Global Agricultural Enzymes Market Grows Steadily at a CAGR of 6.3%

Introduction

Agricultural enzymes are biological catalysts that speed up chemical reactions leading to the release of soil nutrients. Agricultural enzymes liberate and make available to plant roots soil nutrients. Without an agricultural enzyme, these nutrients would have remained bound in the soil, inaccessible to plants. These enzymes enhance the yield and quality of plants by decontaminating pesticide-, herbicide-, and chemical fertilizer-treated soil. As they neutralize both acidic and basic soils, agricultural enzymes are widely used in the bioprocessing of fibers, enzyme-assisted silage fermentation, processing of crops and crop residues, and producing various animal feed supplements.

Market Dynamics

Growing Demand for Organic Food Drives the Global Market

Over the years, the demand for agricultural enzymes has increased due to the soaring global demand for organic foods and the growing public awareness of the harmful properties of pesticides. Enzymes have properties that enable them to function at low concentrations, low temperatures, a mild pH, and with minimal quantities of water. Organic and sustainable agriculture frequently utilizes biodegradable enzymes.

In addition, the increased use of natural biological products, such as agricultural enzymes, contributed to a 2% increase in organic food sales to USD 57.5 billion in 2021. This compares to growth rates of 12.8 percent in 2020 and 4.8 percent in 2019. Increasing sales of organic food and a shift in consumer trends toward the improvement of personal health and the consumption of healthy food will likely fuel demand for agricultural enzymes over the coming years.

Increased R&D and Market Strategies by Key Players Creates Tremendous Opportunities

Large agribusinesses and crop protection corporations have adopted biological products like agricultural enzymes due to product innovation and internal R&D initiatives. There has been a rise in global key players' efforts to accelerate the expansion of the global agricultural enzyme market. In April 2021, BASF partnered with Sandoz GmbH to invest in Austria's Kundl/Schaftenau Campus. This transaction allows it to expand its production capacity for enzymes and biotechnology products.

In addition, Nutrien AG Solutions announced in March 2021 a partnership with Elemental Enzymes, a leading agricultural biotechnology company, for a peptide-based biochemical pesticide to combat fungal and bacterial illnesses, including Huanglongbing, also known as citrus greening. Currently, 100% of Florida's acreage is affected by citrus greening. Thus, the key players R&D partnership and product launch announcements will create growth opportunities for the agricultural enzymes market throughout the forecast period.

Regional Analysis

North America is the most significant global agricultural enzymes market shareholder and is anticipated to exhibit a CAGR of 6.02% during the forecast period. The United States is one of North America's largest markets for agricultural enzymes. The nation's adoption of modern agricultural technologies is extremely advanced. In this country, the demand for agricultural enzymes is fueled by the rising cost of chemical inputs, their negative impact on soil mass and the environment, and an increasing awareness of the significance of balanced plant nutrition. In August 2022, the United States Department of Agriculture established its new USD 300 million Organic Transition Initiative. According to the program, concrete measures will be taken to cultivate the next generation of organic farmers and to strengthen organic supply chains. These programs are anticipated to increase the use of bio-based inputs, thereby expanding the national market.

Key Highlights

• The global agricultural enzymes market was valued at USD 316.66 million in 2022. It is estimated to reach USD 548.77 million by 2031, growing at a CAGR of 6.3% during the forecast period (2023–2031).
• Based on enzyme type, the global agricultural enzymes market is segmented into phosphatases, dehydrogenases, ureases, proteases, and other enzyme types. The phosphatases segment dominates the global market and is predicted to grow at a CAGR of 6.5% throughout the forecast period.
• Based on the application, the global agricultural enzymes market is segmented into crop protection, fertility, and plant growth regulation. The fertility segment owns the highest market share and is estimated to exhibit a CAGR of 6.61% during the forecast period.
• Based on crop type, the global agricultural enzymes market is segmented into grains and cereals, oilseeds and pulses, fruits and vegetables, and other crop types. The grains and cereal segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 6.12% over the forecast period.
• North America is the most significant global agricultural enzymes market shareholder and is anticipated to exhibit a CAGR of 6.02% during the forecast period.

Competitive Players

Competitive Players

The key players in the global agricultural enzymes market are Bayer CropScience, BASF SE, Stoller USA Inc., Corteva Agriscience, Elemental Enzymes, American Vanguard Corporation, Bioworks Inc., and Syngenta AG.

Recent Developments

Market News

• In December 2022, Ginkgo Bioworks, which is constructing the leading platform for cell programming and biosecurity, announced the launch of Ginkgo Enzyme Services today, enabling applications across pharmaceuticals and diagnostics, food and agriculture, and beyond.
• In June 2023, Paine Schwartz Partners, a global leader in sustainable food chain investing, finalized a strategic growth investment by Paine Schwartz Food Chain Fund VI in Elemental Enzymes (the "Company"), a pioneer of naturally occurring enzymes and biochemicals for commercial agriculture.

Segmentation

Global Agricultural Enzymes Market: Segmentation

By Type

• Phosphatases
• Dehydrogenases
• Ureases
• Proteases
• Other Enzyme Types

By Applications

• Crop Protection
• Fertility
• Plant Growth Regulation

By Crop Type

• Grains and Cereals
• Oil Seeds and Pulses
• Fruits and Vegetables
• Other Crop Types

By Regions

• North America
• Europe
• Asia-Pacific 
• South America
• The Middle East and Africa