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The agricultural microbials market size is forecast to increase by USD 5.80 billion, at a CAGR of 17.61% between 2023 and 2028. The agricultural microbials market is experiencing significant growth due to several key factors. First, the increasing adoption of organic farming practices is driving demand for microbial products as natural alternatives to synthetic fertilizers and pesticides. Second, the popularity of integrated plant nutrient management systems, which utilize beneficial microorganisms to enhance soil health and nutrient availability, is fueling market expansion. Lastly, the rise in demand for sustainable agricultural production methods is leading farmers to seek out microbial solutions to improve crop yields and reduce environmental impact. These trends are expected to continue, making the agricultural microbials market a promising area for investment and innovation.
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In modern agriculture, biologicals are gaining prominence as sustainable alternatives to synthetic chemicals. These include microbial derivatives, biopesticides, biofertilizers, and biostimulants designed to enhance plant health and improve crop yield while minimizing environmental impact. Unlike traditional chemical residues, biologicals offer food safety benefits by reducing exposure to harmful substances linked to cancer, heart disease, stroke, allergies, and obesity. Organic agriculture relies heavily on biocontrol methods and agricultural microbial products to manage pests and diseases, ensuring environmental safety and supporting sustainable agriculture practices. The shift towards organic food products reflects consumer demand for healthier, pesticide-free options, aligning with global efforts to promote crop protection without compromising ecological balance. As the agricultural sector continues to evolve, the adoption of biologicals represents a proactive step towards achieving food security and environmental sustainability, mitigating the long-term impacts of intensive farming practices on soil health and biodiversity.
The growing adoption of organic farming is one of the key factors driving the global agricultural microbials market growth. The increasing global population puts considerable pressure on land and various other natural resources. The accelerated rate of crop production leads to rapid loss of plant nutrients, thereby impacting the nutrient content in crops. Thus, most farmers resort to the use of various chemicals and inorganic fertilizers to help replenish the loss of nutrients. However, the excessive use of chemical fertilizers has been found to diminish biological activities in the soil, leading to impaired soil quality. As a result, farmers are gradually moving toward more sustainable farming options, such as organic farming. Government initiatives also support organic farming. For instance, in India, the NMSA (National Mission for Sustainable Agriculture) started the Paraphragmata Krishi Vikas Yojana, which promotes the commercial production of crops through certified organic farming. This project further aims to achieve pesticide residue-free agricultural produce. Such initiatives will encourage farmers to adopt practices involved in organic farming, such as using agricultural microbials. Such factors will thus lead to market growth during the forecast period.
Key Market Trends
Global initiatives to improve agricultural output will fuel the global agricultural microbials market's growth. The ever-rising global population has increased the emphasis on food safety and security by global organizations. For instance, the FAO works on projects for the sustainable management of natural resources to ensure that agriculture contributes its full potential to national economies. Under its Regional Initiative, the FAO assists countries in managing their natural resources sustainably while coping with climate change and reducing the risk of disasters affecting agriculture, forestry, and fisheries. The FAO implements targeted projects and provides funding through sources such as the Green Climate Fund (GCF) and the Global Environment Facility (GEF). the Bill and Melinda Gates Foundation, and The Rockefeller Foundation. The United States Agency for International Development (USAID) announced a strategic partnership to increase incomes and improve the food security of smallholder farm households in many African countries in 2021. Such strategic partnerships for agricultural operations across Africa will create growth opportunities for the agricultural microbials market during the forecast period. Increasing agricultural operations and output will require authorities to ensure that the products adhere to quality standards. As a result, the global demand for agricultural microbials will increase during the forecast period.
Major Market Challenge
The issues with product affordability are the major challenge to the global agricultural microbials market growth. High-quality agricultural microbials are widely available in most developed countries. However, agricultural microbials are neither affordable nor accessible in developing countries of South America and Africa, where the demand for crop production is high. In addition, these countries face other challenges, such as the low purchasing power of farmers. Hence, the obstacles to the implementation of these practices have far-reaching consequences and can adversely influence the overall agricultural productivity in these countries. Furthermore, in developing countries, price sensitivity acts as a major barrier and restricts farmers from procuring agricultural microbials. For instance, farmers in low-and middle-income economies of South America and Africa often have insufficient information or knowledge about advanced organic farming products and thus tend to opt for traditional microbials. Hence, unless farmers are convinced about gaining substantial savings in the cost of production through the reduced usage of chemical fertilizers and getting similar yields, bio-fertilizer manufacturers will probably not be able to encourage them to use agricultural microbials.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Syngenta Crop Protection AG- The company offers agricultural microbials that are complementary to crop nutrition and offer protection as they improve nutrient uptake and nutrient efficiency on one side and crop defense mechanisms on the other.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The cereals and grains segments is estimated to witness significant growth during the forecast period. By 2050, the Food and Agriculture Organization (FAO) predicts that there will be nine billion people on the planet, increasing the need for food to sustain the expanding population. Additionally, the use of microbial products is being driven by public concerns about the safety of their food and the environment. The need for crop intensification (the ability to increase yields per acre while pursuing increasingly sustainable practices), the search for biological substitutes to increase production while putting less stress on the environment, or the addition of integrated practices to close the yield gap is some additional factors driving the demand for microbials.
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The cereals and grains segments accounted for USD 1.59 billion in 2018 and showed a gradual increase during the forecast period. Farmers are being encouraged to implement effective crop-protection methods owing to rising urbanization and dwindling arable land availability. More people now acknowledge and recognize the increasing advantages of microbes. As a result, there is a rise in both agricultural production and demand for microbial goods. The awareness of grains and cereals among the population has grown, as seen by the decline in reported safety concerns. The communication of food safety concerns, especially those regarding pesticide residues, has dropped in several nations, according to a report by the European Commission. This demonstrates the chain-wide use of sustainable production methods by suppliers and producers equally. The market for agricultural microbials is expected to grow as a result of the increased usage of microbiological products as biopesticides in crop protection.
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North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.Organic agricultural practices, farm conversions from conventional to organic, and the creation of additional biological solutions through research are all seeing rapid expansion in the North American region. The market for agricultural microbials is anticipated to develop as high-value crops are grown more frequently, and farmers become more aware of the advantages of microbial solutions for the environment. The governments in this region must invest more in order to meet the needs of the people, which tends to raise the demand for microbiological solutions in the area. The population in this region is also becoming increasingly concerned about the safety and quality of its food. Thus, such factors will drive the growth of the market in focus during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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2. Agricultural Biologicals Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Germany, France, China, Spain - Size and Forecast
3. Biostimulants Market Analysis Europe, APAC, North America, South America, Middle East and Africa - Germany, China, US, Japan, Canada - Size and Forecast
In the realm of agriculture, the debate between conventional farming and organic agricultural practices continues, with a growing emphasis on agricultural sustainability and reducing reliance on chemical pesticides. Agricultural sustainability addresses the challenge of pest resurgence and pest resistance through innovative approaches like microbial insecticides and fungicides derived from microbial derivatives such as bacteria, fungi, and virus. These biological solutions aim to enhance crop protection against plant pests and diseases, while minimizing greenhouse gas emissions and improving soil structures. They leverage lactic acid bacteria, yeast, and soil bacteria to promote soil enhancement and nitrogen fixation through Rhizobium legume symbioses in legume crops like rice, millets, cotton, and sugarcane. The market demand for organic fruits and vegetables reflects consumer preference for products grown with biological fixation methods and organic agricultural land, which prioritize ecological balance and environmental safety. As medium and small-sized enterprises explore import and export opportunities for biopesticides and biofertilizers, formulations like soluble liquids and dry formulations ensure effective pest prevention and crop protection through foliar spray and seed treatment techniques.
Market Scope |
|
Report Coverage |
Details |
Page number |
140 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.61% |
Market growth 2024-2028 |
USD 5.80 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.4 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 46% |
Key countries |
US, Germany, France, China, and Spain |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AgBiome Inc., AGRICULTURE SOLUTIONS INC., Arysta LifeScience Corp., BASF SE, Bayer AG, Biomar Microbial Technologies, Certis USA LLC, Corteva Inc., Emnz, Isagro Spa, Koppert Biological Systems, Lallemand Inc., LOCUS AG SOLUTIONS, Novonesis Group, Sumitomo Chemical Co. Ltd., Syngenta Crop Protection AG, UPL Ltd., and Verdesian Life Sciences LLC |
Market dynamics |
Parent market analysis, Market forecasting 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 forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Crop Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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