Agricultural Inoculants Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Agricultural Inoculants Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Agricultural Inoculants Market size is estimated at USD 8.93 billion in 2023, and is expected to reach USD 16.02 billion by 2028, growing at a CAGR of 12.40% during the forecast period (2023-2028).

Key Highlights

• The growing application of agricultural inoculants on turf grass, soil quality, environmental concerns, and research studies on biodegradable fertilizers' effectiveness are the prime drivers of the inoculant market. Low levels of nutrients and moisture in the soils, excessive usage of chemical fertilizers, and growing environmental concerns are some major challenges in the global agricultural sector. There is also a rise in the demand and popularity of sustainable agriculture through organic farming.
• Agricultural inoculants are emerging as a potential solution to synchronize nutrient release as per the requirement of plants. Additionally, various government initiatives promote the adoption of inoculants to spread awareness of microbial inoculants globally. This resulted in a shift from conventional to organic farming practices and encouraging the use of agricultural inoculants. For example, FERTIBIO, an Italian Operational Group, uses microorganisms and biomaterials to develop innovative bioinoculants to cultivate food and feed crops. Such factors are anticipated to boost the market's growth.
• The use of microbial inoculants is becoming increasingly popular in agriculture, as they offer a natural and sustainable alternative to chemical fertilizers and pesticides. These inoculants include beneficial bacteria, fungi, and other microorganisms that can help to promote plant growth and health, increase soil fertility, and improve crop yields.
• According to a study by the University of Sheffield's Grantham Centre for Sustainable Futures, soil degradation has been occurring rapidly and the rate of erosion is 100 times greater than the rate of soil formation. It is because of intensive farming practices and excessive residues of chemical fertilizers. Therefore, there is increasing demand for sustainable agriculture globally, which is driving the farmers to t low-cost, efficient, and integrated nutrient management systems. This factor may boost the demand for inoculants globally.

Agricultural Inoculants Market Trends

Growing Popularity of Organic and Eco-friendly Farming Practices

Currently, agricultural practices are witnessing a trend shift from conventional to organic farming. This shift can be attributed to growing health consciousness and concerns about environmental safety, soil health, and agricultural sustainability. According to the Research Institute of Organic Agriculture (FiBL), the area under organic cultivation increased from 70.9 million ha in 2018 to 76.4 million ha in 2021, with 187 countries practicing organic agriculture. This indicates the growing demand for organic solutions such as inoculants, further leading to increased investments in localized research, involvement of private and public sectors in the production of these inoculants, the establishment of effective regulations, and the promotion of a favorable environment for the growth of the market. Thus, rising acreage and increasing consumer demand for clean products are expected to positively influence the agricultural inoculants market during the forecast period.

Microbial inoculants offer a natural and sustainable alternative to synthetic inputs, as they can improve soil health, increase nutrient availability, and protect against diseases. Additionally, the use of microbial inoculants can help to reduce the environmental impact of agriculture by reducing the amount of synthetic inputs needed and promoting more sustainable farming practices. As a result, the demand for microbial inoculants is increasing among farmers who are looking for ways to reduce their environmental footprint and produce healthier, more sustainable crops.

In modern agriculture, the use of fertilizers and pesticides is very high and causing critical problems, such as soil pollution, microbial imbalance, reduction in soil fertility and productivity, loss of natural biocontrol agents, and beneficial organisms. Additionally, the emerging resistance in insects is driving interest for alternatives, such as agricultural inoculants. Therefore, agricultural inoculants play an important role in ensuring plant health, soil fertility, and agricultural sustainability.

Asia-Pacific is the Fastest-growing Market

Microbial inoculants are widely accepted as potential alternatives or complements to chemical fertilizers and pesticides in agriculture. However, there remains a lack of knowledge regarding their application and effects under field conditions. During the 2015-2020 period, China, India, and the U.S. have been the leading countries in microbial inoculants research. The developing regions around the world are in direct need of microbial inoculants for the sustainable development of food security. This will boost the inoculants market in coming years.

Currently, Southeast Asian palm plantations holds 85% share of the world’s palm oil market. However, the actual situation is severe due to the high damage done to the soil to gain a higher yield in a short time, which is causing various blights or obstacles to continuous cropping by the pathogenic bacteria from losing microbial balance in the soil. Thus, a way has been established a to produce microbial materials to suppress the target pathogenic bacteria by using original composting technology. Now, the companies are developing, producing, and marketing the microbial materials in collaboration with palm plantation, that aims to create a new plantation system that cultivates crops while enriching the bacterial flora of the soil. Thus, there is an expansion in the creation of sustainable economic value.

The fungal and bacterial inoculants promotes plant growth by enhancing nutrient acquisition and growth hormones. They also increase the resistance in plants against plant pathogens and the surface area of the root system for better absorption of nutrients from the soil. Therefore, they have been used as inoculants and as biocontrol agents across various crops such as cereals in the region. The rapid rise in population with inadequate food production demands sustainable agriculture practices in the Asia, including integrated nutrient management practices such as the use of agricultural inoculants. This is expected to grow the market in sustainable way during the forecasting period.

Agricultural Inoculants Industry Overview

The agricultural inoculants market is fragmented and few international players have diverse and expanding product portfolios to occupy a higher market share. They are also engaged in acquisitions and agreements. The major players are focusing on R&D activities, expansion of product portfolios, geographical expansion, and aggressive acquisition strategies. Some of the leading players like Novozymes, Rhizobacter, Premier Tech, Advanced Biological Marketing. and BASF SE are dominating the studied market.

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