June 13, 2024
Biofertilizers Market

Biofertilizers Market is Estimated to Witness High Growth Owing to Increasing Organic Farming

Biofertilizers are micro-organisms which help in increasing the nutrient quantity of agricultural soils and enhance crop yield. Key advantages of biofertilizers include enhanced nitrogen and phosphorus absorption, increased shelf life of crops, improved organic matter content in soil, and cost effectiveness compared to chemical fertilizers. With rising awareness about the ill effects of chemical fertilizers on soil health and environment, adoption of organic and environment-friendly biofertilizers is increasing among farmers globally.

The Global Biofertilizers Market is estimated to be valued at US$ 2.61 Mn 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. With rising awareness, key players are focusing on new product launches and geographical expansion to tap the market potential. For instance, companies are launching biofertilizer products customized for different crops and soil conditions.

There is a high potential for Biofertilizers Market Size in countries which are promoting organic farming. Government support in terms of subsidies and awareness programs are creating new opportunities for biofertilizer manufacturers. Growing organic crop area in countries like India and China will drive future demand.

Key players are actively engaging in partnerships and acquisitions for global expansion. For example, companies are targeting African and Asian markets which have high organic farmland potential but lack awareness. Technology transfers, tie-ups with local distributors and customizing products as per soil and crop needs will help gain foothold in new regions.

Market drivers

Concerns around effects of chemical fertilizers such as soil and water contamination are driving the adoption of biofertilizers. They are considered safer and more sustainable alternative to chemicals. Government pressures to reduce chemical fertilizer usage to achieve environmental commitments are further propelling the biofertilizer market. Initiatives to promote organic farming and provide market linkages to organic produce will continue to boost demand. Biofertilizers fit well with sustainable agriculture goals of many countries.

PEST Analysis

Political: The government policies relating to eco-friendly products, sustainable agriculture, and subsidies on organic food production positively impact the biofertilizers market. Some governments also promote public-private partnerships to increase the use of biofertilizers among farmers.

Economic: Rising food demand owing to the growing population, depleting natural resources, and high costs of chemical fertilizers drive farmers and cultivators towards eco-friendly and cost-effective biofertilizers.

Social: The rising health and environmental concerns among consumers regarding the use of chemical fertilizers and preference for organic foods increase the demand for foods cultivated using biofertilizers.

Technological: Advancements in fermentation technologies aid in developing innovative and concentrated forms of biofertilizers that are easy to use and help increase soil fertility and crop productivity. Investments in research and development also help companies launch customized and targeted biofertilizer products.

The biofertilizers market in terms of value is majorly concentrated in Asia Pacific, led by countries like India and China. India accounts for about 30% of the global biofertilizers demand owing to the large area under organic cultivation and various government schemes promoting the use of eco-friendly fertilizers among smallholder farmers.

North America is the fastest growing regional market for biofertilizers attributable to rising environmental concerns, stringent regulations on chemical fertilizers, and growth in organic farmland in countries like the US.

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