Biofertilizers Market

The global biofertilizers market, valued at USD 2.8 billion in 2023, is projected to reach USD 5.2 billion by 2030, exhibiting a CAGR of 10.9% during the study period. In 2023, the market size is estimated to be USD 3.1 billion.

Biofertilizers provide nutrients to plants through natural processes such as nitrogen fixation, phosphate solubilization, and the production of growth-stimulating compounds. They enhance soil organic matter and help restore the soil's natural nutrient cycle. By using biofertilizers, growers can improve soil sustainability, promote soil health, and cultivate healthy crops. Biofertilizers only consist of bacteria and other biological elements that are environmentally friendly, contributing to the reduction of pollution caused by agricultural activities, especially soil pollution.

The use of biofertilizers has been proven to reduce agricultural input costs while increasing overall crop productivity in the long run. Additionally, biofertilizers enhance resistance to plant diseases and abiotic stresses. These factors are driving the growth of the global biofertilizers market during the review period.

Market Dynamics
Drivers: Adoption of precision farming and protected agriculture
Precision farming aims to achieve profitable agricultural output by utilizing advanced technologies to identify and analyze spatial and temporal variability. Agricultural biologicals are employed in precision farming and protected agriculture to enhance crop output and yield. The widespread use of agricultural biologicals in protected agriculture, which promotes the use of biofertilizers, is driving the market growth. Farmers can accurately monitor the application of liquid biofertilizers using fertilization plans that incorporate GPS-guided geographic information system (GIS) software. Thus, the rise in precision and protected agriculture is expected to drive the biofertilizers market.

Restraints: Environmental and technological constraints
Biofertilizer products have a limited shelf life and are susceptible to contamination. Microorganisms used as biofertilizers become nonviable when exposed to high temperatures. Hence, it is crucial to store them in a dry and cool environment. The main challenge with agricultural inoculation technology lies in maintaining the survival of microorganisms during storage, along with other factors such as culture medium, physiological state of microorganisms, dehydration process, drying rate, temperature maintenance, and water activity of inoculants. These challenges impact the shelf life of microorganisms.

Opportunities: New target markets: Asia Pacific and Africa
Asia Pacific and Africa are significant consumers of fertilizers. Population growth, particularly in Asia, has led to increased food demand, resulting in higher fertilizer usage. Governments in these regions are emphasizing the use of environmentally friendly fertilizers like biofertilizers and organic manure to mitigate the negative impacts of chemical fertilizers. Government agencies have played a vital role in increasing farmer awareness about the benefits of using biofertilizers. Over the past few decades, Africa has witnessed intensive conventional farming that heavily relied on synthetic fertilizers to supply essential plant nutrients. However, the excessive application of these fertilizers has compromised soil quality and nutrient balance. As a result, the region now requires biofertilizers to address these concerns.

Challenges: Intense competition and product rivalry due to similar products
A significant challenge in the industry is the presence of counterfeit biofertilizers, which negatively impacts farmers' perception of the genuine product and hampers market expansion. Counterfeit products have a remarkably low production cost as they possess identical chemical properties and similar physical characteristics to genuine biofertilizers. These counterfeit products are difficult for farmers to differentiate and may contain poor microbial load, contaminated substances, or inappropriate strains. The sale of counterfeit biofertilizers is prevalent in Asian countries, largely due to the highly fragmented and unorganized nature of the market.

Market Ecosystem
Key players in the biofertilizers market have established strong distribution networks and maintain impressive financial records. These companies possess extensive experience spanning several years, well-equipped manufacturing facilities, research and development centers, and a skilled workforce. Prominent players in the market include Novozymes (Denmark), UPL (India), Chr. Hansen Holding A/S (Denmark), Syngenta (Switzerland), T.Stanes and Company Limited (India), and Lallemand Inc (Canada).

By type, nitrogen-fixing biofertilizers is projected to gain largest share in the biofertilizers market during the study period
 Nitrogen-fixing biofertilizers play a crucial role in enhancing crop output through increased biological nitrogen fixation, improved nutrient availability and uptake, stimulation of plant growth through hormonal action or antibiosis, and breakdown of organic wastes. Additionally, their use as a partial replacement for chemical fertilizers reduces the quantity and cost of chemical fertilizers while protecting the environment from contamination. These factors drive the growth of this segment in the market.

By crop type, fruits & vegetables is forecasted to account for the largest share in the market during the research period
Biofertilizers are well-known for increasing crop productivity in various fruits and vegetables. For example, bananas have a significant nitrogen requirement, and biofertilizers, particularly inoculation with Azotobacter, are used as an alternative to achieve higher yields compared to full doses of nitrogen administration. The presence of VAM fungus also enhances the absorption of mobile nutrients like nitrogen. As organic farming aims to produce high-quality vegetables, the adoption of microbial biofertilizers is expected to increase, promoting sustainable modern agriculture.

By mode of application, soil treatment segment is anticipated to occupy major share in the biofertilizers market during the study period
Optimal nodulation is achieved by directly applying liquid biofertilizer formulations to the soil when planting legume seeds in challenging conditions such as hot, dry, highly acidic soils, adverse weather, or when seeds have been treated with chemicals toxic to rhizobia bacteria. When applied to the soil, fertilizers diffuse their way into the crops, promoting increased yield and productivity as the roots of the crops are in close contact with the fertilizers. Therefore, this segment drives the growth of the market during the review period.

By form, liquid segment is forecasted to gain the major share in the biofertilizers market during the review period
Liquid biofertilizers offer several advantages such as compatibility with modern machinery, high temperature resistance up to 45 °C, ease of handling and application, the ability to add ingredients that enhance the growth of microbial strains, applicability to both seeds and soil, and a longer shelf life of 1.5 to 2 years. These characteristics make liquid biofertilizers more desirable than solid inoculants. Moreover, liquid biofertilizers have higher microbial densities compared to carrier-based alternatives, allowing for lower dosages while still achieving the same results.

North America is projected to gain the largest market share in the global biofertilizers market.
The presence of a large number of players in the region provides farmers and growers with access to a wide range of products at competitive prices. Additionally, governments in the region are actively promoting the use of agricultural inputs that cause less environmental degradation, thereby encouraging the adoption of biofertilizers. In countries such as the US and Canada, where farmers focus on producing cash crops on a large scale, the market is further driven by the demand for biofertilizers.

Key Market Players:
Leading participants in this market comprise 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).

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Report Segmentation
The study categorizes the biofertilizers market based on by type, by crop type, by mode of application, by form, and region.

By Type By Crop Type By Mode of Application By Form By Region
• Nitrogen-fixing biofertilizers
• Phosphate solubilizing & mobilizing biofertilizers
• Potassium solubilizing & mobilizing biofertilizers
• Other types (zinc, silica, and sulphur solubilizing biofertilizers) • Cereals & grains
• Pulses & oilseeds
• Fruits & vegetables
• Other crop types (turf and ornamentals, plantation crops, fiber crops, and silage & forage crops) •

Soil treatment
• Seed treatment
• Other Modes of application (foliar treatment, root dipping, and seedling root treatment) • Liquid
• Carrier-based • North America
• Europe
• Asia Pacific
• South America
• Row (Africa and Middle East)

Recent Developments:
• In May 2022, Syngenta unveiled Envita, a new nitrogen-fixing biofertilizer. Envita is specifically formulated for various crop types, including cereals & grains, pulses & oilseeds, and fruits & vegetables.
 • In January 2021, Rizobacter Argentina S.A announced a strategic partnership with Heliae Development, LLC (US). This collaboration aimed to offer farmers in the US and Eastern Canada innovative biological solutions that would enhance their agricultural practices.
 • In March 2021, Symborg, based in Spain, inaugurated its advanced manufacturing facility in Alhama de Murcia, Region of Murcia, Spain. This expansion allowed Symborg to enhance its production capabilities and improve overall operational efficiency. The total investment for this expansion project amounted to USD 29.71 million.