Biofertilizers Market is projected to reach $3.2 billion by 2029, at a CAGR of 11.5% during the forecast period 2022–2029. The growth in organic farming & the rising demand for organic food, the growing concerns regarding environmental safety, the increasing government initiatives to promote the use of biofertilizers, and the rising investments from leading market players are the key factors driving the growth of the biofertilizers market. Furthermore, the growing adoption of fertilizers in emerging economies is expected to provide significant opportunities for the players operating in this market.
The Impact of COVID-19 on the Biofertilizers Market
The COVID-19 pandemic led to nationwide lockdowns to combat & control the spread of the infection. The lockdown restrictions impacted travel, transport, manufacturing, educational institutions, and all non-essential trade, significantly affecting many industries globally, including a part of the agriculture industry.
In the agriculture sector, the fertilizers market registered a strong slowdown in sales during the first quarter of 2020 due to disrupted logistics & transportation. The fertilizers market also witnessed interruptions in the value chain, from raw material supply to manufacturing, packaging, and distribution. The effects of the COVID-19 pandemic on the biofertilizers market were noticed in early 2020 in China, one of the world's largest producers and consumers of biofertilizers. The closure of production plants in China and restrictions on the export and import of biofertilizers and raw materials, particularly animal waste, to and from China's restricted areas negatively affected the supply chain. These factors impacted the production, sales, and operations of this industry. The pandemic also impacted the biofertilizer markets in the U.S., India, Australia, and Brazil. In India, many fertilizer plants shut down completely or operated at reduced capacities due to social distancing restrictions, leading to substantial losses in domestic biofertilizer production.
The fertilizers industry in Southeast Asia faced challenges because of the COVID-19 pandemic, impacting fertilizer distribution within and across markets in the Asia-Pacific region. Malaysia had imposed a lockdown, but the fertilizer production facilities were given clearance to continue operations as they were considered essential for the supply of food. In Vietnam, fertilizer production units operated at normal levels without disrupting the distribution chain. In Thailand, the production and supply chain distribution of fertilizers and crop micronutrients remained unaffected despite various virus containment measures. Hence, the complete halting of the transportation and logistics industry and reduced production in some countries due to the lockdowns adversely affected the global biofertilizers market.
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Growing Concerns Regarding Environmental Safety to Drive the Growth of the Biofertilizers Market
The global population is growing rapidly; therefore, there is a need to increase agricultural production to fulfill the food requirements of the growing population. The use of chemical fertilizers to enhance agricultural production has become a common practice across the globe. However, there is a rising awareness about the adverse effects of agrochemicals on plant physiology, soil quality, animals, and human beings. Also, their extensive use directly affects the environment as chemical residues from fertilizers may remain in the soil and cause soil pollution, contaminate the surface or groundwater, or get released into the atmosphere through vitalization. Residues left in the soil emit ammonia, methane, nitrous oxide, and elemental nitrogen into the environment.
Agricultural chemicals have been linked to adverse impacts on human health, ranging from short-term impacts such as headaches and nausea to chronic impacts such as cancer, reproductive health conditions, and endocrine disruption. Nitrogen and other chemicals in fertilizers can contaminate groundwater and cause blue baby syndrome after drinking. Therefore, farmers are increasingly adopting biofertilizers as an alternative to chemical fertilizers.
Several organizations such as the Organic Trade Association (OTA), the International Federation of Organic Agriculture Movements (IFOAM), the International Society of Organic Agriculture Research (ISOFAR), the Midwest Organic and Sustainable Education Service (MOSES), the Northeast Organic Farming Association (NOFA), the Organic Federation of Australia (OFA), the Organic Federation of Canada, and the Organic Growers School provide education, resources, and practical advice to create awareness regarding organic farming.
Biofertilizers are formulated using natural plant residues & waste, animal manures & excreta, micro-organisms, and botanical extracts to enhance agricultural production. Biofertilizers decompose quickly without any negative effects on the surface and groundwater; thus, they are less hazardous to living beings. These fertilizers remain effective for a long time and improve the soil structure while increasing its water & nutrient-holding capacity. They are slow-releasing, non-toxic fertilizers that do not leave any residues in the food; hence, they are preferred for producing residue-free agricultural yield. Therefore, factors such as the growing need to increase agricultural production and awareness about the harmful effects of chemical inputs and the benefits of biofertilizers are driving the global demand for biofertilizers.
Key Findings in the Biofertilizers Market Study:
In 2022, the Nitrogen-fixing Microbes Segment is Expected to Dominate the Biofertilizers Market
Based on microorganism type, in 2022, the nitrogen-fixing microbes segment is expected to account for the largest share of the biofertilizers market. The large market share of this segment is attributed to the hazards associated with the use of chemical fertilizers, the rising number of initiatives by government agencies along with increasing awareness about the need for sustainability in modern agriculture, the rising adoption of advanced farming with drip irrigation and sprinklers, and the growing health concerns. In addition, nitrogen-fixing microbes are a more economical, ecological, and profitable solution to provide nitrogen to plants.
The Oilseeds & Pulses Segment is Projected to Register the Highest CAGR During the Forecast Period
Based on crop type, the oilseeds & pulses segment is projected to register the highest CAGR during the forecast period. The rapid growth of this segment is attributed to the rising demand for organic oilseeds & pulses, the increase in the area under organic oilseed & pulses cultivation, and the rising demand for plant-based foods.
In 2022, the Seed Treatment Segment is Expected to Dominate the Biofertilizers Market
Based on mode of application, in 2022, the seed treatment segment is expected to account for the largest share of the biofertilizers market. The large market share of this segment is attributed to the several advantages of seed treatment in biofertilizers, such as increasing seed germination and decreased incidence of foot and root rot. It also helps to solubilize phosphorous in the soil and improve its availability. The increasing use of biofertilizers in seed treatment of cereals such as rice, wheat, sorghum, and maize and oilseeds such as groundnut, sunflower, and soybean are driving the biofertilizers market.
The Liquid Biofertilizers Segment is Projected to Register the Highest CAGR During the Forecast Period
Based on formulation, the liquid biofertilizers segment is projected to register the highest CAGR during the forecast period. The rapid growth of this segment is driven by the benefits offered by liquid biofertilizers, such as high efficiency & absorbability, ease of use, cost-effectiveness, and uniform application.
North America: To Dominate the Biofertilizers market in 2022
Based on geography, the global biofertilizers market is divided into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2022, North America is expected to account for the largest share of the global biofertilizers market. The large market share of this segment is attributed to the increasing demand for organic products, the increasing health awareness among consumers, the growing acceptance of biofertilizers among rural farmers, continuously growing areas under organic cultivation, and the high adoption rate of advanced irrigation systems, such as drip & sprinkler irrigation for fertigation.
Key Players
The key biofertilizers companies operating in this market are AgriLife (India), American Vanguard Corporation (U.S.), Chr. Hansen Holding A/S (Denmark), IPL Biologicals Limited (India), Koppert B.V. (Netherlands), Lallemand Inc. (U.S.), Mapleton Agri Biotec Pt Ltd (Australia), National Fertilizers Limited (India), Novozymes A/S (Denmark), Rizobacter Argentina SA (Argentina), Symborg Corporate, SL (Spain), UPL Limited (India), and Vegalab SA (Switzerland).
Scope of the Report:
Biofertilizers Market, by Microorganism Type
- Nitrogen-fixing Microbes
- Rhizobia Bacteria
- Azospirillum
- Other Nitrogen-fixing Microbes
- Phosphate Solubilizing & Mobilizing Microbes
- Pseudomonas
- Bacillus
- Other Phosphate Solubilizing & Mobilizing Microbes
- Potassium Solubilizing & Mobilizing Microbes
- Other Microorganism Types
Biofertilizers Market, by Crop Type
- Cereals & Grains
- Maize/Corn
- Wheat
- Rice
- Other Cereals & Grains
- Oilseeds & Pulses
- Fruits & Vegetables
- Other Crop Types
Biofertilizers Market, by Mode of Application
- Fertigation
- Foliar Application
- Seed Treatment
- Other Modes of Application
Biofertilizers Market, by Formulation
- Dry Biofertilizers
- Liquid Biofertilizers
Biofertilizers Market, by Geography
- North America
- Europe
- France
- Spain
- Italy
- Germany
- U.K.
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- Rest of Asia-Pacific (RoAPAC)
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America (RoLATAM)
- Middle East & Africa
Key Questions Answered in the Report-