The global biofertilizers market is expected to reach USD 4.04 billion by 2028 from USD 2.41 billion in 2023, growing at a compound annual growth rate (CAGR) of 12.09% during the forecast period.
Biofertilizers are made of living organisms like bacteria, mycorrhizal fungi, rhizobium, and pseudomonas to offer essential nutrients that promote growth in plants and trees.
The primary factor attributing to the growth of the global biofertilizers market is the rising population demand for organic products to maintain a healthy lifestyle. This need for organic products promotes organic farming, where biofertilizers play a pivotal role. Governments across the world are offering special incentives and subsidies to support sustainable agriculture, propelling the demand for biofertilizers. In addition, chemical and synthetic fertilizers result in increased pollution, water contamination, and soil degradation. Therefore, there is a rising need for alternative eco-friendly options like biofertilizers that can promote soil health and fertility, resulting in more crop yields for farmers. Also, the latest advancements in technology and improvements in microbe strains are contributing to the growth of more effective and affordable biofertilizer options.
The burgeoning demand for high-value crops and diversification of plants are creating a positive atmosphere for the biofertilizers market. Besides, the surge in global warming and deforestation is hindering the pattern of seasons and resulting in uncertain rain conditions. Therefore, there is a huge emphasis on effective solutions to ensure more crop production and high-quality foods, which is promoting the adoption of more biofertilizers. Moreover, the advantages of biofertilizers, like water conservation, integrated pest management, and increasing education about the uses of these components, will create lucrative opportunities for the biofertilizers market in the coming years.
The primary restraint to the global biofertilizers market is the issue of the prices of these fertilizers compared to the cheap chemical products that are available. The lack of proper awareness among farmers about the long-term benefits of these biofertilizers is also creating a negative impact on the business. Also, the uncertain functionality of these biofertilizers in harsh climates, different soil conditions, and seasoned crops is pulling the market demand down. In addition, the lack of an established infrastructure and distribution network can hamper the productivity and sales of these fertilizers. Besides, the volatility of the market due to changing commodity prices and accessibility of products is also a concern in the global biofertilizers market. The strict government regulations and compliances related to environmental safety also led to delayed approvals for manufacturers. Moreover, the shelf life and storage challenges, coupled with the intense market competition, are further supposed to restrict the developments in the global biofertilizers market.
Impact of COVID-19 on the biofertilizers market:
The COVID-19 pandemic had an initial negative impact on the agriculture sector and biofertilizers market due to disruptions to the supply chain and restricted logistics across the globe. The worldwide lockdown scenario changed priorities towards essentials, limiting the production and development of new fertilizers. In addition, the temporary shutdown of industries and social distancing measures led to a shortage of workforce in the manufacturing units. The market instability along with the uncertainty in the adoption of new processes, had limited most of the companies to slow down their investments, which affected the biofertilizers market. In addition, several governments have shifted funds towards essentials during COVID-19, which impacted developments in the agriculture sector. On the contrary, the pandemic also emphasized the need for more healthy food products and increased the scope of organic farming, which is likely to benefit the biofertilizers market in the foreseen period.
Market Size Available
2022 to 2028
2023 to 2028
By Type, Crop Type, Microorganism, Application, Form and Region
Various Analyses Covered
Global, Regional, and country Level Analysis; Segment-Level Analysis; DROC, PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities
North America, Europe, APAC, Latin America, Middle East and Africa
Market Leaders Profiled
UPL, Novozymes, Syngenta, CHR Hansen Holding A/S, Vegalab SA, Lallemand Inc., Rizobacter Argentina, IPL Biologicals Limited, Kiwa Bio-tech Product Group Corporation, T. Stanes and Company Ltd, National Fertilizers Limited, BioWorks Inc., American Vanguard Corp, Symborg, Novozymes, Bioceres S.A., Agrilife, Gujarat State Fertilizers & Chemicals Ltd, Koppert Biological Systems Inc., and Nutramax Laboratories, Inc
This market research report on the global biofertilizers market is segmented and sub-segmented into the following categories.
Global Biofertilizers Market – By Type:
Nitrogen-fixing biofertilizers recorded the highest share in the worldwide market and are likely to have more demand over the forecast period due to their effective soil correction and high-yield benefits. In addition, nitrogen-fixing can offer advantages like improved soil health, nutrient absorption, plant growth stimulus, and increased crop production. Similarly, phosphate solubilizers are also anticipated to register significant growth with the surging need for sustainable farming techniques.
Global Biofertilizers Market – By Crop Type:
The cereals & grains crop type dominated the biofertilizers market and is predicted to continue its dominion in the coming years. Wheat, maize, rice, etc., are staple foods in most countries, which supports the demand in this segment. In addition, the oilseeds and pulses segment is expected to grow in the coming years because of favorable government regulations and the need for organic oils and pulses. Besides, fruits and vegetables are also estimated to witness steady growth in the future due to the consumer demand for a healthy lifestyle.
Global Biofertilizers Market – By Form:
Liquid fertilizers hold the lion’s share in the global biofertilizers market and are predicted to continue their dominion in the outlook period. Liquid biofertilizers are easy to use and allow quick absorption of nutrients, along with improved crop yields due to high microbial density.
Global Biofertilizers Market – By Microorganism:
The rhizobium segment registered a majority share in the global biofertilizers market because of its advantages, such as nitrogen-fixing in soils. Similarly, Rhizobium improves the crop growth and insolubilization of organic phosphates which enhances productivity and plant health. Azotobacter, a symbiotic bacterium, is also expected to record considerable growth in the predicted period due to its support in synthesizing plant growth regulators, protection from phytopathogens, and balancing soil pH and fertility.
Global Biofertilizers Market – By Application Mode:
The seed treatment applications dominated the global biofertilizers market owing to the need for increased crop production and decreased utilization of synthetic fertilizers. Similarly, soil treatment applications are expected to witness higher demand because of the increasing need to reduce soil erosion and increase fertility.
Global Biofertilizers Market - By Region:
North America dominated the global biofertilizers market and is predicted to register significant growth over the forecast period. The United States is the leading contributor to this regional market because of the presence of key market players and the surging need for organic food products. In addition, the supportive government initiatives and large production of cash crops are majorly driving the adoption of biofertilizers in North America. Canada is also a prominent market in this locale and is supposed to witness more usage of biofertilizers in the coming years.
The Asia Pacific region is expected to register a notable growth rate in this market with the increasing agricultural practices in nations like India, China, Vietnam, South Korea, and Japan. The surge in the local population, along with the environmental and health challenges of using conventional fertilizers, is acting positively for the liquid fertilizers business in this locale. China and India are the leading players in the Asia Pacific due to the spike in organic food products, the adoption of technological processes in farming, and the use of biofertilizers in the place of synthetic products. Further, the supportive initiatives from local governments and economic certainty are supposed to drive the market demand in this region.
Europe is also a considerable player in this market due to the presence of the largest organic farming area. The increasing government reforms, like the ban on the use of chemical fertilizers, along with the need for environmentally friendly practices, are promoting the adoption of biofertilizers in this area.
Latin America, with nations like Brazil and Argentina, is also a promising player in the global biofertilizers market. Government-regulated cultivation and the increasing demand for sustainable agriculture are driving the business in this locale. In addition, the spike in the demand for organic food products is likely to boost the growth potential in this region.
Middle East and Africa are relatively smaller markets for biofertilizers. However, there is a huge untapped opportunity in this area because of the increasing government spending and the need for eco-friendly cultivation practices.
KEY MARKET PLAYERS:
UPL, Novozymes, Syngenta, CHR Hansen Holding A/S, Vegalab SA, Lallemand Inc., Rizobacter Argentina, IPL Biologicals Limited, Kiwa Bio-tech Product Group Corporation, T. Stanes and Company Ltd, National Fertilizers Limited, BioWorks Inc., American Vanguard Corp, Symborg, Novozymes, Bioceres S.A., Agrilife, Gujarat State Fertilizers & Chemicals Ltd, Koppert Biological Systems Inc., and Nutramax Laboratories, Inc. some of the major key players involved in the biofertilizer market.
RECENT HAPPENINGS IN THIS MARKET:
The size of the global biofertilizers market is expected to reach USD 2.41 billion in 2023 and is estimated to be growing at a CAGR of 12.09% to reach USD 4.4 billion by 2028.
The increasing adoption of organic farming is the major factor that drives the global Biofertilizers market growth during the forecast period.
North America currently holds the highest market share in Global Biofertilizers Market due to the rising health concerns.
The COVID-19 pandemic had an initial negative impact on the agriculture sector and biofertilizers market due to disruptions to the supply chain and restricted logistics across the globe.
The primary factor attributing to the demand in the global biofertilizers market is the rising population demand for organic products to maintain a healthy lifestyle.
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