, pest invasions, or regional tastes influence the positions of organic pesticide stakeholders. Strategic alliances are now becoming quite common in the area of organic pesticides. Most firms form agreements with organic farming associations, research institutions, or even distributors so that they can leverage each other's powers. This calls for extending themselves geographically beyond what existed only in some nations since being limited in terms of a particular region may deny them an opportunity. It is necessary. However, successful geographical expansion entails a comprehensive knowledge of prevailing prevalent agricultural techniques as well as systems plus bug-related issues. With respect to these regional needs concerning this pesticide, these organizations could reach out to various customers around then, thus minimizing over-reliance on a few specific marketplaces and raising the overall shares.
Organic Pesticides Market Size was valued at USD 5.5284 Billion in 2023. The organic pesticides market industry is projected to grow from USD 5.9927856 Billion in 2024 to USD 10.53983 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.31% during the forecast period (2024 - 2032).The shifting customer preferences towards organic goods are the main drivers of the market for organic pesticides. Demand for organic food and other items is rising as consumers become more concerned about their health and the environment. Because they come from natural sources and are less likely to leave hazardous residues on crops than synthetic pesticides, organic pesticides are considered to be a safer choice. Farmers have adopted organic agricultural practices, including the use of organic pesticides, to satisfy the market's expanding demand for organic goods as the key market driver enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Growing consumer demand for organic products drives market CAGR. An increase in consumer demand for organic goods is one of the main reasons for boosting the value of the worldwide market for organic pesticides. As people grow increasingly aware of the risks that chemical pesticides pose to their health and the environment, demand for organic products—including both food and non-food items—is increasing rapidly. The market for organic pesticides is expanding in part due to legislation and government backing. For instance, many governments promote the use of organic pesticides through laws and rules that favor organic farming, such as the provision of financial help and subsidies. Demand for organic pesticides is rising as people become more aware of the advantages of organic agriculture.
Fundamentally, compared to non-organically or conventionally produced crops, organic crops, and crop-based foods include a high amount of antioxidants, such as polyphenolics, ranging from 19% to 68%, as well as lower levels of cadmium (Cd) and pesticide residues. Those who consume organically produced foods also have a lower chance of developing chronic illnesses, such as neurological, cardiovascular, and some forms of cancer. However, organic vegetables do contain trace amounts of harmful metals and minerals. These elements have raised consumer interest in organic goods, which is boosting the demand for organic pesticides.
For instance, to maintain sustainable agricultural output, Corteva, Inc. introduced a new organic pesticide named Entrust Organic for the Australian market in October 2021. In addition to being certified organic, the product has a good environmental profile and is selective towards important beneficial insects. The market for organic pesticides will develop throughout the projected period as a result of these new product introductions. Thus, driving the organic pesticides market revenue.
The organic pesticides market segmentation, based on type includes natural and synthetic. The natural segment will account for a sizable market share in 2022. As consumers become increasingly aware of the risks that chemical pesticides pose to the environment and their health, natural insecticides are growing in popularity. Natural pesticides are less hazardous and detrimental to the environment than synthetic pesticides since they are made from natural resources like plants and minerals. The need for natural insecticides is being driven by increased consumer interest and awareness. Demand for natural pesticides is also being fueled by increasing government laws and support for organic farming, including financial aid and subsidies, as well as the expanding trend of organic farming.
With a growing population, there is a higher demand for food and agricultural products. To meet this demand and ensure higher yields, farmers often resort to using synthetic organic pesticides to protect their crops from pests and diseases. Over the years, advancements in chemical synthesis and formulation technologies have made it easier and more cost-effective to produce synthetic organic pesticides. This has contributed to the availability and adoption of these pesticides in the agricultural sector.
Based on crop type, the organic pesticides market segmentation includes cereals & grains, oilseeds and pulses, fruits & vegetables, and others. Fruits & vegetables dominate the market during the forecast period, as consumers around the world are becoming more health-conscious and are seeking safe and healthy food options. Fruits and vegetables are considered essential components of a balanced diet, and the demand for organic fruits and vegetables, which are grown without synthetic pesticides and chemical fertilizers, is growing. There is a growing trend of consumers preferring organic produce due to concerns about pesticide residues on conventionally grown fruits and vegetables.
The organic pesticides market segmentation, based on application, includes foliar, soil treatment, seed treatment, and others. The foliar segment dominates the market during the forecast period. As consumers become more conscious of the environmental and health impacts of conventional pesticides, the demand for organic alternatives like foliar organic pesticides is expected to rise. The convenience, effectiveness, and versatility of foliar applications make them an attractive option for farmers seeking sustainable and eco-friendly pest management solutions. Climate change and unpredictable weather patterns can lead to more frequent pest and disease outbreaks. Foliar applications can offer a quick response to combat these emerging challenges.
Figure 1: Organic Pesticides Market by Application 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. North America dominates the organic pesticides market. Growing demand for organic goods and growing knowledge of the advantages of organic farming are driving the market for organic pesticides in North America. The regional market's growth might be ascribed to the increased public knowledge of the advantages of organic pesticides. Another important aspect in the local market throughout the projection period is projected to be the growing use of organic pesticides as a result of the development of new procedures. The US is anticipated to gain the greatest market share over the study period out of all countries.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: ORGANIC PESTICIDES MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe organic pesticides market accounts for the second-largest market share. The market share for organic pesticides is driven by increased consumer demand for ecologically friendly goods and a rise in the use of organic agricultural methods by farmers and producers. Additionally, businesses in the area make significant investments in the research and development of organic insecticides. Further, the German organic pesticides market held the largest market share, and the UK organic pesticides market was the fastest-growing market in the European region.
The Asia Pacific Organic Pesticides Market is expected to grow at the fastest CAGR from 2023 to 2032. Asia-Pacific area, creating opportunities for the market for organic pesticides. Organic farming is being promoted by governments in nations like India, China, and Japan through policy support, subsidies, and awareness campaigns. For instance, to encourage the use of organic agricultural methods, India has created the National Programme for Organic Production (NPOP). The region's market for organic pesticides is growing in a supportive environment due to the rising use of organic farming techniques.
Leading market players are investing heavily in research and development to expand their product lines, which will help the organic pesticides market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The organic pesticides industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the organic pesticides industry to benefit clients and increase the market sector. In recent years, the organic pesticide industry has offered some of the most significant medical advantages. Major players in the organic pesticides market, including Andermatt Group AG, BASF SE, Arysta LifeScience Corporation., Syngenta, Bayer AG, Certis USA LLC, Dow Inc., Mark Agri Genetics Pvt. Ltd., Parry America, Inc., Redox Industries Limited., Satpura Bio Fertiliser India Pvt Ltd, and Sikkoindia, and others, are attempting to increase market demand by investing in research and development operations.
Syngenta has recognized the growing demand for organic and sustainable products and practices in the agricultural industry. The company has been expanding its portfolio to include more environmentally friendly and organic options. While Syngenta's core business remains focused on conventional agriculture, it has shown an interest in diversifying its offerings to cater to the growing organic market. For instance, in May 2022 Victrato, a seed treatment introduced by Syngenta through its seed care division, fights nematodes and important soil-borne fungi to boost the quality and yield of a variety of crops including soybeans, corn, cereals, cotton, and rice.
BASF's organic pesticides may include biofungicides, bioinsecticides, and other bio-based solutions that provide effective pest and disease management while minimizing environmental impact and promoting sustainable farming practices. For instance, in October 2022 Insecticide Exponus, a new product from BASF, uses the active chemical broflanilide in a unique formulation. With the introduction of BASF's insecticide Exponus, farmers in India will be able to safeguard their crops and increase output.
Organic Pesticides Industry Developments
March 2022: New pesticide Corprima was introduced by FMC India. Powered by the innovative Rynaxypyr insect control technology from FMC. One of the main problems for Indian farmers is fruit borers, therefore Corprima provides crop protection against them.
May 2021: Sinochem and ChemChina, China's two centrally managed, state-owned chemical producers, were being reorganized and combined to create a monstrous corporation. Both businesses have their headquarters in Beijing and have several subsidiaries in various industry sectors.
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