Agricultural Microbials Market Size, Share & Industry Analysis By Type (Bacteria, Fungi, Virus, and Others), By Formulation (Dry and Liquid), By Function (Soil Amendment and Crop Protection), By Application Method (Foliar Spray, Soil Treatment, Seed Treatment, and Others), By Crop (Cereals, Oilseed & Pulses, Fruits & Vegetables, and Others), and Regional Forecast, 2024–2032

The global agricultural microbials market size was valued at USD 6.17 billion in 2023 and is projected to grow from USD 6.85 billion in 2024 to USD 16.02 billion by 2032, exhibiting a CAGR of 11.21% during the forecast period. North America dominated the agricultural microbial market with a market share of 35.17% in 2023.

The microbial products that are made for agriculture purposes are based on the principle pertaining that the live microbes are equivalent to probiotics and applied by different methods such as foliar, soil treatment, seed treatment, and others with an aim to achieve significant benefits in terms of crop health and growth. The global market growth is driven by the increasing pest proliferation globally. The agricultural microbial products are of several types, including fungi, bacteria, viruses, and others. The product form can be dry or liquid and is designed for soil amendment or crop protection of crops, such as cereals, oilseeds & pulses, fruits & vegetables, and others.  

The COVID-19 pandemic has resulted in a significant negative impact on several industries. The closing of borders and restrictions imposed by several governments globally due to the imposition of lockdown significantly impacted the global agriculture supply chain. The closing of international markets and trade had a major negative impact on global utilization. In addition, the growth in the demand for agricultural produce further resulted in an increased demand for agricultural microbials. However, the limited supply resulted in increasing the supply and demand gap. However, the essential nature of agriculture and the exceptions placed by governments assisted the agriculture industry in bouncing back and further brought the microbial supply chain on track, making the global impact moderate for the agricultural microbials industry.

Agricultural Microbials Market Trends

Rapid Advancement in the Organic Agriculture Sector to Fuel Market Growth

The adoption of organic farming has recorded significant growth in recent times. This significant growth rate is owing to the increasing awareness related to the higher negative impacts caused by the excessive use of chemical fertilizers and other chemical products. In addition, the increasing awareness toward declining arable land due to excess use of pesticides and fertilizers and, thus, the higher contribution of agriculture to climate change is further influencing the demand for organic agriculture input products, such as microbial stimulants, microbial pesticides, and microbial fertilizers. For instance, as per the survey published by the National Agricultural Statistics Service in 2019, the practice of certified organic farming has recorded a growth of 17% in the U.S. from 2016 to 2019.

Agricultural Microbials Market Growth Factors

Increasing Pest Proliferation to Drive Global Market Growth

The changing climatic conditions such as increasing average global temperature, declining rainfall groundwater level and arable land, has fueled the resurgence of pests in the environment. The rapid proliferation of pests has fueled the demand for high-quality pest control or pesticides at a global scale. In addition, the increasing demand for agricultural produce with the rapidly growing population resulting in increased food consumption has further fueled the requirement for agricultural input products, such as fertilizers, pesticides, and stimulants globally to improve crop health and yield. Moreover, there has been a rising awareness of the negative impact caused by chemical or synthetic agriculture input products, which further contributes to the increasing demand for microbial-based agriculture products.

Growing Food Consumption and Rising Demand for Food Security to Propel the Market Growth

Agricultural microbials adoption has provided several benefits, including higher crop yield, uptake of nutrients, and cultivation of organic crops. The rapidly growing population globally and the increasing demand for sustainable crop production are driving the demand for organic farming practices and organic farming input products. The global population is set for exponential growth, further increasing the demand for food. This increasing demand for food security is fueling the adoption of fertilizer, stimulants, and pesticide products. Thus, the rapidly growing population and increasing demand for food security will propel the growth of global agricultural microbial products.

RESTRAINING FACTORS

Shorter Shelf Life and Limited Awareness Toward Microbial Products to Restrain Market Growth

The microbial products are induced with several limitations due to the nature of the products. One of these limitations is the shorter shelf life of these products, as they are made from live microorganisms such as fungi, bacteria, and others. The limited shelf life of around two months hampers the adoption rate of these products. Furthermore, the limited awareness and geographical reach of these products further restrain the global market growth. The utilization of these products further increases the complexity as there are considerable challenges with the utilization of microbes and their mode of application. For instance, the microbial culture used for seed treatment damages the accessibility of sowing seeds. Furthermore, owing to the lower seed survival rate of these microbes, storage stability hampers the effective utilization of the microbials.

Agricultural Microbials Market Segmentation Analysis

By Type Analysis

Rising Demand for Bacteria to Fuel Segment Growth

Based on type, the market for agricultural microbials is classified into bacteria, fungi, viruses, and others.

The bacteria segment holds the highest share in the global market owing to its wide utilization in the industry in the formulation of biofertilizers, biopesticides, and biostimulants. The higher adoption rate of bacteria is owing to their growth-promoting characteristics, as bacteria are known for having a higher contribution in growth-promoting functions in plants and are also characterized as protective in subduing root-fungus disease. In addition, the high availability of several bacteria strains in the environment further contributes to market growth.

The fungi segment holds a significant share, followed by the virus type, owing to fungi being proven as extremely beneficial in terms of growth, which is called Plant Growth Promoting Fungy (PGPF). These fungi are reported to increase germination, seedling vigor, yield, and flowering, which contribute to the higher utilization of these products.

By Formulation Analysis

Ease of Application Marks Dominance of Liquid Formulation Segment

By formulation, the market for agricultural microbials is categorized into dry and liquid.

The ease of application provided by the liquid formulation tends to contribute to its fastest growth. Compared to the dry formulation, the liquid can be applied directly with sprays, root dips, and drenches. In addition, the liquid formulation does not require any previous procedures, including mixing, which avoids spoilage and wastage.

However, the dry formulation segment dominated the market in 2023 owing to its rising adoption among agriculture producers in recent years owing to its higher significant convenience and ease of storage. In addition, the dry formulation is highly convenient for transportation and has a longer shelf life, which contributes to its increasing adoption.

By Application Method Analysis

Higher Effectiveness of Foliar Spray to Drive Segment Growth

By application method, the market is categorized into foliar spray, soil treatment, seed treatment, and others.

Foliar spray segment accounted for the largest share in the global market due to its higher benefits than other application methods. Additionally, the foliar method provides faster nutritional uptake as the foliage rapidly absorbs the nutrition. The ease of application of foliar spray also assists in the prompt treatment of deficiencies and diseases in plants.

Seed treatment holds a significant share in global market. The seed treatment is expected to show a rapid growth in recent years owing to the rising demand for food, rapid technological advancement, growing adoption of precision farming, and rising support from governments.

By Function Analysis 

Higher Nitrogen Content Provided by Microbes to Fuel the Growth of Soil Amendment Segment

Based on function, the market is classified into soil amendment and crop protection.

There has been a rapid growth in the adoption of microbes in crop protection. Furthermore, microbes have been proven to be effective in controlling several plant pests and diseases. Therefore, the high adoption of microbes in crop protection solutions leads to dominance of crop protection function.

The utilization of microbes has been proven to provide higher nitrogen content, which is said to contribute significantly to better quality yield. Thus, In addition, there is an increasing adoption among farmers owing to its sustainable nature. Thus, sustainability, high nitrogen content, and cost-effective characteristics of microbes fuel the utilization of soil amendments and thus, will further contribute toward global market growth in the forecast period.

By Crop Analysis

Increasing Demand for Fruits & Vegetables to Drive Growth of Agricultural Microbials

Based on crop analysis, the market is divided into cereals, oilseeds & pulses, fruits & vegetables, and others.

Fruits and vegetables, which are considered to be high-value crops does hold a dominating share in the global market  and has shown a gradual rise in demand across the globe owing to their higher ROI. Microbes are known for providing higher nutrition for soil improvement and crop protection, further increasing demand for these high-value crops contributes to the higher demand for agricultural microbial products. Furthermore, the rising demand for organic fruits and vegetables and microbial products being economical in terms of high-value crop cultivation, thus further contributing to higher demand in the forecast period.

Crops such as cereals which is second most dominant segment in the global market is said to show a rapid growth owing to the rapid growth in new product development by market players.

Furthermore, pulses & oilseeds are showing a shift in adoption toward microbials owing to the higher yield provided by these products.

Fungi and bacteria are those microbes that are associated with increasing photosynthesis in crops such as rice and other cereal crops. These microbes also aid in providing a higher survival rate for crops during drought.

REGIONAL INSIGHTS

Based on region, the market for agricultural microbials is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

The North American region is the largest region in the market and is said to hold a significant agricultural microbials market share during the forecast period. This higher share is due to the rising awareness related to the environmental benefits provided by these microbes and the increasing adoption of organic farming practices. Countries such as the U.S. are known for promoting higher utilization of microbials and further enabling several policies and regulations to increase awareness and provide assistance to farmers. For instance, the U.S. Department of Agriculture (USDA) and the National Science Foundation (NSF) are known for promoting and encouraging activities such as research and development in the diversity of microbes and providing plant-associated microbials with long-term availability. Furthermore, the major players operating in the North American region are utilizing the higher demand and launching new products and strategic partnerships to provide microbial products to cater to the increasing demand. For instance, in July 2019, one of the leading organic agriculture input products and service providers, Marrone Bio Innovations, Inc., announced the launch of its all-new pest management program called BioUnite.

Following North America, Europe is the second-largest in the global market and will maintain a high share during the forecast period. This high share is owing to the stringent regulations in the region related to the use of chemically induced or synthetic agriculture input products. The region has a significant awareness of sustainable agriculture practices and has shifted toward the use of microbial and organic practices, which is driving the growth of the European market.

The higher profitability of microbial products and increasing awareness of farmers in the South American region has fueled the adoption rate of microbial products in countries, such as Brazil, Argentina, and others, which has contributed toward making the South American region, the fastest-growing.

The rising awareness regarding the harmful impact on the environment caused by chemical fertilizers, the benefits of microbial-based crop protection products, and their ability to improve soil fertility in the Asia Pacific market support the overall growth. India and China are majorly agriculture-dependent, and they contribute a significant share of their GDPs. Furthermore, these countries have started prioritizing environmental protection and restoration, which led to the adoption of agricultural microbials. Thus, it is expected to open untapped opportunities for the Asia Pacific agricultural microbials market growth.

The Middle East & Africa is experiencing significant traction toward these microbes to reduce and even replace synthetic agrochemicals. The farmers and producers have started to adopt agri-microbes as safe agricultural inputs. This factor is expected to contribute to the regional market growth during the forecast period.

KEY INDUSTRY PLAYERS

Growing Key Players Focus on New Product Launch and Geographical Expansion Among Drives Market Expansion

The global market is consolidated with the presence of prominent players globally. Companies, such as Certis USA LLC, Marrone Bio Innovations, Inc., Koppert Biological Systems, BASF SE, and Valent Biosciences, LLC, are focusing on research and development of new product developments to widen their portfolio and maintain their strong foothold in the global market.

List of Top Agricultural Microbials Companies:

• Certis USA LLC (U.S.)


• ChemChina (China)


• Marrone Bio Innovations, Inc. (U.S.)


• Koppert Biological Systems (Netherlands)


• Varsha Bioscience and Technology Pvt. Ltd. (India)


• Andermatt Biocontrol AG (Switzerland)


• BASF SE (Germany)


• Sumitomo Chemical Co., Ltd. (Japan)


• Novozymes (Denmark)


• Bioceres S.A. (Argentina)

KEY INDUSTRY DEVELOPMENTS:

• April 2022: Bayer CropScience signed an agreement with Ginkgo Bioworks wherein Ginkgo Bioworks would acquire Bayer's West Sacramento Biologics Research & Development site and internal discovery and lead optimization platform. This agreement is likely to accelerate the expansion of Bayer's diversified portfolio of high-quality microbial-based solutions for growers globally.


• March 2022: The Mosaic Company and BioConsortia, Inc. signed a new agreement to develop and distribute nitrogen-fixing microbial products for rice, corn, wheat, fruit, and vegetables in India, China, Vietnam, and Thailand.


• February 2022:  Andermatt added numerous new products to its product catalog. The company expanded its line of biostimulants and introduced animal health products to its worldwide product portfolio, in addition to Plutex, a newly highly selective baculovirus for controlling diamondback moth (Plutella xylostella).


• February 2022: Valent BioSciences LLC announced that it established a new operating unit to expand its biostimulant line with new internally and externally developed products for both the U.S. and global markets.


• April 2021: Eden Research, a company focused on developing biopesticides, received sales authorization in Morocco. The company also received permission to sell the bio-fungicide Mevalone in Romania. These products can be applied to crops such as table grapes, tomatoes, and cucumbers.

REPORT COVERAGE

The market research report for agricultural microbials provides a detailed analysis of the market and focuses on key aspects, such as leading companies in the competitive landscape of Agricultural Microbials by type, formulation, application method, function, and crop. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 11.21% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Type   Bacteria Fungi Virus Others
By Formulation Dry Liquid
By Application Method Foliar Spray Soil Treatment Seed Treatment Others
By Function Soil Amendment Crop Protection
By Crop Cereals Oilseeds & Pulses Fruits & Vegetables Others
By Region North America (By Type, Formulation, Application Method, Function, Crop and Country) U.S. (By Formulation) Canada (By Formulation) Mexico (By Formulation) Europe (By Type, Formulation, Application Method, Function, Crop and Country) Germany (By Formulation) France (By Formulation) Italy (By Formulation) Spain (By Formulation) U.K. (By Formulation) Russia (By Formulation) Rest of Europe (By Formulation) Asia Pacific (By Type, Formulation, Application Method, Function, Crop and Country) China (By Formulation) India (By Formulation) Japan (By Formulation) Australia (By Formulation) Rest of Asia Pacific (By Formulation) South America (By Type, Formulation, Application Method, Function, Crop and Country) Brazil (By Formulation) Argentina (By Formulation) Rest of South America (By Formulation) Middle East & Africa (By Type, Formulation, Application Method, Function, Crop and Country) South Africa (By Formulation) Israel (By Formulation) Rest of Middle East & Africa (By Formulation)