The global biofertilizer market size is valued at USD 1.43 billion in 2021, which is expected to reach USD 3.75 billion, growing at a CAGR of 12.80% during the forecast period.
Biofertilizers are substances containing microorganisms that promote plant and tree growth by increasing the supply of essential nutrients to plants. It comprises living organisms such as mycorrhizal fungi, blue-green algae, and bacteria. A biofertilizer is a chemical-containing microbe that invades the rhizosphere or the plant's interior when applied to seeds, plant surfaces, or soil and promotes plant growth by regulating the amount or presence of primary nutrients in the plant host. Biofertilizers provide plants with nutrients via natural processes like nitrogen fixation, phosphorus solubilization, and the production of growth-promoting chemicals. They aid in restoring the soil's organic nutrient cycle and increasing its organic matter content. Using biofertilizers makes it possible to cultivate healthy plants while enhancing the soil's health and sustainability. Biofertilizers will likely reduce the demand for chemical fertilizers and pesticides, but they cannot entirely replace them.
Increased organic farming techniques, the need to enhance soil organic matter, and an excellent regulatory system are the primary market drivers. In addition, with the introduction of integrated pest management programs that encourage biofertilizers, the agricultural sector is anticipated to increase its utilization of biofertilizers. In the coming years, the growth of the global biofertilizers market is anticipated to be influenced favorably by the greater acceptance and adoption of products among farmers in both developing and developed economies. In addition, growing soil and water pollution from excessive chemical fertilizers drives the demand for organic fertilizers over the forecast period. Despite the low acceptance of biofertilizers, key factors such as the rise in demand for food products and income per capita have created enormous prospects for the biofertilizers market in Asia and Africa. Even so, top players in the biofertilizers market are confronted with several obstacles, such as biofertilizers' limited shelf life, storage issues, and a high likelihood of contamination.
|Fastest Growing Market||Europe|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
During the forecast period, the biofertilizers market will expand due to the expansion of the organic food industry. In addition, the increasing initiative taken by government agencies and the growing awareness of the need for sustainable practices in modern agriculture is expected to be the most significant factors driving the growth of the biofertilizers market over the coming years. Due to growing concerns about their health, consumers are becoming increasingly concerned about food safety, increasing residue levels in food, and environmental issues. This increased awareness has influenced their preference for chemical-free food products. Hence, major supermarket franchises like Wal-Mart and Cosco are expanding their selections of organic foods. To serve health-conscious consumers, the food industry in some developed nations now offers organic food menus. As biofertilizers and green manure are prerequisites for organic farming, the expansion of the organic food industry is driving the demand for these products. In addition, since the outbreak of the pandemic, people have become more aware of healthy organic food products, which has fueled the growth of the market for biological inputs such as biofertilizers. Consequently, biofertilizer market demand will witness an increase.
In addition to this, governments all over the world are promoting a variety of plans and initiatives in the agricultural sector and among farmers to increase the use of bio-based fertilizers. Additionally, various governments have enacted comprehensive economic recovery plans, including tax flexibility, liquidity, and agricultural subsidy; these policies are anticipated to impact the expansion of the biofertilizer market positively.
Biofertilizer products are susceptible to contamination and have a short shelf life. When subjected to high temperatures, the microorganisms utilized as biofertilizers become inviable. Therefore, it is essential to store them in cool and dry surroundings. Survival of microorganisms during storage is the greatest challenge in agricultural inoculation technology; other obstacles include culture medium, physiological state of microorganisms when cultivated, dehydration process, rate of dehydration, temperature maintenance during storage, and water activity of inoculants. These obstacles affect the shelf life of microorganisms. Biofertilizers market growth is also hindered by the lack of research & development and testing labs. A quality management system is also required to provide farmers with superior microbial products.
Asia-Pacific and Africa are among the largest fertilizer-consuming regions. Population growth, particularly in Asia-Pacific, has led to an increase in the demand for food, which in turn has led to an increase in the consumption of fertilizers. However, the most pressing issues in this region are pollution and soil contamination, as well as their adverse effects on humans. Governments in these regions are focusing on using environmentally friendly fertilizers, like biofertilizers and organic manure, to combat the harmful effects of chemical fertilizers. Thus, these regions are expected to provide growth prospects for the biofertilizer market during the forecast period.
The region-wise segmentation of the global biofertilizer market includes North America, Asia-Pacific, Europe, and LAMEA.
North America will command the biofertilizer market with the largest share during the forecast period. This results from farmers' increasing demand for organic products and the incidence of biofertilizers over the forecast period. In addition, the increased adoption of advanced irrigation systems, such as drip and sprinkler irrigation, for fertigation by farmers in various North American countries is driving the market growth for biofertilizers in the region. The combination of a stringent regulatory environment and a growing preference for biofertilizer products has rapidly expanded the market. In addition, rising concerns regarding the excessive use of chemical fertilizers and nitrate emissions are anticipated to be among the most critical factors driving the biofertilizers market in the North American region over the forecast period.
In 2017, the US Department of Agriculture launched the National Organic Program to authenticate farmland for growers transitioning to organic agriculture. According to the Organic Trade Association, obtaining the certification enables farmers to potentially sell their products at higher prices than goods cultivated using conventional cultivation methods. It is anticipated that these programs will increase the use of biofertilizers, thereby widening the market in North America. In addition, the region's major players are spreading their inclusion in the foreign nations via various business schemes, like mergers and acquisitions, partnerships, and introduce new products, all of which promote regional growth.
The global biofertilizer market is classified based on product, application, crop type, and region.
Based on product type, the segments are Nitrogen Fixing and Phosphate Solubilizing.
The nitrogen-fixing segment will likely hold the largest market share during the forecast period. Biofertilizers are viable cells consisting of effective variants of specific nitrogen-fixing bacteria that can be applied in farming either in powdered or liquid form. The plant utilizes nitrogen to produce vitamins, amino acids, nucleic acids, and other nitrogen compounds. Farmers widely use biofertilizers that fix nitrogen to cultivate high-demand crops such as wheat, rice, and oilseeds. Nitrogen-containing biofertilizers can correct the soil's nitrogen content.
Consequently, increasing crop and plant growth. There are three types of nitrogen biofertilizers: free-living, symbiotic, and associative symbiotic. Biofertilizers comprise microorganisms like rhizobium, actinobacteria, azotobacter, and azospirillum, which fix nitrogen. They contribute to the conversion of nitrogen to organic compounds. Nitrogen fixation is one method for transforming elemental nitrogen into a form that plants can use.
Based on application, the segments include Seed Treatment and Soil Treatment.
The seed treatment segment is most likely to grow at a significant CAGR and hold the largest share during the forecast period. In seed treatment, seeds are coated with biofertilizers like Rhizobium, Azotobacter, and Azospirillum. This method is the most common for implementing biofertilizers, as it is simple and effective in most situations. This aids in encapsulating limited portions of functional microorganisms, allowing the plant to provide nitrogen to its roots and absorb the nutrients. For the intent of nitrogen fixation, legume seeds are subjected to extensive seed treatment. Biofertilizers are applied to crop and plant seeds to protect against viral or bacterial attacks, lowering crop yield. In addition, seed treatment helps dissolve the soil's phosphorus and increase its availability. In addition, many manufacturers have devised innovative and novel solutions to administer these biofertilizers more efficiently.
Based on crop type, the segments include Cereals & grains, Pulses & oilseeds, Fruits & Vegetables, and Others.
The segment of cereals & grains is most likely to have the largest share in the market during the forecast period. Biofertilizers aid in fixing atmospheric nitrogen in legume crop soil and root nodules. As a crop stimulant and biofertilizer, rhizobium is used to increase cereal production. Rhizobia can form a relationship with gramineous crops like rice, wheat, maize, barley, millets, and other cereals without establishing nodules or causing disease symptoms. Governments in numerous economies are promoting the use of biofertilizers in response to rising concerns regarding the deterioration of soil quality caused by the excessive utilization of synthetic fertilizers and their possible adverse effects on human health. Several agri-dominant nations are implementing various plans, schemes, and other initiatives to promote biofertilizers among farmers, boosting the market in the segment of cereals & grains.