Biofertilizers Market

Biofertilizers Market Overview

The global biofertilizers market was valued 2.8 billion in 2022 and is projected to reach USD 5.2 billion by 2028, growing at a CAGR of 10.9% during the study period. The market Size is estimated to be valued at USD 3.1 billion in 2023

Through natural processes such as nitrogen fixation; phosphate solubilization; and the production of compounds that stimulate growth, biofertilizers provide nutrients to plants. They boost soil organic matter and aid in restoring the soil's natural nutrition cycle. By using biofertilizers, growers can increase the sustainability and health of the soil and cultivate healthy crops. Only bacteria and other biological elements that are not damaging to the environment are present in biofertilizers. As a result, they contribute to reducing pollution brought on by agricultural activities, particularly soil pollution.

Use of biofertilizers have been proven to lower the cost of agricultural inputs while increasing the overall crop productivity in the long run. Biofertilizers also helps in increasing resistance to various plant diseases and abiotic stresses. These factors are driving the global biofertilizers market during the review period.

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Market Dynamics

Drivers: Adoption of precision farming and protected agriculture

The goal of precision farming is to produce profitable agricultural output by identifying and analysing spatial and temporal variability using cutting-edge technologies. To boost crop output and yield, agricultural biologicals are employed in precision farming and protected agriculture. The market for biofertilizers is growing as a result of the widespread use of agricultural biologicals in protected agriculture, which promotes the use of biofertilizers. Farmers can track the application of liquid biofertilizer by using fertilisation plans that use GPS-guided geographic information system (GIS) software. Therefore, it is anticipated that the market for biofertilizers will be driven by the rise in land under precision and protected agriculture.

Restraints: Environmental and technological constraints

Biofertilizer products have a limited shelf-life and run a high risk of contamination.  When exposed to high temperatures, the microorganisms utilised as biofertilizers become nonviable. As a result, it's crucial to keep them in a dry, cool environment. The survival of microorganisms during storage is the main issue with agricultural inoculation technology; other difficulties revolve around a number of other factors, including culture medium, physiological state of the microorganisms at harvest, dehydration process, rate of drying, temperature maintenance during storage, and water activity of inoculants. The shelf life of microorganisms is impacted by these difficulties.

Opportunities: New target markets: Asia Pacific and Africa

The Asia Pacific and Africa regions are one of the largest consumers of fertilizers. Population development, particularly in Asia, has led to an increase in food demand, which will ultimately result in an increase in fertilizer usage. Governments in these regions are placing a strong emphasis on the use of environmentally benign fertilizers, like biofertilizers and organic manure, to mitigate the negative impacts of chemical fertilisers. Government agencies have aided in raising farmer understanding of the benefits of using biofertilizers. Africa has experienced active conventional farming over the past few decades, which has utilized synthetic fertilizers to supply the soil with vital plant nutrients. However, the quality of the soil and the vital nutrients have been compromised by the over application of these fertilizers. The region now needs biofertilizers as a result of this aspect.

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Challenges: Intense competition and product rivalry due to similar products

A significant problem in the sector is the availability of counterfeit biofertilizers, which harms farmers' perceptions of the finished product and restrains market expansion. Due to their exact chemical qualities and comparable physical traits, counterfeit products have a very cheap production cost and have shown to be impossible for farmers to distinguish from genuine biofertilizers. Poor microbial load, contaminated items, or inappropriate strains are utilised to simulate a product. Due to a highly fragmented market with unorganised participants, counterfeit products are sold in Asian nations.

Market Ecosystem

Key players in biofertilizers market have strong distribution network and have strong financial records. These firms have experience of several years, well established manufacturing facilities, r&d centers, and skilled workforce. Prominent players in this market include Novozymes (Denmark), UPL (India), Chr. Hansen Holding A/S (Denmark), Syngenta (Switzerland), T.Stanes and Company Limited (India), and Lallemand Inc (Canada).

By type, nitrogen-fixing biofertilizers is projected to gain largest share in the biofertilizers market during the study period

Increased biological nitrogen fixation, improved nutrient availability or uptake, greater absorption and stimulation of plant growth by hormonal action or antibiosis, or through breakdown of organic wastes are all ways that nitrogen fixing biofertilizers aid in enhancing crop output. Also, the use of nitrogen fixing biofertilizers as a partial replacement for chemical fertilisers reduces their quantity and cost and shields the environment from contamination caused by their heavy usage. Thus, driving the growth of segment in the market.

By crop type, fruits & vegetables is forecasted to account for the largest share in the market during the research period

Biofertilizers are known to increase crop productivity of various fruits & vegetables.  Fruits such as bananas have a substantial nitrogen requirement, hence the use of biofertilizer, in particular inoculation with Azotobacter, is utilzsed as an alternative and results in a higher yield than full doses of nitrogen administration. In correlation with VAM fungus, there is a rise in the absorption of nutrients that are mobile, such as nitrogen. Organic farming produces high-quality vegetables, thus more farmers are expected to adopt and use microbial biofertilizers in order for modern agriculture to grow sustainably.

By mode of application, soil treatment segment is anticipated to occupy major share in the biofertilizers market during the study period

When planting legume seeds in hot, dry, highly acidic soils, adverse weather, or when seeds have been treated with chemicals that are toxic to rhizobia bacteria, it is necessary that a liquid biofertilizer formulation must be applied directly to the soil to achieve optimal nodulation. When applied to the soil, fertilizers diffuse their way into the crops. Fertilizers promote increased yield and productivity since the roots of the crop are in close touch with them. Hence, driving the growth of segment during the review period.

By form, liquid segment is forecasted to gain the major share in the biofertilizers market during the review period

Liquid biofertilizers can be used with modern machinery, can withstand high temperatures up to 45 °C, are easy to handle and use, are easy to add ingredients that enhance the growth of microbial strains, are easy to apply on both seeds and soil, and have a longer shelf life of 1.5 to 2 years, hence liquid biofertilizers are more desirable than solid inoculants. Moreover, liquid biofertilizers have higher microbial densities than carrier based, allowing for lower dosages while yet producing the same results.

North America is projected to gain the largest market share in the global biofertilizers market.

North America is projected to gain the largest market share in the global biofertilizers market. The presence of large number in the region allows farmers/growers in the region, access to wide range of products at competitive prices. The governments in the region are promoting use of agricultural inputs which causes less environmental degradation and hence are encouraging the use of biofertilizers. In countries such as US and Canada, farmers are focused on producing cash crops at larger scale which is also driving the market in the region.

Key Market Players:

Key players in this market include Novozymes (Denmark), UPL (India), Chr. Hansen Holding A/S (Denmark), Syngenta (Switzerland), T.Stanes and Company Limited (India), Lallemand Inc (Canada), Rizobacter Argentina S.A. (Argentina), Vegalab SA (Switzerland), IPL Biologicals Limited (India), and Kiwa Bio-tech Product Group Cooperation (China).

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Scope of the Report

Report Segmentation

The study categorizes the biofertilizers market based on by type, by crop type, by mode of application, by form, and region.

Recent Developments

• In May 2022, Syngenta introduced its new nitrogen-fixing biofertilizer, Envita. This product is designed to be used for several crop types such as cereals & grains, pulses & oilseeds, and fruits & vegetables.
• In January 2021, Rizobacter Argentina S.A announced a collaboration with Heliae Development, LLC (US). The collaboration would provide farmers throughout the US and Eastern Canada with new biological solutions that would add value to their farming operations.
• In March 2021, Symborg (Spain) inaugurated its new manufacturing unit located at Alhama de Murcia (Region of Murcia, Spain). The facility would help the company to manufacture with greater efficiency. The total investment in this expansion was USD 29.71 million.

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