Biofertilizers Market Size, Share & Trends Analysis Report By Product (Nitrogen Fixing, Phosphate Solubilizing, Others), By Application, By Crop Type, By Region, And Segment Forecasts, 2024 - 2030

Biofertilizers Market Size & Trends

The global biofertilizers market size was valued at USD 1.66 billion in 2023 and is expected to grow at a CAGR of 13.3% from 2024 to 2030. The growth of the market is fueled favorable regulator scenario in Europe and North America coupled with significant technological innovations aimed at improving the biofertilizer production process.

The growing awareness of the environmental impact of synthetic fertilizers has prompted manufacturers worldwide to allocate more resources to research and development for biofertilizers. This increased focus is anticipated to drive the demand for biofertilizers in the foreseeable future. Moreover, there is an increasing demand for organic food products, particularly in North America and Europe, which is expected to positively influence the product market in the coming years. Furthermore, the increasing recognition of the advantages associated with bio-based agricultural inputs, such as biofertilizers, is anticipated to enhance market growth throughout the forecast period.

Drivers, Opportunities & Restraints

The production and consumption of organic food products has been driven by a growing preference for naturally derived items without the use of food additives or synthetic chemicals. This market encompasses a wide range of products, including organically produced meat, dairy, fruits, vegetables, and both alcoholic and non-alcoholic beverages. The rise in demand for organic food and beverage products can be attributed to a global trend towards healthier eating habits, as well as increased disposable income, particularly in emerging economies such as Indonesia, Japan, India, and Thailand. The rising use of organic farming and consumer demand for organic food is expected to boost the need for biofertilizers.

Challenges exist within the biofertilizer market due to the dominance of synthetic fertilizers, with further obstacles arising from the expansion of the natural gas and crude oil industry in North America. This expansion is expected to limit the demand for biofertilizers in the foreseeable future. Companies heavily invest in fertilizer development and research activities to serve a wide market. Farmers rely on synthetic fertilizers due to trust in multinational brands, hindering the growth of bio-based fertilizers in emerging economies.

Market Concentration & Characteristics 

The biofertilizers market is moderately fragmented with intense competition among the tier-1 and tier-2 players.

The global biofertilizers market exhibits a fragmentation, characterized by a considerable presence of domestic companies focusing on regional markets. CBF China Biofertilizers AG and Novozymes A/S have emerged as prominent players in the market, catering primarily to North America and Europe. Industry participants have embraced strategies such as investing in research and development and targeting emerging markets for future growth.

The market is currently in its early stages of growth, and as such, merger and acquisition activity is at a moderate level. Acquisitions are primarily motivated by a desire to enhance product portfolios or expand geographic reach. There is a notable increase in product approvals and investments in bio-ingredients, a trend that is expected to lead to elevated market competition in the future.

Product Categories Insights & Trends

“Phosphate Solubilizing segment is expected to witness growth at 13.6% CAGR”

The nitrogen fixing segment of the market was valued at USD 1,234.4 million in 2023 and is projected to reach USD 2,363.9 million by 2030. Nitrogen-fixing bacteria, such as Azotobacter, Rhizobium, and Azospirillum, are commonly used as biofertilizers because plants cannot convert atmospheric nitrogen into fixed nitrogen, which is essential for their growth. Rhizobium forms an endosymbiotic association with legume roots, making it valuable for cultivating leguminous crops. Azotobacter, with its aerobic nature and tolerance to alkaline soil, is suitable for various crops like maize, wheat, cotton, mustard, and potatoes.

The soil contains insoluble organic or inorganic phosphorus, and its deficiency restricts plant growth. Microbiologists and agricultural committees are introducing phosphate-solubilizing microorganisms as biofertilizers to enhance plant growth. Bacteria like Bacillus, Pseudomonas, and Aspergillus are commonly used for this purpose.

Application Insights & Trends

“Seed treatment segment is expected to witness growth at 12.8% CAGR”

The seed treatment segment accounted for the largest revenue share of 71.2% of the market in 2023. Seed treatment is a crucial application for biofertilizers globally. It involves dipping seeds in a mixture of phosphorus and nitrogen fertilizers, sun-drying, and sowing in fields. Biofertilizer coating on the seeds promotes quick and healthy plant growth. The rising demand for organic foods is expected to increase biofertilizer use in seed treatment.

In soil treatment, biofertilizers are known to effectively enhance soil conditions and facilitate the absorption of essential minerals by plants. When applied to the soil, it plays a key role in fixing nitrogen, aiding in phosphate scavenging, and improving soil mineralization, thereby enhancing soil properties for cultivation. These qualities of biofertilizers in soil applications have been observed to contribute to a notable enhancement of around 15% to 25% in crop yield.

Crop Type Insights & Trends

“Oilseeds & Pulses segment is expected to witness highest growth at 13% CAGR”

The cereals and grains segment accounted for the largest revenue share of 38.8% of the market in 2023. Cereal and grain production requires significant biofertilizer use. Studies show that Azotobacter inoculation improves crop growth and reduces nitrogen needs. Additionally, phosphate-solubilizing bacteria and Azotobacter inoculation enhance wheat growth and yield. Using these biofertilizers promotes increased vegetation growth and photosynthesis activity in cereal and grain cultivation.

Oilseeds and pulses, such as soybean, sunflower, and groundnuts, are experiencing a surge in global demand. This increasing interest is significantly benefiting the application of certain products in these sectors. Additionally, innovative microbiological advancements are playing a pivotal role in identifying the optimum composition of biofertilizers for wheat cultivation, which is a major focus within the cereals & grains segment. Given these developments, projections indicate that demand will witness substantial growth throughout the forecast period on a worldwide scale.

Regional Insights & Trends

North America accounted for the largest revenue share of 31.9% in 2023. This growth is attributed to the surging government involvement in farming practices in U.S and Canada, resulting in considerable changes in agricultural trends & methods in the region. With stringent regulations in place, over 19,017 farming communities are practicing organic farming in the region to ensure sustainable long-term business.

U.S. Biofertilizers Market Trends

The US is a major player in North American organic farming, with key states being North Dakota, California, Montana, Wisconsin, and New York. There's growing demand for biofertilizers due to concerns about the impact of chemical-based fertilizers on water reserves and soil quality.

Asia Pacific Biofertilizers Market Trends

“Asia Pacific. is expected to witness a market growth of CAGR 14%”

The Asia Pacific region includes large agrarian countries like Thailand, Japan, India, Indonesia, and the Philippines. Regarding organic agricultural practices, 21 countries in the Asia Pacific region have established national standards and regulations for organic harvesting.

Europe Biofertilizers Market Trends

Over the past decade, Europe has seen a 70% increase in organic farmland, with over 250,000 farms participating in organic farming. The use of biofertilizers and other organic crop care products has surged due to the implementation of Common Agricultural Policies and related farming regulations established by environmental and healthcare agencies in the region.

Key Biofertilizers Company Insights

Some of the key players operating in the market include CBF China Biofertilizers AG, Novozymes A/S, and Biomax among others.

• CBF China Bio-Fertilizer AG is a Germany-based holding group that sells biofertilizers through its fully owned subsidiary Shandong Chengwu Jiuzhou Science & Technology Development Company Limited. Biofertilizers offered by the company are marketed in two forms, liquid and powder. The products are directly sold to agricultural co-operatives, distributors, and plantations under Xin Sheng Li brand name. The company’s products are used to increase the crop yield and to reduce the use of conventional fertilizers. It is licensed by the Ministry of Agriculture of the Government of China.

• Novozymes A/S, based in Denmark, is a biotechnology company involved in researching, developing, producing, and selling industrial enzymes, biopharmaceutical ingredients, and microorganisms. The company operates in household care, food & beverages, bioenergy, agriculture & feed, and technical & pharma segments. Novozymes is also part of The BioAg Alliance with Monsanto, aiming to develop improved products from natural sources. The company has operations in China, India, Brazil, Argentina, the UK, the US, and Canada.

Recent Developments

• In May 2024, Fresh Del Monte formed a partnership to produce biofertilizers using fruit residues. The new biofertilizer plant is strategically located near Fresh Del Monte’s subsidiary in Kenya, Del Monte Kenya Ltd. The plant will utilize residues from the company’s pineapple cannery to create a variety of biofertilizers for internal use and potential sale to other growers in Kenya and East African countries.

• In August 2023, Bionema launched a new range of biofertilizer products in the UK. These products are encapsulated in a novel Incapsulex technology platform and are intended for use in agriculture, horticulture, forestry, sport turf, and amenities. This technology effectively encapsulates naturally derived microorganisms and delivers them to the target safely and effectively.

Biofertilizers Market Report Scope

Global Biofertilizers 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 biofertilizers market report based on product, application, and region

• Product Categories Outlook (Revenue, USD Million; 2018 - 2030)

  • Nitrogen Fixing

  • Phosphate Solubilizing

  • Others

• Application (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Seed Treatment

  • Soil Treatment

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

  • Cereals & Grains

  • Oilseeds & Pulses

  • Fruits & Vegetables

  • Others

• Regional Outlook (Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Italy

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa