Agricultural Biologicals Market size is set to grow by USD 13.55 billion from 2024-2028, Increasing prices of chemical fertilizers and pesticides to boost the market growth, Technavio

NEW YORK, July 15, 2024 /PRNewswire/ -- The global agricultural biologicals market  size is estimated to grow by USD 13.55 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 15.89%  during the forecast period.  Increasing prices of chemical fertilizers and pesticides is driving market growth, with a trend towards increasing use of sustainable products for plant growth. However, lack of awareness of agricultural biologicals  poses a challenge. Key market players include Agrinos AS, Andermatt Group AG, BASF SE, Bayer AG, Biological Products Industry Alliance, Evogene Ltd., Gowan Co., Koppert, Mitsui and Co. Ltd., Novozymes AS, PI Industries Ltd., Pro Farm Group Inc., PROBELTE SAU, SEIPASA SA, SOM Phytopharma India Ltd., Syngenta Crop Protection AG, T.Stanes and Co. Ltd., UPL Ltd., Valent BioSciences LLC, and Vegalab SA.

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Key Market Trends Fueling Growth

Agricultural biostimulants are essential formulations applied to plants or soils to enhance crop yields, vigor, and quality. These biostimulants work by improving a plant's metabolism, increasing yield, and boosting crop resistance to stresses. Biostimulants come in both natural and synthetic forms. Natural biostimulants include substances like amino acids, seaweeds, bacteria, chitosan, yeast, and phytohormones, along with plant-growth regulators such as synthetic hormones, essential elements, inorganic salts, and phenolic compounds. In the context of sustainable agriculture, these biostimulants play a crucial role in the production of medicinal plants. By enhancing secondary metabolites synthesis and increasing biomass production, they contribute significantly to the growth of the agricultural biostimulants market in the forecast period. 

The Agricultural Biologicals market is experiencing significant growth in various industrial sectors due to the increasing demand for eco-friendly medicines and essential businesses in food production. The international travel restrictions have affected agri-exports, leading to a decline in trade. However, the essential nature of agricultural biologicals ensures continuity in food supply. Producers are shifting from synthetic counterparts to eco-friendly pesticides, including Arbuscular Mycorrhizal Fungi, to mitigate risks and improve yield. Cereal crops, high-quality fruits, and vegetables benefit from these eco-friendly solutions. The market faces challenges from regulatory inconsistencies and approval processes, which can hinder commercialization of novel biostimulants. Start-ups in this sector require funding and infrastructure to compete with established agrochemical companies. The demand dynamics for agricultural biologicals are influenced by regulatory guidelines, international harmonization, and registration approvals. Producers aim to reduce the use of synthetic chemicals, air pollutants, and pesticide residues, making eco-friendly solutions a priority. Plant biostimulants, a segment of agricultural biologicals, are gaining commercialization, offering opportunities for innovation and growth. The market is expected to face regulatory and legal challenges, but the potential rewards for eco-friendly solutions are significant. 

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Market Challenges

•         The global agricultural biologicals market, including biofertilizers and biostimulants, faces hindrances due to insufficient awareness among farmers, particularly in regions like Sub-Saharan Africa. Economic sustainability, eco-friendliness, political obligation, practical viability, and social acceptability are crucial factors influencing the adoption of updated agricultural practices. However, the lack of understanding regarding the advantages of biological products and misconceptions about their potential health hazards hinder their use. In Sub-Saharan Africa, the adoption of biofertilizers is significantly lower than in developed countries and some Asian regions. This is due to the absence of effective regulations, limited infrastructure, and insufficient skills, resulting in low availability and adoption of these products. Similarly, farmers in the region are unaware of the benefits of biostimulants for crop nutrition. To promote the growth and adoption of agricultural biologicals, particularly in Sub-Saharan Africa, there is a need for governmental support, investment in localized research, involvement of the public and private sector, and increased awareness of the products. Effective regulations, streamlined registration processes, and improved marketing efforts can also help overcome the current challenges and unlock the vast potential of these products in enhancing agricultural productivity and sustainability.

•         The Agricultural Biologicals Market is experiencing significant growth due to the increasing demand for organic food and sustainable agriculture. Biopesticides, biofertilizers, and biostimulants made from microorganisms are gaining popularity as they offer environmentally friendly solutions for soil fertility and crop production. However, challenges exist in the market, including the need for effective marketing strategies and patent publications for these biological products. Key players in the market include PI Industries, Monsanto, Andermatt, Certis Biologicals, Lallemand, Novozymes, Stoller, UPL, Vegalab, Valent Biosciences, Verdisian Life Sciences, Azelis, Mosaic Company, Mosaic Biosciences, AgBiome, Ginkgo Bioworks, and various crop protection chemical companies. The crop protection industry is shifting focus towards biological solutions to address the health of farmers, consumers, and the ecosystem. Foliar sprays are a growing segment in the market, with companies like Andermatt and Certis Biologicals leading the way. Overall, product innovation and sustainable farming practices are driving the growth of the Agricultural Biologicals Market.

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Segment Overview 

This agricultural biologicals market report extensively covers market segmentation by

1. Type 
• 1.1 Biopesticides
• 1.2 Biofertilizers
• 1.3 Biostimulants
2. Application 
• 2.1 Cereals and grains
• 2.2 Fruits and vegetables
• 2.3 Oilseeds and pulses
• 2.4 Other crops
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Biopesticides-  The Agricultural Biologicals Market refers to the sale of products derived from living organisms to improve agricultural productivity. These include biological pesticides, bio-stimulants, and biocontrol agents. Market growth is driven by increasing demand for sustainable farming practices and government initiatives to reduce chemical pesticide usage. Key players include BASF SE, Syngenta AG, and Bayer AG. Collaborations and acquisitions are common strategies to expand market presence. The market is expected to reach significant value by 2025.

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Learn and explore more about Technavio's in-depth research reports

The global smart agriculture market is poised for robust growth, driven by advancements in IoT, AI, and big data analytics. These technologies enhance farming efficiency, crop yield, and resource management through real-time monitoring of environmental factors and livestock health. Key players are investing in sensor-based solutions to optimize farming practices, fostering sustainable agriculture amid rising food demand.

Research Analysis

The Agricultural Biologicals Market is witnessing significant growth due to the increasing demand for environmentally friendly and sustainable alternatives to chemical pesticides. With stricter regulations on the use of chemical pesticides, agricultural biologicals, including biopesticides, biofertilizers, and biostimulants, are gaining popularity. These products, derived from beneficial microorganisms, plant extracts, and other natural sources, offer safer and more effective solutions for enhancing soil fertility, promoting biological activity, and boosting the growth of plants. Integrated Pest Management (IPM) practices, which utilize beneficial insects and microbial-based products, are becoming increasingly common in sustainable agriculture. The market for agricultural biologicals is expanding into various industrial sectors, including food, medicines, and agri-exports. Despite the challenges posed by international travel restrictions and the decline in essential businesses during the pandemic, product innovation strategies and effective marketing efforts are driving the growth of this market.

Agricultural biologicals refer to eco-friendly alternatives to traditional chemical pesticides used in modern agriculture. These products, which include beneficial insects, microbial-based products, plant extracts, and biopesticides, offer several advantages over their synthetic counterparts. With stricter regulations aimed at reducing harmful residues in food and protecting the environment, the demand for agricultural biologicals is on the rise. Integrated Pest Management (IPM) is a sustainable approach that employs these biologicals to manage pests, improve soil fertility, and enhance crop growth. Companies are investing in product innovation strategies and effective marketing to cater to the growing demand for sustainable agriculture. Microorganisms like Bacillus thuringiensis and Arbuscular Mycorrhizal Fungi are key components of these biologicals. Biopesticides, biofertilizers, and biostimulants are some of the popular product categories. Corteva Agriscience, PI Industries, Certis Biologicals, Lallemand, Novozymes, Stoller, UPL, Vegalab, Valent Biosciences, Verdisian Life Sciences, Azelis, Mosaic Company, Mosaic Biosciences, AgBiome, Ginkgo Bioworks, and others are major players in this industry. The market for agricultural biologicals is driven by the need for safer and more sustainable alternatives to chemical pesticides. This trend is particularly strong in organic farming systems and the production of high-quality fruits, vegetables, and cereal crops. The growing awareness of the impact of agriculture on the environment and the health of farmers and consumers is also fueling demand. Despite the challenges posed by trade restrictions and the decline in agri-exports, the future of agricultural biologicals looks bright as they offer a more sustainable and eco-friendly approach to food production and crop protection.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Biopesticides
• Biofertilizers
• Biostimulants
• Application
• Cereals And Grains
• Fruits And Vegetables
• Oilseeds And Pulses
• Other Crops
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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