Agricultural Biological Market is estimated to be valued at USD 7.82 billion in 2024, exhibiting a CAGR of 9.5% over the forecast period 2024-2031. Furthermore, agricultural biologicals market is expected to witness significant growth owing to increasing number of farmers adopting organic and sustainable agricultural practices.
Market Dynamics:
Global agricultural biologicals market is expected to witness robust growth over the forecast period owing to rising demand for organic and chemical-free agricultural produce coupled with increasing organic farmland across major markets. The organic farmland across countries such as U.S., China, Argentina and India has increased considerably over the past decade indicating shift towards sustainable agricultural practices. Furthermore, advancements in biological crop protection products to control diseases and pathogens without use of synthetic chemicals is also expected to drive the market growth. Growing adoption of integrated pest management strategies is another key factor supplementing revenue generation in the agricultural biologicals market.
Global Agricultural Biologicals Market- Drivers
- Increasing Organic Farming Practices: The adoption of organic farming practices has been steadily increasing over the past few years. Organic farming relies heavily on the use of biological products like biopesticides, biofertilizers and biostimulants to maintain soil health and maximize crop yields without the use of synthetic chemicals. As consumers demand more organic and chemical-free food options, farmers are shifting to organic methods of cultivation. This boosts demand for agricultural biological products.
- Need to Reduce Environmental Impact of Conventional Farming: Conventional agriculture which relies on heavy use of synthetic agrochemicals like pesticides and fertilizers has taken a toll on the environment over the years. It has led to issues like soil degradation, water pollution and loss of biodiversity. There is a growing need to move towards more sustainable farming practices that are environmentally friendly. Agricultural biologicals help farmers to reduce dependence on chemicals and offer natural solutions to improve soil quality and crop protection in an eco-friendly manner. The need to farm responsibly while minimizing environmental footprint is boosting the agricultural biologicals market.
Global Agricultural Biologicals Market- Restraints
- High Cost of Biological Products Compared to Synthetic Agrochemicals: While biological products have benefits over chemicals, their cost of production tends to be higher since these involve multi-step extraction or fermentation processes and require energy intensive manufacturing facilities. This makes biological solutions more expensive for farmers compared to cheap and readily available synthetic agrochemicals. The higher cost of biologicals acts as a barrier for many small-scale farmers in adopting them.
- Uncertainty over Performance and Consistency: The performance and effectiveness of biological products can vary with soil and climatic conditions as compared to synthetic chemicals which have consistent results. Since biologicals are living microorganisms, their activity and traits may change over generations requiring continuous research and development. This uncertainty over consistency of results with biologicals discourages some farmers and limits large-scale commercial use.
Global Agricultural Biological Market- Opportunities
- Growth of Developing Nations: Developing economies in Asia Pacific and Latin America regions are witnessing a boost in agriculture sector with growing food demand from rising population. If biological products can provide effective and affordable solutions tailored to their needs, it will open vast opportunities in developing markets.
- Government Support for Sustainable Farming: Many governments and policymakers are implementing programs to promote sustainable agricultural practices and reduce dependency on chemicals. Initiatives like subsidies for adoption of biological products, funding for R&D and awareness campaigns aim to educate farmers. With the right government push and incentives for 'Go Green' agricultural methods, the biological products industry can gain large-scale traction and commercial success in the near future.
Link: https://www.coherentmarketinsights.com/market-insight/agricultural-biological-market-1029
Key Developments
- In 2023, Absolute launched biological agri-input business Inera CropScience
- In August 2023, FMC launched ENTAZIA bio fungicide, a revolutionary biological for crop protection in India
- The merger between Bioceres Crop Solutions and Marrone Bio in September 2022 was a strategic move aimed at expanding their portfolio of bio protection and plant health products. By incorporating Rizobacter's successful line into their offerings, the merged entity sought to enhance its capabilities in providing innovative solutions for agriculture. This consolidation of expertise and resources likely positioned the newly formed entity to better address the evolving needs of farmers and contribute to sustainable agricultural practices.
- The collaboration between BASF and AgBiome in March 2021 marked a significant step towards expanding BASF's BioSolutions portfolio for vegetables, ornamentals, and turf applications in Europe, the Middle East, and Africa. By leveraging AgBiome's expertise in biological fungicides, BASF aimed to introduce a novel solution that could address the specific needs of growers in these regions. This collaboration likely enabled BASF to enhance its offerings with innovative and sustainable solutions, further reinforcing its commitment to providing effective products for crop protection and plant health
Key Players
Syngenta AG, The Dow Chemical Company, Bayer CropScience Company, BASF SE, Isagro Company, Novozymes A/S, Marrone Bio Innovation Inc., Valent BioSciences Corporation, Koppert Biological Systems., CBF China Bio-Fertilizer AG, Mapleton Agri Biotec, Biomax, Rizobacter Argentina SA, Symborg S.L., National Fertilizers Ltd., Lallemand Inc., Agricen, Sigma Agri-Science, LLC, Zebra Medical Vision, Inc., and Kiwa Bio-Tech Products Group Corporation
