Biofertilizers Market Size, Share, Forecast, & Trends Analysis by Microorganism Type (Nitrogen-fixing {Azospirillum}, Phosphate Solubilizing Microbes), Crop Type (Cereals & Grains {Maize, Wheat}), Mode of Application, Formulation - Global Forecast to 2031

The Biofertilizers Market was valued at $1.67 billion in 2023. This market is expected to reach $4.03 billion by 2031 from an estimated $1.86 billion in 2024, at a CAGR of 11.7% during the forecast period from 2024 to 2031.

Biofertilizers Market Size & Forecast

The growth of this market is driven by several factors, including the growing practice of organic farming and the rising demand for organic food, concerns regarding environmental safety, increasing government initiatives to promote the use of biofertilizers, and rising investments from leading market players. However, the high demand for synthetic fertilizers and the high production cost of biofertilizers restrain the market’s growth.

Moreover, the growing adoption of fertilizers in emerging economies and technological advancements in biofertilizers are expected to offer growth opportunities for the players operating in this market. However, lengthy product registration & approval processes and low shelf life with highly sensitive to temperature fluctuations are some of the challenges impeding the market’s growth.

Biofertilizers Market Growth Drivers

Growing Practice of Organic Farming & the Rising Demand for Organic Food

Organic farming emphasizes crop cultivation without synthetic fertilizers and pesticides. It leverages natural alternatives such as organic fertilizers and biofertilizers to boost agricultural productivity. Biofertilizers, known for their renewable and sustainable nature, offer eco-friendly benefits by enhancing soil structure, increasing water retention, and mitigating plant diseases and groundwater contamination. This approach aligns with environmental sustainability goals while promoting effective and responsible farming practices.

The global population is projected to reach 9.7 billion by 2050, marking a 24% increase from 2021 (source: Population Reference Bureau). This population growth will drive a corresponding rise in food demand, underscoring the growing significance of agriculture in meeting future needs. Consequently, the adoption of advanced agricultural practices and crop protection solutions will be crucial to addressing the escalating food requirements of the expanding global population.

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Chemical fertilizers are extensively used to boost agricultural output, but residues in food can be harmful and may cause diseases. With food safety becoming a major concern, consumers increasingly prefer to produce free from chemical residues. Organic food is grown using natural fertilizers, which may reduce the risk of cancer, heart disease, stroke, allergies, and obesity. Various organizations are raising awareness about the negative effects of chemicals in food and promoting organic farming worldwide. Additionally, governments are supporting initiatives to advance organic foods and cultivation. Consequently, there has been a significant increase in global organic food consumption and the area of land dedicated to organic farming.

According to FIBL-IFOAM 2023, as of 2022, organic agriculture was practiced across 191 countries, with approximately 76 million hectares of land managed organically by 3.7 million farmers. The organic farming industry adheres to stringent standards, and products with organic labels must be produced without toxic pesticides, synthetic nitrogen fertilizers, antibiotics, synthetic hormones, or genetic engineering.

The global organic foods market grew from USD 17.9 billion in 2000 to USD 137.1 billion in 2020 (source: FiBL-IFOAM-SOEL Surveys, 2021). This surge in demand is primarily driven by rising consumer awareness regarding health and environmental issues.

Biofertilizers are crucial in organic farming. They are integral to organic practices, combining naturally occurring microorganisms with nutrient-rich, organically derived fertilizers to create a healthy growing environment and ensure soil sustainability for future seasons. Additionally, biofertilizers boost plant resistance to pests and abiotic stressors such as drought, excess water, and extreme temperature fluctuations. By offering natural protection against these external threats and challenging conditions, biofertilizers promote optimal plant growth and development while reducing reliance on conventional inorganic fertilizers and pesticides.

Therefore, the demand for biofertilizers in organic farming is projected to increase significantly in the coming years. The expansion of organic farming and the growing consumer preference for organic food are anticipated to drive the growth of the biofertilizers market during the forecast period.

Growing Concerns Regarding Environmental Safety

The global population is expanding rapidly, creating an urgent need to boost agricultural production to meet increasing food demands. Chemical fertilizers have become widely used to enhance agricultural output; however, growing awareness of their negative impacts on plant health, soil quality, animals, and humans is rising. The extensive use of these agrochemicals also poses environmental risks, as chemical residues can persist in the soil, leading to soil pollution. These residues may contaminate surface or groundwater and release harmful substances into the atmosphere, including ammonia, methane, nitrous oxide, and elemental nitrogen.

Agricultural chemicals have been associated with a range of negative health effects, from immediate issues like headaches and nausea to long-term conditions such as cancer, reproductive health disorders, and endocrine disruption. Additionally, nitrogen and other chemicals in fertilizers can leach into groundwater, potentially causing health problems like blue baby syndrome. Consequently, farmers are increasingly turning to biofertilizers as a safer alternative to chemical fertilizers.

Several organizations such as the Organic Trade Association (OTA), the International Federation of Organic Agriculture Movements (IFOAM), the International Society of Organic Agriculture Research (ISOFAR), the Midwest Organic and Sustainable Education Service (MOSES), the Northeast Organic Farming Association (NOFA), the Organic Federation of Australia (OFA), the Organic Federation of Canada, and the Organic Growers School provide education, resources, and practical advice to spread awareness regarding organic farming.

Biofertilizers are created using natural plant residues and waste, animal manures and excreta, microorganisms, and botanical extracts to boost agricultural productivity. They decompose rapidly without adverse effects on surface and groundwater, making them less harmful to living organisms. These fertilizers maintain their effectiveness over extended periods, enhance soil structure, and improve its capacity to retain water and nutrients. As slow-release, non-toxic products, biofertilizers do not leave residues in food, making them ideal for producing residue-free agricultural yields. Consequently, the increasing demand for higher agricultural output, combined with growing awareness of the negative impacts of chemical inputs and the advantages of biofertilizers, is driving global demand for these products.

Biofertilizers Market Opportunity

Growing Adoption of Fertilizers in Emerging Economies

The Asia-Pacific region represents approximately 30% of the world's land area and around 60% of the global population (source: World Population Review). This region's extensive agricultural diversity and vast arable lands present significant growth opportunities for stakeholders in the biofertilizers market. Furthermore, consumers in countries such as China, Japan, and India are progressively preferring organic products as awareness of the health and environmental risks associated with chemical fertilizers grows.

In August 2022, Japan’s Ministry of Agriculture, Forestry, and Fisheries introduced the Green Food System Strategy, aiming to reduce chemical fertilizer use by 20% and chemical pesticide use by 10%. Additionally, the strategy seeks to expand organic farming from 23,500 hectares to 63,000 hectares by 2030, signaling a significant increase in the use of biofertilizers in the coming years.

In China, there is a concerted effort to promote biofertilizers as part of the country’s goal to achieve zero growth in chemical fertilizer and pesticide use. Currently, average nitrogen fertilizer application levels in half of China’s regions exceed the internationally accepted threshold of 225 kg per hectare. This excessive use has led to pollution of water sources, soil contamination with heavy metals, and high chemical residues in food, which jeopardize public health and agricultural productivity. Consequently, there is a pressing need to transition to safer, alternative solutions such as biofertilizers.

According to FiBL & IFOAM–Organics International 2024, in 2022, China had around 2.90 million hectares of organic area, whereas in 2020, it was around 2.44 million hectares. Therefore, government initiatives aimed at promoting organic agriculture and increasing the areas under organic farming in the country are expected to generate growth opportunities for China’s biofertilizers market.

The Indian government has implemented the National Programme for Organic Production (NPOP), which includes the accreditation program for Certification Bodies (CB), organic production standards, and organic farming promotion. According to FiBL‐IFOAM‐SOEL‐Surveys, in 2022, India had 4.73 million hectares of land under organic agriculture. Moreover, the Agricultural & Processed Food Products Export Development Authority (APEDA) stated that around 3.49 million MT of certified organic products were produced in India in 2020–2021. Thus, India’s growing organic foods market is expected to support the growth of India’s biofertilizers market. All these factors are expected to create growth opportunities for the players operating in this market.

Biofertilizers Market Analysis: Key Findings

The Nitrogen-fixing Microbes Segment to Dominate the Biofertilizers Market in 2024

Based on microorganism type, the biofertilizers market is segmented into nitrogen-fixing microbes, phosphate solubilizing & mobilizing microbes, potassium solubilizing & mobilizing microbes and other microorganism types. In 2024, the nitrogen-fixing microbes segment is expected to account for the largest share of 76.6% of this market. The significant market share of this segment is driven by several factors, including the need to address the hazards associated with chemical fertilizers, a growing number of government-led initiatives, and heightened awareness of the importance of sustainability in modern agriculture. Additionally, the increasing adoption of advanced farming techniques such as drip irrigation and sprinklers, coupled with rising health concerns, further supports the growth of this segment. Nitrogen-fixing microbes also present a more cost-effective, ecological, and profitable solution for providing nitrogen to plants, which contributes to their growing adoption. Moreover, this segment is expected to register the highest CAGR of 11.9% during the forecast period.

The Cereals & Grains Segment to Dominate the Biofertilizers Market in 2024

Based on crop type, the biofertilizers market is segmented into cereals & grains (corn, wheat, rice, and other cereals & grains), oilseeds & pulses, fruits & vegetables, and other crop types. In 2024, the cereals & grains segment is expected to account for the largest share of 50.7% of this market. The large market share of this segment is attributed to the increasing demand for organic and naturally grown cereals & grains, the heightened focus on reducing the impact of chemical fertilizers on these products, and the extensive areas of land dedicated to organic cereal and grain cultivation.

However, the oilseeds & pulses segment is estimated to record the highest CAGR of 13.0% during the forecast period. The growth of this segment is mainly driven by the rising demand for organic oilseeds & pulses, the increase in the area under organic oilseed & pulses cultivation, and the rising demand for plant-based foods.

The Seed Treatment Segment to Witness the Highest Demand During the Forecast Period

Based on mode of application, the biofertilizers market is segmented into fertigation, foliar spray, seed treatment, and other modes of application. In 2024, the seed treatment segment is expected to account for the largest share of 65.2% of this market. This segment’s major market share is attributed to the various benefits of seed treatment in biofertilizers. These benefits include enhanced seed germination and a reduced incidence of foot and root rot. Additionally, seed treatment with biofertilizers aids in solubilizing phosphorus in the soil, thereby improving its availability. The growing adoption of biofertilizers for the seed treatment of cereals such as rice, wheat, sorghum, and maize, and oilseeds like groundnut, sunflower, and soybean is driving the growth of the biofertilizers market.

However, the foliar spray segment is anticipated to register the highest CAGR of 12.7% during the forecast period. The foliar application method provides uniform application and distribution of nutrients, preventing the wastage of biofertilizers. It is one of the most economical and reliable biofertilizer application methods as it requires smaller quantities of biofertilizers.

The Food and Beverages Segment to Dominate the Biofertilizers Market in 2024

Based on formulation, the biofertilizers market is segmented into liquid and dry biofertilizers. In 2024, the dry biofertilizers segment is expected to account for the larger share of the biofertilizers market. This segment’s significant market share is due to several key factors, such as the increasing adoption of dry biofertilizers for lawn and garden applications, their enduring effectiveness and high efficiency across various climatic conditions, and the broad and accessible availability of raw materials.

However, the liquid biofertilizers segment is expected to register the highest CAGR during the forecast period. The rapid growth of this segment is driven by the benefits offered by liquid biofertilizers, such as high efficiency & absorbability, ease of use, cost-effectiveness, and uniform application.

Geographical Analysis

North America Dominates the Overall Biofertilizers Market

Based on geography, the biofertilizers market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of 32.3% of the global biofertilizers market, followed by Europe and Asia-Pacific. The North American biofertilizers market is estimated to be worth USD 599.6 million in 2024. North America's significant market share can be attributed to the increasing demand for organic products, increasing health awareness among consumers, the growing acceptance of biofertilizers among rural farmers, continuously growing areas under organic cultivation, and the high adoption rate of advanced irrigation systems, such as drip & sprinkler irrigation for fertigation.

However, the Asia-Pacific region is poised to record the highest CAGR of 12.7% during the forecast period due to the huge areas under organic cultivation, rapid population & income growth, increasing mechanization and irrigation facilities, and the presence of several organic operators. Furthermore, supportive government policies and initiatives to promote and expand the organics industry contribute to the growth of the biofertilizers market in this region.

Biofertilizers Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the biofertilizers market are Novonesis Group (Denmark), UPL Limited (India), American Vanguard Corporation (U.S.), National Fertilizers Limited (India), IPL Biologicals Limited (India), BioWorks, Inc. (U.S.), Symborg Corporate, SL (Spain), Seipasa S.A. (Spain), Rizobacter S.A. (Argentina), Vegalab SA (Switzerland), Lallemand Inc. (U.S.), AgriLife (India) Private Limited (India), Mapleton Agri Biotec Pt Ltd (Australia), and Koppert B.V.(Netherlands).

Biofertilizers Industry Overview: Latest Developments from Key Industry Players

• In August 2023, Bionema Group Ltd. (U.K.) launched a new range of biofertilizer products in the U.K.
• In August 2022, Chambal Fertilizers and Chemicals Limited (CFCL) partnered with The Energy and Resources Institute's (TERI) SMART Agrisolutions to launch Mycorrhiza Products in the Mycorrhiza category of biofertilizers.
• In September 2022, Bioceres Crop Solutions (Argentina), a major shareholder of Rizobacter, merged with Marrone Bio (U.S.) to complement its bioprotection and plant health products portfolio with Rizobacter’s growing line of advanced plant nutrition and protection formulations.
•  In May 2022, Koppert India and UPL India inked a contract to produce a biofertilizer for UPL, which is sold in India under the brand Natural Plant Protection (NPP), UPL's new worldwide business unit. The Copio bio-fertilizer is intended to promote soil health, which will facilitate better plant establishment and higher production.

Biofertilizers Market Research Summary

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