The global biofertilizers market size is likely to rise at a CAGR of 10.9% between 2020 and 2027 on account of the increasing demand for chemical-free fertilizers for agricultural production. In May 2016, Lage y Cia, a company in Uruguay was acquired by a Canadian company Lallemand Inc., for increasing the production of yeast, fungi, and bacteria as a biocontrol, biofertilizer, and a biostimulant agent. According to a recent report by Fortune Business Insights titled, “Biofertilizers Market Size, Share COVID-19 Impact Analysis, By Type (Nitrogen Fixing, Phosphate Solubilizers, and Others), Microorganism (Rhizobium, Azotobacter, Azospirillum, Pseudomonas, Bacillus, VAM, and Others), Application (Seed Treatment, Soil Treatment, and Others), Crop Type, and Regional Forecast, 2020 – 2027,” the value of this market was USD 1.49 billion in 2019 and is anticipated to reach USD 3.28 billion by the end of 2027.
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Objectives of the Report:
The report offers a 360-degree overview of the market for biofertilizers and emphasizes on drivers, restraints, challenges, and upcoming opportunities. It also describes the current trends, recent industry developments, and other interesting insights that will help to accelerate the demand for biofertilizers in the coming years. The report throws light on the list of players operating in this market and the key strategies adopted by them to gain a competitive edge. For more information on the report, log on to the company website.
Rising Concern over Declining Soil Quality to Augment Growth
The use of chemicals and acidic fertilizers such as calcium nitrate, monoammonium phosphate, and others has resulted in degradation of soil quality. Over the years, this has led to less crop cultivation, eventually leading to the land getting barren. This has propelled the need for organic fertilizers, thereby augmenting the global biofertilizers market growth. Besides this, biofertilizers consist of living microorganisms that help the plants to grow naturally by supplying essential nutrients. It also helps to increase the fertility of the soil. The aforementioned factors are also contributing to the growth of the market.
On the contrary, biofertilizers have high production costs and this may pose a major challenge to the farmers, thereby causing hindrance to the growth of the market. In addition to this, they have a lower shelf-life as compared to chemical fertilizers and have lower versatility. This may also hamper the growth of the market in the forecast years.
Nevertheless, government support in terms of agricultural awareness programs and promotion and distribution of bio-fertilizers are expected to create lucrative growth opportunities for the market in the coming years.
Cereals Segment to Continue Dominance Owing to Rising Demand for Organic Products
Among all segments by crop type, the cereals segment earned 43.74% share and emerged dominant accounting to the high demand from both developing and developed nations. This is further attributed to the nutritional benefits offered by cereals.
Europe and North America are Dominant Owing to Presence of Several Organic Farms
Geographically, North America and Europe are holding the larger biofertilizers market share on account of the presence of a large number of farms following organic agricultural practices in countries such as Mexico, and the United States. In 2019, North America earned a revenue of USD 470.83 million. According to the United States Department of Agriculture (USDA), organic businesses and certified farms grew at a massive rate of 13% between 2015 and 2016.
On the other side, the market in South America is likely to emerge as the fastest growing region during the forecast period on account of the increasing demand for organic products from countries such as Brazil, and Argentina.
Major Companies are Focused on Improving their Product Portfolios
Manufacturers of the global biofertilizers market are engaging in new product launches, and enhancing their product portfolio for gaining a competitive edge in the market. Some of them are also adopting collaborative efforts such as joint ventures, agreements and contracts, and others to hold significant positions in the market competition.