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  • Published On : Jan 2022
  • Code : CMI1029
  • Pages :120
  • Formats :
      Excel and PDF
  • Industry : Agrochemicals

Agricultural biological is an ecological and organic agricultural system based on application of green and environment friendly fertilizers, stimulants and pesticides, and other ecological methods and techniques. The agricultural biological system is ecologically and economically sustainable and reduces the adverse effects on environment by minimizing the use of synthetic and chemical fertilizers

The global agricultural biologicals market was valued at US$ 9,465.4 Mn in 2020 and is expected to reach US$ 27,598.3 Mn by 2028, exhibiting a CAGR of 14.3% during the forecast period.

Drivers:

The growing environmental concerns and stringent government rules regarding the use of synthetic products are the major factors driving growth of the global agricultural biological market. Moreover, increasing demand for bio-based agricultural products, regulatory assistance, and government subsidies on agricultural biological products are expected to drive the market growth. Furthermore, shrinking arable land and strive for higher yield and productivity, growing use of soil treatment with agricultural biological products to improve crop yield and nutrient growth further contributes to the market growth.

Figure 1. Global Agricultural Biologicals Market Revenue Share (%), By Region, 2020

AGRICULTURAL BIOLOGICAL MARKET

Among regions, North America held a dominant position in the global agricultural biologicals market in 2020, accounting for 29.9% market share in terms of revenue, followed by Europe, and Asia Pacific. The growing adoption rate of agricultural biological systems coupled with the developed agricultural sector are the major driving factors for the growth of market. Moreover, the strict government rules related to the use of synthetic chemicals along with the high consumer preference for clean and chemical free agricultural produce is further fuelling the market growth. The U.S and Canada are the major economies adopting agricultural biological systems in the region. According to the International Federation of Organic Agriculture Movements (IFOAM), around 3 million hectares of farmland in North America was under organic agriculture in 2015, out of which 2 million hectares was in the U.S and 0.9 hectares million in Canada.

Market Restraints

Low adoption rate of bio-based agricultural products and increased use of counterfeit products are major factors hindering growth of the global agricultural biological market. Moreover, agricultural biologicals show less efficacy in terms of insecticidal and fungicidal activity among others than its chemical counterparts. Usage of bio pesticides may also be more complicated compared to conventional pesticides and require more expertise from the user. Additionally, agricultural biologicals, including bio-pesticides, are more susceptible to adverse environment conditions compared to chemical pesticides

Agricultural Biologicals Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 9,465.4 Mn
Historical Data for: 2017, 2018, and 2019 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 14.3% 2028 Value Projection: US$ 27,598.3 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, and Rest of Asia Pacific
  • Middle East: GCC Countries and Rest of Middle East  
  • Africa: North Africa, Central Africa, and South Africa
Segments covered:
  • By Product Type: Biopesticides, Biofertilizers, and Biostimulants
  • By Source: Microbials and Biochemicals
  • By Mode of Application: Soil Treatment, Seed Treatment, and Foliar Spray
  • By Application: Cereals and grains, Oil Seed and Pulses, Fruits and Vegetables, and Others 
Companies covered:

Syngenta AG, The Dow Chemical Company, Bayer CropScience Company, BASF SE, Isagro Company, Novozymes A/S, Marrone Bio Innovation Inc., Valent BioSciences Corporation, and Koppert Biological Systems.

Growth Drivers:
  • Increasing demand for organic farming and organic products
  • Increasing environmental concerns and stringent government regulations regarding use of synthetic pesticides & fertilizers
Restraints & Challenges:
  • Low efficacy of agricultural biologicals and availability of alternative products

Market Trends

Demand for organic manufacturing methods and chemical pesticide alternatives has led to increasing research and development of bio-control seed treatment solutions. The bio-control seed treatment may provide a solution for farmers who are working towards organic crop production, by providing protection against specific pathogens. Key players operating in the agricultural biologics market are launching new bio-control seed treatment products in the market to cater to consumer demand. For instance, in January 2017, Albaugh, LLC launched a BIOST biological seed treatment platform, which includes a wide range of products consisting of effective and proven biological seed treatments. These biological seed treatments have been tested to improve and enhance the performance of seed treatments when combined with traditional artificial seed treatment.

Figure 2. Global Agricultural Biologicals Market Revenue Share (%), By Application, 2020

AGRICULTURAL BIOLOGICAL MARKET

On the basis of product type, in 2020, the biopesticides segment accounted for 48.8% of the revenue share. Advantages of bio-pesticides over conventional pesticides or chemical pesticides such as low toxicity, target specificity, effectiveness in small quantities, low or no pesticide resistance in pests, low cost, and rapid decomposition are driving growth of the biopesticides segment.

Global Agricultural Biologicals Market - Impact of Coronavirus (Covid-19) Pandemic

The Covid-19 pandemic had majorly disrupted agriculture and food sector supply chains. However, limited economic impacts were observed in the sector due to agility of producers, supply chain contributros and retailers, but also to the rapid and broad response by governments. According to OECD (Organization for Economic Co-operation and Development), close to 800 measures were undertaken by governments in 54 developed and emerging countries, aimed to avoid aggravating disruptions, provide relief to affected producers and consumers, or to bolster the recovery of affected production activities. The pandemic is expected to have short-term impact on growth of agricultural biologicals market. The pandemic is likely to boost investment in agricultural biologicals, owing to interest in food security and sustainable crop production, and for ensuring robust supply chains.

Frequently Asked Questions

The global agricultural biological market is estimated to surpass US$ 21.25 Billion by 2025.

Major players operating in the global agricultural biological market include Syngenta AG, The Dow Chemical Company, Bayer CropScience Company, BASF SE, Isagro Company, Novozymes A/S, Marrone Bio Innovation Inc., Valent BioSciences Corporation, and Koppert Biological Systems.

Low adoption rate of bio-based agricultural products and increasing usage of counterfeit products are some of the major factors that are expected to hamper growth of the market over the forecast period.

Growing environmental concerns and stringent government rules about the use of synthetic products are some of the major factors that are expected to propel growth of the market over the forecast period.

The global agricultural biological market is estimated to exhibit a CAGR of 15% during the forecast period.

Among regions, North America held dominant position in the global agricultural biological market in 2016, followed by Europe and Asia Pacific, and is expected to retain its dominance over the forecast period.

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