Top Trends in the Agricultural Biologicals Market

Top Trends in the Agricultural Biologicals Market Analysis, 2028

The global agricultural biologicals market is projected to grow at a CAGR of 13.7% from an estimated value of USD 14.7 billion in 2023 to reach USD 27.9 billion by 2028. Awareness of organic food products and concerns toward environmental safety and favorable regulations are the key drivers affecting the growth of the agricultural biologicals market. The role of agricultural biological products has become an integral part of integrated pest management practices (IPM) in developed markets, wherein the biological products are used in combination with new synthetic crop chemistries. Strategic developments such as expansions, new product launches, and agreements have been adopted by the majority of key players to strengthen the market.

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Top Trends in the Agricultural Biologicals Market Dynamics

Drivers: Growing preference for organic products

The rising awareness among consumers about the increasing use of pesticides and fertilizers in farm-grown vegetables has led to an increase in the adoption of organic food products. The absence of residues of pesticides, fertilizers, growth hormones, and antibiotics has encouraged consumers to opt for organic foods. This increasing consciousness has also promoted the concept of farm-to-table among consumers. According to a report published by FiBL on "The Organic Market in Europe 2021: Current Statistics'', the retail sales of organic food products have increased significantly in European countries in recent years. Some of the largest producers of organic products between 2018 and 2019 include Denmark, Sweden, Switzerland, Austria, and Luxembourg.

Restraints: Commercialization of low-quality biological products

Lack of transparency in patent protection laws in various countries has led to the prevalence of low-quality products. As the top trends in the agricultural biologicals market has limited barriers to entry, which has facilitated many competitors to commence operations, the nature of the market has become fragmented. This has been a factor in the introduction of low-quality products in the market by regional or local manufacturers to gain the advantage of the benefits of the growing demand for biologicals. The low prices of these products provided by small-scale domestic manufacturers also attract farmers. Similar product formulations from many competitors reduce consumer loyalty as well as the brand value of the products. The biologicals market is projected to be a niche market experiencing strong growth trends, which has to be capitalized on by developing products that are innovative and act on a wide range of crops providing better results. When a company does not develop its unique selling proposition in the biologicals market, it finds difficulty in expanding its presence other than in the regional market.

The regulatory framework for biologicals, being unclear across many regulatory bodies around the world, has allowed the entry of duplicate products. A product has been attempted to be defined appropriately only in the European Commission. According to Biological Products Industry Alliance, the purpose of agricultural biologicals is not considered the same by government authorities in different Asian countries. For instance, in China, they are mostly treated as fertilizers, while in Japan and South Korea, they are considered plant growth regulators. This restricts the market for biologicals, as it becomes difficult for the farmers to trust the products with such vagueness about their application.

Opportunity: Need for the development of broad-spectrum formulations in agricultural biologicals

The rise in the consumption of organic food has triggered organic farming which will create opportunities in the top trends in the agricultural biologicals market. Following the trends, certified organic growers use some plant essential oils, including mints, thyme, rosemary, clove, and citrus as pesticides. These plant-based oils have a broad spectrum of activity that can be used for integrated pest management in organic food production. When tested for pest management, such essential oils have shown good efficacy in countering insects and mites in combination with lethal neurotoxicity and sub-lethal repellence or deterrence. Certain plant-based essential oils such as rosemary and thyme were proven to have useful prophylactic activity against plant pathogenic fungi such as powdery mildew, while some others, including clove and citrus, are phytotoxic at optimal concentrations, which is why they can be used as herbicides. The results from ongoing field trials and commercial success using essential oil pesticides have presented growth opportunities for the biopesticides market.

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The US Environmental Protection Agency (EPA) had approved the dry formulation of Grandevo, a product of Marrone Bio Innovations Inc. (MBI)(US), an advanced biological broad-spectrum insecticide/miticide to protect crops against certain insects and mites. Grandevo was approved for use on ornamental plants and edible crops in field and greenhouse applications and facilitated flexibility through air and ground applications. Grandevo is based on a new species of Chromobacterium isolated from under a hemlock tree by Dr. Phyllis Martin at USDA-ARS. Grandevo was the first new broad-spectrum microbial insecticide to enter the market in nearly 50 years. The 'product's complex modes of action control pests through unique combinations of repellency, feeding disruption, reduced egg hatch, and a reduction in the ability of pests to reproduce. Grandevo is not limited by pre-defined spray windows, timing, or resistance spray restrictions, which provides flexibility to incorporate it into an Integrated Pest Management (IPM) program or to use it as a broad-spectrum foundation product. MBI currently has more than three dozen patents pending in the US and globally, which also contain broad-spectrum agri-biological formulations.

Challenges in the Top Trends in the Agricultural Biologicals Market: Supply of counterfeit and less-effective products

The supply of counterfeit biologicals, such as biofertilizers, biopesticides, and biostimulants is a major issue in the industry, as it is creating a negative image of the final products among farmers and hindering market growth. The cost of production of spurious products is extremely low, and it has been impossible for farmers to differentiate spurious biologicals from the original ones due to similar physical characteristics and identical chemical properties. To imitate a product, poor microbial load, contaminated products, or improper strains are used. Counterfeit products are being sold in Asian countries due to a highly fragmented market with unorganized players.

Furthermore, the supply of less-effective products, which is again affecting the sales of genuine products, is another concern that needs to be addressed. The effectiveness of biologicals depends on the production process of manufacturing, microorganism content, viable microorganism, and their storage. The supply of low-standard material by certain manufacturers can adversely affect the credibility of biofertilizers. Some local companies are also selling organic manure as biofertilizers and nitrogen fertilizers are mixed with water, and this liquid is sold as a biostimulant. Spurious manufacturers use these activities to their advantage due to the lack of knowledge and training among local farmers, which is hampering the image of branded products offered by global manufacturers.

Top Trends in the Agricultural Biologicals Market Eco System

Top Trends in the Agricultural Biologicals Market Analysis

The biocontrols segment is projected to dominate the agricultural biologicals market by trends during the forecast period.

Biocontrol products are known to improve the quality and yield of agricultural produce by protecting crops. These are completely natural and hence do not harm the environment. Biocontrol products are eco-friendly alternatives to chemical pesticides. Increased awareness among end-users regarding the residue levels of pesticides in food and the increased pest resistance to conventional crop protection chemicals are some of the key factors supporting the growth of the top trends in the agricultural biologicals market.

The bionematicides segment is projected to be the fastest-growing segment in the agricultural biologicals market by trends during the forecast period.

Increase in the loss of agricultural crops due to root-knot nematodes, globally, every year. In the coming years, the market for bionematicides poses great scope, as currently the market of it is not majorly commercialized. The increasing concerns towards preventing the loss caused by soil-borne insects is fueling the growth of the bionematicides market.

The bioinsecticides segment is projected to be the second-fastest growing segment in the agricultural biologicals market by trends during the forecast period.

There has been an emergence of various insects, with increasing climatic stress, hampering the growth of the plants, thus resulting in production losses. The application of bioinsecticides can be more beneficial in terms of sustainability and cost-effectiveness as compared to conventional chemicals. Also, the need to prevent crop losses and to adopt sustainability is driving the market for bioinsecticides.

Top Trends in the Agricultural Biologicals Market Regional Insights:

In 2022, the North American region emerged as the leading contributor to the growth of the Agricultural Biologicals market, holding the largest market share.

The growth of the organic industry, escalating costs of chemical fertilizers, and growing awareness about soil nutrient preservation are significant factors driving the expansion of the Agricultural Biologicals market. The North American region, characterized by its extensive research and development efforts and numerous patents awarded for biocontrol and biostimulants by key companies, can be attributed to the market's growth in this region.

United Stated Agricultural Biologicals Market Analysis:

The United States top trends in the agricultural biologicals market has been experiencing significant growth and innovation. Agricultural biologicals, which include biopesticides, biofertilizers, and biostimulants, are gaining popularity due to their perceived environmental and health benefits compared to traditional chemical inputs.

• Market Size and Growth: The agricultural biologicals market in the United States has been steadily growing over the past decade. Factors such as increasing awareness about sustainable agriculture practices, stringent regulations on chemical pesticide usage, and growing demand for organic products have been driving this growth. The market encompasses a wide range of products, including biopesticides, biofertilizers, and biostimulants, with each segment experiencing robust growth.

• Biopesticides: Biopesticides, which include microbial pesticides, plant-incorporated protectants, and biochemical pesticides, have gained traction as alternatives to synthetic chemical pesticides. Growing concerns about pesticide residues in food, pesticide resistance, and environmental pollution have spurred demand for biopesticides. The market for biopesticides in the US is expected to continue expanding as farmers increasingly adopt integrated pest management (IPM) practices.

• Biofertilizers: Biofertilizers, such as rhizobacteria, mycorrhizal fungi, and nitrogen-fixing bacteria, have gained attention for their ability to improve soil fertility and crop productivity in a sustainable manner. With increasing emphasis on soil health and fertility, biofertilizers are being integrated into conventional farming practices. The US biofertilizer market is expected to witness steady growth as farmers seek alternatives to synthetic fertilizers.

• Biostimulants: Biostimulants are substances or microorganisms applied to plants or soils to enhance nutrient uptake, improve stress tolerance, and promote growth and yield. These products have gained popularity among farmers seeking to maximize crop performance while minimizing chemical inputs. The US biostimulants market is poised for significant growth, driven by advancements in biotechnology and increasing awareness about the benefits of biostimulants in agriculture.

• Regulatory Environment: The regulatory landscape for agricultural biologicals in the United States is evolving, with government agencies such as the Environmental Protection Agency (EPA) and the Department of Agriculture (USDA) playing key roles in product registration and approval. Striking a balance between encouraging innovation in biological products and ensuring environmental and human safety remains a challenge for regulators.

• Key Players: The US agricultural biologicals market is characterized by the presence of a diverse range of companies, including multinational corporations, biotechnology firms, and startups. Key players in the market include Bayer CropScience, BASF SE, Corteva Agriscience, Syngenta AG, Marrone Bio Innovations, and Valent BioSciences Corporation, among others. These companies are investing in research and development to expand their product portfolios and gain a competitive edge in the market.

• Challenges and Opportunities: While the US agricultural biologicals market presents significant opportunities for growth and innovation, several challenges persist, including the high cost of biological products, limited awareness among farmers, and variability in product performance. However, ongoing advancements in biotechnology, increasing consumer demand for sustainable and organic products, and government initiatives to promote sustainable agriculture are expected to drive continued growth in the market.

Top Companies in Global Agricultural Biologicals Market

Key players in the agricultural biologicals market include BASF SE (Germany), Syngenta AG (Switzerland), Pro Farm Inc. (US), Isagro S.p.A. (Italy), UPL (India), Evogene Ltd (Israel), Bayer AG (Germany), and Vegalab S.A. (US).

Scope of the Top Trends in the Agricultural Biologicals Market Report

This research report provides the top trends in the agricultural biologicals market such as:

• Agricultural biologicals
• Biocontrols
• Biostimulants
• Biofertilizers
• Biofungicides
• Bioinsecticides
• Bionematicides
• Agricultural Inoculants
• Pheromones
• Biological Seed Treatment

Recent Developments in the Top Trends in the Agricultural Biologicals Market:

• In April 2023, Syngenta AG (Switzerland) and Biotalys NV (Belgium) partnered to research, develop, and commercialize new biocontrol solutions to manage key pests in a broad variety of crops. The new solution will be based on Biotalys’ AGROBODYTM technology and will offer a new mode of action to broaden farmers’ access to novel technologies. This partnership helped the company come up with more innovative products under its solutions.
• In February 2023, Bayer AG and Kimitec partnered to accelerate the research and commercialization of biological crop protection solutions, including biostimulants. According to a global agreement, both businesses will work closely together to advance and create biological solutions generated from natural sources, such as crop protection products that deal with weeds, pests, and diseases as well as biostimulants that encourage plant growth.
• In January 2023, FBSciences Holdings, Inc., a pioneer in the development and marketing of naturally derived plants, soil, and climatic health solutions, has been acquired by Valent BioSciences LLC. With this acquisition, Sumitomo Chemical Co., Ltd., the parent company of Valent BioSciences, can now offer a wider range of integrated agricultural biological solutions, including biostimulants, biopesticides, and crop nutrition options.
• In May 2022, UPL acquired OptiCHOS, a naturally derived fungicide from BioCHOS, a spin-off of the Norwegian University of Life Sciences. BioCHOS was formulated as a biodegradable broad-spectrum disease control solution with low environmental and human impact. The product acquisition would help UPL expand its NPP portfolio and target markets suitable to the product to address farmers' needs.
• In November 2021, Evogene Ltd. launched its first product, LAV.211, an inoculant for yield improvement, under the brand, Result.

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