Biofertilizers Market Size, Share & Industry Analysis, By Type (Nitrogen Fixing, Phosphate Solubilizers, and Others), By Microorganism (Rhizobium, Azotobacter, Azospirillum, Pseudomonas, Bacillus, VAM, and Others), By Application (Seed Treatment, Soil Treatment, and Others), By Crop Type (Cereals, Pulses & Oilseeds, Fruits & Vegetables, and Others), and Regional Forecast, 2024-2032

The global biofertilizers market size was valued at USD 2.26 billion in 2023 and is projected to grow from USD 2.53 billion in 2024 to USD 6.34 billion by 2032, exhibiting a CAGR of 12.17% during the 2024-2032 period. The biofertilizers market in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.28 billion by 2032, driven by increasing number of organic farms in the country, along with government funding and support towards sustainable agricultural practices.

Biofertilizers, also known as bioinoculants, are defined as living microbes that amplify plant nutrition by colonizing the rhizosphere when applied via soil or seed. Microorganisms such as cyanobacteria, nitrogen-fixing soil bacteria, phosphate-solubilizing bacteria, and molds are majorly utilized in the production of biological fertilizers. These compounds hasten the microbial processes within the soil, intensifying the availability of nutrients in a form easily absorbed by plants. In addition, they enhance crop yield and soil fertility and preserve the plants against diseases and pests. Another advantage of these is that they are not required for a longer period (after 3-4 years), as the parental inocula is enough for industry growth and multiplication. Thus, this makes it a preferable alternative across the agricultural industry. Apart from this, the cost-effective quality also increases its usage as compared to artificial fertilizers. Since these products are primarily made up of natural ingredients, they are usually less expensive to manufacture and can be easily applied at a lower cost. As a result, this can help minimize the total cost of fertilization and make it more convenient for farmers and gardeners.

The COVID-19 pandemic impacted the production of biological fertilizers, as the industry witnessed major challenges in procuring raw materials and others, affecting the overall agricultural industry.

Biofertilizers Market Trends

Proliferating Demand for Sustainable Crop Production Inputs to Support Market Growth

The demand for biofertilizers is expected to continue growing due to the increased demand for sustainable organic farming inputs and fertilizers compatible with modern agricultural practices. These fertilizers are an economical and environmentally friendly option for crop production, and their adoption is rising across the globe. Other factors, such as the growing population’s concern about consuming pesticide-free products and surging health hazards, are also supporting the increasing demand for sustainable crop production. To promote sustainable agriculture, the Indian Government is committed to strengthening sustainable or green agriculture by implementing the National Mission for Sustainable Agriculture (NMSA), which will further fuel sustainable production across the globe.

Biofertilizers Market Growth Factors

Expansion in Production of Horticulture Crops and Cereal Crops to Support Biological Products Growth

Biofertilizers can be used for the production of high-value crops such as horticulture crops. The use of intensive cultivation practices and the widespread use of chemical fertilizers have impacted soil fertility, creating an urgent need to adopt non-chemical alternatives, such as biofertilizers, for crop production. The use of these products helps to improve soil fertility and increase microbial content by replenishing the population of microorganisms in agricultural soils. Thus, using such products in combination with other products can improve crop yields and maintain soil health. For instance, as per a report submitted by the European Journal of Horticultural Science, the use of arbuscular mycorrhizal fungi (AMF) during field trials in the Mediterranean coastal region of Turkey helped to increase the yield and nutrient content in pepper, tomato, eggplant, and cucumber. Thus, the use of biological fertilizer has proven to be a safe option for the production of a variety of crops.

Governments Incentives for Sustainable Agriculture are Promoting the Use of Biological fertilizers in Agriculture

The Green Revolution brought noteworthy gains in food production and created a significant negative impact on the environment. As the dependence on chemical fertilizers for agronomic growth increased globally among farmers, it led to water contamination, deterioration in soil quality, and an unsustainable burden on the fiscal system of several countries. Therefore, governments across several agri-dominant economies have been trying to promote an improved practice involving adopting sustainable products such as biological fertilizers. For instance, in July 2023, the government of India launched a PM PRANAM scheme to promote the balanced use of synthetic fertilizers as well as alternative fertilizers such as biological fertilizers. Under this scheme, the Indian government planned to minimize the subsidies for chemical biologicals and provide a 50% subsidy as a grant to states. This subsidy can be used as an investment in launching new fertilizer technology.

RESTRAINING FACTORS

Limited Shelf Life of Natural Fertilizers Impacts the Efficacy of Such Products

One of the major manufacturing challenges faced by biofertilizer manufacturers is the storage and maintenance of microorganisms used in the final products. The survival rate of these microorganisms impacts the efficacy of biological fertilizers; hence, proper storage of such microorganisms is required. For instance, biological fertilizer packets should ideally be stored in a cool and dry place, away from heat and sunlight. Thus, strong technical knowledge and an advanced logistics system are required to improve and maintain the efficacy of such products.

The efficacy of the product can also vary depending on the soil type and crop type. The microbe strains used in the fertilizer can establish non-specific host-inoculant relationships or can have a poor competitive advantage against native bacteria strains present in the soil. Hence, a significant study of the climate and soil characteristics of a region is important to ensure better efficacy of such products in different climatic conditions.

Biofertilizers Market Segmentation Analysis

By Type Analysis

Nitrogen Fixing Fertilizers to be Sought-after Owing to the Ability to Generate Higher Yield

On the basis of type, the market is divided into phosphate solubilizers and nitrogen fixing.

The nitrogen fixing fertilizers segment emerged as the leading segment as it provides all the important nutrients which cannot be acquired from the air. Farmers have widely used nitrogen-fixing phosphate solubilizing biological fertilizers to produce high-demand crops such as wheat, rice, oilseeds, and others. Biological fertilizers containing nitrogen can correct the nitrogen level in the soil, aiding in the growth of the crop. Nitrogen bio-fertilizers are broadly classified into free-living, symbiotic, and associative symbiotic.

Phosphate solubilizers are recognized as the fastest growing category and are expected to fuel at a higher pace in the near term. The demand for phosphate solubilizers is predicted to grow at a decent pace, attributed to their potential to improve crop quality and yield. Phosphate is a key nutrient that plants need to function correctly, and it plays a vital role in all aspects of plant growth and development. The use of phosphate solubilizers effectively increases fertilizer uptake by mobilizing insoluble phosphorus into the soil to which they are applied. With the development of biofertilizers, phosphate solubilizers have also become widely used among farmers.

By Microorganism Analysis

Rhizobium Dominates the Segment Owing to High Efficacy in Crop Production

In terms of microorganism, the market is divided into rhizobium, azotobacter, azospirillum, pseudomonas, bacillus, vam, and others.

Rhizobium is the leading variant of microorganism used in agriculture due to its enormous importance in providing the major nitrogen source in soil. Apart from being an excellent nitrogen-fixing agent, rhizobium exerts plant growth-promoting traits and supports the insolubilization of inorganic phosphate. Furthermore, its rising demand is mainly due to its ability to ensure success in achieving crop productivity and reducing the need for synthetic fertilizers that are expensive and harmful to the environment.

The utilization of azotobacter is projected to rise across agri-dominant economies as they are efficient in inducing beneficiary reactions on crop growth rate and improving seed germination. These free-living symbiotic bacteria help synthesize growth regulators such as auxins, cytokinins, and gibberellic acid (GA). In addition, it stimulates rhizospheric bacteria, protects plants from phytopathogens, improves nutrient uptake, and ultimately increases biological nitrogen fixation. The abundance of azotobacter in the soil is related to many factors, mainly soil pH and fertility; hence, their demand increases rapidly.

Pseudomonas is widely applied in agriculture crop management as it imparts protection to plants against numerous fungal and nematode infestations. It also induces plant-growth-promoting hormones, which assist in crop production.

By Application Analysis

Seed Treatment held the Highest Market Share Due to Various Agronomic Benefits

On the basis of application, the market is divided into seed treatment and soil treatment.

The seed treatment segment held the highest biofertilizers market share due to wide utilization in administering these fertilizers. Crop and plant seeds are subjected to biological fertilizer treatment to avoid viral or bacterial attacks, significantly reducing crop yield. Further, biological fertilizers applied to the seeds promote atmospheric nitrogen fixation and make them readily available for the crop. Seed treatment helps solubilize phosphorus in the soil and improve its availability. Along with this, numerous vendors have come up with innovative solutions to administer these biological fertilizers more efficiently. These solutions include extended spreading widths and intelligent speed monitoring systems, which enhance spreading accuracy, slow-releasing fertilizer spreaders, and others.

Soil treatment is another major application of biofertilizers, expected to witness the fastest growth. It involves spraying the bio-based fertilizers on agricultural land, thereby directly on the soil. Spraying biological fertilizers on soil helps symbiotic bacteria to interact with root nodules of the plants for nitrogen fixation and moisture retention in the soil. This factor promotes healthy plant growth and prevents soil quality degradation and erosion.

By Crop Type Analysis

Cereals Segment to Lead Owing to High Demand for Organic Cereals

In terms of crop type, the market is divided into cereals, pulses & oilseeds, fruits & vegetables, and others.

At present, the application of organic fertilizers in the production of cereal grains is high compared to other crop types. The cereal segment is anticipated to retain its dominant position throughout the forecast period. The high demand for organic cereals in both developed as well as developing economies due to the potential health benefits offered is boosting the industry growth of organic cereals. In numerous experiments and field trials, the application of biological fertilizers on cereal crops has significantly increased their yields by nearly 60%-85%. Furthermore, the demand for organic cereal and organic cereal-based products is surging among consumers across the globe, augmenting the product’s use for cultivating cereal crops.

Biofertilizers in pulses & oilseeds are increasing, and rhizobium is widely used for nitrogen uptake and produces yields in pulses. The inoculation of biological fertilizers and sulfur has a major effect on oilseeds' yield and yield attributes. The increasing consumption and use of vegetable oils owing to their wide application in cooking and other edible products is boosting the oilseeds market, further aiding the product demand for oilseed production. Apart from this, the surging demand for organic fruits & vegetables also contributes to the demand for bio fertilizers across the market.

REGIONAL INSIGHTS

In terms of geography, the market is categorized into North America, Asia Pacific, Europe, South America, and the Middle East & Africa.

North America emerged as the leading region in the bio fertilizers market and holds around 31.07% share of the global market share. The exceptional growth of the region’s market is a clear indication of the product’s popularity across the agri department and among stakeholders. Other major factors contributing to the biofertilizer’s market are the soaring demand and production of organic products. In today’s time, consumers are embracing plant-based alternative proteins as sustainable and environmentally responsible choices, which drives the demand for safe and cost-effective agriculture inputs to cater to rising consumer needs. For instance, the organic industry is the fastest growing agriculture sector in the U.S. As per data provided by the World Trade Magazine, the sale of organic food products in the country exceeded USD 60 billion in 2022.

Europe is also likely to exhibit strong growth in the future as it is one of the prominent consumers of agricultural biological products, such as biofertilizers. Growing stringency on the use of chemical fertilizers, coupled with surging awareness related to harmful hazards associated with synthetic fertilizers, has led to the increased usage of biological fertilizers. The most common biological fertilizers utilized in the European market are Rhizosum PK, Rhizosum K, Cedomon, and Cerall. Moreover, the European Government encourages farmers to use bio-fertilizers to optimize the effects of chemical fertilizers or partially or completely replace them with bio-fertilizers, as they are environmentally friendly. With respect to the aforementioned factors, several research programs are being conducted to identify novel strains which can be helpful in producing new biological fertilizers. For instance, the Horizon 2020 program by the European Commission, funding innovation and research from 2014-2020 with a budget of around USD 94 billion, sponsored the BIOFERTICELLULAR project, which deals with studying microbes that induce plant growth.

Asia Pacific region is recognized as the third largest user of bio-fertilizers and accounted for nearly 19.73% of the global revenue share in 2023. In India, the application of eco-friendly fertilizers is rapidly growing, with many local producers catering to the evolving needs of small-scale farmers. Moreover, the governments in agrarian countries of Asia are making increased efforts to promote sustainable farming. By introducing various programs, offering tax incentives & exemptions, and subsidy offerings, they are encouraging effective utilization of biofertilizers.

South America and the Middle East & Africa are still at a nascent stage in terms of inoculant development and are projected to grow at a stable pace in the future. However, poor logistics and a lack of farmer’s knowledge are key factors responsible for the slow growth of the region. However, the rising number of market players and strong support from the government can escalate the market’s growth. 

Competitive Landscape

Key Market Players Are Involved in Acquisitions for Market Expansion

The prominent market players include Novozymes A/S, National Fertilizers Limited, Bioceres S.A., and others. These players are aiming to expand their market presence either through acquisitions or agreements with leading stakeholders. For instance, in March 2022, Bioceres Crop Solutions Corp. (Bioceres) and Marrone Bio Innovations, Inc. (MBI) announced their agreement to merge both companies in an all-stock deal. Bioceres’ expertise in seed care products and bio nutrition will be combined with Marrone’s leadership in developing plant health solutions and biological crop protection in this transaction, resulting in a global leader in the commercialization and development of sustainable agricultural solutions. Moreover, the companies are working toward increasing their production facilities, which helps fuel the overall global industry growth.

LIST OF KEY COMPANIES PROFILED:

• Lallemand Inc. (Canada)


• National Fertilizers Limited (India)


• IPL Biologicals (International Panaacea Limited) (India)


• Bioceres S.A. (Argentina)


• BioWorks Inc. (U.S.)


• SOM PHYTOPHARMA (INDIA) LIMITED (India)


• American Vanguard Corporation (U.S.)


• Gujarat State Fertilizers & Chemical Ltd. (India)


• Symborg (Spain)


• Novozymes (Denmark)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: Indian Biogas Association (IBA), a non-profit organization based in Haryana, announced a demand for incentives for Biogas-Fertilizer Fund”, as a part of wishlist for Union Budget, 2024. The aim of the association is to promote the use of organically grown fertilizers and accelerate the bio compressed natural gas industry’s growth.


• December 2023: IPL Biologicals, a subsidiary based in Gurugram, Haryana, signed a memorandum of understanding (MoU) with the Gujarat Government for opening a new production facility of bio-pesticide and bio- fertilizers in the state. The MoU was signed for 4000 million and would focus on minimizing the usage of chemicals in the agri-industry.


• August 2023: Bionema Group Ltd., one of the leading biocontrol technology developers in the U.K., announced the launch of their latest addition of four new biofertilizers for use in forestry, agriculture, and sport turf. The newly launched product range, BioNFix and Rhizosafe, comprises of Azospirillum lipoferum BNL714, Paenibacillus azotofixans BNL1913 and others, are capable of restoring the soil’s nutrient cycle, which would promote plant’s growth.


• January 2023: Odisha University of Agriculture and Technology (OUAT) declared the production of liquid nitrogen bio fertilizers, specifically for pulses. The university also received funding of nearly USD 15 million from the Rashtriya Krishi Vikas Yojana (RKVY) to set up the biofertilizer plant for production.


• October 2022: Brazilian scientists introduced their innovation of biofertilizers, produced via nitrogen-fixing microorganisms. This biofertilizer is mainly launched to replace the usage of synthetic fertilizers in soybean production.

REPORT COVERAGE 

The report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market share, size, and industry growth rate for all possible market segments, including type, microorganism, application, crop type, and region. Along with this, it provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

Report Scope & Segmentation