Biofertilizers are biologically synthesized products that enrich soil nutrients and promote plant growth. Commonly used biofertilizers include nitrogen-fixing bacteria, phosphate solubilizing bacteria, and other microbes. They offer advantages over chemical fertilizers in enhancing soil quality and productivity while reducing environmental pollution. Due to the rising health and environmental concerns, demand for organic food is growing rapidly which is driving the need for sustainable farming techniques like biofertilizers. As they help improve soil health naturally without any harmful residues, biofertilizers have gained considerable acceptance among farmers worldwide.
The global biofertilizers market is estimated to be valued at US$ 2.26 Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing demand for organic food due to increasing health awareness among consumers is expected to boost demand for biofertilizers during the forecast period. As per the heading, organic farming practices heavily rely on biofertilizers to nourish soil and enhance fertility. Additionally, stringent norms by governments globally to ban hazardous chemical fertilizers and promote eco-friendly substitutes are fueling adoption of biofertilizers in agriculture. However, high production costs and low awareness in developing regions continue to limit the market to some extent. Nonetheless, ongoing R&D towards developing cost-effective biofertilizer solutions and government campaigns especially in emerging countries are paving new opportunities.
Segment Analysis
The biofertilizers market size is dominated by the nitrogen fixing sub-segment, which accounts for over 30% share. Nitrogen fixing biofertilizers help fix atmospheric nitrogen into a plant-usable form through symbiotic and non-symbiotic nitrogen fixation. They enrich soil nitrogen content and improve its fertility. This reduces the need for chemical nitrogen fertilizers and lowers production costs for farmers.
PEST Analysis
Political: Governments in many countries are promoting the use of biofertilizers through subsidies and initiatives in order to reduce chemical fertilizer consumption and promote sustainable agricultural practices. This is propelling market growth.
Economic: The rising costs of chemical fertilizers are encouraging farmers to adopt biofertilizers as an affordable alternative. Additionally, biofertilizers improve farm productivity and yield, generating higher income for farmers.
Social: There is growing consumer awareness about the harmful effects of residues from chemical fertilizers in food. This is increasing demand for organic foods produced using sustainable fertilizers like biofertilizers.
Technological: Leading players are investing in R&D to develop advanced biofertilizer formulations with improved nutrient delivery and effectiveness. Digital technologies are also being used for remote monitoring of crop growth and optimizing biofertilizer use.
Key Takeaways
The global biofertilizers market is expected to witness high growth over the forecast period..
Regional analysis: The Asia Pacific region is the fastest growing as well as the largest biofertilizers market. China is the global leader in biofertilizer production as well as consumption. This is attributed to factors such as the country’s huge agricultural industry, growing emphasis on sustainable farming, and government initiatives and subsidies for biofertilizer use. India is another major Asian market, driven by the large cultivable area and efforts to promote organic and natural agriculture.
Key players operating in the biofertilizers market are Sanofi SA, Reckitt Benckiser Group PLC, Pfizer Inc., Mylan NV, GlaxoSmithKline PLC, Johnson & Johnson, Bayer, Takeda Pharmaceutical, and Sun Pharmaceutical Industries Ltd., among others.