Biofertilizers Market Size, Share & COVID-19 Impact Analysis, By Type (Nitrogen Fixing, Phosphate Solubilizers, Others), By Microorganism (Rhizobium, Azotobacter, Azospirillum, Pseudomonas, Bacillus, VAM, Others), By Application (Seed Treatment, Soil Treatment, Others), By Crop Type (Cereals, Pulses & Oilseeds, Fruits & Vegetables, Others), and Regional Forecast, 2023-2030

The global biofertilizers market size was valued at USD 2.02 billion in 2022 and is projected to grow from USD 2.26 billion in 2023 to USD 5.02 billion by 2030, exhibiting a CAGR of 12.05% during the forecast period.

The surged demand for organic products leads to an increase in product adoption and the demand for biological fertilizers. Excessive use of chemical fertilizers resulted in increasing incidence of soil and water pollution. Hence, the demand for organic and sustainable fertilizers is increasing rapidly to reduce and prevent the harmful implication of chemical fertilizers. In developing economies, the acceptance and adoption of biofertilizers is increasing and several agricultural biofertilizer producers are increasing their production capacity to meet the growing demand.

COVID-19 IMPACT

COVID-19 Outbreak Led to Raw Material Supply Chain Disruptions

The COVID-19 outbreak resulted in a slowdown of the global market due to various socio-economic changes. Similar to the conventional fertilizers industry, manufacturers across various economies faced challenges due to the uneven raw materials supply. Price gouging by some logistics companies due to the hindered availability of transporters has emerged as a significant problem. The uncertainties associated with the situation resulted in a demand fall for bio-based fertilizers.

Additionally, some prominent companies operating in the market reported less revenue in 2020. For instance, the revenue of National Fertilizers Limited was USD 1.6 billion in 2020, which decreased by 13.97% (value in USD) compared to the previous year. This was observed as the company's production and marketing were affected due to labor and logistical constraints. These functions were expected to record a steady recovery as demand for biofertilizers was not predicted to exhibit a drastic rise even after the lifting of lockdown in developed and developing economies.

However, with major players and governments across several countries actively working toward restoring the supply chain, an improvement in the production, supply, and demand scenario of biological fertilizers is expected. The suppliers and distributors of agricultural biologicals, which consist of free living symbiotic and associative symbiotic, need to consider technical advancement as a new opportunity. The coronavirus pandemic forced companies to think about market penetration using novel characteristics of formulations and cost-saving. Such new initiatives are anticipated to boost the global biofertilizers market share in the coming years.

LATEST TRENDS

Proliferating Demand for Sustainable Crop Production Inputs to Support Market Growth

The rising demand for sustainable fertilizers, which are suitable for organic farming and conventional agricultural practices is increasing rapidly. These fertilizers are economical and eco-friendly and help to improve soil fertility, increase plant nutrient uptake, and reduce the risk to human health. These advantages in the use of biofertilizers help in fueling the biofertilizers market growth.

DRIVING FACTORS

Increasing Emphasis on Organic Agriculture to Drive the Market Growth

As per data provided by the National Centre for Organic and Natural Farming in 2021, organic agriculture has been adopted in 187 countries where 3.1 million farmers practice such cultivation in 72.3 million hectares of land. The use of this practice helps to improve soil fertility and maximize effectiveness of local resources while reducing reliance on synthetic compounds which negatively hamper the healthy microorganism present in the soil. Farmers are adopting such practices for cultivating wide range of fruits and vegetables.

Rising Governmental Support to Boost the Growth of the Market

The rising concern over declining soil quality due to overuse of chemical fertilizers and their potential ill-effects on human health has encouraged the governments across various economies to promote bio-fertilizers. Governments across several agri-dominant countries are opting for various plans, schemes, and other initiatives to encourage the adoption of bio-based fertilizers among farmers.

Furthermore, many governments have enacted comprehensive economic recovery plans that included new liquidity, tax flexibility, and agricultural and food industry subsidies. Such steps are predicted to positively influence product demand. At the same time, many governments developed specific agricultural and food-related programs. For instance, in August 2021, Japan's Ministry of Agriculture, Forestry, and Fisheries (MAFF) released the Green Food System Strategy, which called for the widespread use of bio-pesticides and biological fertilizers as part of technological advancements to reduce the use of agricultural chemicals and chemical fertilizers.

RESTRAINING FACTORS

High Production Cost of Biological Fertilizers to Restrict Market Growth

The production cost of biological and organic fertilizers is comparatively higher than conventional fertilizers as specific machinery and equipment are required for their production. This factor is projected to hinder the market growth during the foreseeable years. Moreover, biofertilizers include live microbial cells with a short shelf life (about six months at 20-25°C.), and their storage and shipping necessitate extra care and precaution, elevating the product cost. Thus, low shelf-life and low versatility may restrain the market growth during the forecast period.

SEGMENTATION

By Type Analysis

Nitrogen Fixing Fertilizers to be Sought-after Owing to the Ability to Generate Higher Yield

Farmers have widely used nitrogen-fixing phosphate solubilizing biological fertilizers to produce high-demand crops such as wheat, rice, oilseeds, and others. Biological fertilizers containing nitrogen can correct the nitrogen level in the soil, aiding in the growth of the crop. Nitrogen bio-fertilizers are broadly classified into free-living, symbiotic, and associative symbiotic.

Phosphate solubilizers are also witnessing significant growth. The demand for phosphate solubilizers is predicted to grow at a decent pace attributed to their potential to improve crop quality and yield. Phosphate is a key nutrient that plants need to function correctly, and it plays a vital role in all aspects of plant growth and development. The use of phosphate solubilizers effectively increases fertilizer uptake by mobilizing insoluble phosphorus into the soil to which they are applied. With biofertilizers' development, phosphate solubilizers have also become widely used among farmers.

By Microorganism Analysis

Rhizobium to be the Dominant Microorganism Owing to High Efficacy in Crop Production

Rhizobium is the leading variant of microorganism used in agriculture due to its enormous importance in providing the major nitrogen source in soil. Apart from being an excellent nitrogen-fixing agent, rhizobium exerts plant growth-promoting traits and supports the insolubilization of inorganic phosphate. Further, its application is rising mainly due to its ability to ensure success in achieving crop productivity and cutting the need for synthetic fertilizers that are expensive and harmful to the environment.

The utilization of azotobacter is projected to rise across agri-dominant economies as they are efficient in inducing beneficiary reaction on crop growth rate and improving seed germination. These free-living symbiotic bacteria help synthesize growth regulators such as auxins, cytokinins, and gibberellic acid (GA). In addition, it stimulates rhizospheric bacteria, protects plants from phytopathogens, improves nutrient uptake, and ultimately increases biological nitrogen fixation. The abundance of azotobacter in the soil is related to many factors, mainly soil pH and fertility; hence, their demand increases rapidly.

Pseudomonas is widely applied in agriculture crop management as it imparts protection to plants against numerous fungal and nematode infestations. It also induces plant-growth-promoting hormones, which assist crop production.

By Application Analysis

Seed Treatment to be the Most Adopted Application Method Due to Various Agronomic Benefits

Seed treatment segment held the highest share in the market due to wide utilization in administering biofertilizers. Crop and plant seeds are subjected to biofertilizer treatment to avoid viral or bacterial attacks, significantly reducing crop yield. Further, biological fertilizers applied to the seeds promote atmospheric nitrogen fixation and make them readily available for the crop. Seed treatment helps solubilize phosphorus in the soil and improve its availability. Along with this, numerous vendors have come up with innovative solutions to administer these biological fertilizers more efficiently. These solutions include extended spreading widths and intelligent speed monitoring systems, which enhance spreading accuracy, slow-releasing fertilizer spreaders, and others.

Soil treatment is another major application of biofertilizers, which is expected to witness the fastest growth. It involves spraying the bio-based fertilizers on the agricultural land, thereby directly on the soil. The spraying of biological fertilizers on soil helps the symbiotic bacteria to interact with root nodules of the plants for nitrogen fixation and moisture retention in soil. This factor promotes healthy plant growth and prevents soil quality degradation and erosion.

By Crop Type Analysis

Cereals Segment to Lead Owing to High Demand for Organic Cereals

At present, the application of organic fertilizers in the production of cereal grains is high compared to other crop types. The segment is anticipated to retain its dominant position throughout the forecast period. The high demand for organic cereals in both developed as well as developing economies due to the potential health benefits offered is boosting the market growth of organic cereals. In numerous experiments and field trials, the application of biological fertilizers on cereal crops has significantly increased their yields by nearly 60%-85%. Further, the demand for organic cereal and organic cereal-based products is surging among consumers across the globe, which augments the product’s use for cultivating cereal crops.

Biofertilizers in pulses & oilseeds are increasing and rhizobium is widely used for nitrogen uptake and produces yields in pulses. The inoculation of biological fertilizers and sulfur had a major effect on oilseeds' yield and yield attributes. The increasing consumption and use of vegetable oils owing to their wide application in cooking and other edible products is boosting the oilseeds market, further aiding the product demand for oilseed production.

REGIONAL INSIGHTS

In terms of geography, the market is categorized into North America, Asia Pacific, Europe, South America, and the Middle East & Africa.

The North America region stood at USD 564.29 million in 2021 and dominated the market. The market in North America is considerably expanding due to the rising number of organic farms in major economies such as Mexico, Canada, and the U.S. According to the U.S. Department of Agriculture (USDA) 2019 study, the U.S. organic certified farms were around 16,500, which grew by 17% between 2016 and 2019. The unprecedented COVID-19 pandemic and its huge impact on consumers' daily lives had significant consequences for the organic sector in 2020. As shoppers seek clean, healthy food at home, organic food products prove the food of choice. According to the Institute of Food Technologists (IFT), after increasing by more than 50% during the pandemic, sales of organic products in the U.S. jumped by more than 20% in the spring of 2020.

The Europe market is likely to exhibit significant growth over the forecast period. This is due to the imposition of stringent regulations by the European Commission on the use of chemical fertilizers. The fertilizing products regulation agreement by the European Union opened the market for innovative organic fertilizers. The regulations provide strict rules on quality, safety, and labeling requirements for all fertilizers traded across the European Union. According to the European Union's new regulation for fertilizers, the limits for cadmium in phosphate fertilizers will be tightened from 60 mg/kg to 40 mg/kg after three years and to 20 mg/kg after 12 years, minimizing risks to health and the environment. The regulation increased the use of organic fertilizers and bio-based fertilizers, providing farmers and consumers with more diverse choices and promoting green innovation. 

In the Asia Pacific region, there is increasing R&D on biological fertilizers and various schemes launched by governments to promote organic farming, thereby boosting the market growth. According to the Press Information Bureau, Government of India, the Indian government has set a target of restoring 26 million hectares of degraded land, including saline soils, by 2030 to ensure food security for the population. The Government of India introduced schemes such as the National Project on Organic Farming (NPOF) to produce, distribute, and promote biological fertilizers. China is promoting bio-fertilizers as an alternative to limit the overuse of chemicals in agriculture.

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South America is emerging as the fastest-growing market and is projected to offer strong growth opportunities to the market players during the projected period. The presence of Argentina and Brazil where the demand for organic products is increasing rapidly will foster the market growth in the region. According to the Research Institute of Organic Agriculture (FiBL), in 2019, Argentina was recognized as the second country with the highest potential share in global organic agricultural land (3.7 million hectares) after Australia.

KEY INDUSTRY PLAYERS

Enhancement of Product Portfolio by Acquisitions to Promote Market Growth

Prominent players in the market have realized the product’s growth potential. They are making continuous efforts to innovate, launch new products, and enhance their product portfolio in the market to establish their prominence. In addition, market players are focusing on collaborations, mergers, and acquisition activities to aid their product portfolio and to address the requirements of a wider consumer base. For instance, in May 2021, Rizobacter Argentina S.A, a leader in agricultural microbiology, launched a new specialty fertilizer called Microstar BIO. This innovative product is a mix of biological and chemical fertilizers. It will help growers aim for profitable crops as well as lookout for soil.

LIST OF KEY COMPANIES PROFILED:

• Lallemand Inc. (Canada)


• National Fertilizers Limited (India)


• IPL Biologicals (International Panaacea Limited) (India)


• Bioceres S.A. (Argentina)


• BioWorks Inc. (U.S.)


• SOM PHYTOPHARMA (INDIA) LIMITED (India)


• American Vanguard Corporation (U.S.)


• Gujarat State Fertilizers & Chemical Ltd. (India)


• Symborg (Spain)


• Novozymes (Denmark)

INDUSTRY DEVELOPMENTS:

• February 2023 - The Punjab government inaugurated its first biofertilizer laboratory to develop horticultural techniques for farmers in the state. The laboratory is involved in the production of organic fertilizers, Azotobacter Carrier Based, PSB Carrier Based, Azotobacter liquid formulation, PSB liquid formulation, and other similar products.


• August 2022 - Chambal Fertilizers and Chemicals Limited (CFCL) partnered with The Energy and Resources Institute's (TERI) SMART Agrisolutions and launched “UTTAM SUPERRHIZA” -  an advanced Mycorrhizal Biofertilizer product.


• December 2021 – UPL Limited launched granular formulation of Mycorrhiza fertilizer Tekon & Neoroot for rice crops in India. The use of this product helps to increase nutrient uptake, reduce transplanting shock, improve crop yield and promotes carbon sequestration.


• September 2021 - Novozymes, a leading manufacturer of agricultural solutions, introduced inoculants, which help to improve nutritional efficiency, nitrogen fixation, and nodulation. The product is mainly aimed to serve consumers in the U.S. market.


• February 2021 – Symborg announced the inauguration of a new headquarter in Brazil in order to increase the market penetration of Symborg’s agricultural biologicals in the Brazilian agricultural sector.


• June 2020 – Bihar Agricultural University (BAU) developed four new types of eco-friendly biofertilizers such as S Nitrofix, S PhosphoBactrin, S Rhizobium, and a combination of Nitrofix and PhosphoBantrin for launch across the Indian market. These fertilizers improved the soil fertility via the nitrogen fixation process, increasing crop yield by more than 20%.

REPORT COVERAGE 

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The report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the global market share, size, and growth rate for all possible market segments, including type, microorganism, application, crop type, and region. Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

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