Inoculants Market

[274 Pages Report] According to MarketsandMarkets, the global inoculants market size is estimated to be valued at USD 1.1 billion in 2022. It is anticipated to reach USD 1.7 billion by 2027, recording a CAGR of 8.1% in value. The global demand for inoculants is increasing significantly due to the growing awareness among farmers about the various benefits offered by inoculants in increasing farm profitability. The ability of inoculants to improve the quality of soil and enhance the growth of crops has led to the growth of inoculants.

The inoculants market is projected to grow at a high rate due to factors such as increased demand for organic food products. The increase in global awareness about sustainable agriculture—which demands a step-by-step reduction in the cost of farming and meeting environmental safety norms—has resulted in an increase in the use of agricultural inoculants.

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Market Dynamics

Drivers: Shift in trend toward adoption of organic and environment-friendly farming practices

There has been a significant change in eating habits and preferences among people globally. Consumers are now more inclined toward their health, the nutrient content and the quality of the food they eat. Owing to these concerns, they have gradually begun shifting towards organic food, even though organic foods are priced higher than conventional foods. This awareness among consumers further boosts the organic market as consumers are willing to pay for them if it benefits their health and wellness. Due to this the area under organic farming is increasing globally. The need of organic inputs to improve crop productivity is growing at a robust rate fueling the growth of the inoculants market. There is increase in use of inoculants in farming to grow crop which have resistance towards abiotic stress. Moreover, governments of various developing economies such as India are supporting farmers to shift to organic and sustainable agricultural practices. This is projected to drive the global inoculants market.

Restraints: Limited awareness regarding both agricultural and silage inoculants

Most farmers are unaware of or have limited knowledge about agricultural inoculants and their usefulness in increasing cost-yield sustainability. In most regions, agricultural inoculants are perceived by farmers to have a gradual positive effect compared to chemical fertilizers. The acceptance of agricultural inoculants is very low in most countries, such as India, South Africa, and the Middle East. In these countries, agriculture is the major source of income for more than half of the country’s population; farmers are not willing to take risks regarding the production capacity. Thus, there has been very little acceptance of agricultural inoculants among farmers. According to the Institute of Management Development and Research (IMDR), in India, small retailers and shopkeepers are unwilling to stock and sell agricultural inoculants in the country as they feel their quality is unreliable. Awareness of inoculants, lack of availability, and slow results are the major problems farmers face in using agricultural inoculants. Therefore, unawareness about agricultural inoculants among farmers is a major hindrance to market growth. A similar case is seen with livestock farmers for silage inoculants.

Opportunities: Expansion of grassland pastures in South America

Land use for livestock production varies by country and can account for up to half of the total land area in continental regions. In Brazil, beef livestock is a major economic activity, with pasturelands amounting to about 2.5 times the area for other crops. According to the Brazilian Association of Meat Exporting Industries (ABIEC, Associação Brasileira de Indústrias Exportadoras de Carnes), considering the inputs, services, and revenue of the whole meat business chain, livestock was responsible for 10% of the Brazilian total Gross Domestic Product (GDP) in 2019. Brazil is the largest world beef exporter, with 2.2 million tons and 14.4% of the international market share. The land area occupied by grass pasture is far more than that of other crops. The use of elite plant growth-promoting microorganisms (PGPM) as inoculants represents an important strategy to achieve qualitative and quantitative improvements in forage biomass, increasing the productivity and sustainability of livestock production.

Challenges: Limited usage of inoculants worldwide

Despite the several advantages of microbial inoculant technology over the use of agrochemicals, its widespread utilization is limited globally. Microbial inoculants have been applied in the forms of liquids (as sprays, root dips, drenches) or as dry formulations with huge successes recorded, but most of these techniques are not practicable on a large scale. This is because a large amount is required for the optimum functionality of the inoculants. Plant growth-promoting microbes (PGPR) are highly selective and targeted, unlike chemical inputs that are broad-spectrum products. It only impacts a selected or targeted organism. Thus, results in the inconsistency of quality and efficacy under field conditions comprising various organisms acting simultaneously.

By type, agricultural inoculants is anticipated to grow at the higher CAGR during the study period

Agricultural inoculants help in fixing atmospheric nitrogen and mobilizing soil nutrients. Agricultural inoculants improve the quality of soil, enhance the growth of crops, and increase yield by improving the uptake of nutrients. They also increase the efficiency of crop protection chemicals and manures. These benefits offered by inoculants is forecasted to propel the global inoculants market. Moreover, the agricultural inoculants market is also anticipated to be driven by the rising food demand caused by rising populations.

By microbe, bacterial is forecasted to grow at the highest CAGR during the research period

Bacteria are used by both agricultural and silage inoculants. Among the bacterial microbes, rhizobacteria are utilized by agricultural inoculant manufacturers, while Lactobacillus is preferred by silage inoculants manufacturers. Key players such as BASF (Germany) and Novozymes A/S (Denmark) offer agricultural inoculants formulated with rhizobia. Apart from this, Kemin Industries (US) provides silage inoculants that contain a mixture of lactic acid bacteria. Thus, bacterial segment is projected to grow at highest CAGR during the inoculants market during the forecast period.

By crop type, oilseeds & pulses is projected to grow at the highest CAGR during the study period

Oilseeds are important cash crops in developing countries where they are grown abundantly. The most important crops in this category are soybean, canola, lentils, and beans. The global demand for soybean is increasing, as it is a rich source of protein for vegetarians. The demand for high-yielding and disease-resistant soybean seeds is also increasing, as it is a cash crop of premium value. Due to these factors, the oilseeds & pulses segment is anticipated to grow at highest CAGR, during the review period.

By form, liquid is forecasted to grow at the higher CAGR during the research period

Culture broths or formulations mostly made of water, minerals, or organic oils are used in liquid formulations. Before planting or transplanting, seeds and seedlings can be submerged in the inoculant. For the biocontrol of pathogens or physiological stimulation, they can also be sprayed directly onto the soil or dusted on the leaves of established plants. Liquid inoculants are simple to inoculate, and their application is very practical when used in irrigation or sprinkler systems. It is applied directly to crops without going through any other processes after fermentation. Ease in application is projected to foster the growth of liquid segment

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North America is projected to gain the largest market share in the global inoculants market. Due to the shrinking agriculture growth and public settlements, farmers are adopting new technologies to increase the productivity of soil and the yield of crops. The US dominates the agricultural inoculants market due to its vast arable land and advanced farming practices. In order to maintain the fertility of the soil, as well as the yield of the crop, farmers prefer opting for organic agricultural practices. This has increased the demand and consumption of agricultural inoculants in this region. ADM Animal Nutrition, Cargill, Agri King, Chr. Hansen Holding AS, and Corteva Agriscience are the major companies with a significant presence in North America.

Key Market Players:

Key players in this market include Corteva Agriscience (US), BASF SE (Germany), Bayer AG (Germany), Novozymes A/S (Denmark), Cargill, Incorporated (US), Archer Daniels Midland Company (US), DSM (Netherlands), Chr. Hansen Holding A/S (Denmark), Lallemand Inc. (Canada), Kemin Industries, Inc (US), Verdesian Life Sciences (US), BIO-CAT (US), Microbial Biological Fertilizers International (South Africa), Agrauxine (US), and Provita Supplements GmbH (Germany).

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Scope of the Report

Target Audience:

• Inoculants manufacturers
• Government and research organizations
• Suppliers and distributors of inoculants
• Marketing directors
• Key executives from various key companies and organizations in the inoculants market

Report Scope:

This research report categorizes the inoculants market based on type, microbe, crop type, form, and region.

By Type

• Agricultural inoculants
• Silage inoculants

By Microbe

• Bacterial
• Fungal
• Other microbes

By Crop Type

• Cereals & grains
• Oilseeds & pulses
• Fruits & vegetables
• Forage
• Other crop types

By Form

• Dry
• Liquid

Recent Developments

• In November 2022, Corteva Agriscience announced the acquisition of The Stoller Group, Inc., one of the largest independent biologicals companies in the industry. This acquisition would help the company with immediate scale and profitability, with EBITDA margins accretive to Corteva.
• In March 2022, BASF SE announced a collaboration with AMVAC Chemical Corp to develop a Rhizo-Flo soybean inoculant solution for SIMPAS-applied solutions.
• In September 2021, Novozymes A/S launched Optimize FXC to increase nitrogen fixation, accessibility to soil nutrients, and water absorption in soybean plants, thereby reducing the need for fertilizer.

Frequently Asked Questions (FAQ):

To know about the assumptions considered for the study, download the pdf brochure