Theis estimated to be valued at USD 2.3 billion in 2020 and is projected to reach USD 3.9 billion by 2025, recording a CAGR of 11.6% during the forecast period. The market is driven primarily by the increasing organic farmland as well as the rising acceptance of biofertilizers among farmers.

COVID-19 impact on Biofertilizers market

COVID-19 has impacted the businesses of biofertilizer companies up to some extent. Though this pandemic situation has impacted their businesses, there is no significant impact on the global operations and supply chain of their biofertilizers. Multiple manufacturing facilities of players are still in operation. The service providers are providing biofertizer products by following safety and sanitation measures.



Biofertilizers Market Dynamics

Driver: Growth in the organic food industry

Consumers, nowadays, are becoming highly concerned about food safety issues, the rising residue levels in food, and environmental issues, due to the rising concerns about their health. This rise in awareness has induced them to prefer chemical-free food products. With the outbreak of COVID-19 pandemic, people have become more conscious about healthy organic food products, which has driven the market growth of biological inputs, such as biofertilizers. These factors have increased organic retail sales in many countries, such as the US, Germany, China, Switzerland, and Denmark.

Constraint: Environmental and technological constraints

Biofertilizer products have a limited shelf-life and run a high risk of contamination. The microorganisms used as biofertilizers become non-viable when exposed to high temperature. Therefore, it is very important to store them in a cool and dry place. The major problem in the agricultural inoculation technology is the survival of microorganisms during storage; other challenges revolve around several parameters such as culture medium, physiological state of the microorganisms when harvested, dehydration process, rate of drying, temperature maintenance during storage, and water activity of inoculants. These challenges influence the shelf-life of microbes.



Opportunity: New target markets: Asia Pacific & Africa

The Asia Pacific and African regions are the largest consumers of fertilizers. The increasing rate of population, especially in Asia, has resulted in the increasing demand for food, which would, in turn, lead to the increased consumption of fertilizers. However, the major concerns in this region are pollution and contamination of soil as well as their harmful effects on human beings. To combat the harmful effects of chemical fertilizers, governments in these regions are emphasizing on the use of environmental-friendly fertilizers, such as biofertilizers and organic manure.

Challenge: Lack of awareness & low adoption rate of biofertilizers

The lack of awareness in farmers about biofertilizers in underdeveloped and developing countries is creating a challenge for the biofertilizers market. They prefer using chemical fertilizers, as they are easy to handle. This can be attributed to a lack of training and information. Furthermore, the established nature of the chemical fertilizers market is also one of the reasons for the slow adoption of biofertilizers, as conventional fertilizer companies hold a wide range of product offerings and have a strong distribution network.

Based on form, liquid biofertilizers is estimated to account for a major value share in 2020

Of both the forms, the usage of liquid biofertilizers remains substantially high, globally. This is due to its higher shelf life as compared to carrier-based biofertilizers. Liquid biofertilizers have a life expectancy of 2 to 3 years, making it more convenient and affordable for farmers in developing countries. Moreover, liquid fertilizers have better tolerance limits for adverse conditions. The quality control protocols for liquid biofertilizers are also easy and expeditious compared to carrier-based biofertilizers. Thus, in terms of value, the liquid biofertilizers segment is estimated to dominate the global market in 2020.

Higher consumption of biofertilizers for organic fruits & vegetables contributes to the growth of the biofertilizers market in this segment

Biofertilizers have proved to be useful in numerous ways, including improving the quality, shelf-life, and yield of fruits & vegetables. The increasing trend of consumer preferences for organic fruits & vegetables due to changing lifestyle and rising per capita income is the primary factor driving market growth. A rising trend in the cultivation of organic fruits & vegetables and those under IPM practices have also created a positive impact on the growth of the biofertilizers market.

Based on the mode of application, the soil treatment segment is projected to witness higher growth in the biofertilizers market

Soil treatment methods increase the crop yield and help in fetching better results. When applied to the soil, it increases the availability of nutrients and improves the yield by 10 to 25% without adversely affecting the soil as well as the environment. Soil treatment is used mainly in the Asian region due to rampant use of traditional agriculture methods in the current farming system. Thus, the market for biofertilizers with soil treatment mode of application is estimated to propel during the forecast period.

Based on type, the nitrogen-fixing biofertilizers segment is projected to witness higher growth in the biofertilizers market

Biofertilizers has a direct effect on crops where its application enhances the population of beneficial soil microorganisms. They also secrete plant hormones which favor germination and root growth. Nitrogen-fixing microbe biofertilizers are used for leguminous as well as for non-leguminous crops. They are used to grow other crops as well, especially rice and sugarcane. Thus, the market for biofertilizers with nitrogen-fixing biofertilizers is estimated to grow in the global market in 2020.

North America is projected to witness the highest growth in the biofertilizers market during the forecast period



North American countries have imposed bans on the usage of harmful chemicals & fertilizers in agriculture due to its adverse effects on the ecology. This, in turn, has created a significant market potential for biofertilizers in the region. Also, increasing acceptance of organic foods among consumers is opening doors for various international players. Rapid growth in organic agriculture and rising demand for organic food in the continent has attributed to the growth of biofertilizer market. As per USDA and DOE, huge availability of biomass feedstock is also one of the drivers for the market.

Key Market Players



Many domestic and global players provide biofertilizers for various crop type across the world. Major manufacturers have their presence in North America and Asia. Key companies in the market are Novozymes (Denmark), T Stanes & Company Ltd. (India), SOM Phytopharma (India) Ltd. (India), International Panaacea Limited (India), Kan Biosys (India), Kiwa Biotech (China), Symborg (Spain), Madras Fertilizers Limited (India), Gujarat State Fertilizers & Chemicals Ltd. (India), Lallemand Inc. (Canada), National Fertilizers Limited (India), Rizobacter Argentina S.A (Argentina), Rashtriya Chemicals & Fertilizers Ltd, (India), and Mapleton Agribiotech (Australia).

Scope of the Biofertilizers Market Report

Report Metric Details Market size available for years 2016�2025 Base year considered 2019 Forecast period 2020�2025 Forecast Units Value (USD) Segments covered Type, Crop Type, Form, Mode of Application

Geographies covered North America, Europe, Asia Pacific, South America, RoW Companies studied Novozymes (Denmark), T Stanes & Company Ltd. (India), SOM Phytopharma (India) Ltd. (India), International Panaacea Limited (India), Kan Biosys (India), Kiwa Biotech (China), Symborg (Spain), Madras Fertilizers Limited (India), Gujarat State Fertilizers & Chemicals Ltd. (India), Lallemand Inc. (Canada), National Fertilizers Limited (India), Rizobacter Argentina S.A (Argentina), Rashtriya Chemicals & Fertilizers Ltd, (India), and Mapleton Agribiotech (Australia)

This research report categorizes the biofertilizers market based on type, crop type, form, Mode of Application, mode of application, and region.

By Type

Nitrogen-fixing biofertilizers

Phosphate solubilizing & mobilizing biofertilizers

Potassium solubilizing & mobilizing biofertilizers

By Crop Type

Cereals & grains

Pulses & Oilseeds

Fruits & vegetables

Others

By Form

Liquid

Carrier-based Biofertilizer

By Mode of Application

Soil Treatment

Seed Treatment

Others (foliar treatment, root dipping, and seedling root treatment)

By Region

North America

Europe

Asia Pacific

Rest of the World (RoW)

Recent Developments

In June 2019, Novozymes (Denmark) announced plans to continue its research and distribution partnership with Bayer (Germany), where Novozymes could form multi-partnership with UPL (India) and Univar Solutions (US) to distribute its biological products.

In July 2018, Rizobacter Argentina (Argentina) registered an inoculant for chickpea. This product would help to increase the potential pulses market of Europe and India.

In May 2016, Lallemand Inc. (Canada) acquired Lage y Cia (Uruguay), a prominent seed inoculant company in South America. This acquisition would help Lallemand in the product development of yeast, fungi, and bacteria as a biostimulant, biocontrol, and biofertilizer agent in the agriculture industry.

Frequently Asked Questions (FAQ):

What is the current market status of biofertilizers market? Biofertilizers have gained more popularity due to the increasing demand for organic fruits and vegetables. They have proved to be beneficial in many ways, by improving the quality, shelf-life and yield of fruits and vegetables. Therefore biofertilziers market is valued at USD 2.0 billion in 2019 and is projected to grow at a CAGR of 11.2%. What are initiatives taken by government to create awareness regarding biofertilziers? Name some. In Malaysia, the government is marketing biofertilizers in niche markets such as ornamental crops, vegetables, and plantations. In Mexico, ANEC, a Mexican farmers� organization with over 60,000 members, is involved in promoting biofertilizers to create awareness and provide extensive knowledge about the products. In July 2015, the Karnataka Government (India) initiated the Kuruvai Special Package scheme under which the use of liquid biofertilizers was promoted. Which mode of application is projected to grow in the biofertilizers market? Soil treatment is highly adopted across Asian regions due to traditional methods prevailing in their farming system. When applied to the soil, it increases the availability of nutrients and enahnces the yield by 20% without having any hazadeous affect on the soil and environemnt. Therefore, soil treatment is estimatd to grow in the future. What are the opportunities driving biofertilizers market? The increasing rate of population has resulted in more demand for food, especially in Asia, which has lead to more consumption of fertilizers. To combat the use of chemical fertilizers, government has emphasized on environmental-friendly fertilizers, hence it give a huge scope for market. Who are the key players operating across regions? Novozymes (Denmark), Rizobacter Argentina S.A. (Argentina), Lallemand Inc. (Canada), T Stanes & Company Ltd (India), SOM Phytopharma (India) Ltd (India), International Panaacea Limited (India), Symborg (Spain), Mapleton Agribiotech (Australia), and Kiwa Biotech (China). What is the impact of COVID-19 on the Biofertilizers market? COVID-19 has impacted the businesses of biofertilizer companies up to some extent. Though this pandemic situation has impacted their businesses, there is no significant impact on the global operations and supply chain of their biofertilizers. Multiple manufacturing facilities of players are still in operation. The service providers are providing biofertizer products by following safety and sanitation measures. .

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