Biofertilizers Market - Forecasts from 2024 to 2029

Biofertilizers Market - Forecasts from 2024 to 2029

The biofertilizers market is projected to rise at a compound annual growth rate (CAGR) of 11.61% to reach a market valuation of US$4.026 billion by 2029, from US$1.672 billion in 2022.

The adoption of eco-conscious farming methods is on the rise, driven by the increasing popularity of cost-effective and environmentally friendly fertilizers. These biofertilizers not only enhance soil fertility but also promote better absorption of nutrients by plants while minimizing risks to human health. These advantages are fueling the expansion of the biofertilizers market.

The biofertilizers market is segmented by crop type, including fruits and vegetables, oilseed, cereals, and others. Cereals, such as wheat, rice, and corn, occupy vast agricultural land globally. In the fruits and vegetables segment, consumer interest in organic produce is growing, making biofertilizers essential for organic farming practices.

The excessive use of chemical fertilizers in conventional farming can degrade soil health, making biofertilizers a sustainable solution for maintaining soil fertility in fruit and vegetable cultivation.

Other segments of the biofertilizers market include oilseeds, pulses, and plantations. According to statistics from the FiBL and IFOAM in 2022, organic farming has been embraced across 74.9 million hectares of land globally. Oceania holds the largest amount of organic agricultural land, followed by Europe, Latin America, Asia, Northern America, and Africa.

This approach not only enhances soil fertility but also optimizes the utilization of local resources, reducing dependency on synthetic chemicals that can harm beneficial soil microorganisms. Farmers are increasingly adopting these methods to grow a variety of fruits and vegetables.

Market Drivers:

The increasing need for sustainable solutions in agriculture propels the market.

The biofertilizers market is projected to rise at a subsequent growth rate. The industry is expected to be affected by changing environmental, and governmental regulations which are anticipated to propel market growth as well. In addition, the increasing advancements, and market developments including product launches, collaborations, agreements, acquisitions, and other related factors.

The market is also expected to be dependent on the chemical industry as a major raw input. With the increasing stress on sustainability in agricultural solutions coupled with crop efficiency among growing population needs, the demand and market growth for biofertilizers is projected to rise on a significant scale. In addition, the increasing carbon footprint of conventional fertilizers is also expected to promote the usage of biofertilizers in the global regions.

Furthermore, the increasing apprehension regarding deteriorating soil quality caused by excessive reliance on chemical fertilizers and their potential negative impacts on human health has prompted governments worldwide to advocate for bio-fertilizers.

Governments in numerous agriculture-focused nations are implementing various plans, schemes, and initiatives to encourage farmers to adopt bio-based fertilizers. Additionally, many governments have introduced comprehensive economic recovery packages, offering new liquidity, tax flexibility, and subsidies to the agricultural and food industries.

These measures are expected to boost the demand for such products. Concurrently, several governments have formulated specific agricultural and food-related programs. For example, in August 2021, Japan's Ministry of Agriculture, Forestry, and Fisheries (MAFF) unveiled the Green Food System Strategy, which promotes the widespread adoption of bio-pesticides and biological fertilizers as part of technological advancements aimed at reducing the use of agricultural chemicals and synthetic fertilizers.
Addressing Soil Health Issues-

Addressing soil health concerns is paramount in sustainable agriculture practices. While chemical fertilizers have been widely used to enhance crop yields, they can also have detrimental effects on soil health, such as contributing to soil erosion and diminishing beneficial microorganisms. In contrast, biofertilizers offer a natural and eco-friendly solution to these issues.

Biofertilizers play a crucial role in rebuilding soil fertility by replenishing essential nutrients and promoting microbial activity. They improve soil structure, making it more resilient to erosion and compaction. Additionally, biofertilizers enhance microbial diversity in the soil, which is vital for nutrient cycling and overall soil health.

Furthermore, the use of biofertilizers supports sustainable agricultural practices by reducing reliance on chemical inputs and minimizing environmental impact. By nurturing soil health, biofertilizers contribute to long-term soil fertility and productivity, ensuring the sustainability of agricultural systems for future generations.

Biofertilizers market by type into nitrogen biofertilizers, phosphorus biofertilizers, and others.

The biofertilizers market is categorized by type into Nitrogen Biofertilizers, Phosphorus Biofertilizers, and Others. Nitrogen Fixing Biofertilizers play a crucial role in replenishing nitrogen in the soil through biological nitrogen fixation, which is essential for plant growth.

Phosphate Solubilizing Biofertilizers contain microorganisms that aid in converting phosphorus into a form that plants can readily absorb, addressing the issue of phosphorus availability in the soil.

Other Biofertilizer Types include Potash Mobilizing Biofertilizers, Plant Growth Promoting Rhizobacteria (PGPR), and Mycorrhizal Fungi. This segmentation of the biofertilizer market by type reflects the diverse nutrient requirements of different crops and underscores the growing emphasis on sustainable agricultural practices.

The market is projected to grow significantly in the North American region.

The North American biofertilizers market has been segmented into the United States, Canada, and Mexico. The United States is expected to hold a substantial market share, owing to the presence of key players in the nation.

The Canadian market is expected to witness significant growth in the coming years. The factors that contribute to the growth of the market is the wide usage of fertilizers in the region. Approximately two million tons of pesticides are manufactured and used globally annually. Out of this amount, the United States accounts for 24% of consumption,

Furthermore, Europe is also expected to witness significant growth, due to the increasing usage and distribution of fertilizers from the region. European countries utilize 45% of the total, and the remaining 25% is distributed among other regions worldwide.

Key players-
Novonesis- Novonesis, a leading global player emerging from the merger of top bio solution providers Novozymes and Chr Hansen, is anticipated to be a one-stop solution for all end users of biofertilizer solutions. The company has a diverse range of bio solutions for crop health.
Kan Biosys - Kan Biosys is another promising market player in the domain of the biofertilizer industry. The company has an efficient nutrient management solutions portfolio and offers multiple dry and liquid biofertilizers. The company has a rich network of serving farmers in countries like India, Turkey, the USA, the Dominican Republic, Spain, and Australia.
UPL- UPL, an Asian-based company offering crop protection, crop care, fumigants, and other crop-related products, offers bio-based solutions, including biofertilizers, to address the ever-changing needs of the global agricultural domain. The company offers a total of 11 bio-solution products in its portfolio.

Market Segmentation:

By Type
Nitrogen Biofertilizers
Phosphorus Biofertilizers
Others
By Crop Type
Fruits and Vegetables
Oilseed
Cereals
Others
By Application
Seed Treatment
Root Dipping
Soil Application
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
UK
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Indonesia
Thailand
Others