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.
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
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.
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
|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|
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.
|Restraints & Challenges:||
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
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.
Agricultural biological systems are organic techniques that are biologically sustainable and poses limited threat to the environment. These systems are characterized by their non- toxic method of action that enhances a higher yield and minimizes the adverse effect of insects and pests on the plants.
Manufacturers operating in the agricultural biologicals market are developing innovative products to gain a competitive edge in the market. For instance, in October 2018, Gowan Company launched EcoSwing, a biofungicide obtained from Swinglea glutinosa extract for outdoor and greenhouse food and non-food crops. In March 2016, Syngenta launched EPIVIO, a biostimulant seed treatment for abiotic stresses.
Government policies regarding bio-stimulants are expected to drive growth of the bio-stimulants segment. In December 2018, State Agriculture Improvement Act of 2018, or 2018 Farm Bill, was passed in the U.S., which defines plant bio-stimulants. This bill was passed to ensure appropriate approval, uniform labelling, and easy availability of bio-stimulants to farmers. In May 2019, European Union ministers adopted proposals to harmonize plant bio-stimulants regulations.
Chemical pesticides or conventional agrochemicals are broad-spectrum and can control a large number of pests. However, agricultural biologicals/bio pesticides are targeted for specific pests. As it is highly targeted, different products are required for different pests and pathogens. Furthermore, many agricultural biologicals consist of microbes, and maintaining microbial viability during transportation and storage is challenging. Chemical alternatives such as fertilizers and pesticides for agricultural biologicals (including bio-fertilizers and bio-pesticides) are easily available globally, which is hindering growth of the global agricultural biologicals market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.