Biofertilizers Market - Forecast(2022 - 2027)

sravan

149
views

Biofertilizers Market - Forecast(2022 - 2027)

Biofertilizers Market is forecast to reach $1.6 billion by 2026, after growing at a CAGR of 10.5% during 2021-2026. Biofertilizers are contained microorganisms, which helps in promoting the growth of plants and trees by increasing the supply of essential plant nutrients. Biofertilizers help to improve the fertility of the soil and make it alive in a biological way. These fertilizers are effective for plant nutrients in an eco-friendly way in soil productivity. Biofertilizers are helping to improve crop quality by nitrogen-fixing because nitrogen-fixing provides nitrogen in the roots of a plant, keeping it safe from bacteria. Additionally, it helps to stable plant growth-promoting rhizobacteria, which maintain the original productivity of the soil. Rhizobia is a diazotrophics bacteria that is nontoxic and improve the water retention capacity of the soil. Thus, increasing the consumption of bio-inoculants is expected to boost the market size during the projected period.

Impact of COVID – 19

The tragedy of COVID-19, which is declared as a pandemic by the World Health Organization, is having a noticeable impact on global economic growth. This has affected the demand and supply chain as well, thereby limiting the growth in 2020. According to the Ministry of Commerce & Industry Department of India, sesame seeds exports from India declined by 9.55% to a level of 2,82,210 tons from 3,12,003 tons during FY19-FY20.

Biofertilizers Market Report Coverage

The report “Biofertilizers Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Biofertilizers Industry.

By Type: Nitrogen Fixing, Phosphate Stabilizers, Potassium Mobilizing, Sulphur Solubilizing, and Others

By Microorganism: Rhizobium, Azotobacte, Azospirillium, Phosphate Solubilising bacteria, Potash Mobilizing Bacteria, Trichoderma, Microhizae, Frateuria Aurentia, Azolla, and Others

By Crop: Cereals & Grains (Sorghum, Wheat, Maize, Rice, Rye, Others), Pulses & Oilseeds (Cowpeas, Soybean, Groundnuts, Mustered, Others), Fruits & Vegetables (Graphs, Banana, Onion, Brinjal, Others), Fiber Crops, Forage Crops, and Others

By Application: Soil Treatment, Seed Treatment, Plant Growth, Seedling Root Dip, and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)

Key Takeaways

North America dominates the market of biofertilizers due to changing lifestyles with health concerns and rising crop production in American countries such as United States, Mexico, and Canada.
According to the Organization for Economic Co-operation Development (OECD), in Unites States maize crop production increased by 4.13% to 360,252 thousand million tons in 2020 as compared to 345,962 thousand million tons in 2019.
Biofertilizers are used in soil treatment for plant growth by nitrogen fixation and potash mobilizing and other fertilizers such as rhizobia (diazotrophic bacteria) used as a plant nutrient, which increasing uses of biofertilizers.

Figure: North America Biofertilizers Market, 2021-2026 (US$ Billion)

Biofertilizers market

For More Details on This Report - Request for Sample

Biofertilizers Market Segment Analysis – By Type

Nitrogen-fixing type segment held the largest share in the biofertilizers market in 2020 as nitrogen-fixing maintain nitrogen levels in the soil and improve plant growth. Also, nitrogen-fixing biofertilizer is highly consumed in cereals & grains such as wheat, rice, and more. Nitrogen fixation fertilizers are stabilized plant nutrients such as phosphate, zinc, and potassium. It could replace 25 % to 50% of the chemical nitrogen fertilizer as required in plant growth. This is an eco-friendly liquid fertilizer that helps to increase crop yield by 10% to 20%. Thus, increasing nitrogen-fixing fertilizer for better productivity of crops in agro fields will influence the biofertilizers market.

Biofertilizers Market Segment Analysis – By Microorganism

Rhizobium segment has potential growth in the biofertilizers market in 2020 due to increasing demand from the agriculture sector for excellent productivity of crops and seeds. Rhizobia is diazotrophic bacteria that improves the quality of agricultural soil and helps in plant growth by nitrogen fixation and potash mobilizing. Plant growth-promoting rhizobacteria remove bacteria that living near roots of plants. Rhizobium is used for legume and non-legume pulses. It fixes 50-100 kg N/hectare with legumes pulses. Also, these are maintaining the original fertility of the soil. Thus, increasing consumption of rhizobium fertilizers is expected to grow the market of biofertilizers or bio inoculants.

Biofertilizers Market Segment Analysis – By Crop

Cereals & grains segment held significant share the biofertilizers market in 2020 due to increasing awareness regarding health benefits in developing as well as economical countries. Plant growth-promoting rhizobacteria-based biofertilizers or bioinoculants are used in the yield of crops in an eco-friendly manner. These agro fertilizers are used to enhance crop productivity, thus increasing demand for cereals & grains from the agriculture sector and is expected to grow the market demand during the projected period. According to the India Brand Equity Foundation (IBEF), the production of wheat was recorded 98.61 MT in 2017-2018 as compared to 98.51 MT in 2016-2017. Furthermore, cereals output was also recorded 44.87 MT in 2017-2018 as compared to 43.77 MT during 2016-17. Thus, increasing cereals & grains production is boosting the market demand for biofertilizers.

Biofertilizers Market Segment Analysis – By Application

Soil treatment has dominated the market for biofertilizers market in 2020, and is growing at a CAGR of 11.8% during 2021-2026 due to increasing demand for organic farming with natural soil productivity. Biofertilizers are safe from fungal infections of seed and transformation of plant nutrients in the soil, thus increased adoption of bioinoculants is sustainable in the agriculture field. According to the India Brand Equity Foundation (IBEF), horticulture crop production in India was recorded at 320.48 million metric tonnes (MMT) in FY20. Additionally, India’s organic food segment is estimated to reach Rs. 75,000 crore (US$ 10.73 billion) by 2025. Furthermore, the Government of India is targeting food grain production of 298 MT in 2020-2021. Thus, according to the National Bank for Agriculture and Rural Development in 2020, the Indian government plans to set up a subsidiary to provide guarantees for loans under agriculture and rural development. Thus, with increasing farming in rural areas the usages of biofertilizers for soil treatment is also increasing.

Biofertilizers Market Segment Analysis – By Geography

North America dominated the global biofertilizers market with more than the share of 29.5% in 2020 due to increasing health concerns with organic food crops in American countries such as the United States, Mexico, and Canada. According to the Organization for Economic Co-operation Development (OECD) and Food & Agriculture Organization (FAO), In 2019, the wheat crop production in the United States was 3.3 tons/hectare, maize 10.9 tons/hectare, rice 6.3 tons/hectare, and soybean 3.4 tonner/hectare. Additionally, in Canada, the maize crop production increased from 13 403.9 thousand tons in 2019 to 14 096.4 thousand tons in 2020 and soybean increased from 5 996.4 thousand tons in 2019 to 6 198.3 thousand tons in 2020. Apart from this, in Mexico increasing demand for biofertilizers for organic farming. According to the Organization for Economic Co-operation Development (OECD), Mexico's wheat production was increased from 3 290.3 thousand tons in 2019 to 3 355.8 thousand tons in 2020. Thus, increasing food crop production in North America is expected to grow the market size during this era.

Biofertilizers Market Drivers

Increasing Adoption of Organic Farming

Biofertilizers are used as ecofriendly fertilizers for better productivity of soil compounds. Bioinoculants are used as plant nutrients. Potash mobilizing helps to solubilize the insoluble tricalcium phosphate and rock phosphate, which improves soil stability, also makes it powerful to plant growth. Hence, increasing usage of biofertilizers in organic farming due to utilization of rock phosphate. Biofertilizers are better than chemical fertilizers as they contain organic materials such as nitrogen and they are not harmful. Thus, it saves the fertilizing coat 25%-40 and increasing crop yield 15%-25%, which creating growth for the market.

Growing Crop Production is Increasing Consumption of Biofertilizers

According to the Indian Council for Agricultural Research (ICAR), the foodgrain demand is expected to increase by 345 million tonnes by 2030. Thus, the growing production of the crop in the United States is estimated to increase the consumption of biofertilizers. According to the U.S. Department of Agriculture, fruit and nuts production is projected to increase by 27% in 2022. Additionally, Burma (Myanmar) is expected to reach rise exportation by 4.0 million tons and 1.65 million tons in Cambodia by 2028-2029. Thus, increasing crop production in various countries is estimated to increase the consumption of biofertilizers in upcoming years.

Biofertilizers Market Challenges

Low Shelf Life of Biofertilizers

Biofertilizers have low suffering life than chemical fertilizers. Biofertilizers are providing lower plant nutrient density than chemical fertilizers. Although, these are required specific machinery and cannot be store for a long period. Bioinoculants increase less crop production capacity as compared with other fertilizers. Biofertilizer’s efficiency depends on soil productivity such as moisture content, pH level, organic fertilizers, which are not effective for soil treatment. Thus, the low shelf life may hamper the market growth.

Biofertilizers Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Biofertilizers Market. Major players in the Biofertilizers Market are:

BF China Biofertilizers AG
Novozymes A/S
AgriLife
Mapleton Agribiotec
Biomax
Labiofam S.A.
Antibiotice S.A.
Symborg S.L.
West Bridge Agricultural Products
Nutramax Laboratories Inc.
GreenMax AgroTech
Microbax Limited
Goldfarms Plant Tech Pvt. Ltd., and among others.

Acquisitions/Technology Launches

Ø In June 2019, Novozymes announced to continue its research and distribution partnership with Bayer, where Novozymes could form a multi-partnership with UPL and Univar Solutions to distribute its biological products due to increase crop yields and improve sustainability.

Ø In December 2019, NOMAD announced the development of mobile fertilizer plants for the production of biofertilizers. This plant project is set to create a mobile organic fertilizer production plant in the field.