Agricultural Biologicals Market Size, Share & Industry Analysis, By Type (Biopesticides, Biostimulants, and Biofertilizers), By Source (Microbial and Biochemicals), By Application Method (Foliar Spray, Soil Treatment, Seed Treatment, and Others), By Crop (Row Crops, Fruits & Vegetables, and Others), and Regional Forecast, 2024-2032

The global agricultural biologicals market size was valued at USD 13.44 billion in 2023 and is projected to grow from USD 15.29 billion in 2024 to USD 44.70 billion by 2032, exhibiting a CAGR of 14.35% during the forecast period. North America dominated the agricultural biologicals market with a market share of 31.62% in 2023. Moreover, the agricultural biologicals market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 10.09 billion by 2032, driven by increasing prevalence of plant diseases and infections and increase in registration and approval of different agricultural biological products.

The exploitation of the environment due to the overuse of crop protection chemicals is expected to foster the demand for biological products. These products can be applied solely or in combination with synthetic pest-resistant chemicals. Their widespread applications in agriculture are projected to boost the global agricultural biologicals market growth in the coming years. The demand for agricultural biologicals is increasing to meet the demand for pre and post-harvest management of crops as well. The commercialization aspect of the same can be further facilitated by adopting product innovation strategies, developing last-mile comprehensive service, and laying a strong foundation of effective marketing and distribution.

The outbreak of the COVID-19 pandemic affected the global economy in 2020 as all the industrial sectors were adversely affected due to a halt in their activities, international travel was stopped,  and only essential businesses, such as medicines and food, were permitted to function. According to the U.S. Department of Agriculture (USDA), the total agri-exports in the country in the initial seven months of 2020 witnessed a decline of 3.5% as compared to 2019. Some of the major players in the industry faced a decline in their revenue generation due to the aforementioned factors. For instance, BASF SE registered a decline of around 12% in the second quarter of 2020 to reach USD 14.48 billion. This decline was attributed to extreme currency fluctuations and trade restrictions.

Agricultural Biologicals Market Trends

Increasing Adoption of Integrated Pest Management Practices for Sustainable Agriculture

The high effectiveness of biopesticides and their eco-friendly nature are aiding their popularity among farmers who are adopting integrated pest management practices and inclined toward using smart and sustainable approaches for protecting their crops. The integrated pest management (IPM) has emerged as an effective solution to control and diminish the damage caused by insect pests in the agricultural fields. The IPM practice combines the utilization of certain pest control methods such as cultural, chemical, biological, and others. The IPM approach uses certain pest control methods, such as cultural, chemical, biological, and others. The less toxic nature of biopesticides as compared to their synthetic counterparts and their comparatively easy-to-apply features are predicted to increase their demand across countries where governments are trying to reduce the use of toxic chemical pesticides.

• For instance, in March 2020, Bio-Based Industries Joint Undertaking (BBI JU), an alliance between several European bio-based industries and the EU, awarded a grant of USD 3.61 million for the production of eco-friendly pesticides. The grant was also given to create a sustainable agriculture management plan. These initiatives are predicted to aid Europe in accomplishing its goal of sustainable agriculture.

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Agricultural Biologicals Market Growth Factors

Increasing Production of Horticulture Crops and Cereal Crops to Support the Market Growth

The global production of fruits, vegetables, and cereals is growing steadily. With the rise in disposable income in developed and emerging economies, the demand for high-quality fruits and vegetables is increasing rapidly. As per data provided by the FAOSTAT, the global production of fruits amounted to 805.77 million tonnes in 2020, while the production of vegetables amounted to 1,081.43 million tonnes in the same year. Using agricultural biologicals helps improve soil fertility and increase microbial content by replenishing the population of microorganisms in the soil. Moreover, several agricultural crops had shown increased crop yield when biofertilizers were used.

• A study conducted by the Research Institute of Organic Agriculture, Frick, Switzerland, found that the use of Arbuscular Mycorrhizal Fungi (AMF) can help improve the yield of Naranjilla, a cash crop grown in Ecuador, Colombia, and Central America.

Risks Associated with Using Synthetic Chemicals in Agriculture to Boost the Market Growth

Biopesticides, in contrast to their synthetic counterparts, are less detrimental and more specific to the target pests. They are promising alternatives to chemical pesticides, and do not leave any residue which can negatively impact the environment. The  chemical products are also responsible for emitting significant proportion of air pollutants which are accountable for causing air pollution. Hence, in several countries espaiclly in Europe, the farmers are reducing their reliance on agrochemicals for producing different crops.

• As per data provided by the European Parliament, the agrochemicals use in farm fileds decreased by 15.9% in 2020 and 2021 resulting in a 5.5 decrease in emission of air pollutants.

Biopesticides help address the pressing issue of pesticide residues and facilitate the adoption of an integrated pest management process.

RESTRAINING FACTORS

Lack of Well-Defined Regulatory Guidelines for Biologicals May Hamper the Market Growth

A major restraint for the agricultural biologicals market growth is the vague nature and limited scope of regulatory systems across the world. The absence of international harmonization undermines the very purpose for which these governing bodies have been formed. The procedural delays in the registration and approvals of novel agricultural biologicals are also inhibiting its effective growth. The market for agricultural biologicals needs standardization of information that enables its organic growth and reduces the number of inconsistencies for manufacturers and producers. There is still no single, globally accepted definition for agricultural biologicals for legal, regulatory, or commercial purposes. For instance, the term “plant biostimulant” has been in use since the year 1997.

Moreover, the commercialization of novel biostimulants and biopesticides is lagging significantly. Biopesticides have also not attained the desired level of use to decrease the dominance of chemical pesticides in the global market. The traditional agri-inputs market is well-structured at a global level, with a prominent presence of key companies. However, the biologicals space is characterized by several start-ups that are struggling with adequate funding, appropriate infrastructure, and market penetration. The R&D activities undertaken by these small players also fail to sense the demand dynamics of a particular geography.

Agricultural Biologicals Market Segmentation Analysis

By Type Analysis

Development in Organic Farming to Escalate the Biopesticides Segment Growth

By type, the market is divided into biopesticides, biostimulants, and biofertilizers.

The biopesticides segment accounted for the largest global agricultural biologicals market share in 2023, owing to the increasing focus of farmers and agriculturists on the development of pest-resistant products to increase the yield of high-quality crops. The advancements in organic farming and growing demand for eco-friendly products are further surging the demand for biopesticides across the globe. Moreover, the increasing interest of stakeholders in the agriculture industry in pest management and the adoption of a safer strategy to manage the pest population are some of the major factors driving the segment’s growth.

Meanwhile, the rising investment and the desire to increase output per acre are projected to surge the demand for biostimulants. Furthermore, the growing need for organic foods is anticipated to propel the demand for organic farming, thereby boosting the utilization of biostimulants.

By Source Analysis

Growing Adoption among Farmers to Augment the Microbial Segment Expansion

By source, the market is bifurcated into microbial and biochemicals.

The microbial segment accounts for the major market share. The segment is anticipated to retain its dominance throughout the forecast period, owing to the increasing adoption of microbials by farmers to solve various major agricultural issues. These issues include protection of plants, maintenance of soil health, and increase in crop productivity. The increasing research on various microbes that have the potential to play significant roles in crop protection is further expected to boost the segment’s growth during the forecast period.

By Application Method Analysis

Simplicity Offered by Foliar Spray to Spur the Segment Growth

In terms of application method, the market is divided into foliar spray, soil treatment, seed treatment, and others.

The foliar spray segment held a major share in the market in 2023 due to the fact that applying agricultural biologicals with foliar spray provides numerous agronomic benefits over others and is the most commonly used approach due to its simplicity. Furthermore, the increased adoption of foliar spray by large and small-size organic and conventional farmers is anticipated to help the segment grow.

The soil treatment segment is also observing substantial growth as the demand for effective soil treatment is growing due to the decrease in agricultural land available for crop cultivation. In addition, the rising global population has catalyzed the demand for healthy and natural food products. This factor is anticipated fuel the demand for soil treatment solutions as healthy soil is one of the most important determinants of good nutrition.

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By Crop Analysis

Usage of Agricultural Biologicals to Increase in Row Crops Due to the Growing Preference for Organic Foods

On the basis of crop, the market is segregated into fruits & vegetables, row crops, and others.

The row crops segment led in 2023 owing to a rise in consumer preference for less processed and organic foods. Pesticide residues are often substantially higher in these crops. As a result, grocery store chains and food marketers are under more pressure to compete on the basis of pesticide residue management. Moreover, farmers are looking for products, such as biologicals that can be utilized without increasing pesticide residue problems. 

The fruits & vegetables segment is also observing significant growth due to their growing consumption and health-promoting factors.

REGIONAL INSIGHTS

On the basis of geography, the market is divided into North America, the Asia Pacific, Europe, the Middle East & Africa, and South America.

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North America held the largest market share, recording a valuation of USD 4.25 billion in 2023. The growth of this market in the U.S. is predicted to be fueled due to several factors. These include the increasing acreage for field crops, such as wheat, cotton, and soybeans, and a worrying rise in plant diseases and infections. The U.S. Environmental Protection Agency has played a proactive role in recognizing the robust demand potential for biostimulants, and the agency is thus working in the direction of reducing the regulatory uncertainty, which will ultimately reduce the costs of bringing a product to market.

The Canadian market is also witnessing robust growth in biologicals space with significant increase in the registration and approval process for different biopesticides. The end consumers are also exhibiting enhanced awareness for the labeling of agri-commodities. Similarly, the search for “greener inputs” for crop production is driving the sales of biologicals in the Mexican marketplace. The government's goal of seeking food self-sufficiency coupled with increasing consumers’ concerns regarding pesticide residues and chemical substances is anticipated to lead to greater utilization of biologicals.

Europe is one of the leading consumers of agricultural biologicals and the region is predicted to perform decently throughout the forecast period. The growing prices of nitrogen and phosphorous-based chemical fertilizers and increasing awareness regarding their negative impacts on the environment and human health are accelerating the use of these products in the region. Biopesticide market growth is being fueled by rising consumer demand for organic products, as well as favorable government policies encouraging the usage of biocontrol products. Furthermore, the U.K. was among the first countries in Europe to enact biopesticide rules, resulting in a number of steps to encourage the commercialization of biopesticides. This involves a regulatory approach to encourage the registration of biopesticide products and major investment for non-chemical crop protection research and development. Many public-private partnerships are being formed in the country to develop targeted biopesticides that are poised to fill market shortages, resulting in increased demand for biopesticides.

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The Asia Pacific is anticipated to exhibit significant growth opportunities in the market due to the growing sustainability concerns among consumers and farmers. The governments in China, India, and other Asian countries are developing plans to encourage better and more efficient pesticide production and also encourage farmers to adopt such products to protect their crops. Biofertilizer manufacturing companies are also entering strategic collaborations and partnerships with research organizations, enabling them to develop and test the efficiency of their products before launching them commercially. Such partnerships help enhance the product's efficiency and improve the overall yield of major crops in the Asia Pacific region. Moreover, Asian consumers' interest is turning more toward natural and sustainable products, which has compelled farmers in countries to adopt organic farming practices and sustainable techniques to meet demands. This paves growth potential for bio-based agricultural products such as biostimulants and biopesticides in the region. Furthermore, the rising focus on more research to effectively increase the utilization of biologicals in mainstream farming other than horticulture and organic farming is likely support to the market's growth in the region.   

South America is likely to emerge as the fastest-growing market, and the region is projected to offer strong growth opportunities to the players in the global biologicals market during the forecast period. Several South American countries are expanding their biofertilizer and biological control agent output. For example, Colombia, Peru, Venezuela, Ecuador, and other South American countries are promoting biological imports through incentive programmes and regulatory adjustments. Consumer demand for chemical-free products and rising agricultural operations in the region are driving the demand for biocontrol products in the region. The market is growing due to new concepts and technological solutions that are often associated with organic farming, which include the use of biopesticides, biofertilizers, and other methods. Countries such as Argentina and Brazil, where the area under organic farming is growing at a rapid pace, are expected to contribute considerably to the growth of the South American market.

The Middle East & Africa is observing a rise in sustainability trends. Farmers across these regions are seeking solutions to increase crop productivity amidst adverse environmental conditions. These factors will support the regional market growth. There is a huge scope of growth for agricultural biological product sales in the region. However, a lack of proper regulatory system for agricultural biological products and harmonized registration procedures for biologicals are some of the factors that are restricting the growth of agricultural biologicals market in the region.

List of Key Companies in Agricultural Biologicals Market

Key Market Players Focus on Boosting Product Portfolios to Gain a Strong Competitive Edge

The global market exhibits a moderately consolidated structure due to the presence of several well-established and emerging companies. The prominent companies hold a significant share in the market owing to their huge client base, strong brand loyalty & distribution network, and growing global food production. Prominent manufacturers such as Novozymes and Syngenta also focus on expanding their footprint by increasing their product development, investing in new product launches, and then installing new equipment to reduce carbon emissions. These players also collaborate and acquire regional and local brands to diversify their product portfolio. In addition, the industry leaders are embarking on base expansion to penetrate more in the potential global market effectively. Moreover, the prominent agricultural biological market players are actively capitalizing on R&D activities. The growing focus on research and development of innovative product solutions is expected to support the market's steady growth. Startups are also adopting several initiaves such as providing free sample to the farmers to improve their brand recognition among farmers.

LIST OF KEY COMPANIES PROFILED:

• Bayer AG (Germany)


• BASF SE (Germany)


• Syngenta AG (Switzerland)


• UPL Limited (India)


• Marrone Bio Innovations (U.S.)


• SEIPASA S.A. (Spain)


• Koppert Biological Systems (Netherlands)


• PI Industries (India)


• Novozymes A/S (Denmark)


• Gowan Group (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2023: Openeem Bioscience, a Brazil-based agrochemical start-up, launched "biobotanical matrix", a new biological product aimed at controlling agricultural pests and diseases. It has planned to launch its crop protection products by the year 2026. 


• September 2023: Croda International, a U.K.-based company, introduced a new delivery system named Atlox BS-50, a ready-to-use microbe delivery system that helps reduce the final product development time and thus supports faster new product development.


• September 2023: FMC corporation launched a new biopesticide brand in Brazil named Biológicos da FMC. The new brand aims to improve productivity and adopt new modes of action for sustainable agriculture.


• August 2023: Bionema Group Ltd., a U.K.-based agricultural biologicals manufacturer, launched a new range of biofertilizer products that can be used in horticulture and agriculture crops, sports turf and other ornamental crops.


• May 2023: Nutrition Technologies, one of the leading Agtech companies, launched Diptia, a biofertilizer derived from insect frass. This new product helps reduce fungal plant disease and supports plant growth.

Report Coverage

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The report provides qualitative and quantitative insights into the agricultural biologicals industry. It also offers a detailed analysis of the global agriculture biologicals market forecast, types, sources, application methods, crop types, market size, and growth rate for all possible segments in the market. The report also provides an elaborative analysis of the competitive landscape and market dynamics. Different key insights presented in the research report are an overview of related markets, market segmentation, research methodology, company profiles, and recent industry developments. Along with this, information about mergers & acquisitions, regulatory scenarios in key countries, and leading industry trends are also provided in the research report.

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