The agricultural biologicals market is on an upward trajectory, poised to reach an impressive USD 27.9 billion by 2028, compared to its USD 14.6 billion valuation in 2023. This remarkable growth, registering a Compound Annual Growth Rate (CAGR) of 13.8% during the forecast period in terms of value, is underpinned by several key factors. The market’s surge is closely tied to the escalating trend of organic farming and concerted government initiatives aimed at fostering sustainable agricultural practices.
Organic Farming Expansion Fuels Demand for Agricultural Biologicals
The global shift towards organic farming has become a defining feature of contemporary agriculture, driven by consumer preferences for products cultivated without the use of synthetic inputs. This resounding consumer demand is the chief catalyst propelling the agricultural biologicals market to new heights. As organic agriculture continues to gain ground, the need for agricultural biologicals, an essential component of organic farming systems, is amplifying market expansion.
A 2023 report by FiBL and IFOAM – Organics International paints a vivid picture of this organic revolution. According to the report, global organic farmland experienced a substantial expansion of 1.3 million hectares in 2021, reflecting a growth rate of 1.7%. This expansion brought the total organic farmland to an impressive 76.4 million hectares by year-end. The expanding organic farmland landscape directly correlates with an escalating demand for agricultural biologicals, including biopesticides, beneficial microorganisms, and organic fertilizers. These inputs play a pivotal role in ensuring compliance with organic standards and supporting the sustainable practices integral to organic farming. As the organic farming sector continues its ascent, the imperative for agricultural biological products tailored to meet the specific requirements of organic crop production intensifies.
Schedule a call with our Analysts to discuss your business needs: https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=100393324
Microbials: Cornerstone of the Agricultural Biologicals Market
Microbials occupy a significant share of the agricultural biologicals market, and their demand is surging globally. The primary driving force behind this growth is the growing concern over the environmental repercussions of conventional agricultural practices, particularly the extensive use of chemical inputs. In response to these concerns, there is an escalating emphasis on sustainable and eco-friendly farming methods. Microbials offer a natural and environmentally responsible alternative by reducing reliance on synthetic pesticides and fertilizers. As sustainability gains prominence among consumers and regulatory bodies, there is a rising clamor for microbial-based agricultural products.
Microbials, encompassing beneficial bacteria, fungi, and various microorganisms, confer the advantage of enhancing soil health and nutrient availability. They establish symbiotic relationships with plant roots, facilitating nutrient uptake and bolstering plant growth. Farmers are increasingly recognizing the pivotal role of soil health in achieving sustainable agriculture, thereby fueling the demand for microbials as a means to promote soil fertility and nutrient cycling.
South America: A Key Driver of Market Growth
South America emerges as a significant driver of market growth in the agricultural biologicals sector. The region’s expansive agricultural lands have spurred growing awareness and apprehension regarding the environmental impact of conventional farming practices. To address these concerns, there is a mounting demand for agricultural biologicals, which offer more sustainable alternatives by reducing reliance on synthetic pesticides and fertilizers.
Agricultural biological products derive from naturally occurring substances such as beneficial microorganisms, plant extracts, and biopesticides. They contribute to improved soil health, enhanced biodiversity, and overall ecosystem sustainability. Furthermore, South American countries are major exporters of agricultural commodities, and to meet the stringent regulations of international markets, particularly in Europe and North America, farmers are embracing agricultural biologicals as a sustainable and residue-free alternative to conventional agrochemicals.
Key Players and Competitive Landscape
Key players in the agricultural biologicals market, including BASF SE (Germany), Syngenta AG (Switzerland), Bayer AG (Germany), UPL (India), Corteva Agriscience (US), among others, are playing pivotal roles in shaping the market’s trajectory. A comprehensive competitive analysis of these industry leaders, encompassing company profiles, recent developments, and key market strategies, underscores the dynamism and innovation driving this burgeoning sector.
In conclusion, the agricultural biologicals market is poised for remarkable growth, propelled by the global surge in organic farming and the imperative for sustainable agricultural practices. As consumers and farmers alike embrace eco-friendly alternatives and prioritize soil health, the role of agricultural biologicals in modern agriculture becomes increasingly pronounced, heralding a sustainable future for the sector.
