Organic Pesticides Market

The use of organic pesticides is increasing across the globe owing to their advantages over chemical pesticides. Organic pesticides are more effective at controlling pests, have low or negligible residue levels, and assist in retaining soil nutrients unlike chemical pesticides. Government authorities and various regulatory bodies in several countries are promoting the adoption of organic farming, leading to an increase in the sales of organic pesticides. Moreover, the rising demand for organic produce by consumers has influenced farmers to adopt organic farming practices. These factors are collectively driving the growth of the global organic pesticides market. However, the high costs of the pesticides restrict market growth to an extent.

The organic segment of the food industry is growing at a phenomenal rate. Rising health consciousness and consumer inclination toward healthy and nutritional food products are driving the demand for organic food across the globe. Consumers are also concerned about the impact of chemicals on the environment and health, leading to a shift to organically cultivated and processed products. The demand for organic food & beverage, personal care, nutraceutical, and pharmaceutical products is growing, paving the way for the adoption of organic farming. Food processors are highly inclined toward the adoption of natural and organic ingredients to meet the increasing demand for organic products. Moreover, the impressive projected growth of the organic and natural personal care products market from 2018 to 2023 is expected to boost the demand for organic ingredients. As per MRFR analysis, the global organic and natural personal care products market is projected to register a CAGR of 8.20% during the forecast period of 2018 to 2023. Furthermore, consumers of food supplements tend to be health-conscious and support a healthy lifestyle; they generally prefer organic food supplements. As per the Organic Trade Association, organic food accounted for more than 5% of total food sales in the US in 2017, an increase of 6.4% from the previous year. Consumers are willing to pay a premium for healthy food products, propelling the adoption of organic farming to meet the rising demand.

Thus, the inclination of farmers toward organic farming to meet the rising consumer demand for organic products is driving the growth of the global organic pesticides market.

The increasing demand for organic products across the globe has led small-scale farmers in emerging economies to adopt organic farming practices. Growth is particularly high in emerging economies such as Brazil, India, China, and Argentina owing to rising awareness among farmers about the hazards of chemical fertilizers. There are significant investments being made in organic production in these countries in an effort to shift away from conventional farming practices. In Asia-Pacific, there was a large market for organic consumer goods in Japan and South Korea. However, in recent years, there have been significant developments in China and India. The focus of the agricultural sector in these countries is shifting from exports to domestic consumption. Government support for the promotion of organic farming also plays a significant role. In Thailand, the government launched a large-scale project in 2017 for farmers to receive financial support for buying organic seeds, reducing their dependence on pesticides, and building physical barriers to prevent contamination from neighbouring farmlands. This scheme was launched with the aim to reduce the area of standard rice cultivation by 1m rai (160,000 ha) by 2022. According to FiBL, in Europe, the largest in-conversion areas in 2017 were in Romania, Poland, Hungary, and Bulgaria. Also, both Russia and Ukraine passed laws for organic claims in 2018 which will create significant opportunities for the suppliers of organic pesticides in these countries. Thus, a shift to organic farming practices in emerging economies offers lucrative growth opportunities to market players.

The organic label is applicable to food or other agricultural products that have been produced using approved methods. The regulatory bodies in different regions such as the US Department of Agriculture (USDA), European Commission, and Agricultural and Processed Food Products Export Development Authority (APEDA) have standards for products with organic claims which are designed to provide a clear structure for the production of organic goods. However, their stringency restricts the implementation of the practice. For instance, the production of organic crops on conventional farmland requires the land to be free of chemicals for a period of five years. Moreover, the certification process in accordance with standards is complex. Significant paperwork is required in order to track each original organic ingredient all the way through production and to the finished product. These factors are expected to restrain the growth of the market during the review period.

Organic farming offers several benefits to farmers; however, adoption of the practice is limited. This can be attributed to the lower costs and higher efficacy of chemical fertilizers and pesticides. Limited awareness, non-availability of organic pesticides, and a lack of guidance from experts are some of the other factors restricting farmers from shifting to organic farming. However, governments and other organizations are taking initiatives to create product awareness through various campaigns. The manufacturers of organic pesticides are also expanding their presence globally, which would aid product availability in developing and underdeveloped countries.