Agricultural Biologicals Market Size, Share & Trends Analysis Report By Crop Type, By Product (Biopesticides, Biostimulants), By Application Method, By Region, And Segment Forecasts, 2024 - 2030

Agricultural Biologicals Market Size & Trends

The global agricultural biologicals market size was estimated at USD 9.9 billion in 2023 and is expected to grow at a CAGR of 7.2% from 2024 to 2030. The rising demand for organically cultivated food products is projected to be a key driving factor for the market.

Agricultural biologicals, often referred to as biologics, are essential resources for both crop protection and production, originating from natural sources. These products play a vital role in safeguarding plants from pests and are becoming increasingly important in contemporary agricultural methods. Various farming communities around the world have adopted these solutions to promote sustainable agricultural practices.

The U.S. ranks among the top consumers worldwide, driven by an increasing demand for environmentally friendly and safer crop protection solutions. Regulatory bodies in the country have become more actively involved in approving products and adjusting regulations to enhance market access. Additionally, the growing number of collaborations focused on research and the development of new products is anticipated to boost market growth. For example, in April 2023, Syngenta and Biotalys announced a strategic alliance aimed at fostering biological innovation within sustainable agriculture. This partnership will leverage Biotalys' AGROBODY technology to develop a new solution that offers a unique mode of action. This innovation will assist farmers in addressing the challenge of pest resistance while promoting sustainable farming practices by expanding their access to cutting-edge technologies.

The primary strategies employed by industry players involve investing in research and development while focusing on emerging markets as potential avenues for growth. The sector is still in its early stages, and merger and acquisition activities remain moderate. However, there is a rapid increase in product approvals and investments in bio-ingredients, which is likely to lead to heightened competition in the market in the future.

Additionally, as numerous companies focus on creating high-performance agricultural products like fertilizers and pesticides, the demand for alternative eco-friendly solutions has reached an all-time high. Years of reliance on synthetic products to achieve high crop yields worldwide have significantly affected underground water supplies and soil fertility. These issues have contributed to a growing shift towards sustainable farming practices, resulting in a marked increase in the use of organic products.

As reported by the European Biomass Industry Association, the market is expected to experience substantial growth during the forecast period, primarily because these products significantly reduce the reliance on synthetic chemicals for achieving higher crop yields. Among the various biological products, biofertilizers are gaining considerable popularity as they improve the absorption of phosphorus and zinc in plants while also providing resistance against pathogens. Additionally, the application of biofertilizers in agricultural settings greatly aids in the breakdown of organic matter and supports the overall growth and development of plants and crops.

In terms of pricing, bio-based agricultural products are slightly more expensive than their synthetic counterparts. However, the increasing costs of synthetic fertilizers are expected to play a significant role in driving the demand for agricultural biologicals in the coming years. With the global population rapidly growing, food scarcity remains a pressing concern for governments worldwide. This situation has spurred innovations in product development and the promotion of eco-friendly agricultural solutions in key agricultural economies. Consequently, this trend is likely to enhance the demand for agricultural biologicals on a global scale.

Industry Dynamics

The agricultural biologicals market is made up of a wide range of companies, all of which assert their capability to deliver innovative biological solutions for various crops worldwide. Though this sector is quite fragmented, these organizations share a common commitment to advancing state-of-the-art technologies and strategies that promote the sustainability and productivity of agriculture for the future.

Firms are aiming to increase their market share in the agricultural biologicals sector through both organic and inorganic growth strategies. While multinational companies dominate this arena, numerous small to medium-sized enterprises are also establishing their presence by utilizing advanced technologies and offering specialized products. This has led to a highly competitive environment, with each participant working hard to establish a unique position in the market.

Moreover, manufacturers of agricultural biologicals receive substantial backing from their local governments through subsidies, tailored clearance policies, and various economic incentives, as steel production is considered a vital component for national development. For instance, in July 2023, the Government of India's Union Ministry of Steel unveiled a new policy focused on agricultural biologicals, aiming to boost the nation's domestic capacity from the current 6.6 million tons per year to 30 million tons annually.

Crop-Type Insights

The cereals & grains application dominated the market with a share of 37.23% in 2023. This is attributed to the increasing global demand for wheat, rice, corn, barley, and millet. Additionally, various microbiological advancements aimed at identifying the appropriate composition of agricultural biologicals for use in wheat farming have led to a surge in the demand for biologics, contributing to the growth of this segment.

Cereals and grains require a diverse range of biological inputs, particularly biofertilizers, to thrive. Global research has shown that these crops exhibit enhanced growth when treated with azotobacter, which can significantly reduce their nitrogen needs. Additionally, the combination of phosphate-solubilizing bacteria and azotobacter has proven highly effective in boosting wheat yield, making them valuable biofertilizers for this important crop.

Developing nations across Asia Pacific and the Americas, including Japan, Thailand, India, Indonesia, and several Central and South American countries, have a pressing need for advanced technologies to create products from biological materials. These innovations are essential to boost the production of oilseeds and pulses and keep pace with rising demand in these regions.

Product Insights

Biopesticides led the market accounting for the largest share of over 56.7% in 2023. The significant increase in biopesticide use can be attributed to its application on soil, foliage, and lawns, particularly in North America and Europe. Key biopesticides include insect sex pheromones and aromatic plants that lure pests into traps. Microbial pesticides, containing active ingredients to combat various pests, are also widely used. Bacillus thuringiensis is a prominent example, producing a protein mixture that kills pests.

Azotobacter, rhizobium, and azospirillum are commonly employed bacteria in nitrogen fixation for seed and soil treatments. Rhizobium, a nitrogen-fixing bacterium, forms a symbiotic relationship with legume roots, making it a valuable biofertilizer for leguminous crops. The aerobic nature and alkaline soil tolerance of azotobacter expand its application to crops like maize, wheat, cotton, mustard, and potato.

Furthermore, agricultural biostimulants, natural fertilizer supplements, are becoming increasingly important. They enhance crop yield, growth, and overall health. Biostimulants effectively improve plant resistance to environmental stress, nutrient utilization, and physical qualities like size, appearance, and shelf life.

Application Method Insights

The foliar spray method accounted for the maximum market share of over 64.3% in 2023. Foliar sprays are in high demand in agriculture due to their ability to significantly boost crop yields and nutrient uptake. These sprays deliver essential nutrients directly to plant leaves, ensuring optimal nutrient utilization and promoting robust plant growth. This targeted approach provides a rapid response to nutrient deficiencies.

The increasing demand for biological solutions to enhance seed quality and boost crop yields has driven a surge in seed treatment applications. Biofertilizers are widely used in both seed and soil treatments. However, the heavy reliance on synthetic fertilizers and other chemical inputs, such as pesticides and insecticides, in recent years has significantly degraded soil health in major agricultural regions.

Governments worldwide are increasingly implementing regulations to address the environmental damage caused by excessive chemical use in agriculture. This is driving a growing demand for biofertilizers in seed and soil applications. Countries like China, India, and Pakistan are leading the way with initiatives to promote eco-friendly seed treatments. For example, India's National Action Plan on Climate Change includes the National Mission for Sustainable Agriculture, which aims to develop strategies for climate-resilient farming practices, including the use of biofertilizers.

In addition to the National Mission for Sustainable Agriculture, the Indian Council of Agricultural Research (ICAR), the Ministry of Agriculture and Farmers Welfare, and the Government of India have launched the National Innovations in Climate Resilient Agriculture (NICRA) project. NICRA aims to develop and promote technologies that help farmers cope with extreme weather events like floods, droughts, and heatwaves. ICAR recommends a balanced approach to fertilizer use, including soil testing, organic and inorganic fertilizer combinations, and techniques like split nitrogen application and nitrification inhibitors to reduce environmental pollution.

Additionally, governments in the Middle East and Africa, including South Africa, Nigeria, and Kenya, have launched loan programs to support farmers and increase domestic crop production. This has led to a rise in the use of agricultural biologicals for seed treatment in the region.

Metschnikowia pulcherrima is a prominent biocontrol agent used in post-harvest applications. The growing prevalence of crop loss and spoilage in recent years has led to increased use of agricultural biologicals in post-harvest treatments. This trend is expected to drive product demand in the coming years.

Regional Insights

U.S. Agricultural Biologicals Market Trends

North America led the market in 2023 and held a major share of over 36.2%. The robust growth of the agricultural biologicals market is driven by the presence of major agricultural product manufacturers, primarily based in the U.S., and the region's evolving agricultural practices. Technological advancements, research and development, and government support for sustainable farming methods are also contributing factors. For instance, agtech, which incorporates technology into farming practices, is gaining traction as a solution to challenges such as rising costs, labor shortages, and changing consumer demands.

States like North Dakota, California, Montana, Wisconsin, and New York are leading organic farming practices in the U.S. The increasing awareness of groundwater and soil degradation caused by excessive chemical fertilizer use has significantly boosted the demand for agricultural biologicals in the region.

While the southern regions of the U.S. historically had fewer certified organic farms, organic practices have significantly increased since 2000. Nationally, organic farmland has expanded dramatically, reaching 4.89 million acres by 2021. This growth has broadened market access for organic producers, with conventional grocery stores becoming the primary sales channel. To support organic agriculture research, federal funding has surged over the past two decades, increasing from $3 million in 2002 to $50 million in 2023.

Asia Pacific Agricultural Biologicals Market Trends

The Asia Pacific region is expected to experience the fastest growth in the agricultural biologicals market due to its numerous agrarian economies, including India, Thailand, Japan, Malaysia, South Korea, and the Philippines, which are increasingly adopting sustainable farming practices. This trend is driven by growing consumer demand for organic food and supportive government policies and agricultural reforms.

Organic farming in the European Union has seen substantial growth, occupying 15.9 million hectares or 9.9% of total agricultural land in 2021, up from 9.5 million hectares in 2012. Over half of the organic farmland in 14 EU countries is dedicated to arable crops. Additionally, 5 million of the EU's 75.7 million bovine animals were raised organically in 2021.

Key Agricultural Biologicals Company Insights

Some of the key players operating in the market include Agricen; CBF China Bio-Fertilizer AG, Novozymes A/S; and Biomax

• Novozymes A/S is a global biotechnology company specializing in the research, development, and production of industrial microorganisms, enzymes, and biopharmaceutical components. With operations spanning India, Brazil, China, Argentina, the U.K., the U.S., and Canada, the company maintains a worldwide presence.

• Agricen specializes in developing innovative, biochemical-based solutions that enhance plant health, quality, and yield. Their technology is applied not only in agriculture but also in the turf and ornamental plant industry, helping nursery operators, turf managers, and landscapers improve plant performance and optimize fertilizer effectiveness.

Mapleton Agri Biotec; Rizobacter Argentina SA; Lallemand Inc; Sigma Agri-Science, LLC. are some of the emerging market participants in the agricultural biologicals market.

• Mapleton Agri Biotec offers a select range of high-quality agricultural products developed through rigorous in-house research and testing. These versatile products are designed to enhance yields across various crops and farming systems. Suitable for both conventional and organic farmers, they support sustainable agricultural practices.

• Lallemand Inc. is a global leader in developing, producing, and marketing bacteria, yeast, and their byproducts. Their microbial solutions serve a wide range of industries including nutrition, human and animal health, winemaking, baking, brewing, food production, probiotics, and biofuels.

Recent Developments

• In September 2022, Bioceres Crop Solutions, a major shareholder of Rizobacter merged with Marrone Bio with an aim to expand its portfolio of bio protection and plant health products with Rizobacter’s prosperous line. 

• In March 2021, BASF collaborated with AgBiome on a novel biological fungicide for Europe, Middle East and Africa. The collaboration was made with an aim to broaden BASF’s BioSolutions portfolio for vegetables, ornamentals, and turf applications.

Agricultural Biologicals Market Report Scope

Global Agricultural Biologicals Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global agricultural biological market report based on crop-type, product, application method, and region.

• Crop-Type Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Cereals & Grains

  • Oilseeds & Pulses

  • Fruits & Vegetables

  • Others

• Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Biopesticides

    • Biochemicals

    • Microbials

  • Biostimulants

    • Acid based

    • Seaweed extract

    • Microbials

    • Others

  • Biofertilizers

    • Nitrogen Fixation

    • Phosphate Solubilizing

    • Others

  • Others (Macro-organisms)

• Application Method Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Foliar Spray

  • Seed Treatment

  • Soil Treatment

  • Post-Harvest

• Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • South Africa