Bio-Fertilizers Market Analysis

Global Biofertilizers Market Overview

Biofertilizers Market Size was valued at USD 2 Billion in 2023. The Biofertilizers market industry is projected to grow from USD 2.2448 Billion in 2024 to USD 5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.53% during the forecast period (2024 - 2032). Increasing prices of synthetic fertilizers globally, backed by consumers' response toward increasing prices for synthetically cultivated food products, are the key market drivers boosting the market growth.

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

Biofertilizers Market Trends

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  Growing demand for chemical free products is driving the market growth

  
  

Market CAGR for biofertilizers is driven by the rising prices for synthetic fertilizers worldwide, demand for chemical-free food products, and worries about soil quality deteriorating due to fertilizer abuse. This market is completely and positively impacted by rising product recognition and acceptance among farmers in developing and developed nations. The increasing use of organic and sustainable fertilizers is further fueled by the rising soil and water contamination caused by the overuse of chemical fertilizers.

Additionally, it is anticipated that the market has developed due to producers of agricultural inputs actively increasing their output of agricultural biologicals, particularly biofertilizers. Agricultural biologicals are used in precision farming and protected agriculture to increase crop output and productivity. Due to the extensive use of agricultural biologicals in protected agriculture, which encourages the use of biofertilizers, the market for these fertilisers is expanding. With the use of fertilisation plans that make use of GPS-guided geographic information system (GIS) software, farmers can monitor the application of liquid biofertilizers.

However, biofertilizer products have a limited shelf-life and run a high risk of contamination. When exposed to high temperatures, the microorganisms utilized as biofertilizers become chemicals. As a result, it's important to keep them in a dry, cool environment. The purpose of precision farming is to produce profitable agricultural output by identifying and analyzing spatial and temporal variability using cutting-edge technologies.

For instance, National Fertilizers Limited's revenue in 2020 was USD 1.8 billion, down approx. 13.97% (measured in USD) from the prior year, as labor and logistical constraints impacted the company's production and marketing. As the need for biofertilizers is not predicted to rise significantly even when the lockdown is lifted in rich and developing nations, they are anticipated to have a slow recovery. Agricultural biological suppliers and distributors should view technological development as a new opportunity. Thus, driving the Biofertilizers market revenue.

Biofertilizers Market Segment Insights

Biofertilizers Type Insights

The Biofertilizers market segmentation, based on type, includes nitrogen fixing, phosphate solubilizing, and others. The nitrogen fixing segment dominated the market due to its balancing capability for the soil's nitrogen content, which helps the crop thrive. The three main types of nitrogen bio-fertilizers are free-living, symbiotic, and associative symbiotic.

However, the market for phosphate solubilizers is likewise expanding. The essential nutrient in phosphate is necessary for plants to operate properly and for all stages of plant growth and development.

Biofertilizers Crop Type Insights

The Biofertilizers market segmentation, based on crop type, includes cereals & grains, pulses & oilseeds, and fruits & vegetables. The cereals & grains category generated the most income. There is a rise in demand for organic cereals in both developing as well as developed economies owing to the potential health benefits from it. As a result, it is boosting the market growth of organic cereals.

However, the pulses & oilseeds segment was the fastest growing. The main advantage cited for the product's use in the oilseeds and pulses sector is the rising demand for soybean, sunflower, and groundnuts worldwide.

Biofertilizers Form Insights

The Biofertilizers market segmentation, based on form, includes dry and liquid. The liquid category generated the most income. This is attributed to the farmers' growing acceptance of longer shelf lives of the liquid. And because they have a long shelf life, farmers can buy them in large quantities for low cost and store them for one or two years, which boosts their profit margin.

However, the dry segment is anticipated to be the fastest growing as manufacturers focus on developing new products for this market.

Figure 1: Biofertilizers Market, by Form, 2022 & 2032 (USD Billion)

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

Biofertilizers Application Insights

The Biofertilizers market segmentation, based on application, includes leaf treatment, root immersion, plant rooting, and others. The leaf treatment dominated the market during the forecast period. The plant and crop seeds are treated with biofertilizers, considerably lessening agricultural production to prevent viral or bacterial infections.

However, root immersion was the fastest growing which entails spraying bio-based fertilizers directly onto the soil of the agricultural land.

Biofertilizers Microorganism Insights

The Biofertilizers market segmentation, based on microorganisms, includes rhizobium, azotobacter, azospirillum, pseudomonas, bacillus, VAM, and others. The rhizobium segment dominated the market during the forecast period because it not only fixes nitrogen well but also fosters the solubilization of inorganic phosphate and acts as a plant growth promoter.

However, Azotobacter was the fastest growing due to its effectiveness, causing benefit reactions on crop growth rate and enhancing seed germination; their use is anticipated to increase across agri-dominant economies.

Biofertilizers Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Biofertilizers market area will dominate this market, owing to the rise in organic farming in developed nations, including the United States, Canada, and Mexico, since organic food products are the go-to choice for consumers looking to prepare healthy, wholesome meals at home.

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

Figure 2: BIOFERTILIZERS MARKET SHARE BY REGION 2022 (USD Billion)

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

Europe's Biofertilizers market accounts for the second-largest market share due to Due to the European Commission's strict laws governing the use of chemical fertilizers. Further, the German Biofertilizers market held the largest market share, and the UK Biofertilizers market was the fastest-growing market in the European region.

The Asia-Pacific Biofertilizers Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to expanding awareness and increasing spending on biofertilizers to promote organic farming. Moreover, China’s Biofertilizers market held the largest market share, and the Indian Biofertilizers market was the fastest-growing market in the Asia-Pacific region.

Biofertilizers Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Biofertilizers market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contract-based agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Biofertilizers industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Biofertilizers industry to benefit clients and increase the market sector. In recent years, the Biofertilizers industry has offered some of the most significant advantages to medicine. Major players in the Biofertilizers market, including National Fertilizers Ltd., Monsanto BioAg, Rashtriya Chemicals & Fertilizers Ltd, Gujarat State Fertilizers & Chemicals Ltd, and others, are attempting to increase market demand by investing in research and development operations.

National Fertilizers Ltd. was incorporated on 23rd August 1974 at NOIDA (U.P), India. The company is producing and marketing four strains of Bio-Fertilizers (solid & liquid), Neem Coated Urea, Bentonite Sulphur, and other allied Industrial products like Ammonia, Nitric Acid, Sodium Nitrite, Ammonium Nitrate, and Sodium Nitrate. The brand name of the company is popularly known in the market as 'KISAN.' NFL plays a significant role in providing a variety of agricultural services, such as training farmers on the prudent use of fertilisers and comprehensive knowledge of better and scientific cultivation techniques to increase soil production.

Gujarat State Fertilizers & Chemicals Ltd (GSFC) was incorporated in 1962. It was the first company to set up fertilizer plants within a short span of time of getting requisite approvals. Additionally, it was the first industrial initiative to acquire direct and active equity involvement from farmers, the first fertiliser unit to get help from IDBI's help Fund, and the first business to use the Steam Naphtha Reforming method to create ammonia. The first DAP fertiliser facility in India was established by Gujarat State Fertilisers Chemicals in Sikka, Jamnagar, on the state's western coast. Their technological superiority and the engineering resources they obtained over the first 10 years have been catalysts in igniting the expansion and diversification plans implemented over the next forty years.

Key Companies in the Biofertilizers market include

• Camson Bio Technologies Limited


• National Fertilizers Ltd.


• Monsanto BioAg


• T Stanes & Company Limited


• Rashtriya Chemicals & Fertilizers Ltd


• Gujarat State Fertilizers & Chemicals Ltd


• Madras Fertilizers Limited


• Agri Life


• Mani Dharma Biotech Pvt. Ltd.


• Biomax Naturals, among others

Biofertilizers Industry Developments

In April 2024, Puna Bio introduced Kanzama biofertilizer, which is made from extremophile bacteria found in Argentina's Puna region. This biofertilizer is expected to significantly increase wheat crop yields. The solution developed by the agrobiotech startup is the culmination of two decades of research in the field, along with two years of experimentation conducted over 19 different locations, including 22 studies and 12 trial experts.A team of over 30 experts analyzed over 500 extremophile microorganisms in order to discover a remedy for enhancing crop nutrition. Kanzama's primary functions encompass augmented nitrogen fixation and phosphorus solubilization, resulting in heightened plant coverage, ear density, and grain yield per square meter.

Puna Bio has observed an 11% improvement in yield, accompanied by a 95% incidence of positive responses. The increase in output per acre varies from 250 to 500 kilograms, resulting in a return on investment of 6 to 1. The startup allocated $150 million towards the establishment of a research center at the Universidad San Pablo in Tucumán last year, successfully completing the project over a span of 18 months.

In August 2023, Bionema Group Ltd., a prominent UK company specializing in the development and production of biocontrol technologies, biofertilizers, and biostimulants, unveiled a new line of biofertilizer products in the UK. These products are intended for usage in various sectors such as agriculture, horticulture, forestry, sport turf, and amenities. Bionema Group Ltd. is introducing a range of four biofertilizers containing live microorganisms that improve plant nutrition by either mobilizing or improving the availability of nutrients in soils and substrates. The BioNFix range and Rhizosafe products consist of Paenibacillus azotofixans BNL1913, Azospirillum lipoferum BNL714, Bradyrhizobium japonicum BNL1061, and Rhizophagus irregularis BNL2414. These microorganisms are encapsulated using the innovative Incapsulex technology platform.

This method efficiently encapsulates naturally occurring microorganisms and delivers them precisely to the intended location, ensuring safety and effectiveness. Biofertilizers replenish the soil's inherent nutrient cycle and promote the accumulation of organic matter, so improving plant development without relying on artificial fertilizers that can contaminate global water bodies and the atmosphere. Bionema conducted field testing in several regions worldwide, which showed a substantial improvement in the growth of agricultural crops when using biofertilizers. These trials also revealed favorable alterations in soil organic matter content, pH levels, soil type, and agroecological conditions. As a result of these impacts, there were improvements in yield and a reduction of 40-50% in the use of synthetic fertilizers.

September 2021: In order to address the major issues facing North American producers, Novozymes launched five biological solutions, which included inoculants. The company also established a new sales staff to assist clients directly in the United States. Inoculants that address concerns with nutritional effectiveness, nodulation, and nitrogen fixation are among the new products.

June 2021: At the State Government's Ettaiyapuram factory in India, large-scale manufacture of liquid biofertilizers, which enhance soil health and boost agricultural productivity, has started. The construction of this plant aims to persuade farmers to substitute biological fertilisers for chemical fertilisers as frequently as feasible.

Biofertilizers Market Segmentation

Biofertilizers Type Outlook

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  • Nitrogen Fixing
  
  
  • Phosphate Solubilizing
  
  
  • Others
  
  
  
  

Biofertilizers Crop Type Outlook

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  • Cereals & Grains
  
  
  • Pulses & Oilseeds
  
  
  • Fruits & Vegetables
  
  
  
  

Biofertilizers Form Outlook

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  • Dry
  
  
  • Liquid
  
  
  
  

Biofertilizers Application Outlook

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  • Leaf Treatment
  
  
  • Root Immersion
  
  
  • Plant Rooting
  
  
  • Others
  
  
  
  

Biofertilizers Microorganism Outlook

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  • Rhizobium
  
  
  • Azotobacter
  
  
  • Azospirillum
  
  
  • Pseudomonas
  
  
  • Bacillus
  
  
  • VAM
  
  
  • Others
  
  
  
  

Biofertilizers 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