Market Overview
Pheromones Market is predicted to reach a CAGR of 16% during the forecast period (2024-2031).
Pheromones are the types of chemical signals that are used to monitor, trap, or disrupt insects that are harmful for agricultural fields. Technological advancement and innovation in agricultural techniques have allowed market players and farmers to use pheromones as an integrated pest management method.
Market Scope
| Metrics | Details |
| Market CAGR | 16% |
| Segments Covered | By Type, By Crop Type, By Function, By Mode of Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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The growing development of pheromones due to their harmless nature and health benefits has led to more consumption of all types of agricultural pheromones. The development of innovative types of pheromones has boosted the growth of the market.
Market Dynamics
Increasing adoption of integrated pest management practices
The current agricultural system intensively utilizes insecticides to ensure the elimination of pests and high productivity. However, these xenobiotics hurt the environment, beneficial natural predators, parasites, and human health. Therefore, increasing awareness about the detrimental effects of pesticides has led to the increased adoption of alternative crop protection techniques. Many agriculture and horticulture farmers adopt sex pheromones and attractants to reduce the number of crop-damaging pests and insects effectively. The extensive research and development in the agricultural pheromones industry to improve the efficiency of these products further help in boosting the market growth. For instance, the Earlham Institute, England, identifies and validates biosynthetic enzymes to produce pheromones of the Coccoidea insect superfamily. The increasing trend of adoption of precision agriculture systems, the use of automated monitoring systems, and the reduction in the manufacturing cost of pheromones are expected to offer boundless opportunities to industry players for investment.
However, the expensive nature and high maintenance cost of various insect pheromones compared to conventional insecticides and pesticides pose a major restraint in the market growth. The high cost of these pheromones makes it an uneconomical large-scale crop protection option. Pheromones themselves are very costly, and the cost per gram of even the least expensive pheromone is also high. Further, it's formulation and additional labor charges for its application increase the overall expenditure.
COVID-19 Impact on Market
The decline in market growth due to transportation delays amid COVID-19
The global COVID-19 pandemic has exerted a negative impact on the global economy and the global agricultural and food sectors. Despite the moderate impact of COVID-19 on various agricultural commodities, disruptions in the supply chain, travel restrictions, and interruptions in marketing due to the lockdown announced by the government to contain the spread of the virus have led to a negative impact on the market performance. This has also negatively impacted the food security, crop protection chemicals availability, and livelihood of the farmers. According to the Organization for Economic Co-operation and Development (OECD) of the United Nations, pesticide production has sharply declined. It could weigh on crop yields and production due to low availability and high-price inputs. The workforce shortage is another challenge faced by the industry as the manufacturing plants were temporarily closed down, and self-isolation or travel restrictions were imposed on people.
However, several agricultural organizations are making efforts to mitigate the loss due to the pandemic to improve the agricultural sector's supply chain, business opportunities, and smooth functioning. For instance, the Indian government promotes Farmer Producer Organizations (FPOs) to address the market disruptions amid COVID-19. Thus, these factors are anticipated to drive market growth in the post-pandemic period.
Market Segmentation Analysis
The sex pheromones segment is expected to dominate the global pheromones market shortly
The sex pheromones segment holds the major share in the market as it is the most preferred type of pheromone used for pest management techniques. The species-specific nature, being active even if present in small amounts, and not being toxic to animals are the factors responsible for the high utilization of sex pheromones. Along with this, regulatory agencies in several countries, such as the California Environmental Protection Agency, consider the utilization of lepidopteran sex pheromones as safe. Aggregation pheromones are also gaining popularity as they help overcome host resistance, thus, offering potential opportunities for the segment to grow.
On the other hand, dispensers are the preferable mode of application. They are inexpensive to produce, non-toxic, do not waste active ingredients, and can easily be used in the field. It helps in the deployment of pheromones and other bioactive compounds depending upon pest pressure.
Market Geographical Share
North America is the largest market for pheromones with a high share in global sales value in 2020
North America stood at in 2020 and holds the major pheromones market share owing to the wide implementation of integrated pest management solutions for crop production and protection across the region. The government of the U.S. and Canada are encouraging the utilization of sustainable agrochemicals for crop protection. The presence of various prominent market players in the region such as Suterra LLC (US), ISCA Technologies (US), Pacific Biocontrol Corporation (US), and Russell IPM (US), that manufacture agricultural pheromones, aids in driving the regional market. The farmers in the region are adopting pheromones for targeted pest control and extensive research on developing innovative semiochemicals that contribute to regional market growth. The region is also among the largest producers of fruits alongside being the largest consumers, as well.
Europe is estimated to hold a high market share in terms of revenue. The rapid expansion of the horticulture sector in countries such as France, Spain, and the U.K. has led to an increase in demand for effective crop protection solutions. The extensive demand for natural and environmentally safe pest control devices and agrochemicals for essential fruit crops such as grapes, plums, peaches, and apples contributes to the demand for these pheromones.
Companies and Competitive Landscape
The global pheromones market is fragmented in nature with the presence of many formulators. Through extensive R&D in their laboratories, many major companies like Sumi Agro, Rusell IPM, Biobest, and Syngenta Bioline are focussing on developing new pheromones. For instance, in September 2019, Syngenta acquired The Cropio Group. Through this acquisition, Syngenta will become the only company to have access to leading management platforms in the agricultural market. In September 2019, PI Industries (India) acquired Isagro’s India-based subsidiary, Isagro Asia. This acquisition helped in enhancing PI Industries’ access to the manufacturing capabilities of Isagro Asia, which enabled it to expand its customer base. This acquisition would also reduce Isagro Group’s financial debt. In March 2019, Trécé Inc. announced the enhancement and development of new pheromone-based insect monitoring aid products in the U.S.
