AGRICULTURAL BIOLOGICAL MARKET ANALYSIS

Market Size and Trends

Global agricultural biologicals market is estimated to be valued at USD 7.82 Bn in 2024 and is expected to reach USD 14.76 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 9.5% from 2024 to 2031.

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This market involves the development and use of biological products like biopesticides, biostimulants and biofertilizers as substitutes for traditional agricultural chemicals to improve crop productivity and soil health in a sustainable manner. The global agricultural biologicals market is expected to witness significant growth over the forecast period due to growing awareness among farmers about the environmental and health hazards caused by excessive use of agrochemicals. Strict government regulations pertaining to the use of chemical pesticides and fertilizers are further encouraging farmers to adopt biological alternatives. Declining soil fertility and increasing organic farmland boosts demand for agricultural biological products worldwide.

 Climate Change and Need for Sustainable Practices

The agricultural sector is experiencing the adverse effects of climate change in a more pronounced manner. Farmers around the world are facing challenges of unpredictable weather patterns, rising temperatures and increased frequency and severity of extreme weather events. This is impacting crop yields and livestock productivity. For instance, according to research studies, the global impacts of climate change could reduce average yields for major crops by 2% per decade for the rest of the century. This poses severe food security risks. To deal with this, agricultural practices need to become more sustainable and climate-resilient. Biological products are emerging as an important solution in this regard. Various microbials, biopesticides and biofertilizers can help in improving soil health, enhancing nutrient availability for crops and managing pest and disease pressure. As climate stresses increase on farms, the usage of such biological inputs is expected to see heightened adoption. Their use can reduce agriculture's carbon footprint by serving as alternatives to conventional synthetic agrochemicals. This makes biologicals strategically important for achieving climate change adaptation and mitigation goals in the sector.

Market Concentration and Competitive Landscape

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Food production needs to rise substantially in the coming years to meet the nutritional needs of a growing global population. At the same time, consumers across regions are demanding food that is not only sufficient in quantity but also safe, nutritious and chemical-residue free. This presents a challenge for conventional agricultural practices which rely heavily on use of synthetic agrochemicals. Long term dependence on such inputs can have negative implications for soil health, environment and food safety. Biological products provide a natural solution to address this demand-supply equation sustainably. These improve the quality and nutrient density of crops when used judiciously. With minimal residual effects, these assure food safety. This positions them strongly as agricultural systems move towards more organic and residue-free production methods. It is also leading farmers to adopt biologicals for niche, high-value export crops. Their utilization corresponds well with consumer preference for nutritious, chemical-free diets. Therefore, evolving food consumption patterns are likely to further support use of agricultural biologicals globally in the future.

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Global agricultural biologicals market faces several challenges. Farmers struggle with increasing input costs for seeds, fertilizers and crop protection products. Climate change is making traditional agricultural practices less reliable and more vulnerable to pests and diseases. Market consolidation has provided a few large players growing control over seed and crop technology. Stringent regulations make product development and approvals lengthy and expensive. These challenges threaten the sustainable growth and profitability of companies operating in this sector.

 Market Opportunities: The growing global population

Growing global population leads to increase in demand for food. Organic and sustainable farming practices are gaining popularity among consumers and suppliers. New technologies in gene editing and biologicals are offering natural alternatives to traditional agrochemicals. The market is shifting towards integrated crop management and customized farm advisory services.

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In terms of product type, biopesticides segment is estimated to contribute the 46.1% share of the market in 2024 owing to their ability to manage pests effectively while minimizing negative impacts on humans and the environment. Biopesticides derived from plants and microorganisms often perform as well or better than synthetic chemicals in controlling major crop diseases and insects. Their novel modes of action help overcome resistance in pests that have developed tolerance for conventional chemicals. As sustainable farming grows in importance, biopesticides are increasingly adopted by growers seeking alternatives to harsh synthetic options. Significant R&D efforts by industry players have expanded the range of active ingredients and formulations available. New biofungicide and bionematicide products targeting key soilborne and foliar diseases areboosting biopesticides to replace conventional solutions in many applications.

Insights, By Mode of Application: Foliar spray segment dominates with non-disruptive application method

In terms of mode of application, foliar spray segment is estimated to contribute the 39.1% share of the market owing to its non-disruptive application method. Spreading treatments via sprayers onto the leaf surfaces of crops avoids disturbing soils and roots during application. This minimizes potential damage to cropping systems and limits risks to yields. It also allows for precise targeting of pests and precise dosage rates to branches, flowers or fruits. Advances in formulation technologies have improved rain fastness and adhesion of products to leaf surfaces. These developments enhance the effectiveness of biocontrol and nutritional agents delivered through foliar sprays. As a result, foliar spray has emerged as the preferred application mode, facilitating widespread adoption of agricultural biologicals.

Insights, By Application: Cereals &grains lead with large hectarage and pest pressures

In terms of application, cereals & grains segment is estimated to contribute 49.1% share of the market owing to its large global hectarage and high pest pressures faced. As a principal food crop, cereals such as wheat, rice and maize are grown on more land area than any other crop group. Their open plant architecture and importance as a food source also make them highly susceptible to numerous fungal, bacterial and viral diseases. In addition, various insect pests and nematodes severely impact cereal yields. To counter these challenges, growers extensively utilize biological products that support plant health and resilience or control specific grain pests. The strong demand from cereal crops drives significant usage of biopesticides, biofertilizers and biostimulants to boost productivity in a sustainable manner. Growing production of cereals and grains is expected to drive the segment growth. For instance, according to World Bank Data Bank in 2021, the total annual cereal production globally was 2,500 million tons.

Regional Insights

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North America has established itself as the dominant market for agricultural biologicals over the years and is estimated to account for 41.1% share in 2024. The size and maturity of the agricultural sector in the region is the prime reason for its prominence. Farmers in the U.S. and Canada have widely adopted biological products for pest and disease management. These display high dependence on crop protection tools to ensure maximum yields. Moreover, the presence of top agrochemical players with strong distribution networks has popularized these solutions. Trade agreements like NAFTA have further eased cross-border commerce, aiding accessibility.

Asia Pacific is emerging as the agricultural biological market with the fastest pace of gains going forward. Several factors contribute to its rapid growth trajectory. The vast arable land available across countries makes agriculture a prominent economic contributor. With growing production to feed rising populations, the need to prevent crop losses using eco-friendly means has increased.

Market Report Scope

Key Developments

• In August 2023, FMC launched ENTAZIA bio fungicide, a revolutionary biological for crop protection in India
• In 2023, Absolute launched biological agri-input business Inera CropScience
• 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 strategic partnership 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

*Definition: Agricultural Biologicals Market is a market dedicated to selling biological products that assist farmers in naturally enhancing soil quality and plant health for more sustainable agriculture. Customers can find natural fertilizers made from compost and manure, plant extracts that act as pesticides and fungicides, beneficial microorganisms like nitrogen-fixing bacteria, and seeds for cover crops.

Market Segmentation

• Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Biopesticides
  • Biofertilizers
  • Biostimulants
•  Mode of Application Insights (Revenue, USD Bn, 2019 - 2031)
  • Soil Treatment
  • Seed Treatment
  • Foliar Spray
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
  • Cereals & Grains
  • Oil Seed & Pulses
  • Fruits & Vegetables
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • 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.
  • Kiwa Bio-Tech Products Group Corporation