Biofertilizers Market Size 2024-2028

The biofertilizers market size is forecast to increase by USD 2.27 billion between 2023 and 2028, accelerating at a CAGR of 13.64%. The market experiences growth driven by three key factors. In developing countries, there is a growing demand for biofertilizers driven by their environmental advantages. As arable land diminishes, there is a push towards adopting sustainable agricultural practices, with biofertilizers proving beneficial. Moreover, the emergence of liquid fertilizers is opening up new avenues, offering increased versatility and efficiency in tackling contemporary agricultural issues. This trend reflects a broader shift towards more sustainable farming methods, emphasizing the need for innovative solutions such as organic fertilizers to support agricultural productivity and environmental conservation efforts worldwide.

What will be the Size of the Biofertilizers Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market is witnessing a surge in interest due to their sustainable nature and positive impact on agriculture. Unlike chemical fertilizers, biofertilizers are derived from naturally occurring substances such as fungi and freeliving organisms, which help preserve soil health and reduce harm to ecosystems caused by fertilizer abuse. These biologicals, including nitrogen biofertilizers and phosphate solubilizers, promote plant growth through symbiotic or associative symbiotic relationships, enhancing plant nutrition. They also offer health benefits by reducing chemical residues in crops like soybean. As agriculture moves towards more protected agriculture methods, biofertilizers are poised to play a crucial role in sustainable farming practices. Precision farming is increasingly important due to the rising demand for sustainable fertilizers and agricultural biologicals, which promote nutrient uptake through the use of bioinoculants containing living microbes. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The Increase in demand for biofertilizers from developing countries is driving market expansion. A notable breakthrough in the market is the introduction of liquid biofertilizers, featuring liquid formulations comprising microorganisms and essential nutrients. Unlike carrier-based alternatives, with limited shelf life and vulnerability to UV rays and high temperatures, liquid biofertilizers offer a prolonged two-year shelf life and resilience against adverse conditions. Their higher microbe density and application convenience through power sprayers and hand sprayers render them more potent and user-friendly compared to their traditional counterparts.

In June 2020, Bihar Agricultural University scientists developed eco-friendly liquid biofertilizers, elevating crop yield by 20%, offering a compelling substitute to chemical fertilizers, thus propelling market growth during the forecast period.

Significant Market Trends

Regulation for food safety and environmental pollution is a key trend shaping market forecasting. The expanding global population places significant demands on land and natural resources, including water. The intensified pace of agricultural production results in the depletion of plant nutrients, affecting crop nutrient content. In response, farmers often turn to chemical and inorganic fertilizers, such as ammonia, to restore lost nutrients. However, excessive application of fertilizers can hinder soil biology, leading to deteriorated soil quality. Consequently, there is a growing trend towards organic farming as a more sustainable alternative. The market for biofertilizers, which include organics like sulfur and vegetable oils, is expanding due to rising health concerns regarding chemical use in food production. Compliance with these safety and quality regulations is expected to drive the demand for biofertilizers in the foreseeable future.

Major Market Challenge

Issues with biofertilizers affordability is a key factor hindering the market growth. High-quality biofertilizers are readily available in developed countries, but their affordability and accessibility are limited in developing regions like South America and Africa, where crop production demands are high. The low purchasing power of farmers and price sensitivity act as major barriers, hindering the adoption of biofertilizers in these countries. Insufficient information about organic farming products leads many farmers to choose traditional chemical fertilizers. Convincing farmers of cost savings and comparable yields with biofertilizers is crucial for their widespread adoption. The challenge of product affordability is expected to impede the growth of the biofertilizer market in these regions during the market growth analysis period.

Market Segment Insights

By Application 

The market share growth by the seed treatment segment will be significant during the market forecast period. The market has witnessed a notable expansion due to the increasing adoption of seed treatment. This process, which involves applying biofertilizers directly to seeds, enhances their quality and grants them access to essential nutrients and beneficial microorganisms in the rhizosphere. Seed treatment fosters healthier plant growth and bolsters their resistance against diseases and pests. 

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The seed treatment segment showed a gradual increase in the market share of USD 1.27 billion in 2018. Several factors are fueling the demand for seed treatment in the biofertilizers industry. These include the practicality and efficiency of applying biofertilizers at the seedling stage, the promotion of sustainable farming practices, and the reduction of reliance on artificial fertilizers and pesticides. Microorganisms such as Cyanobacteria, Nitrogen-fixing soil bacteria, Phosphate-solubilizing bacteria, and various strains of Rhizobium, Azotobacter, Azospirillum, Pseudomonas, and Bacillus play a pivotal role in the market. These microorganisms are integral to the production of nutrients and improving soil quality. Modern agricultural practices have embraced seed treatment as a cost-effective and organic alternative to synthetic fertilizers. This shift is particularly significant in the agricultural industry, where crops like Pepper, Tomato, Eggplant, Cucumber, and Cereal grains in the cereal segment benefit from seed treatment. The PM PRANAM scheme and the growing emphasis on sustainable, pesticide-free food production further underscore the importance of biological fertilizers. Owing to all these factors, the demand for biofertilizers from seed treatment is expected to increase and drive the growth of the market focus during the market growth and forecasting period.

By Product 

Based on the product, the market is fragmented into nitrogen-fixing biofertilizers, phosphate-solubilizing biofertilizers, and others. The market is primarily driven by the demand for sulfur-based and oil-derived biofertilizers. Sulfur is an essential nutrient for plants, and biofertilizers offer a sustainable alternative to chemical sulfur sources. Additionally, vegetable oils are used in the production of biofertilizers, particularly those based on microbial strains that fix nitrogen. Compared to chemical fertilizers, biofertilizers offer environmental benefits by reducing greenhouse gas emissions during manufacturing and minimizing the leaching of nutrients into water sources. Furthermore, the use of biofertilizers can improve soil health and promote long-term agricultural sustainability.

By Region

North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market research and growth during the forecast period.

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The Rhizosphere, the region around plant roots, hosts various microorganisms, including cyanobacteria and nitrogen-fixing soil bacteria. Phosphate-solubilizing bacteria play a crucial role in making nutrients available to plants. With the shift towards sustainable organic farming and the rise of modern agricultural practices, the demand for biofertilizers derived from these microorganisms has surged in North America. The agricultural industry in urbanized areas of the US and Canada has witnessed growth, leading to increased income and a preference for cost-effective, high-quality food such as pepper, tomato, eggplant, and cucumber. Organic farming, free from pesticides and chemical fertilizers, has gained traction due to health concerns and environmental sustainability. Biofertilizers manufactured from Rhizobium, Azotobacter, Azospirillum, Pseudomonas, and Bacillus, offer a viable alternative to synthetic and artificial fertilizers. Seed treatment and soil treatment with these biological fertilizers have shown significant improvements in crop yield, particularly in the cereal segment, including organic cereals. Despite the benefits, manufacturing challenges persist, including raw material availability and consistency. Governments, such as the Indian PM PRANAM scheme, are promoting the use of biological fertilizers to reduce reliance on chemical fertilizers and mitigate water contamination and soil quality degradation. The trend toward organic food production is expected to continue, driving the demand for biofertilizers in the forecast period.

 Biofertilizers Market Companies Overview

The Biofertilizers Market is fragmented in nature. Some significant players include Alltech Inc., Bioceres Crop Solutions Corp, Biomaxnaturals, Blacksmith Bioscience Inc.,

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

Alltech Inc., Bioceres Crop Solutions Corp, Biomaxnaturals, Blacksmith Bioscience Inc., Corteva Inc., EnviroKure Inc., Futureco Bioscience SA, Gujarat State Fertilizers and Chemicals Ltd., Kiwa Bio Tech Products Group Corp., Lallemand Inc., Madras Fertilizers Ltd., Mapleton Agri Biotec Pty Ltd., Monarch Bio Energy LLC, National Fertilizers Ltd., Novozymes AS, NutriAg Group Ltd., PUSHPA J. SHAH, Rashtriya Chemicals and Fertilizers Ltd., SOM Phytopharma India Ltd., and Utkarsh Agrochem Pvt. Ltd.

Segment Overview

The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Application Outlook
  • Seed treatment
  • Soil treatment
• Product Outlook 
  • Nitrogen-fixing biofertilizers
  • Phosphate-solubilizing biofertilizers
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Chemicals and Fertilizers industry encompasses the production of a wide range of products, including biofertilizers. Biofertilizers are organic fertilizers obtained from various sources such as microorganisms, green manure, and animal waste. They play a crucial role in sustainable agriculture by enhancing soil fertility, improving nutrient availability, and promoting plant growth. The market for biofertilizers is gaining momentum due to the increasing awareness of organic farming and the need to reduce the reliance on synthetic fertilizers. Nutrient-rich biofertilizers like Vermicompost, Blue-green Algae, and Rhizobium bacteria are gaining popularity among farmers. These biofertilizers not only provide essential nutrients to the soil but also help in reducing the use of chemical fertilizers, thereby minimizing the environmental impact. Additionally, the use of biofertilizers can lead to higher crop yields and better crop quality.

Furthermore, the market is expected to grow significantly due to the increasing demand for organic farming and the need to ensure food security. The market is driven by various factors such as the growing awareness of sustainable agriculture, the availability of government subsidies for organic farming, and the increasing demand for organic food products. Furthermore, the development of advanced biofertilizer production technologies and the availability of a wide range of biofertilizer products are expected to fuel market growth. In conclusion, the market is poised for significant growth due to the increasing demand for organic farming and the need to ensure food security. The market is driven by various factors such as the growing awareness of sustainable agriculture, the availability of government subsidies for organic farming, and the increasing demand for organic food products. The use of biofertilizers can lead to higher crop yields, better crop quality, and a reduction in the use of chemical fertilizers, making them an essential component of sustainable agriculture.

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What are the Key Data Covered in this Biofertilizers Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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