The global biofertilizers market was valued at USD 2.8 billion in 2022 and is expected to reach USD 5.2 billion by 2028, growing at a compound annual growth rate (CAGR) of 10.9%. In 2023, the market size is projected at USD 3.1 billion.
Biofertilizers enrich plants with nutrients through natural processes like nitrogen fixation, phosphate solubilization, and the release of growth-promoting compounds. They enhance soil organic matter and help restore the soil’s nutrient cycle. By adopting biofertilizers, farmers can boost soil health and sustainability while supporting crop health. Biofertilizers are composed solely of environmentally safe bacteria and other biological agents, making them effective in reducing agricultural pollution, particularly soil pollution.
The use of biofertilizers has shown to reduce agricultural input costs and improve crop productivity over time. Additionally, biofertilizers help crops develop resistance to various diseases and abiotic stresses. These benefits are key drivers of growth in the global biofertilizers market over the forecast period.
Biofertilizers Market Overview
The biofertilizers market is experiencing significant growth due to increasing awareness of sustainable agriculture practices and the need for eco-friendly alternatives to chemical fertilizers. Here’s an overview of the market:
Biofertilizers are natural substances that contain living microorganisms, which promote plant growth by increasing the supply of essential nutrients to the host plant. They enhance soil fertility, improve nutrient uptake, and contribute to sustainable agricultural practices.
Market Drivers
Sustainability Trends: Growing awareness of environmental issues and the adverse effects of chemical fertilizers is driving the demand for biofertilizers.
Government Initiatives: Many governments are promoting organic farming and providing subsidies for biofertilizer production and usage.
Rising Organic Farming: The increasing trend towards organic farming practices is bolstering the biofertilizers market as they align with organic standards.
Market Challenges
Lack of Awareness: In some regions, farmers may lack knowledge about the benefits and application of biofertilizers.
Limited Shelf Life: Biofertilizers generally have a shorter shelf life compared to chemical fertilizers, which can affect their adoption.
Market Segmentation
Type:
Nitrogen-fixing Biofertilizers
Phosphate-solubilizing Biofertilizers
Potassium-solubilizing Biofertilizers
Mycorrhizal Fungi
Application:
Seed Treatment
Soil Application
Foliar Application
Crop Type:
Cereals and Grains
Fruits and Vegetables
Oilseeds and Pulses
Regional Analysis
North America: The market is driven by a strong emphasis on sustainable farming practices.
Europe: High demand for organic food products is pushing the biofertilizers market.
Asia-Pacific: Rapid adoption of biofertilizers in countries like India and China due to government initiatives.
Future Outlook
The biofertilizers market is expected to grow significantly in the coming years, driven by the increasing need for sustainable agriculture and innovations in biofertilizer products. The integration of biofertilizers with other agricultural technologies, such as precision farming, is also anticipated to boost market growth.
Here are some trend insights in the biofertilizers market:
Growth in Organic Farming: With the surge in demand for organic produce, biofertilizers are increasingly preferred over chemical options due to their natural composition and eco-friendliness. This trend is fueling innovations in biofertilizer formulations to enhance crop productivity without synthetic inputs.
Microbial Biofertilizers: Bacterial and fungal biofertilizers are gaining popularity, particularly Rhizobium, Azospirillum, and Mycorrhizal strains, which improve nutrient uptake, promote root growth, and enhance soil health. This trend is supported by research focusing on optimizing microbial strains for specific crops.
Government Initiatives and Subsidies: Many governments are promoting biofertilizers to support sustainable agriculture, with subsidies, awareness programs, and favorable policies that aim to reduce dependency on chemical fertilizers.
Climate-Resilient Agriculture: Biofertilizers are recognized as key to climate-resilient farming, improving soil structure, water retention, and plant tolerance to drought and stress. This drives a trend of integrating biofertilizers in climate adaptation strategies.
Customized Biofertilizer Solutions: Customized biofertilizer products tailored to specific soil and crop needs are in demand. Advanced soil and plant analytics are helping companies develop targeted biofertilizer formulations, enhancing crop yields and resource efficiency.
Sustainability Focus by Agri-Businesses: Companies in the agri-business sector are increasingly investing in sustainable farming practices, promoting biofertilizers as part of their green initiatives to attract environmentally conscious consumers and align with global sustainability goals.
Dominance of Nitrogen-Fixing Biofertilizers Expected in the Biofertilizers Market Forecast.
Nitrogen-fixing biofertilizers are expected to capture the largest share in the biofertilizers market throughout the study period. These biofertilizers enhance crop output by increasing biological nitrogen fixation, improving nutrient availability and uptake, facilitating absorption, and stimulating plant growth through hormonal activity or antibiosis. Additionally, they aid in decomposing organic wastes. Their role as a partial replacement for chemical fertilizers not only reduces the quantity and cost of chemical fertilizers but also mitigates environmental contamination from excessive chemical use, thereby driving growth in this segment.
Fruits and Vegetables Set to Dominate Biofertilizers Market Share Throughout the Research Period
Biofertilizers are recognized for boosting the productivity of various fruits and vegetables. For instance, bananas require substantial nitrogen, making biofertilizers—specifically Azotobacter inoculation—a preferred alternative, resulting in higher yields compared to full nitrogen doses. When combined with VAM fungi, nutrient absorption, particularly nitrogen, improves significantly. Organic farming practices produce high-quality vegetables, encouraging more farmers to adopt microbial biofertilizers for sustainable agricultural growth in modern farming.
What factors contribute to the expected dominance of the soil treatment segment in the agricultural market?
The soil treatment segment is expected to dominate due to its importance when planting legume seeds in challenging conditions, such as hot, dry, or highly acidic soils, or when seeds are treated with chemicals harmful to rhizobia bacteria. Applying liquid biofertilizers directly to the soil ensures optimal nodulation. By diffusing through the soil, these fertilizers maximize root contact, leading to increased crop yield and productivity, thus fueling the growth of this segment during the study period.
Liquid Biofertilizers Expected to Dominate Market Share Throughout the Review Period.
Liquid biofertilizers are anticipated to secure the largest share due to their compatibility with modern equipment, ability to withstand temperatures up to 45 °C, ease of handling and application, and extended shelf life of 1.5 to 2 years. They are suitable for both seeds and soil and allow for ingredient additions that support microbial strain growth. With higher microbial densities than carrier-based options, liquid biofertilizers achieve equivalent results at lower dosages, making them preferable to solid inoculants.
Key players in this market include Novozymes (Denmark), UPL (India), Chr. Hansen Holding A/S (Denmark), Syngenta (Switzerland), T.Stanes and Company Limited (India), Lallemand Inc (Canada), Rizobacter Argentina S.A. (Argentina), Vegalab SA (Switzerland), IPL Biologicals Limited (India), and Kiwa Bio-tech Product Group Cooperation (China).
Novozymes is a global biotechnology company specializing in the production and sale of enzymes, biofertilizers, and biopharmaceutical components. It operates within two main sectors: enzymes and bio-business, with a strong presence in the agricultural biologicals market through its biofertilizer offerings. These biofertilizers have become a major part of the company’s agricultural portfolio, generating substantial revenue, especially with robust growth in regions like Asia-Pacific and South America. In October 2020, Novozymes introduced three biofertilizer products—TagTeam, BioniQ, and Optimize LV—designed to enhance crop yields. Additionally, in October 2021, Novozymes partnered with Anuvia Plant Nutrients (U.S.) to co-develop biofertilizers through shared resources and expertise.
UPL is a global leader in offering a wide range of agricultural solutions for arable and specialty crops, including seed solutions, crop protection, soil health, post-harvest treatments, and farmer engagement initiatives. This end-to-end approach ensures UPL’s presence at each stage of the agricultural value chain. Operating in over 138 countries, UPL has 42 manufacturing facilities and 30 research and development centers worldwide. In October 2021, UPL partnered with CHR Hansen Holding A/S to drive innovation in agricultural biological solutions, including biofertilizers, aimed at enhancing farm productivity.
Key Questions Addressed by the Biofertilizers Market Report:
What is the projected market value of the global biofertilizers market?
What is the estimated market value of the global biofertilizers market on 2023?
What is the estimated growth rate (CAGR) of the global biofertilizers market for the next five years?
What are the major revenue pockets in the biofertilizers market currently?
What kind of information is provided in the competitive landscape section?
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