April 20, 2024
Biofertilizers Market

The Global Biofertilizers Market growth is driven Agricultural Productivity Uptake

Biofertilizers are bioactive inoculants used to enrich soil fertility by the decomposition and availability of nutrients that supports plant growth. Biofertilizers promote plant growth either directly by nitrogen fixation, solubilizing phosphorus or producing plant growth stimulating substances indirectly. Azospirillum spp,Azotobacter spp, Rhizobium spp, etc are being commonly used as biofertilizers which improves the overall quality of soil and increases crop productivity naturally and economically.

The Global Biofertilizers Market Demand is estimated to be valued at US$ 2.61 Bn in 2024 and is expected to exhibit a CAGR of 4.8 % over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Biofertilizers are Sanofi SA, Reckitt Benckiser Group PLC, Pfizer Inc., Mylan NV, GlaxoSmithKline PLC, Johnson & Johnson, Bayer, Takeda Pharmaceutical, and Sun Pharmaceutical Industries Ltd., among others. Major players are focusing on new product launch and strategic collaboration to sustain their market position.

The growing demand for organic food and awareness about adverse effects of chemical fertilizers are majorly driving the global biofertilizers market. Government initiatives and policies supporting the use of biofertilizers to maintain soil health and crops yield are further boosting the market growth.

Key players are expanding their production facilities globally especially in Asian and Latin American countries to cater increasing demand for biofertilizers. South Asia and Latin America are expected to lucrative markets for biofertilizers over the forecast period.

Market Drivers

Rising concerns regarding soil degradation and depletion of nutrients due to continuous use of chemical fertilizers is a key factor augmenting the demand for biofertilizers. Biofertilizers helps replenish essential nutrients in the soil and protect soil health in long run which increases farmers’ income. Growing organic farming primarily in Europe and North America further accelerates the biofertilizers market growth.

The current geopolitical situation is impacting the growth of the biofertilizers market. Geopolitical risks such as rising trade barriers, currency fluctuations and political instability in key exporting countries are disrupting global supply chains and hampering access to important raw materials. For instance, the ongoing Russia-Ukraine conflict has led to a sharp rise in prices of fertilizer raw materials like potash, urea and phosphate which are mainly sourced from these regions. This is negatively impacting biofertilizer producers who use these materials as substrates. Additionally, sanctions on Belarus and Russia have caused additional shortages in fertilizer supplies globally. To overcome these challenges, biofertilizer companies will need to diversify their supply sources, establish long term contracts and strategic inventory stockpiles. Investing in R&D for alternate substrate materials can help improve self-reliance as well.

The biofertilizers market in terms of value is currently concentrated in Asia Pacific and North America regions. Asia Pacific accounts for the largest share due to the regions large and growing agricultural sector and emphasis on organic farming practices in countries like India and China. India represents the biggest market in the region due to various government initiatives promoting use of biofertilizers. North America is another major market driven by high awareness levels about sustainable agriculture and substantial subsidies for organic farming in the US and Canada.

The market is projected to grow the fastest in Latin America over the forecast period. The growth can be attributed to the regions policy focus on reducing chemical fertilizer imports and promoting biofertilizer usage. Brazil spearheads the Latin American market with initiatives to reduce the countrys dependency on fertilizer imports through adoption of indigenous biofertilizer technologies. Africa is also emerging as a high growth market as countries boost sustainable agricultural practices to increase crop yields and fight soil degradation.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it