In 2023, the cereals & grains segment dominates the market with a significant share. This can be accredited to the increasing global demand for wheat, corn, rice, barley, & millet. Moreover, advancements in microbiology have resulted in determining the appropriate & accurate composition of agricultural biologicals for wheat cultivation, resulting in a rise in demand for biologics & driving segment growth. Cultivation of cereals & grains requires a considerable quantity of various biologics, particularly biofertilizers, to ensure healthy crop growth. Studies done worldwide have shown that Azotobacter inoculation significantly enhances cereal & grain crops' development by limiting their nitrogen needs. Furthermore, the effective growth of wheat is achieved via the use of phosphate solubilizing bacteria & Azotobacter inoculation as highly effective biofertilizers, leading to enhanced crop yield.
In several developing agricultural economies, including Japan, India, Indonesia, Thailand, and various Latin American countries, the demand for technology related to agricultural-based product development is growing. This is aimed at boosting the growth of pulses and oilseeds to meet the rapidly growing demand in these regions. The symbiotic performance of strain efficiency and host genotype significantly influences the growth of pulses, directly affecting their yield. Agricultural organizations are taking measures to ensure high microbial strain testing to increase pulse and oilseed production, which is expected to drive the demand for various biological agents in this domain significantly during the forecast period.
By Functions
Biopesticides under the segment of Crop Protection, dominate the market, holding the largest market share. The segment is expected to continue its steady expansion with a notable CAGR from 2023 to 2032. This significant share is primarily driven by the growing adoption of biopesticides in foliage & soil, particularly in European & North American countries. Major products include aromatic plants, & insect sex pheromones designed to attract pests for trapping. On the other hand, microbial pesticides consist of active ingredients that effectively control various kinds of pests. Among the most used microbial pesticides are strains of Bt (Bacillus thuringiensis), which changes the pH level in insects after being consumed and therefore effectively gets rid of pests. A prominent example is Bt Cotton.
Some Bio fertilizers such as Azotobacter, Rhizobium, and Azospirillum are prominent bacteria widely utilized for nitrogen fixation in seed and soil treatment applications. Among these, nitrogen-fixing rhizobium demonstrates its capability to form an endosymbiotic association with the roots of leguminous plants, making it an ideal biofertilizer for leguminous crop cultivation. On the other hand, the aerobic characteristics and neutral nature of Azotobacter in alkaline soil have expanded its application potential in various crops such as maize, wheat, cotton, mustard, and potato. These bacteria play a vital role in enhancing nitrogen availability in the soil and promoting better crop growth and productivity. Biofertilizers are anticipated to experience increased significance in several countries such as North American countries, European Countries, & South-Asian countries. Among biofertilizer products, two major types stand out, namely nitrogen-fixing & phosphate solubilizing. Nfb (Nitrogen-fixing bacteria) are particularly prevalent as biofertilizers since plants lack the quality to convert nitrogen (present in air) into fixed nitrogen, which is vital for their optimal growth & development.
Under the segment of crop nutrition, Biostimulants, derived biologically, are becoming important in the agricultural sector. Some Biostimulants like Amino acid, Humic acid, Fulvic acid, etc. These fertilizer additives play a crucial role in enhancing crop productivity, growth, & overall health. Biostimulants are very effective in enhancing abiotic stress tolerance, nutrient-use efficiency, as well as physical attributes like appearance, size, and shelf-life of crops. Their growing significance lies in their capability to promote healthier & more resilient plants, leading to better yields & promoting sustainable farming practices.
By Application
The seed treatment sector holds the largest market share. This can be accredited to the growing usage of biologicals to improve seed properties & increase crop production. Biofertilizers are extensively used in both soil treatment & seed treatment applications. The heavy usage of synthetic fertilizers & various other crop-protecting chemicals, like insecticides & pesticides, has resulted in a significant decline in the quality of soil spanning across various agriculture-dependent economies.
To address the environmental concerns arising from excessive chemical use in agriculture, Governments in countries like India, China & Pakistan have introduced initiatives to foster the usage of environment-friendly products used for the treatment of seed at the domestic stage. For instance, Pakistan introduced the Biopower Program & later, Humiphos/Biophos, to encourage farmers to use biofertilizers to treat seeds and to help various agricultural agencies financially for its promotion. In countries like Nigeria, South Africa & Kenya a program for farmers to enhance crop yield through loans, leading to increased usage of agricultural biologicals such practices.
Among various microbes, strains of Metschnikowia pulcherrima stand out as widely used pest-controlling agents for after-harvesting procedures. The utilization of agricultural biologicals in the after-harvesting stage is gaining popularity because of various crop loss cases & destruction in large amounts that have been seen in the past years. This factor is expected to drive product demand in the coming years.