Market Trends of Indonesia Biopesticides Industry
This section covers the major market trends shaping the Indonesia Biopesticides Market according to our research experts:
Rising Consumer Preference Towards Organic Products
Rising disposable income levels and a growing consumer focus on product quality and food safety are also encouraging consumers to trade up to organic products. Organic food and beverages are sold mostly in specialist stores in major cities, and products are mostly targeted to the expatriate community. A growing number of organic rice brands, though, are available in supermarkets and hypermarkets, which is broadening organic rice's exposure to middle- and upper-income Indonesian consumers. Organic coffee has also been making its way onto shelves at select high-end supermarkets in large cities. According to the Organic Trade Association, in 2019 consumption of organic packaged food & beverage was 15.8 million USD as against 14.6 million USD in 2018. Over the last few years, the demand for organic food products has increased in Indonesia, which in turn will boost the biopesticides market during the forecast period, as biopesticides are extensively used for organic crops.
Popularity for Organic Farming is Driving the Market
A high level of demand for organic products and the trends and awareness of the impact of chemicals have been factors at the top in the market. According to the Research Institute of Organic Agriculture, in 2018 the area under organic farming in the country accounted for 0.25 million as compared to 0.12 ha in 2016 and is further expected to register steady growth. Thus, the use of biopesticides is driven by growing sustainable farming practices. The share of the organic area to the total farmland in 2016 was 0.2% that increased to 0.4% in 2018. According to the organic statistics, in 2016 the largest organic product from Indonesia is coffee, which is as much as 346,200 tons with a land area of 46,924 ha. This was followed by rice with a production of 12,276 tons, and followed by honey at 2,702 tons. Excellence in terms of health, rich in essential nutrient content, rising environmental concern, and consumer demand for residue-free products are enabling farmers to shift towards organic farming.
