Organic Pesticides Market Expected to Reach $7.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Organic Pesticides Market," The organic pesticides market was valued at $3 billion in 2022, and is estimated to reach $7.6 billion by 2032, growing at a CAGR of 9.7% from 2023 to 2032. 

Organic pesticides, also known as biopesticides, are substances derived from natural sources used to control pests, including insects, weeds, and diseases, in agricultural and horticultural practices. These pesticides are derived from living organisms such as plants, bacteria, fungi, and minerals, and they work by disrupting pests' physiology, behavior, or by acting as repellents.

Organic pesticides are designed to provide an alternative approach to pest management that minimizes harm to the environment, human health, and beneficial organisms. They are typically considered safer and more environmentally friendly compared to synthetic chemical pesticides.

Government regulations and policies play a crucial role in shaping the organic pesticides market. Many countries have implemented stringent regulations on the use of synthetic pesticides and have promoted the use of organic alternatives. These regulations aim to protect human health and the environment by reducing the chemical load in agriculture. For example, the European Union has set strict standards for organic farming and has banned several synthetic pesticides. Similarly, the U.S. Department of Agriculture (USDA) has established the National Organic Program (NOP), which regulates the production and labeling of organic products, including organic pesticides. Such regulations create a favorable environment for the growth of the organic pesticides market.

Moreover, technological advancements have also played a significant role in driving the organic pesticides market. Researchers and manufacturers have been developing innovative organic pesticide formulations that are more effective and have lower environmental impacts. For instance, biopesticides, which are derived from naturally occurring substances, such as plants, bacteria, and fungi, have gained popularity due to their targeted action against pests and their reduced toxicity to non-target organisms. Additionally, advancements in biotechnology and genetic engineering have led to the development of genetically modified crops with built-in resistance to pests, reducing the reliance on chemical pesticides, both synthetic and organic.

However, organic pesticides are typically more expensive to produce and may require higher application rates, leading to increased costs for farmers. This can be a barrier for small-scale farmers or those operating under tight profit margins, as they may find it challenging to invest in organic pesticides due to financial constraints. The higher costs can also affect the affordability of organic products for consumers, potentially limiting their demand.

On the contrary, the growing global focus on sustainable agriculture and environmental conservation creates opportunities for the organic pesticides market. Synthetic pesticides have been associated with various negative environmental impacts, such as soil and water contamination, biodiversity loss, and harm to beneficial organisms. In contrast, organic pesticides are generally considered more environment friendly and compatible with sustainable farming practices. The increasing awareness of the importance of biodiversity conservation, soil health, and ecosystem balance creates a demand for organic pesticides that have minimal environmental impacts. This demand presents opportunities for manufacturers to develop and market organic pesticides that align with sustainable agriculture principles.

The organic pesticides market is segmented on the basis of product type, type, form, application, and region. By product type, the market is segregated into biochemical, microbial, botanical, and mineral. The botanical segment dominated the global market, in terms of revenue in 2022. There is a growing consumer preference for organic food and agricultural products due to concerns about synthetic pesticide residues and environmental sustainability. Botanical organic pesticides are an important type of pesticide for farmers practicing organic agriculture, as they align with organic certification standards and are considered compatible with organic farming practices. This may act as one of the key drivers responsible for the growth of the organic pesticides market for botanical types.

Furthermore, consumers are becoming more conscious of the impact of their purchasing choices on the environment and their health. The demand for pesticide-free or low-residue food products is increasing, driving the adoption of botanical organic pesticides as a safer and more sustainable pest control option.

By type, the market is segregated into insecticide, fungicide, herbicide, and others. The herbicide segment dominated the global market, in terms of revenue in 2022. Prolonged and extensive use of synthetic chemical herbicides has led to the development of herbicide-resistant weed populations. Organic herbicides with different modes of action offer alternative control options for weeds that have developed resistance to conventional herbicides. Their use supports resistance management strategies and helps maintain effective weed control in agricultural systems.

Additionally, the adoption of organic herbicides helps ensure effective weed management while meeting the growing demand for environmentally friendly and healthier food options. These factors may drive the demand for organic herbicides in the organic pesticides market.

By form, the market is segregated into liquid or spray and powder or granules. The powder segment dominated the global market, in terms of revenue in 2022. Powder or granule form of organic pesticides possess various significant characteristics such as application flexibility, long-lasting effect, enhanced stability, ease of storage & transportation, reduced risk of drift, and others which in turn has surged the demand for powdered or granulated form of organic pesticides; thus, fueling the market growth.

Furthermore, powder or granule organic pesticides can contribute to water conservation and efficiency in pest management. Unlike liquid formulations that require dilution with water, powder or granule pesticides can be directly applied to the target area without the need for additional water. This can be advantageous in regions facing water scarcity or in situations where water use needs to be minimized. This factor may further aid the demand for organic pesticides market for powder or granules type.

By application, the market is divided into gardening, fruits & vegetables, cereals & pulses, nursery, and others. The cereals and pulses application segment dominated the global market, in terms of revenue in 2022 with 9.9% share in the global market. The demand for organic cereals and pulses is increasing as consumers become more conscious of the chemicals used in food production. Using organic pesticides in cereal and pulse cultivation offers a pesticide-free or low-residue option for consumers who prioritize food safety and seek healthier alternatives. This may act as one of the key drivers responsible for the growth of the organic pesticides market for cereals and pulses.

Furthermore, there is a growing interest in organic and sustainable farming practices across the agricultural industry. Farmers and consumers alike recognize the importance of reducing the environmental impact of farming and preserving natural resources. The use of organic pesticides in cereal and pulse cultivation aligns with these principles, as organic farming promotes soil health, biodiversity, and the overall sustainability of agricultural ecosystems. These factors altogether may surge the demand for organic pesticides for growing cereals and pulses.

Region wise, the organic pesticides market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific organic pesticides market size is projected to grow at the highest CAGR during the forecast period. The organic pesticides market in the Asia-Pacific region has been growing rapidly due to increasing consumer awareness and demand for organic products. The region has a large population, and consumers are becoming more conscious of the potential health and environmental impacts of synthetic pesticides. As a result, there is a growing preference for organic alternatives.

According to a report by Research and Markets, the Asia-Pacific organic pesticides market is expected to grow at a compound annual growth rate (CAGR) of around 7% during the forecast period. Moreover, organic agriculture is gaining momentum in the Asia-Pacific region, creating opportunities for the organic pesticides market. Governments in countries such as India, China, and Japan are promoting organic farming through policy support, subsidies, and awareness campaigns.

For instance, India has implemented the National Program for Organic Production (NPOP) to facilitate the adoption of organic farming practices. The increasing adoption of organic agriculture practices provides a favorable environment for the growth of the organic pesticides market in the region.

Key players operating in the global organic pesticides market include Andermatt Group AG, Arysta LifeScience Corporation., 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.

COVID-19 analysis

The novel coronavirus was an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The organic pesticides market experienced disruptions in the global supply chain due to lockdown measures, travel restrictions, and reduced production capacities. Many manufacturing facilities were temporarily shut down or operated at reduced capacity, leading to delays in the production and distribution of organic pesticides.

 However, the pandemic heightened the global focus on health, safety, and environmental sustainability. This trend influenced the organic pesticides market as there was increased demand for eco-friendly and sustainable alternatives to conventional pesticides. Consumers and industries became more conscious of the potential environmental and health impacts of conventional pesticides, leading to a greater emphasis on organic pesticides market. Also, the pandemic led to an increase in research and development efforts in the organic pesticides sector. 

Key findings of the study

• By product type, the botanical segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 9.9% from 2023 to 2032.
• By type, the herbicide segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 9.7% from 2023 to 2032.
• By form, the powder segment is estimated to display the highest growth rate, in terms of revenue.
• By application, the cereals and pulses segment is estimated to display the highest growth rate from 2023 to 2032.
• North America garnered the highest share of around 45% in 2022, in terms of revenue.