April 12, 2024
Biofertilizers Market

Biofertilizers market will grow at highest pace owing to growing organic farming

The biofertilizers market includes microorganisms that help in the growth of plants by increasing the supply of nutrients to them. These microbes form associations with the plant roots and facilitate the uptake of nutrients and suppress soil-borne plant pathogens. Biofertilizers contain living microorganisms that help in nitrogen fixation, solubilizing phosphorus and stimulating plant growth through the synthesis of growth-promoting substances. They play an important role in organic farming by increasing crop yields without the use of chemical fertilizers.

The Global Biofertilizers Market Demand is estimated to be valued at US$ 2.61 Mn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2030.

Key takeaways

Key players operating in the biofertilizers market are Sanofi SA, Reckitt Benckiser Group PLC, Pfizer Inc., Mylan NV, GlaxoSmithKline PLC, Johnson & Johnson, Bayer, Takeda Pharmaceutical, and Sun Pharmaceutical Industries Ltd., among others. These players are focusing on new product launches and strategic collaborations to strengthen their market position. For instance, in 2021, Reckitt launched a new hygiene product range targeted towards pregnant women and new mothers.

The growing organic farming practices across the globe is fueling the demand for biofertilizers. As per International Federation of Organic Agriculture Movements (IFOAM), the overall area under organic agricultural land has grown by over 320% across the globe from 2000 to 2018. Countries like India and China are witnessing a significant rise in organic farming, thereby positively impacting the biofertilizers market.

Technological advancements are leading to the development of biofertilizers with enhanced nutrient availability and efficacy. Companies are investing in research activities to create strains of microorganisms that can fix more nitrogen and solubilize phosphorus efficiently. New formulations with bio-stimulants are being introduced that improve soil health and fertility.

Market Trends

The increasing awareness about environmental hazards of chemical fertilizers is driving the adoption of organic and environment-friendly biofertilizers. Various government initiatives and programs in countries like India and China are promoting the use of biofertilizers in agriculture.

Customized biofertilizers specific to crops and soil types are gaining popularity. Companies are tailoring their products as per soil nutrients deficiency and crop requirements which is improving their effectiveness.

Market Opportunities

Rising biofertilizer usage in horticulture crops cultivation provides new opportunities. Fruits and vegetable farmers are increasingly using biofertilizers to improve soil fertility without leaving any chemical residues.

Growth of biofertilizers in emerging economies remains untapped. Mass awareness campaigns and availability of low-cost products can boost their adoption in Latin America, Africa, and Southeast Asia.

Impact of COVID-19 on biofertilizers market growth
The COVID-19 pandemic has significantly impacted the growth of the biofertilizers market. During the initial phases of the pandemic, lockdowns imposed restrictions on transportation and logistics which disrupted the supply chain of raw materials required for biofertilizer production. This led to a reduction in production volumes and caused a shortage in supply to meet demand from the agricultural sector. However, as the pandemic progressed, governments recognized agriculture as an essential service which allowed farms to continue operations. This helped revive demand for biofertilizers from farmers.

With restrictions now being lifted in many parts of the world, the biofertilizers market is witnessing a rebound in growth. Manufacturers are scaling up production capacities and improving distribution networks to cater to pent-up demand. Government policies are also supporting increased biofertilizer usage as they provide a more sustainable alternative to chemicals and help improve soil health. The pandemic has made people more aware of the need for robust food supply chains and environmentally-friendly farming practices. This is expected to drive higher adoption of biofertilizers in the coming years. However, ongoing risks of virus mutations and potential future waves could continue posing challenges for the stable growth of this market.

Geographical concentration of biofertilizers market
In terms of value, the biofertilizers market is highly concentrated in Asia Pacific region. Countries like India, China, Japan and Indonesia have large agricultural bases and governments actively promoting organic and sustainable farming. With growing population and rising food demand, the use of biofertilizers is increasing rapidly in the Asia Pacific region. It accounts for over 50% of the global biofertilizers market currently. North America and Europe are other major regional markets driven by high awareness about environment and soil health.

Fastest growing region for biofertilizers market
South America is poised to be the fastest growing region for the biofertilizers market during the forecast period from 2024 to 2030. Countries like Brazil, Argentina and Colombia are increasingly adopting advanced agricultural practices and allocating more funds for boosting organic production. Supportive policies and investments in R&D are also helping expand biofertilizer applications in the region. Growing export demand for South American agricultural commodities and a conducive climate are additional factors that will drive higher biofertilizer consumption, making South America the fastest expanding regional market over the next six years.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it