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The agricultural biologicals market size is forecast to increase by USD 13.56 billion at a CAGR of 15.89% between 2023 and 2028. Market demand is driven by the escalating costs of chemical fertilizers and pesticides, governmental support for bio-based agricultural products such as biofertilizers, and the growing organic food products sector. Agricultural biologics are bio-based alternatives to conventional farming inputs, promoting sustainable and eco-friendly practices in agriculture.
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Agricultural biologicals, such as those from Verdisian Life Sciences and Azelis, are eco-friendly alternatives to toxic chemical pesticides, aiding crop production industries under the Common Agricultural Policy. Companies like Mosaic Biosciences and Ginkgo Bioworks innovate in plant biostimulant applications, reducing air pollutants and pesticide residues. Start-ups receive funding for commercialization, infrastructure, and production of high-quality vegetables and horticulture crops, using foliar spray and soil treatment methods.
Despite trade restrictions, demand dynamics favor biochemicals over synthetic counterparts for commercial purposes. Patent publications by companies like the Mosaic Company highlight advancements in agrochemicals, emphasizing the importance of sustainable solutions for row crops and addressing inconsistencies in traditional crop protection chemicals. Agricultural biologicals support food production and the crop production industry with their eco-friendly nature. Grants aid the production of horticulture crops, reducing emissions through sustainable sources and innovative application methods.
Amid concerns over the environmental impact of chemical pesticides and stricter regulations, the Agricultural Biologicals market is thriving as farmers seek safer and sustainable alternatives. Embracing concepts like Integrated Pest Management, growers utilize beneficial insects, microbial-based products such as agricultural microbials, and plant extracts to combat pests while preserving the environment. Driven by the need for sustainable agriculture, these biological solutions enhance soil fertility and promote biological activity for healthier crops. Product innovation strategies and effective marketing play pivotal roles in expanding their adoption across industrial sectors worldwide, including agri-exports. As international travel resumes, the Agricultural Biologicals market intersects with essential businesses, including the production of medicines and the supply of agri-exports, ensuring resilience despite economic decline. With a focus on sustainability and innovation, the market continues to grow, offering viable solutions for the future of agriculture.
The market forecast report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in (USD billion) for each of the mentioned segments.
The increasing governmental support for the use of bio-based products in agriculture is notably driving market growth. The rising need for sustainable agricultural techniques has led to the adoption of bio-based products by farmers. Worldwide, there are many initiatives to encourage the use of bio-based products in agriculture, including biostimulants. International organizations, including the Food and Agriculture Organization, frequently fund these programs. In addition, governments in various nations give farmers discounts on bio-based products. Also, they are involved in quality control and make sure that agricultural producers receive high-quality bio-based products. These initiatives have increased the demand for bio-based products, driving the market's expansion.
Moreover, the promotion of agricultural biologicals is being carried out by the governments. Programs for farm-level extension and promotion, financial aid for investors setting up businesses, sales subsidies, and direct production in public sector settings like cooperatives, universities, and research institutions are a few examples. It is anticipated that the sales volume and distribution of agricultural biologicals will increase as the industry grows and develops with the help of such government initiatives. Hence, such factors will fuel the market growth during the forecast period.
Increasing product launches is an emerging market trend driving the growth. Farmers are increasingly in need of agricultural biologicals, particularly biopesticides, and biostimulants, to reduce crop damage from pest infestations and boost crop production. Additionally, the shrinkage of arable land in many nations, particularly in APAC and North America, has an impact on the demand for biopesticides. These factors have inspired numerous companies to diversify their product offerings by releasing new agricultural biological variants. Companies benefit from such product launches by growing their clientele and market share in the global market.
For instance, the launch of Rizobacter's Rizoderma bio fungicide in Argentina for the winter, by Syngenta in 2020, especially for cereal crops. Similarly, the launch of several bio fungicides in Europe and South America by Syngenta Crop Protection AG, in partnership with Novozymes, in 2020, under their commercialized portfolio TAEGRO. Align with market growth and trends, due to low entry barriers, the environmentally friendly nature of agricultural biologicals, consumer demand for high-quality food, and rising health consciousness among consumers, the demand for and introduction of agricultural biologicals are anticipated to rise, particularly in Europe and South America. Therefore, these factors will propel the growth of the market during the forecast period.
The availability of synthetic pesticides and herbicides is a major challenge impeding the market growth. Companies make significant investments in the development of new classes of synthetic pesticides and herbicides that are better suited for the growth of plants. The majority of contemporary herbicides are designed to break down quickly after application. Crops such as cereals, grains, fruits, vegetables, oilseeds, and pulses are among the many types of crops that receive applications of synthetic pesticides and herbicides.
Further, companies are launching new variations of synthetic pesticides and herbicides in order to diversify their product offerings. For instance, FMC Corp. announced the release of a new herbicide called Authority Edge in January 2020. It has already been registered with the EPA for use in dry-shelled peas like chickpeas, soybeans, and sunflowers. Due to their cheaper price when compared to alternatives, there are many dangerous herbicides on the market. Therefore, such factors are expected to hamper the growth of the market during the forecast period.
The market share growth by the biopesticides segment will be significant during the forecast period. Biopesticides are pesticides made from natural substances like plants, bacteria, fungi, and specific minerals. Their level of toxicity is lower than that of traditional pesticides. Canola oil and baking soda are two examples of efficient biopesticides.
The biopesticides segment was valued at USD 5.06 billion in 2018. Biopesticides fall into three categories namely biochemical pesticides, microbial pesticides, and plant-incorporated protectants. Biochemical pesticides are naturally occurring substances that keep pest populations under control through non-toxic means, such as interfering with pest reproduction and luring pests with scented plants. Microorganisms like bacteria, fungi, or protozoa are used as active ingredients in microbial pesticides. The target pests for these active ingredients are distinct. GM plants that produce pesticides are known as plant-incorporated protectants. Europe, especially countries such as France and Germany, is a high-growth market for biopesticides and is anticipated to be a high-growth market during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period.
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The market in North America is expected to expand significantly as a result of increasing consumer demand for organic farm products and strict regional regulations on the use of chemical fertilizers. It is anticipated that the ban on cosmetic fertilizers, particularly in Canada, will spur market expansion. Agricultural biologicals are primarily used in the region's cereals and grains. Moreover, due to rising consumer interest in organic products, the market for organic goods in North America is expanding rapidly. The US, followed by Canada and Mexico, is North America's biggest market for agricultural biologicals. The US market is driven by innovations in crop seed treatment techniques, particularly for corn, maize, wheat, and soybean.
Additionally, the quality of seeds has increased due to quick advancements in inoculant technology, which has also produced a wide range of modified crops. A high CAGR in North America has been largely attributed to the adoption of efficient agricultural inputs and organic farming. Additionally, the strict regulatory framework regarding the maximum residue level and rising prices of agricultural inputs like chemical fertilizers and pesticides are credited with driving market expansion in the region. Therefore, the above-mentioned factors are expected to propel the growth of the market in North America during the forecast period.
The market is fragmented in nature. Some significant players include
Agrinos AS :- The company offers various products that strengthen the soil microbiome and deliver critical, highly bioavailable nutrients to help plants prosper.
The market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Andermatt Group AG, BASF SE, Bayer AG, Biological Products Industry Alliance, Evogene Ltd., Gowan Co., Koppert, Mitsui and Co. Ltd., Novozymes AS, PI Industries Ltd., Pro Farm Group Inc., PROBELTE SAU, SEIPASA SA, SOM Phytopharma India Ltd., Syngenta Crop Protection AG, T.Stanes and Co. Ltd., UPL Ltd., Valent BioSciences LLC, and Vegalab SA
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
With a focus on safer alternatives to traditional pesticides, the market champions efficacy and sustainability. Companies like Corteva Agriscience lead the way in developing solutions compliant with the Sustainable Use Directive, utilizing organisms like Bacillus thuringiensis to minimize harmful residues in the ecosystem. Prioritizing the health of farmers and the environment, agricultural biologics play a crucial role in promoting organic farming systems and sustainable farming practices. Patented innovations from industry giants like Monsanto and emerging players such as AgBiome revolutionize crop protection with certis biologicals and foliar sprays. Collaborations with companies like Certis Biologicals, Lallemand, and Stoller drive advancements in microbial content and Arbuscular Mycorrhizal Fungi, enhancing crop yield while minimizing reliance on synthetic chemicals. As demand grows for eco-friendly solutions, regulatory guidelines and international harmonization efforts are key to facilitating registration and approvals. Despite legal and commercial challenges, the Agricultural Biologicals market continues to flourish, offering novel biostimulants and eco-friendly pesticides for the sustainable production of high-quality fruits and vegetables.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.89% |
Market Growth 2024-2028 |
USD 13.56 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.36 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, Germany, France, China, and Spain |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agrinos AS, Andermatt Group AG, BASF SE, Bayer AG, Biological Products Industry Alliance, Evogene Ltd., Gowan Co., Koppert, Mitsui and Co. Ltd., Novozymes AS, PI Industries Ltd., Pro Farm Group Inc., PROBELTE SAU, SEIPASA SA, SOM Phytopharma India Ltd., Syngenta Crop Protection AG, T.Stanes and Co. Ltd., UPL Ltd., Valent BioSciences LLC, and Vegalab SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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