Agricultural Inoculants Market Trends

Global Agricultural Inoculants Market Overview

Agricultural Inoculants Market Size was valued at USD 601.09 billion in 2023. The agricultural inoculants market industry is projected to grow from USD 658.19 Billion in 2024 to USD 1186.02 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.64% during the forecast period (2024 - 2032). Emerging agricultural technological advancements, the rapid shift towards organic farming in response to increasing environmental concerns, and rising demand for high-quality organic foods are the key market drivers boosting agricultural inoculants market share.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Agricultural Inoculants Market Trends

• shift in preference toward adoption of organic & environment-friendly farming practices to drive market growth

Beneficial microorganisms are contained in agricultural inoculants, also known as soil or microbial inoculants. These helpful microbes function as biofertilizers, plant growth promoters, and biopesticides. Inoculants are widely used in agriculture for a variety of crops around the world. Microbial agricultural inoculants aid in reducing the environmental impact of agrochemicals. Agricultural inoculants are in high demand due to the rising demand for organically grown food and growing concerns about the use of chemical pesticides and fertilizers. Organic farming is becoming more popular worldwide as people become more aware of the dangers of chemical fertilizers and pesticides. Additionally, the area used for organic farming is expanding.

For example, the Research Institute of Organic Agriculture (FiBL) reports that organic farmland increased by 2.0 million hectares from 2018 to 71.5 million in 2019. Besides, it was reported that there would be 2.8 million organic producers worldwide by 2020. The demand for naturally derived or organically sourced agricultural inputs, such as agricultural inoculants, is expected to increase due to the rising number of organic producers and the expanding area of organic farming. The demand for organic inputs to improve crop productivity is increasing rapidly, fueling the agricultural inoculants market CAGR. In farming, the use of inoculants to grow crops resistant to abiotic stress is increasing. Furthermore, governments in developing economies such as India assist farmers in transitioning to organic and sustainable agricultural practices. This is expected to drive the agricultural inoculants market revenue.

News :

November 2023: Lavie Bio Ltd., a subsidiary of Evogene Ltd., a prominent ag-biological company dedicated to enhancing food quality, sustainability, and agricultural productivity through microbiome-based advancements, is delighted to declare the enlargement of its microbiome-based product for spring wheat, now renamed as Yalos™ (previously known as Thrivus™), to encompass durum and barley.

This expansion significantly widens the potential market scope of the product. This expansion is a result of highly successful field testing carried out in the US in 2023 on durum and barley crops, which resulted in an average yield increase of over 7%. Yalos™ is a seed treatment that boosts agricultural output by enhancing soil nutrients, mitigating environmental stress, and maximizing yields. The objective is to enhance productivity in all types of small grains, beginning with spring wheat, durum, and barley.

The 2023 studies achieved a remarkable success rate of 86%, surpassing industry standards in comprehensive large-acre experiments. Yalos™ proved its effectiveness by achieving an average increase in production of 8.3% in Durum and 6.6% in Barley. This expansion enhances the product's potential market in the United States and Canada by approximately 40%, expanding it from 25 million acres to 35 million acres.

Agricultural Inoculants Market Segment Insights

Agricultural Inoculants Type Insights

Based on type, the agricultural inoculants market segmentation includes bacterial inoculants, fungal inoculants, and others. The fungal inoculants segment held the majority share in 2022, contributing to around ~65-67% of the agricultural inoculants market revenue as fungal inoculants assist plants in absorbing phosphorus and other nutrients for use. Mycorrhizal fungi, which live in plant roots, are well known for their ability to supply plants with phosphorus. In addition, many companies invest in developing fungal blends with other plant growth-promoting microorganisms. Increased use of Penicillium sp. as a phosphate solubilizer and growing awareness of using Trichoderma species as a biocontrol agent drive segment market growth.

Agricultural Inoculants Mode of Application Insights

Mode of applications has bifurcated the agricultural inoculants market data into seed inoculation and soil inoculation. The seed inoculation segment dominated the market in 2022 and is expected to be the fastest-growing segment during the forecast period, 2022-2030, as seed inoculation is becoming increasingly important to produce nutritious and high-quality crops, also providing crop protection. Seed inoculation is a simpler agricultural method widely used in the United States and Europe. At the same time, soil treatment is becoming more popular in Asia-Pacific and Latin America due to the widespread use of vaccination as a bio-fertilizer in crops such as corn, rice, sugarcane, and soybean. When the inoculant is used as a biocontrol, foliar sprays are preferred. Root dipping is preferred when the inoculant is used as a biofertilizer on Plant-Growth Promoter (PGP).

Agricultural Inoculants Crop Type Insights

The agricultural inoculants industry has been segmented based on crop type into cereals & grains, oilseeds & pulses, fruits & vegetables, and others. Cereals & grains held the most prominent segment share in 2022. Wheat, corn, barley, and rice are examples of cereals and grains. The high adoption of inoculants for cereal crops such as corn, wheat, and rice by several countries such as the United States, Spain, China, and Brazil drives the market growth. The United States is the largest wheat-producing country. Wheat is the third most important crop grown in the United States, after corn and soybeans. Brazil is also the world's largest producer of corn, ranking among the top producers globally. According to FAO, the area harvested under cereal crops in 2020 was 498 million hectares, accounting for more than half of the total crop area harvested. Compared to other crops, the large acreage indicates cereals & grain’s dominance over other crops.

Figure 1: Agricultural Inoculants Market, by Crop Type, 2022 & 2030 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Further, the oilseeds & pulses segment is expected to grow at the fastest CAGR in the agricultural inoculants industry over the forecast period as companies such as Bayer, Novozymes, and Lallemand Plant Care launch products with high application in oilseeds and pulses. In addition, the growing use of agricultural inoculants on soybean, canola, beans, and peas in the United States, Canada, Brazil, and Argentina is driving growth in the oilseeds and pulses segment. Soybeans are in high demand worldwide as they are a good source of protein for vegetarians. As a high-value cash crop, demand for high-yielding and disease-resistant soybean seeds is rising.

Agricultural Inoculants Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American agricultural inoculants market accounted for USD 0.37 billion in 2022 and is likely to exhibit a significant CAGR growth over the study period. Farmers are adopting new technologies to increase soil productivity and crop yield due to shrinking agricultural growth and public settlements. The US dominates the agricultural inoculants market due to its extensive arable land and cutting-edge farming techniques. Farmers prefer organic agricultural practices to maintain soil fertility and crop yield. This has increased the demand for and consumption of agricultural inoculants in this region. The major companies with a significant presence in North America are ADM Animal Nutrition, Agri King, Cargill, Hansen Holding AS, and Corteva Agriscience.

Further, the major countries studied in the market report are the U.S., Germany, Canada, France, the UK, Spain, Italy, Japan, India, Australia, China, South Korea, and Brazil.

Figure 2: AGRICULTURAL INOCULANTS MARKET SHARE BY REGION 2022 (%)

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

The European agricultural inoculants market accounts for the second-largest market share. Corn, soybean, and canola cultivation in the United Kingdom and Germany is expected to accelerate the growth of agricultural inoculants in the European region. Additionally, the quicker uptake of new technologies to boost crop productivity while reducing its detrimental environmental effects will support regional agricultural inoculants market expansion. Microbes are widely used as biofertilizers and biocontrol agents in countries such as Spain, Italy, and France. Further, the German agricultural inoculants market held the largest market share, and the UK agricultural inoculants market was the fastest-growing market in the European region.

The Asia-Pacific Agricultural Inoculants Market is expected to grow at the fastest CAGR from 2022 to 2030. The growth of the Asia Pacific inoculants market can be attributed primarily to the large area under organic agriculture, particularly in countries such as Australia, China, and India. Factors such as the widespread adoption of advanced crop-quality-improving technologies increased organic farming implementation, and rising demand for high-quality crops drive regional market growth. In addition, the large area under rice cultivation necessitates using biofertilizers for nitrogen fixation and biocontrol microbial for fruit and vegetable cultivation. The high utilization of agricultural inoculants for soybean production and the presence of largely agricultural land drive revenue growth in this region. Moreover, China’s agricultural inoculants market held the largest market share, and the Indian agricultural inoculants market was the fastest-growing market in the Asia-Pacific region.

Agricultural Inoculants Key Market Players & Competitive Insights

The agricultural inoculants industry is fragmented, with both large and small businesses operating globally. The agricultural inoculants market major players, such as BASF, Corteva, Bayer, Rizobacter, Verdesian Life Sciences, and others, focus on new product launches and strategic expansions of their businesses to broaden their portfolios and meet demand. The major agricultural inoculants industry companies have manufacturing and service facilities in various countries worldwide, including Asia-Pacific, Europe, North America, South America, and the rest of the world.

Manufacturers of agricultural inoculants use important market development techniques like product innovation, plant capacity expansion, and acquisitions and mergers to improve their competitive positions globally and expand their customer base. One of the most important business strategies producers use in the agricultural inoculants industry to benefit customers and broaden the market is local production to reduce operating costs. Major market players actively focus on R&D activities, product portfolio expansion, geographic coverage, and aggressive acquisition strategies.

Corteva Agriscience offers agronomic services and support to farmers to increase their productivity and profitability. Corteva Agriscience is a publicly traded pure-play agriculture company offering farmers the most comprehensive portfolio of agricultural inoculants worldwide. Corteva Agriscience revealed its purchase of The Stoller Group Inc, one of the industry's largest independent biological companies, in November 2022. This acquisition would provide Corteva with rapid scale and profitability, with EBITDA margins that would benefit the company.

Also, BASF SE is a European multinational biotech company and the world's largest chemical producer. The company's headquarters are in Ludwigshafen, Germany. BASF manufactures and sells products for the chemical, automotive, construction, agriculture, oil, plastics, electrical, electronics, furniture, and paper industries and provides system solutions and services. BASF SE announced a collaboration with AMVAC Chemical Corp in March 2022 to develop Rhizo-Flo soybean agricultural inoculants for SIMPAS-applied solutions.

Key Companies in the agricultural inoculants market include

• Corteva Inc (U.S.)


• BASF SE (Germany)


• Bayer AG (Germany)


• Novozymes A/S (Denmark)


• Brettyoung (Canada)


• Rizobacter Argentina S.A. (Argentina)


• Italpollina S.p.A. (Italy)


• Advanced Biological Marketing Inc. (U.S.)


• Soil Technologies Corporation (U.S.)


• Verdesian Life Sciences LLC (U.S.)

Agricultural Inoculants Industry Developments

September 2021: Novozymes has introduced three powerful biological inoculant solutions that address critical issues for North American growers. They are TagTeam BioniQ Pro, TagTeam BioniQ Chickpea, and BioniQ. These innovative products assist farmers in increasing yield and fertility while also increasing the use of biocontrol in their fields. The company is expanding its presence in North America with new product launches.

September 2021: Optimize FXC was introduced by Novozymes A/S to improve nitrogen fixation, nutrient accessibility, and water absorption in soybean plants, lowering the demand for fertilizer.

Agricultural Inoculants Market Segmentation

Agricultural Inoculants Type Outlook

• Bacterial Inoculants


• Fungal Inoculants


• Others

Agricultural Inoculants Mode of Application Outlook

• Seed Inoculation


• Soil Inoculation

Agricultural Inoculants Crop Type Outlook

• Cereals & Grains


• Oilseeds & Pulses


• Fruits & Vegetables


• Others

Agricultural Inoculants Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America