North America Bio Pesticides Market Outlook to 2028

North America Bio Pesticides Market Overview

The North America bio pesticides market was valued at USD 2.12 billion in 2023, driven by increased demand for sustainable agricultural practices and stringent regulations limiting the use of synthetic chemicals. This growth is primarily fueled by the increasing awareness among consumers and farmers about the benefits of bio pesticides, which are derived from natural materials and are environmentally friendly.

The North American bio pesticides market is highly competitive, with several key players driving innovation and market expansion. Some of the major players include BASF SE, Bayer Crop Science AG, Valent Bio Sciences LLC, Marrone Bio Innovations, Inc., and Certis USA LLC. These companies are investing heavily in research and development to introduce new and more effective bio pesticide products to meet the growing demand.

BASF launched Exponus insecticide in India in April 2022. Powered by the new active ingredient Broflanilide, Exponus offers a new mode of action for controlling key insect pests like caterpillars and thrips in oilseeds, pulses and vegetable crops. With its unique mode of action, Exponus is among the first compounds introduced under the new IRAC group 30, representing a totally new class of insecticides.

In 2023, California was the leading state, and within California, the city of Salinas stands out as a dominant force in the market. Salinas is often referred to as the Salad Bowl of the World due to its extensive production of leafy greens and other vegetables. The citys dominance in the bio pesticides market is driven by its large-scale organic farming industry, which heavily relies on bio pesticides to manage pest control in an environmentally friendly manner.

North America Bio Pesticides Market Segmentation

The North America Bio Pesticides Market is segmented into different factors like by product type, by application and region.

By Product Type: The market is segmented by product type into microbial pesticides, biochemical pesticides, and plant-incorporated protectants (PIPs). In 2023, microbial pesticides were dominating the market. The dominance of this segment can be attributed to the effectiveness of microbial pesticides in controlling a wide range of pests, coupled with their relatively lower cost compared to other bio pesticide types. The growing preference for microbial solutions in organic farming is expected to further drive this segments growth in the coming years.

By Region: The market is segmented by region into the United States and Canada. In 2023, the United States dominated the market largely due to its attributed to the countrys extensive agricultural industry, which is one of the largest in the world. The United States' strong regulatory framework, which supports sustainable farming practices, has also significantly contributed to the adoption of bio pesticides. Additionally, the high consumer demand for organic and sustainably produced food has driven the growth of the bio pesticides market in the U.S.

By Application: The market is also segmented by application into crop-based, non-crop-based, and seed treatment. In 2023, the crop-based segment was dominating the market, driven by the extensive use of bio pesticides in the cultivation of fruits and vegetables, cereals, and grains, which are highly susceptible to pest attacks. The rising demand for organic produce, especially in the U.S. and Canada, has led to increased adoption of bio pesticides in crop production, making this segment the largest in the market.

North America Bio Pesticides Market Competitive Landscape

North America Bio Pesticides Market Major Players

Company Name

Establishment Year

Headquarters

BASF SE

1865

Ludwigshafen, Germany

Bayer Crop Science AG

2002

Leverkusen, Germany

Valent Bio Sciences LLC

2001

Libertyville, USA

Marrone Bio Innovations

2006

Davis, USA

Certis USA LLC

2001

Columbia, USA

Valent Bio Sciences LLC: In 2022, Valent Bio Sciences recently launched a new biostimulant operating unit, which became fully operational. This unit focuses on selling biostimulant products, including arbuscular mycorrhizal fungi (AMF) technologies, directly to the U.S. market. The biostimulants are marketed under the Symvado and Proliant brands, with the goal of enhancing crop performance and supporting sustainability efforts aligned with Sumitomo Chemical Co., Ltd.'s mission for carbon neutrality by 2050.

Certis USA LLC: In June 2022, Certis partnered with Novozymesto develop new technologies for effective fungal disease control, enhancing their offerings for row crop growers. This collaboration aims to leverage both companies' expertise to deliver innovative solutions to the agricultural sector.

North America Bio Pesticides Market Analysis

North America Bio Pesticides Market Growth Drivers

Increasing Adoption of Organic Farming: 2021, the total certified organic land in the U.S. was approximately 4.89 million acres, and while there has been growth in organic farming. This rise in organic farming practices has significantly boosted the demand for bio pesticides, as synthetic chemical usage is strictly prohibited in organic agriculture. The organic food market is driving the need for sustainable crop protection solutions. The expanding acreage under organic cultivation necessitates the adoption of bio pesticides to meet pest management requirements while adhering to organic farming standards.

Government Support for Sustainable Agriculture: In May 2024, the USDA awarded $300 million to 66 U.S. organizations under the new Regional Agricultural Promotion Program (RAPP). This initiative aims to expand U.S. agricultural exports to high-potential markets in Africa, Latin America, and Southeast Asia. The funding supports a variety of projects, including trade education seminars, market research, and trade missions, which are crucial for building demand for bio-based agricultural products, including bio pesticides. This diversification of export markets is expected to boost the U.S. bio pesticides market by opening new international opportunities.

Technological Advancements in Bio Pesticide Development: In 2024, significant advancements in biotechnology have led to the development of more effective and targeted bio pesticides. Companies have invested collectively in R&D to create bio pesticides that are more efficient, have longer shelf lives, and can target specific pests without affecting non-target organisms. These advancements are driving the adoption of bio pesticides as they offer superior efficacy compared to traditional pesticides, thus supporting market growth. The continuous innovation in this field is expected to attract more farmers to switch to bio-based solutions.

North America Bio Pesticides Market Challenges

High Production Costs and Economic Viability: The production of bio pesticides involves sophisticated biological processes, which are generally more costly compared to the production of synthetic chemicals. The high production costs can make bio pesticides less economically viable, especially for small-scale farmers. This financial barrier limits broader market penetration, particularly in regions where agricultural budgets are constrained.

Limited Shelf Life and Storage Challenges: Bio pesticides typically have a shorter shelf life and require specific storage conditions to maintain their effectiveness. These requirements can lead to higher logistical costs and complexities, particularly in areas with extreme weather conditions. The need for careful handling and storage adds an additional layer of challenge, potentially limiting the accessibility and adoption of bio pesticides.

North America Bio Pesticides Market Government Initiatives

Sustainable Agricultural Value Chains Initiative (SAVCI): In 2024, the Canadian government proposed the Sustainable Agricultural Value Chains Initiative (SAVCI) with an initial funding of $550 million over five years. This initiative aims to support rural and remote communities by promoting sustainable agricultural practices, including the adoption of bio pesticides. SAVCI is designed to help farmers transition to more environmentally friendly practices while enhancing productivity and profitability. The initiative also emphasizes the importance of collaboration with local and Indigenous communities to ensure regionally appropriate solutions for sustainable agriculture.

Strengthening Scientific Advisory and Regulatory Oversight: In 2024, the U.S. Environmental Protection Agency (EPA) strengthened its regulatory oversight of pesticides, including bio pesticides, by appointing new members to the FIFRA (Federal Insecticide, Fungicide, and Rodenticide Act) Scientific Advisory Panel. This panel plays a crucial role in providing independent scientific advice to the EPA on complex pesticide regulatory issues. The enhanced focus on scientific expertise and transparent decision-making is expected to improve the regulatory process for bio pesticides, ensuring they meet rigorous safety and efficacy standards while facilitating market growth.

North America Bio Pesticides Market Future Outlook

The North America bio pesticides market is expected to continue its growth by 2028. This growth will be driven by ongoing advancements in biotechnologies, increased adoption of integrated pest management (IPM) practices, and supportive government policies. The shift towards organic farming and sustainable agriculture will further bolster the demand for bio pesticides, ensuring a positive outlook for the market.

Market Trends

Expansion of Bio Pesticides in Row Crops: Traditionally, bio pesticides have been more commonly used in specialty crops like fruits and vegetables. However, by 2028, it is expected that the use of bio pesticides in row crops such as corn, soybeans, and wheat will increase significantly. This expansion is driven by the development of new bio pesticide formulations specifically designed for large-scale crops. The increasing resistance of pests to chemical pesticides in these crops will also contribute to the growing adoption of bio pesticides in this segment.

Development of New Bio Pesticide Formulations for Climate Change Adaptation: As climate change continues to impact agricultural practices, there will be a growing need for bio pesticide formulations that can withstand extreme weather conditions. By 2028, it is expected that a significant portion of R&D investments in the bio pesticides market will be directed towards developing products that are effective under varying climatic conditions. These innovations will be crucial for ensuring crop protection in regions prone to extreme temperatures, droughts, and floods.
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