Top Trends in the Agricultural Biologicals Market by Agricultural Biologicals, Biocontrols, Bio fungicides, Bioinsecticides, Bio nematicides, Biostimulants, Biofertilizers, Inoculants, Pheromones, Biological Seed Treatment - Global Forecast to 2028
[361 Pages Report] The global agricultural biologicals market is projected to grow at a CAGR of 13.7% from an estimated value of USD 14.7 billion in 2023 to reach USD 27.9 billion by 2028. Awareness of organic food products and concerns toward environmental safety and favorable regulations are the key drivers affecting the growth of the agricultural biologicals market. The role of agricultural biological products has become an integral part of integrated pest management practices (IPM) in developed markets, wherein the biological products are used in combination with new synthetic crop chemistries. Strategic developments such as expansions, new product launches, and agreements have been adopted by the majority of key players to strengthen the market.
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Market Dynamics
Drivers: Growing preference for organic products
The rising awareness among consumers about the increasing use of pesticides and fertilizers in farm-grown vegetables has led to an increase in the adoption of organic food products. The absence of residues of pesticides, fertilizers, growth hormones, and antibiotics has encouraged consumers to opt for organic foods. This increasing consciousness has also promoted the concept of farm-to-table among consumers. According to a report published by FiBL on 'The Organic Market in Europe 2021: Current Statistics,'' the retail sales of organic food products have increased significantly in European countries in recent years. Some of the largest producers of organic products between 2018 and 2019 include Denmark, Sweden, Switzerland, Austria, and Luxembourg.
Restraints: Commercialization of low-quality biological products
Lack of transparency in patent protection laws in various countries has led to the prevalence of low-quality products. As the agricultural biologicals market has limited barriers to entry, which has facilitated many competitors to commence operations, the nature of the market has become fragmented. This has been a factor in the introduction of low-quality products in the market by regional or local manufacturers to gain the advantage of the benefits of the growing demand for biologicals. The low prices of these products provided by small-scale domestic manufacturers also attract farmers. Similar product formulations from many competitors reduce consumer loyalty as well as the brand value of the products. The biologicals market is projected to be a niche market experiencing strong growth trends, which has to be capitalized on by developing products that are innovative and act on a wide range of crops providing better results. When a company does not develop its unique selling proposition in the biologicals market, it finds difficulty in expanding its presence other than in the regional market.
The regulatory framework for biologicals, being unclear across many regulatory bodies around the world, has allowed the entry of duplicate products. A product has been attempted to be defined appropriately only in the European Commission. According to Biological Products Industry Alliance, the purpose of agricultural biologicals is not considered the same by government authorities in different Asian countries. For instance, in China, they are mostly treated as fertilizers, while in Japan and South Korea, they are considered plant growth regulators. This restricts the market for biologicals, as it becomes difficult for the farmers to trust the products with such vagueness about their application.
Opportunity: Need for the development of broad-spectrum formulations in agricultural biologicals
The rise in the consumption of organic food has triggered organic farming. Following the trends, certified organic growers use some plant essential oils, including mints, thyme, rosemary, clove, and citrus as pesticides. These plant-based oils have a broad spectrum of activity that can be used for integrated pest management in organic food production. When tested for pest management, such essential oils have shown good efficacy in countering insects and mites in combination with lethal neurotoxicity and sub-lethal repellence or deterrence. Certain plant-based essential oils such as rosemary and thyme were proven to have useful prophylactic activity against plant pathogenic fungi such as powdery mildew, while some others, including clove and citrus, are phytotoxic at optimal concentrations, which is why they can be used as herbicides. The results from ongoing field trials and commercial success using essential oil pesticides have presented growth opportunities for the biopesticides market.
The US Environmental Protection Agency (EPA) had approved the dry formulation of Grandevo, a product of Marrone Bio Innovations Inc. (MBI)(US), an advanced biological broad-spectrum insecticide/miticide to protect crops against certain insects and mites. Grandevo was approved for use on ornamental plants and edible crops in field and greenhouse applications and facilitated flexibility through air and ground applications. Grandevo is based on a new species of Chromobacterium isolated from under a hemlock tree by Dr. Phyllis Martin at USDA-ARS. Grandevo was the first new broad-spectrum microbial insecticide to enter the market in nearly 50 years. The 'product's complex modes of action control pests through unique combinations of repellency, feeding disruption, reduced egg hatch, and a reduction in the ability of pests to reproduce. Grandevo is not limited by pre-defined spray windows, timing, or resistance spray restrictions, which provides flexibility to incorporate it into an Integrated Pest Management (IPM) program or to use it as a broad-spectrum foundation product. MBI currently has more than three dozen patents pending in the US and globally, which also contain broad-spectrum agri-biological formulations.
Challenges: Supply of counterfeit and less-effective products
The supply of counterfeit biologicals, such as biofertilizers, biopesticides, and biostimulants is a major issue in the industry, as it is creating a negative image of the final products among farmers and hindering market growth. The cost of production of spurious products is extremely low, and it has been impossible for farmers to differentiate spurious biologicals from the original ones due to similar physical characteristics and identical chemical properties. To imitate a product, poor microbial load, contaminated products, or improper strains are used. Counterfeit products are being sold in Asian countries due to a highly fragmented market with unorganized players.
Furthermore, the supply of less-effective products, which is again affecting the sales of genuine products, is another concern that needs to be addressed. The effectiveness of biologicals depends on the production process of manufacturing, microorganism content, viable microorganism, and their storage. The supply of low-standard material by certain manufacturers can adversely affect the credibility of biofertilizers. Some local companies are also selling organic manure as biofertilizers and nitrogen fertilizers are mixed with water, and this liquid is sold as a biostimulant. Spurious manufacturers use these activities to their advantage due to the lack of knowledge and training among local farmers, which is hampering the image of branded products offered by global manufacturers.
Market Eco System
The biocontrols segment is projected to dominate the agricultural biologicals market by trends during the forecast period.
Biocontrol products are known to improve the quality and yield of agricultural produce by protecting crops. These are completely natural and hence do not harm the environment. Biocontrol products are eco-friendly alternatives to chemical pesticides. Increased awareness among end-users regarding the residue levels of pesticides in food and the increased pest resistance to conventional crop protection chemicals are some of the key factors supporting the growth of the agriculture biologicals market.
The bionematicides segment is projected to be the fastest-growing segment in the agricultural biologicals market by trends during the forecast period.
Increase in the loss of agricultural crops due to root-knot nematodes, globally, every year. In the coming years, the market for bionematicides poses great scope, as currently the market of it is not majorly commercialized. The increasing concerns towards preventing the loss caused by soil-borne insects is fueling the growth of the bionematicides market.
The bioinsecticides segment is projected to be the second-fastest growing segment in the agricultural biologicals market by trends during the forecast period.
There has been an emergence of various insects, with increasing climatic stress, hampering the growth of the plants, thus resulting in production losses. The application of bioinsecticides can be more beneficial in terms of sustainability and cost-effectiveness as compared to conventional chemicals. Also, the need to prevent crop losses and to adopt sustainability is driving the market for bioinsecticides.
In 2022, the North American region emerged as the leading contributor to the growth of the Agricultural Biologicals market, holding the largest market share.
The growth of the organic industry, escalating costs of chemical fertilizers, and growing awareness about soil nutrient preservation are significant factors driving the expansion of the Agricultural Biologicals market. The North American region, characterized by its extensive research and development efforts and numerous patents awarded for biocontrol and biostimulants by key companies, can be attributed to the market's growth in this region.
Key Market Players
Key players in the agricultural biologicals market include BASF SE (Germany), Syngenta AG (Switzerland), Pro Farm Inc. (US), Isagro S.p.A. (Italy), UPL (India), Evogene Ltd (Israel), Bayer AG (Germany), and Vegalab S.A. (US).
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Report Metric |
Details |
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Market size available for years |
2018-2028 |
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Base year considered |
2022 |
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Forecast period |
2023-2028 |
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Forecast units |
Value (USD million/billion) |
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Segments covered |
Agricultural Biologicals, Biocontrols, Bioinsecticides, Biofungicides, Biostimulants, Biofertilizers, Bionematicides, Biological Seed Treatment, Agricultural Inoculants, Agricultural Pheromones |
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Geographies covered |
North America, Europe, Asia Pacific, South America, and Rest of World (RoW) |
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Key Companies covered |
BASF SE (Germany), Bayer AG (Germany), Syngenta AG (Switzerland), Pro Farm Group Inc. (US), Isagro S.p.A. (Italy), UPL (India), Evogene Ltd (Israel), Vegalab S.A. (US), Valent Biosciences (US), Stockton Bio-Ag (Israel), Biolchim SPA (Italy), Rizobacter (Argentina), Valagro SPA (Italy), Koppert Biological Systems (Netherlands), Lallemand Inc. (Canada), Haifa group (Israel), and Seipasa (Spain) |
This research report provides the top trends in agricultural biologicals market such as:
- Agricultural biologicals
- Biocontrols
- Biostimulants
- Biofertilizers
- Biofungicides
- Bioinsecticides
- Bionematicides
- Agricultural Inoculants
- Pheromones
- Biological Seed Treatment
Recent Developments:
- In April 2023, Syngenta AG (Switzerland) and Biotalys NV (Belgium) partnered to research, develop, and commercialize new biocontrol solutions to manage key pests in a broad variety of crops. The new solution will be based on Biotalys’ AGROBODYTM technology and will offer a new mode of action to broaden farmers’ access to novel technologies. This partnership helped the company come up with more innovative products under its solutions.
- In February 2023, Bayer AG and Kimitec partnered to accelerate the research and commercialization of biological crop protection solutions, including biostimulants. According to a global agreement, both businesses will work closely together to advance and create biological solutions generated from natural sources, such as crop protection products that deal with weeds, pests, and diseases as well as biostimulants that encourage plant growth.
- In January 2023, FBSciences Holdings, Inc., a pioneer in the development and marketing of naturally derived plants, soil, and climatic health solutions, has been acquired by Valent BioSciences LLC. With this acquisition, Sumitomo Chemical Co., Ltd., the parent company of Valent BioSciences, can now offer a wider range of integrated agricultural biological solutions, including biostimulants, biopesticides, and crop nutrition options.
- In May 2022, UPL acquired OptiCHOS, a naturally derived fungicide from BioCHOS, a spin-off of the Norwegian University of Life Sciences. BioCHOS was formulated as a biodegradable broad-spectrum disease control solution with low environmental and human impact. The product acquisition would help UPL expand its NPP portfolio and target markets suitable to the product to address farmers' needs.
- In November 2021, Evogene Ltd. launched its first product, LAV.211, an inoculant for yield improvement, under the brand, Result.
Frequently Asked Questions (FAQ):
Who are some of the key players operating in the agricultural biologicals market and how intense is the competition?
Key players in this market include competitors such as BASF SE (Germany), UPL (India), Valagro S.p.A (Italy), Gowan Group (US), and FMC Corporation (US). The agricultural biologicals market is highly competitive whit the leading companies working hard in order to maintain their market positions while there are many local and domestic companies arising in every region. The strong manufacturing countries such as China and India show a high rise in the development of new companies in the market which strongly are emerging as ey exporters.
What kind of stakeholders would be interested in this market? What will be their go-to-market strategy, and which emerging market will be of significant interest?
The key stakeholders to agricultural biologicals market would be
- Manufacturers, importers & exporters, traders, distributors, and suppliers of agricultural biologicals kits, equipment, reagents, chemicals, and other related consumables
- Agricultural biologicals laboratories and associations
- Food raw material suppliers
- Food ingredient, intermediate, and end-product manufacturers, and processors
- Government, research organizations, and institutions
- Regulatory bodies
- Commercial research & development (R&D) institutions and financial institutions
- Regulatory bodies, including government agencies and NGOs
What are the potential challenges to the agricultural biologicals market?
The agricultural biologicals market faces challenges such as an underdeveloped regulatory framework in the global markets, which is leading to unstable perceptions of the producers regarding the product quality. Further the monitoring and quality control is also affected in these scenarios. It has also boosted the entry of many new players with any checks pertaining to the authenticity of the formulations and their effectiveness on the crops.
What are the key market trends in the food agricultural biologicals market?
The demands for clean label and organic food products in the market of developed regions such as Europe and North America are on an all-time high. Further the increasing demands for sustainability in agricultural practices is propelling the market. Other trends and details are covered in the report.
What is the total CAGR expected to be recorded for the top trends in the agricultural biologicals market during 2023-2028?
The CAGR is expected to record a CAGR of 13.7 % from 2023-2028.
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The study involves identifying the top trends in agricultural biologicals. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. These findings, assumptions, and market sizes were validated with industry experts across the value chain through primary research. Both the top-down and bottom-up approaches were employed to estimate the complete market size. After that, the market breakdown and data triangulation approaches were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources, such as Hoovers, Bloomberg BusinessWeek, and Dun & Bradstreet, were referred to identify and collect information for this study. These secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, gold standard & silver standard websites, food safety organizations, regulatory bodies, trade directories, and databases.
Primary Research
The market comprises several stakeholders in the supply chain, which include suppliers, manufacturers, and end-use product manufacturers. Various primary sources from both supply and demand sides of both markets have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders, executives, vice presidents, and CEOs of companies manufacturing biologicals. The primary sources from the supply side include research institutions involved in R&D, key opinion leaders, and manufacturing companies.
breakdown of primary interviews conducted
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the market. These approaches were also used extensively to estimate the size of various dependent submarkets.
The research methodology used to estimate the market size includes the following:
- The key players were identified through extensive secondary research.
- The 'industry's supply chain and market size were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All the possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
Market size estimation: Bottom-up approach
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Market size estimation methodology: top-down approach
For the estimation of the concerned market, the size of the most appropriate immediate parent market was used to implement the top-down approach. To arrive at the market sizes of the biostimulants, bio-pesticides, biocontrols, and biofertilizers markets, the agricultural biologicals market was considered as the parent market. This data was again used to estimate the size of the individual markets (mentioned in the market segmentation) through percentage shares that arrived from secondary and primary research.
Data Triangulation
In order to evaluate the overall agricultural biologicals market and arrive at the exact statistics for all segments and subsegments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition:
Agricultural biologicals are a group of products derived from microorganisms, plant extracts, or other biological matter. These products can be used as a substitute for agricultural chemical products. They provide crop protection from pests, diseases, and weeds and enhance the health and growth of plants. Farmers have started to rely on these agricultural biologicals, along with biotechnology and a variety of agronomic practices, to grow healthy and nutritious crops.
Agricultural microbial products are manufactured from microbes, such as bacteria, fungi, and other living microorganisms such as viruses and protozoa. When added to the soil and crops, these products improve the uptake of nutrients such as nitrogen and phosphate, promote growth & yield, help in insect control, and protect crops against diseases. Agricultural microbial products act as economic and environment-friendly substitutes for both fertilizers and pesticides.
According to the Environmental Protection Agency (EPA), biopesticides include naturally occurring substances that control pests (biochemical pesticides), microorganisms that control pests (microbial pesticides), and pesticide substances produced by plants containing added genetic material (plant-incorporated protectants) or PIPs. However, Plant-Incorporated Protectants (PIPs) have not been considered in the market study.
The National Center of Organic Farming (NCOF) defines biofertilizers as products containing carrier-based (solid or liquid) living microorganisms that are useful in agriculture, in terms of nitrogen fixation, phosphorus solubilization, or nutrient mobilization, for increasing the productivity of the soil and/or crop.
As defined by the European Biostimulant Industry Council (EBIC), plant biostimulants contain substance(s) and/(or) microorganism(s) whose function, when applied to plants or rhizosphere, is to stimulate nCatural processes to enhance or benefit nutrient uptake, nutrient efficiency, tolerance to abiotic stress, and crop quality.
Biological seed treatment is the application of biological organisms and extracts on seeds to suppress, control, or repel plant pathogens, insects, or other pests that attack seeds, seedlings, or plants.
Key Stakeholders:
- Global agricultural biological manufacturers
- Traders, distributors, and suppliers of agricultural inputs
- Agricultural biological traders and distributors
- Government and research organizations
- Industrial associations and research organizations
- Technology providers and Contract Research Organizations (CROs) for agricultural biological companies
- Agricultural institutes and universities
- Consumers, including farmers
- Government, legislative, and regulatory bodies
- Food and Agriculture Organization (FAO)
- US Department of Agriculture (USDA)
- Biopesticide Industry Alliance (BPIA)
- International Biocontrol Manufacturers Association (IBMA)
- Japan Biocontrol Association
- US Environmental Protection Agency (US EPA)
Report Objectives
- To describe, segment, and project the global market size for the agricultural biologicals market
- To offer detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To evaluate the micro-markets, concerning individual growth trends, prospects, and their contribution to the total agricultural biologicals market
- To propose the size of the submarkets, in terms of value, for various regions
- To profile the major players and comprehensively analyze their core competencies
- To understand the competitive landscape and identify the major growth strategies adopted by the players across key regions
- To analyze the competitive developments such as expansions & investments, mergers & acquisitions, new product launches, partnerships, joint ventures, and agreements.
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Generating Response ...
Growth opportunities and latent adjacency in Top Trends in the Agricultural Biologicals Market