Global Agriculture Microbiome Market 2022-2028

Global Agriculture Microbiome Market 2022-2028

The global agriculture microbiome market was valued at nearly $5.7 billion in 2021, which is projected to reach nearly $14.0 billion in 2028, growing at a CAGR of 13.8% during the forecast period. The growing adoption of the organic farming, low development cost of microbials as compared to the conventional chemical pesticides, and rising awareness of the benefits related to the agricultural microbial usage are the key factors driving the growth of the market.

Agriculture microbiome highly increases the yield and productivity of crops. According to the 2021 Global Agricultural Productivity Report, the global yield needs to increase at an average annual rate of 1.7% to sustainably produce food, feed, fiber, and bioenergy for 10 billion people in 2050. The rising demand for high yield agricultural crops driving the innovations in agricultural crops including pulses, cereals, oil seed, and fruits and vegetables, which in turn fueling the market growth.

Moreover, increasing research in the agriculture microbiome landscape further gives a boost to the growth of the market. For instance, in February 2021, Penn State’s College of Agricultural Sciences has conducted research on rebuilding soil microbiomes in high tunnel agriculture system. This study was performed under the US Department of Agriculture Organic Transitions Program with an aim to support farmers to rebuild healthy soil microbiomes after a soil-clearing event. Ongoing research projects related to the implication of microbiome for soil treatment and seed treatment are further making significant contribution to the market growth. With the impact of the COVID-19 pandemic, the demand for organic crops has been escalated, which is further anticipated to leverage the market growth.

Segmental Analysis

The global agriculture microbiome market is segmented on the basis of type, function, formulation, mode of application, and crop type. Based on type, the market is segmented into virus, bacteria, fungi, and others. Based on function, the market is segmented into crop protection, and soil amendment. Based on formulation, the market is segmented into dry formulation, and liquid formulation. Based on mode of application, the market is segmented into soil treatment, seed treatment, and foliar spray. Based on crop type, the market is segmented into cereals, oilseed & pulses, fruits & vegetables, and others.

Among type, the bacteria segment dominated the market with 71.2% of share and generated around $4.1 billion in 2021. This value is further projected to reach around $9.9 billion in 2028, growing at a CAGR of 13.6% during the forecast period. Bacteria have unique features that make them ideal for agriculture. Bacterial strains have been most successfully isolated and used for cultivation purposes as compared to other microorganisms. Bacteria strains provide higher and healthy yieldsin agriculture and hence their applications havebeen increased in terms of biofertilizers and biopesticides.

Based on function, soil amendment dominated the market with 68.5% of share and generated around $3.9 billion in 2021. This value is further projected to reach around $9.5 billion in 2028, growing at a CAGR of 13.6% the forecast period. Soil microbiota plays a key role in suppressing soil-borne plant pathogens improving the natural soil suppressiveness. Soil amendment with microbials is important for various reasons such as nutrient recycling, maintain soil structure, suppression of plant diseases, soil detoxication, and others.

Moreover, crop protection segment is projected to exhibit the highest CAGR of 14.1% during the forecast period. The segment was valued at around $1.8 billion and is further projected to reach around $4.5 billion in 2028. The microbial pest control provides a significant amount of target specificity and ecological safety. Moreover, increasing efforts by the market players in the target segment further gives a boost to the segmental growth of the market. For instance, in February 2021, biopesticide Acera is formed by two isolates of Bacillus thuringiensis (Bt) bacteria. The technology results from a partnership between Embrapa and the company Ballagro. The product will especially help the crops including soybeans, corn and cotton.

Regional Analysis

Geographically, the market is segmented into North America (US and Canada), Europe (UK, Germany, Italy, Spain, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and the rest of the world (RoW). North America held a major market share in the global agriculture microbiome market in 2021. The market in North America was valued at around $2.8 billion in 2021 which is projected to reach around $6.5 billion in 2028 growing at a CAGR of 12.7% during the forecast period.

Market Players

The report covers the analysis of various players operating in the market. Some of the key players covered in the report include BASF SE, Bayer CropScience AG, Marrone Bio Innovations, Inc., Syngenta AG, Chr. Hansen Aa/S, and others. The new product launch, product development, and considerable investment in R&D of microbiome is the core focus of these major market players. Moreover, the key players of agriculture microbiome market are actively adopting organic or inorganic market activities to increase their market share. For instance, in July 2021, Marrone BioInnovations, Inc. announced the expansion of its strategic partnership with Rizobacter — a subsidiary of Bioceres Crop Solutions Corp. to offer Rizonema, a biological seed treatment for nematodes and soil dwelling insectsfor use in row crops in Brazil.