India Biofertilizers Market Size, Share & COVID-19 Impact Analysis, By Type (Nitrogen Fixing, Phosphate Solubilizers, Others), By Microorganism (Rhizobium, Azotobacter, Azospirillum, Pseudomonas, Bacillus, VAM, Others), By Application (Seed Treatment, Soil Treatment, and Others), and By Crop Type (Cereals, Pulses & Oilseeds, Fruits & Vegetables, Others), 2022-2029

The India biofertilizers market size was USD 99.59 million in 2021. The market is expected to grow from USD 110.07 million in 2022 to USD 243.61 million by 2029, exhibiting a CAGR of 12.02% during the forecast period. The impact of COVID-19 pandemic has been unprecedented and staggering, with biofertilizers experiencing lower-than-anticipated demand across India compared with pre-pandemic levels.  Based on our analysis, the market exhibited a growth of 7.66% in 2020 as compared to 2019.

Biological fertilizers are globally known to contain agriculturally important, viable, and beneficial microorganisms capable of mobilizing nutritionally significant elements from non-usable through the biotic process. They are a low-cost and renewable source of crop nutrients and can play a supplemental role to chemical fertilizers. The future of the product looks bright considering the population growth rate, the rising need for sustainable agri-inputs to protect against yield losses, and increasing consumer demand for sustainably produced food.

COVID-19 IMPACT

Sudden Outbreak of Coronavirus to Disrupt Raw Materials Supply Chain

The Indian industry has witnessed a negative impact due to the novel coronavirus. Labor shortages and logistic restrictions have become the topmost concerns for manufacturers. Many manufacturers have had to stop or halt production, particularly small and medium-sized enterprises (SME). To guarantee the normal progression in farming, the Government of India issued an emergence notice to confirm the circulation and transportation of agricultural products.

Currently, the situation has improved, with the number of new confirmed cases falling. However, the outburst of new COVID-19 variants can also affect the market growth negatively in future. The sudden coronavirus outbreak has severely affected production across the country. Biofertilizer prices are expected to increase, owing to product shortages and higher production costs. But, downstream demand is uncertain and export market pressures remain high, both of which put the biofertilizers market under greater pressure in 2020. Government, farmers, and industry will have to work together to support market growth for upcoming agriculture cycles.

LATEST TRENDS

Rising Demand for Sustainable Agri-inputs

The market growth is expected to continue to grow over the next few years due to increased demand for organic food, sustainable organic farming, and fertilizers compatible with agricultural practices. These fertilizers are an economical and environment-friendly option for crop production; hence, their adoption is rising in the country. There is an urgent need for a shift to more sustainable agricultural production methods, with a greater focus on promoting sustainable mechanisms because of climate change issues, physical and chemical soil degradation, and water pollution. Biofertilizer is considered one of the best strategies, a better alternative to sustainable agriculture, and a possible solution to meet the parallel challenges of global food security and environmental stability. Aspects such as improved soil fertility, increased plant nutrient absorption, and lower human health risks associated with the product are some of the factors that augment the India biofertilizers market growth.

DRIVING FACTORS

Rising Awareness Regarding the Negative Effects of Chemical Agri-inputs is Expected to Surge Product Demand

The rising population in India has put forward immense pressure on agricultural lands and several other resources to produce an adequate amount of food for the residing population. The increased implication of chemical fertilizers in agriculture may lead to producing sufficient food for the country, but on the other hand, it affects the health of the living organisms and environment. Therefore, to limit the use and negative impact of chemical fertilizers in agriculture, the application of biological fertilizers has increased tremendously in recent years.

With the help of actinorhizal plants and legumes, which have the potential of nitrogen fixation symbiotically, they may limit the use of chemical nitrogen fertilizers. Involving these practices, soil and water pollution arising from nitrates and associated contaminants by using chemical fertilizers can be suppressed. The increasing current efforts to sustainably produce nutrient-rich, high-quality food to ensure bio-safety is likely to support the market's steady growth. Moreover, the high export potential of the product in North America, Europe, and other Asia Pacific countries is encouraging the country players to invest a high amount of money in the research and development of the product, which is expected to positively impact the market growth.

Technological Advancement in Product Manufacturing to Drive Market Growth

The Indian fertilizer industry has proven to have room for growth, especially as we face increasing soil and water contamination due to the exploitation of chemical fertilizers. Manufacturers, distributors, and wholesalers in the industry should recognize the opportunity if they want to continue to thrive. The sustainable growth of the market in the country will hinge on the development and adoption of the new techniques. Henceforth, in July 2019, ICAR (Indian Council of Agricultural Research) researchers introduced the technology to pack bio-fertilizers in tiny capsules. The new technology excludes the need for growers to carry the sacks of biofertilizers. It is being called the one-gram capsule, which has many advantages. It is very efficient as it contains the microbial population equivalent to what is present in a one-kg pack of powder or a one-liter bottle.

RESTRAINING FACTORS

Some Technological, Infrastructural, and Financial Constraints are Anticipated to Hinder Market Growth

Although the application of the product is cost-effective and environment-friendly, numerous constraints limit their usage. The constraint may be infrastructure, unawareness, finances, human resources, funding, technology, quality, marketing, and others. Technical problems, such as lack of guidance from expert personnel, financial problems, such as lack of availability of financing and subsidies, and other constraints are anticipated to hamper the market growth. Moreover, limited financial capacity of small or medium-level market players to support marketing strategies is also likely to negatively impact market growth. The companies need to focus on promoting the product to increase their footprint in the market.

SEGMENTATION

By Type Analysis

Nitrogen Fixing Fertilizers to Hold Major Share owing to Its Wider Adoption

By type, the market is classified into nitrogen-fixing, phosphate solubilizers, and others. Bio-fertilizers contents living cells of different types of microorganisms which, when applied to plant surface, seed or soil, colonize the microorganisms to promote growth by converting nutritionally important elements, i.e., nitrogen and Phosphorus, from unavailable to available form through a biological process such as nitrogen fixation and solubilization of rock phosphate. Nitrogen fixation and phosphate solubilization have been considered the most important factors for plant growth promotion. The demand for nitrogen-fixing products is high among Indian farmers as it is the biotechnological tool of the highest potential to increase Indian agricultural productivity in the short term.

Phosphorus is the second most crucial nutrient for crops, after nitrogen. Though it exists in soil as mineral salts, the majority of them occur in an insoluble form. Hence, the unavailability of phosphorus in many soils has been known as the main growth-limiting factor in agricultural and horticultural systems. This requires the usage of soluble forms of phosphorus in the form of phosphate fertilizers. 

By Microorganism Analysis

VAM to be the Fastest Growing Microorganism Variety in the Organic Farming

Based on microorganism, the India biofertilizers market is classified into Rhizobium, Azotobacter, Azospirillum, Pseudomonas, Bacillus, VAM, and others. Rhizobium species have been successfully used in India for effective establishment of the nitrogen-fixing symbiotic association with leguminous crop plants. The application of Rhizobium can help farmers grow their annual crop yield due to its efficiency in crop production in an eco-friendly manner.

The VAM segment is anticipated to grow at the fastest pace in the forthcoming years due to several benefits. For instance, VAM improves the properties of soil in the rhizosphere, enlarges root areas of host plants, and improves water absorption efficiency. Moreover, it enhances the absorption of phosphorus and other nutritional elements and the nutritional status of the host plant.

By Application Analysis

Deteriorating Quality of Soil is Predicted to Boost the Application of Biofertilizers for Soil Treatment

On the basis of application, the market is classified into soil treatment, seed treatment, and others. The application for soil treatment is anticipated to hold a major share in the market. The rising concerns regarding the deterioration of soil health due to overuse of chemical fertilizers are driving the application of the product for soil health. Moreover, the application of the product in seed treatment is expected to grow at an impressive CAGR in the coming years as it reduces the negative environmental impact and offers various agronomic benefits.

By Crop Type Analysis

Cereal Segment Holds the Prominent Position owing to the Rising Area Under the Organic Cereal Farming

Currently, the application in the production of cereals grains is high as compared to other crop types, and the segment is expected to hold its leading position throughout the forecast period. The rising demand for organic cereal grains and its high export potential are likely to increase the product application for cereal production.

REGIONAL INSIGHTS

Biofertilizers are well known in India for their environment-friendly nature, cost-effectiveness, and composition. India's producers and farmers are increasingly seeking cost-effective, credible, and lucrative options in the production of agri-commodities. Solid science-based label claims, demonstrably increased investment, innovation, and end-to-end support from biological companies, are projected to fuel the market growth. The lack of awareness among producers in certain emerging markets is impeding the full-fledged growth of the agricultural biological industry.

The rising demand for effective alternatives to hazardous synthetic fertilizers is expected to drive market growth in the forthcoming years. The Government of India and numerous state governments have been making serious and constant efforts to propagate biofertilizers for the last decades. Moreover, the rising popularity and increased adoption of organic farming practices have boosted sales in the country. Major companies operating in India's market are focusing on expanding their product portfolio, acquiring niche agri-biological firms, and gorging industry-academia partnerships to strengthen product innovation synergies. Enabling the regulatory and policy environment will be a major growth-promoting factor in the country.

KEY INDUSTRY PLAYERS

Collaboration with Relevant Stake Holders to Aid Dominant Position in Market

The India market is moderately consolidated with the presence of several dominant players. A few key players in the industry hold a prominent share in the entire market owing to their huge clientele base, strong brand loyalty, and distribution network. The competition in the market has started to intensify in recent years as the companies are focusing on raising their prominence in the market to cater to the amplifying demand for the product among farmers. National Fertilizers Limited, Indian Farmers Fertilizers Cooperative Limited, Gujarat State Fertilizers & Chemicals Limited, Madras Fertilizers Limited, and Agrinos are focusing on collaboration with relevant stakeholders, especially the government, to increase their footprint in the marketplace. The key players of this market are also focusing on the launch of innovative products to expand their presence.

LIST OF KEY COMPANIES PROFILED:

• UPL Limited (Mumbai, India)


• Novozyme (Bagsvaerd, Denmark)


• Gujarat State Fertilizers & Chemical Ltd (Gujarat, India)


• Rallis India Limited (Mumbai, India)


• FMC Corporation (Pennsylvania, U.S.)


• National Fertilizers Limited (Noida, India)


• Indian Farmers Fertilizer Cooperative Limited (New Delhi, India)


• Madras Fertilizers Limited (Chennai, India)


• T. Stanes and Company Limited (Tamil Nadu, India)


• Agrinos (California, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In March 2022, the Mosaic Company and BioConsortia, Inc. have entered into a new agreement to develop and launch nitrogen fixing microbial products in China, India, Thailand, and Vietnam.


• In June 2020, the Indian Council of Agricultural Research (ICAR) and the Indian Farmers Fertilizer Cooperative Ltd (IFFCO) signed a contract for joint research, testing, and validation of various products by the ICAR Institutes and Krishi Vigyan Kendras (KVK). The collaboration will enable these centers to spread technological progress by providing training, awareness programs, campaigns, field tests, and demonstrations for the benefit of farmers. The ultimate goal of this collaboration is to enable farmers to reduce their chemical fertilizers consumption by using the technology effectively.

REPORT COVERAGE

The India biofertilizers market report includes quantitative and qualitative insights into the market. It also offers a complete analysis of the demand, market size, market statistics, and growth rates for all possible market segmentation. Numerous key insights presented in the report covered information regarding an overview of the parent market, competition landscape, market growth opportunity, and recent industry developments such as base expansion and key industry trends.

REPORT SCOPE & SEGMENTATION