Global Agricultural Biologicals Market by Product (Biopesticides, Biostimulants), by Crop Type (Oilseeds & Pulses, Cereals & Grains) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global agricultural biologicals market was worth USD 7.2 billion in 2019. It is projected to grow at a compound annual rate (CAGR), of 9.4% between 2020 and 2027. The market is expected to see a significant increase in organically grown food products.

Natural materials are used to make agricultural biologicals. These products are an integral part modern farming practices and help to protect crops from pests. These products have been used by many agricultural communities around the world to establish sustainable farming.

The United States is the world's largest consumer of food and drink. The country's growing need for safer and greener crop protection technology is driving the demand. In terms of product approvals, the regulatory agencies have been more involved in the country's market penetration. Market growth will also be aided by the increasing number of mergers, acquisitions, and partnerships for research and product development.

Industry participants have adopted two major strategies: investing in research and development and focusing on emerging economies as their next growth opportunities. Industry development is still in its infancy and mergers & acquisitions are relatively slow. Acquisitions are primarily motivated by expanding geographic reach or improving product portfolios. The market is likely to be fierce in the future due to increasing product approvals and investments in bio-ingredients.

Additionally, there are many million-dollar companies that work on high-performance agricultural products such as pesticides and fertilizers. This means that the demand for eco-friendly products is increasing. The use of synthetic fertilizers for high crop yields has had a huge impact on soil fertility and underground water reserves over the past decades. These factors have resulted in the growing adoption of sustainable agriculture, which has led to a high penetration of organic products.

The European Biomass Industry Association predicts that the market will experience significant growth in the future as these products significantly reduce the use of synthetic chemicals to increase crop yields. The Biofertilizers have been gaining momentum because they improve the phosphorus- and zinc absorption of plants, as well as resisting pathogen attacks. Biofertilizers are also beneficial in agricultural fields, as they aid in the breakdown of organic residues and the overall growth and development of crops.

Prices of biobased crop-care products are slightly higher than those of synthetically formulated and bio-based agricultural products in terms of their respective price points. However, the rising cost of synthetic fertilizers is expected to be a major factor in increasing agricultural biologicals consumption in the future. Food scarcity is a major concern for governments all over the world, due to an ever-growing global population. This has prompted innovations in product development and promotion for eco-friendly agricultural solutions within the major agrarian countries. This will in turn increase the demand for agricultural biologics around the world.

Product Insights

Biopesticides accounted for 56% of the market's largest share in 2019, accounting for more than half of it. This market will continue to grow at a steady rate of CAGR between 2020 and 2027. This is due to the growing use of biopesticides for soil, leaves, and turfs, particularly in North America and Europe. Insect sex pheromones, and scented plants are two of the most important products in this group. These attract pests to trap. However, microbial pesticides contain active ingredients that control multiple types of pests. Bacillus thuringiensis is a popular microbial pesticide. It forms a protein mixture to kill pests.

North American countries will be increasingly interested in biofertilizers, followed by Europe and countries in the Asia Pacific region. Two main types of biofertilizers are usually available: phosphate solubilizing or nitrogen fixing. Because plants cannot convert atmospheric nitrogen to fixed nitrogen, nitrogen-fixing bacteria is most often used as biofertilizers.

Majorly used bacteria to fix nitrogen in soil and seed treatment applications are Azotobacter and Rhizobium. Endosymbiotic associations between nitrogen-fixing Rhizobium and the roots of legumes allow it to be used as biofertilizers for the cultivation of leguminous crops. The versatility of Azotobacter's aerobic nature and neutrality in alkaline soil have allowed it to be used in the cultivation of many crops, including wheat, cotton, mustard, maize, and potato.

Agribiostimulants, or fertilizer additives that are derived from biological sources, are also becoming more important. These can be used to increase crop productivity, growth, or health. These stimulants help to improve abiotic stress tolerance and nutrient-use efficiency. They also enhance physical attributes such as size, appearance, and longer shelf-life.

Application Method Insights

In 2019, the seed treatment method held the largest market share at over 23%. This is due to the high demand for biologicals to improve seed properties and increase crop yield. The main use of biofertilizers is in soil treatment and seed treatment . Over the last few years, soil quality has been steadily declining in all major agrarian countries.

Many governments have put restrictions on the agricultural sector to reduce the risk of environmental harm from the use of chemical fertilizers in agriculture. This is expected to lead to a positive trend in biofertilizers for various soil and seed applications around the world. Many initiatives have been taken by the governments of Pakistan, India, China and China to encourage domestic use of eco-friendly seed treatments.

In 1996 and 2010, the government of Pakistan introduced the Biopower Program, Humiphos/Biophos, and other programs. These programs were designed to encourage farmers to use biofertilizers to treat their seeds. They also provided financial support to agricultural agencies in order to help them. In the Middle East & Africa, South Africa, Nigeria, Kenya and Kenya created loan programs to help farmers increase their crop yields at home. The region's farmers increased their use of agricultural biologicals for seed treatment.

Metschnikowia Pulcherrima is the most commonly used biocontrol agent post-harvest. Due to the numerous cases of crop spoilage and loss, agricultural biologicals are increasingly being used in the post-harvest phase. This is another factor that will likely increase product demand in the coming years.

Crop Type Insights

With a market share of 41.6%, the cereals and grains application dominated 2019. The growing global demand for wheat, corn, barley and millet is responsible for this dominance. Multiple microbiological advances in the determination of the right composition of agricultural biologics for use in wheat cultivation have led to a high demand for biologics and boosted segment growth.

For healthy growth, cereals and grains require a large amount of biologics, particularly biofertilizers. Research conducted around the world showed that Azotobacter inoculation was a key factor in cereal and grain crop development. This helped to reduce nitrogen requirements. For healthy wheat growth, Azoteobacter and phosphate-soluble bacteria were highly effective biofertilizers.

The demand for bio-based products is increasing in many developing countries like India, Thailand, Indonesia, and India. This is primarily to increase the production of various oilseeds and pulses in their respective regions to meet the growing demand.

Symbiotic performance, which is measured by host genotype and strain efficiency, is responsible for the efficient growth of multiple pulses. Higher symbiotic performance means higher yield. Multiple agricultural organizations have taken measures to increase the production of oilseeds and pulses by conducting high-quality microbial strain testing. This will lead to a high demand for biological agents across the spectrum.

Regional Insights

North America dominated the market in 2019, holding a significant share of more than 35%. Due to the strong presence in the U.S. of major agricultural product manufacturing companies, the region will continue expanding at a healthy CAGR over future years. This growth can also be attributed to the constant evolution of agricultural practices in the region, including technological adaptations and research & development.

California, Montana and New York are some of the most prominent states that practice organic agriculture. The U.S. saw a significant increase in demand for agricultural biologicals as farmers recognized the degradation of underground water resources and soil quality caused by decades-long use of chemical fertilizers and other inputs.

Although the number of certified organic farms in the southern regions of the country was lower than those in the north, this was due to heavy organic practices adaptations since 2011. According to USDA, Arkansas saw a 540% increase in organic farmlands between 2011 and 2016. These trends will reflect the high rate of market growth in America.

Asia Pacific will see the fastest growth rate between 2020 and 2027. This is due to the fact that the region hosts the majority of agrarian economies such as India, Thailand. South Korea, Malaysia, South Korea, South Korea, Japan, South Korea, South Korea, South Korea, South Korea, South Korea, Japan, Malaysia, South Korea, South Korea, South Korea, South Korea, South Korea, South Korea, Thailand, Japan, Malaysia, South Korea and the Philippines which use more sustainable agricultural practices. This trend is supported by increasing consumer preference to organic foods and various government regulatory initiatives.

Europe is the second largest regional market. Nearly 7% was dedicated to organic harvesting. The area of organic farmlands is nearly twice the size of conventional farmlands. Europe saw a 70% increase in organic farmlands over the past decade. There were more than 250,000 organic harvesting farms in Europe. Germany is the largest European retailer of organic produce, followed by France and Italy.

Market Share Insights & Key Companies

Major manufacturers continue to focus on product development, partnership M&A and collaborations in order to reach the most potential customers at the lowest distribution costs. BASF SE and Bayer CropScience are merging their operations throughout the value chain in order to maintain their market position. To increase market reach and establish themselves on the market, new industry players are looking to create long-term agreements with local and regional farmers communities. The following are some of the most prominent players in the market for agricultural biologicals:

• Novozymes A/S

• BASF

• Bayer CropScience LLC

• Lallemand, Inc.

• CBF China Biofertilizer AG

Up Market Research published a new report titled “Agricultural Biologicals Market research report which is segmented by Product (Biopesticides, Biostimulants), by Crop Type (Oilseeds & Pulses, Cereals & Grains), By Players/Companies BASF, Lallemand Inc, CBF China Biofertilizer AG, Bayer CropScience LLC, Novozymes A/S”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Agricultural Biologicals Market Report Segments:

The market is segmented by Product (Biopesticides, Biostimulants), by Crop Type (Oilseeds & Pulses, Cereals & Grains).

Agricultural Biologicals Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Agricultural Biologicals Market

Overview of the regional outlook of the Agricultural Biologicals Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Agricultural Biologicals Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Agricultural Biologicals Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Biopesticides

                2. Biostimulants

                1. Oilseeds & Pulses

                2. Cereals & Grains

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Agricultural Biologicals Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Agricultural Biologicals Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.