Agricultural Microbial Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Agricultural Microbial Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The agricultural microbial market is projected to register a CAGR of 5.5% during the forecast period (2022-2027). The COVID-19 pandemic has had a positive impact on the market due to the growing demand for biopesticide products to produce sustainable and healthy agricultural products. The global market has been witnessing an upward trend due to the increasing awareness and support from several agencies with respect to the usage of agricultural microbials.

Under the additive type segment of the market, the fungi types are projected to be the fastest-growing segment, owing to the increased demand for fungi as inoculants applied across various crops like cereals, grains, fruits, and vegetables globally owing to their effectiveness. However, the lack of technological advancements in microbial inoculants and the need to maintain high numbers of functional microorganisms on seeds during seed treatment are some challenges for microbial seed treatment manufacturers. The growing need to feed an ever-growing global population, the increasing demand for sustainable agricultural practices, and concerns of the general public over environmental safety are some of the leading drivers for the agricultural microbial market.

North America was the largest geographic segment of the market studied. The increasing growth of high-value crops and raising awareness among farmers about the environmental benefits of microbial solutions are expected to provide more scope for the agricultural microbials market’s expansion in the region.

Key Market TrendsIncreasing Food Demand and Food Safety

According to FAO, the global population is estimated to reach 9 billion by 2050, escalating the demand for food to feed the growing population. Moreover, the general public’s concerns over food and environmental safety are driving microbial products’ usage. Other forces driving the demand for microbial include the need for crop intensification (being able to increase yields per acre) while pursuing increasingly sustainable practices, seeking biological alternatives to boost production with decreased pressure on the environment, or adding integrated practices to close the yield gap.

An increase in urbanization and less availability of arable land are motivating farmers to adopt efficient crop-protection techniques. There has been a broader acceptance and recognition of the increasing benefits of microbial. As a result, an increase in demand for microbial products and agricultural production is being witnessed.

The awareness of safe food has increased among the population, which can be witnessed through the decrease in food safety issues reported. According to the European Commission report, the notification of food safety alerts, including pesticide residues, has decreased in many countries. This indicates the sustainable production practices undertaken by the producers and the suppliers across the chain. The awareness regarding food safety is anticipated to increase the use of microbiological products as biopesticides in crop protection, driving the agriculture microbial market.

North America Dominates the Global Market

North America has the largest market share, with United States accounting for more than half of the regional market share in 2021. The requirement for high crop productivity and production with high-quality, evolving agricultural practices and precision farming has been driving the market growth for agriculture microbial products over the years in North America. The region is promoting the use of microbial products to balance the agricultural sector’s growth, which is mostly opted by chemical fertilizers and pesticides required to sustain its large-scale production.

The rise in organic and environment-friendly farming practices has increased the demand for agricultural microbial products, especially in United States. ​According to the Research Institute of Organic Agriculture (FiBL), in 2020, 2.4% of the farmland in Canada was organic, and the proportion in United States was 0.6%. There was a total of over 22’000 producers in North America, most of them in United States (73.4%). With its highly evolved agricultural sector, the country has been adapting to the natural and organic way of farming due to the increasing awareness regarding balanced plant nutrition.

Competitive Landscape

The agricultural microbial market is a highly fragmented market, with the presence of many domestic players. Major players such as BASF, Certis USA LLC, Marrone Bio Innovations, and others have very diversified product portfolios in this market. These players are also focusing on R&D, a wide geographical presence, and aggressive acquisition strategies as their key adopted strategies to strengthen their positions in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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