Global Agricultural Biologicals Market size is likely to witness a significant CAGR during the forecast period. The use of agricultural biologicals for cultivation/farming reduces the use of harmful fertilizers and chemical pesticides, which acts as a primary factor driving the market growth.
The key factor responsible for agricultural biologicals market size growth is the increasing awareness among consumers about the advantages of using organic products for cultivation, which further led to increased demand for natural and environment friendly products in agriculture industry. Also, the rising costs of pesticides and fertilizers is likely to pave a growth path for the product in the coming years. Policies by governing bodies such as subsidies and promotional campaign about natural farming will fuel the agricultural biologicals market growth over the forecast period. Moreover, the product helps farmers to improve yield and productivity by decreasing plant stress, which is a major factor supporting further growth of agricultural biologicals market till 2025.
Constant usage of toxic pesticides and fertilizers has altered soil nutrients and texture to a considerable extent. This loss of biological activities in soil and weakened soil health, thereby compelling farmers to opt for organic farming practices. Agricultural biologicals are a vital part of organic farming due to its chemical-free and eco-friendly properties such as low harmful residues produced.
The major challenge restricting the growth of agricultural biologicals market is the barrier to adoption, which leads to lower penetration of biologicals. Also, the threat of counterfeit products is increasing, due to unsuccessful implementation of government rules and norms on fertilizers and pesticides usage. This also impacts the market growth majorly along with penetration. Besides, unavailability of specific products for each plant type in market are likely to act as an additional threat to agricultural biologicals market growth in the near future.
Based on product type, the agricultural biologicals market can be segmented into biopesticides, biofertilizers and biostimulants. The agricultural biopesticides product segment is expected to hold a largest share of global agricultural biologicals market, followed by biofertilizers and biostimulants. Biopesticides are organic products that control the growth of pests by a non-toxic mechanism and enhances overall quality of crop. Biofertilizers, contains living microorganisms, thus promote plant growth by increasing the availability of essential nutrients to host plant. Biostimulants also improve resistance to abiotic stresses in plant or soil to enhance the overall quantity and quality of crops.
The agricultural biologicals market can be classified into fruits & vegetables, cereals & grains and oilseeds & pulses, based on its applications. Cereals & grains will have a significant share of the global market, as it is the staple crop in almost all the nations. Increasing population and substantial increase in cereals & grains cultivation shall accelerate the agricultural biologicals demand for cereals & grains cultivation over the forecast period.
Europe and North America accounted for major shares of global agricultural biologicals market. Europe agricultural biologicals market is expected to grow at a fastest growth rate in the coming years owing to the government regulations supporting use of organic products. The U.S. leads the North America regional market, due to stringent regulations regarding the usage of chemical fertilizers. The agricultural biologicals market shall witness moderate growth in Asia Pacific due to lack of awareness and knowledge among farmers pertaining to benefits of bio-based products.
The prominent market players functional in the industry are BASF SE, Bayer Cropscience AG, The DOW Chemical Company, Syngenta, Agrinos AS, Marrone Bio Innovations Inc. and Valent BioScience Corporation. Other companies include Arysta LifeScience Corporation, Koppert B.V., Novozymes, Certis USA L.L.C and T. Stanes & Company Limited to name a few. The key market players are emphasizing on partnerships, new product launches & investments to expand their product portfolio and to increase their global presence and market share across the world. Also, the market share contributors are continuously investing in research & development to push product innovation to next level. This aids in keeping up with demands of existing customers and attract new customers.