Biofertilizers Market Size, Share & Trends Analysis Report By Product (Nitrogen Fixing, Phosphate Solubilizing), By Application (Seed Treatment, Soil Treatment), 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 13.1% from 2024 to 2030. The increasing usage of microbes in biofertilizers proves the potential for sustainable farming methods and food safety. The increasing concern with respect to food safety is expected to drive the market for biofertilizers over the forecast period. The EU “Common Agricultural Policy” promotes the use of bio-based products along with organic farming and provides up to 30.0% of the budget as direct green payment to farmers complying with sustainable agricultural practices.

A favorable regulatory scenario is expected to be a key driving factor for the market for biofertilizers, especially in North America and Europe, over the next couple of years.

The global agriculture industry is a fast-moving sector with dynamic changes on various levels across all economies of the world. With the intervention of digital farming and precision farming practices prevailing in all countries, the growing economic regions are adapting to technological reforms to sustain the ecosystem. Technological adaptability comes with high investments, which, in turn, affects the overall return on investments. This is a key factor that puts an entry barrier to small agricultural entrepreneurs and medium-scale farmers to penetrate the global competitive environment.

With multiple million-dollar companies working towards developing high-performance agricultural inputs such as fertilizers and various pesticides, the need for alternative environment-friendly products is at its peak. With decades of traditional cultivation practices using synthetic products for aggressive crop yields globally, there has been a massive impact on underground water reserves and soil fertility worldwide. These factors have led to increasing penetration of organic farming products as well as organic cultivation practices globally, backed by consumer awareness of human health effects coupled with environmentalists acting upon the environmental hazards caused in the past decades.

According to the European Biomass Industry Association, the market is anticipated to witness significant growth over the forecast period as biofertilizers can create a physical barrier between plants and crops against pests and simultaneously boost healthy plant growth. Biofertilizers enhance the absorption of phosphorus and zinc by plants as well as resist pathogen attacks on plants. Furthermore, the use of bio-based fertilizers in agricultural fields significantly helps in the decomposition of organic residue and aids in the overall development of plants and crops.

The rising prices of synthetic fertilizers globally, backed by consumers’ response toward rising prices for synthetically cultivated food products, are projected to remain a key factor boosting the consumption of biofertilizers in the coming years. With a rapidly rising global population, food scarcity remains a critical issue for governments around the globe. This has led to innovations in terms of product development in the bio-based fertilizer sector and the promotion of environment-friendly agricultural solutions to the major agrarian economies. This, in turn, is anticipated to augment the demand for biofertilizers across all agricultural economies over the forecast period.

Drivers, Opportunities & Restraints

The organic food and beverage industry is one of the fastest-growing sectors worldwide. It is supported by multiple government incentives worldwide and the rising inclination of consumers toward non-synthetically grown food products. Significant agricultural reforms were realized worldwide after the hazards associated with synthetic fertilizers and crop care chemicals were recognized.

Environmental hazards include soil contamination due to prolonged use of synthetic chemicals, underground water reserve contamination, soil fertility loss, and more. Human damages include loss of nutrients in food and long-term deterioration of health due to excessive chemical intake. These factors have led to a steady preference toward bio-based solutions for fertilizers globally.

During the last couple of decades, organic farming has reached acceptance among policymakers, farming communities, market actors, and customers globally. As of 2017, it was noted that more than 70 million hectares of agricultural land across the globe were utilized for organic farming practices, which accounts for over 1.4% of the overall farming area worldwide.

With this trend in place, the availability of farmland for organic farming in the U.S., Australia, and Argentina, among other nations, has compelled various agencies and governments to frame supportive policies to increase the production output of organic foods. Currently, the European Union nations and the U.S. are the largest organic farming communities globally, followed by China and other Asia Pacific countries.

Agricultural growth in China, Brazil, and India due to the rising demand for food, backed by favorable government initiatives and incentive structures, is expected to reflect positive growth trends in the foreseeable future. Rising demand for these products on account of increasing awareness of the hazardous nature of chemicals is expected to propel market growth over the forecast period. Hostile response from consumers toward the use of chemical products owing to environmental concerns is likely to fuel the market growth of biofertilizers, especially in the Asia Pacific over the predicted years.

In 2010, the European Heads of State and Government (the European Council) finalized a 20% reduction in greenhouse gases and 20% energy to be derived from renewable sources as part of their Europe 2020 strategy. This initiative significantly boosted the demand for bio-based alternatives, including biofertilizers, across European countries. Furthermore, the European Commission and EPA have framed favorable regulations to enhance the production of naturally derived agricultural products to mitigate the growing concerns regarding GHG emissions.

The large market for synthetic fertilizers is expected to be one of the major barriers to the market. Synthetic fertilizers are substances that are applied to the soil to increase the quality and yield of crops, especially during unfavorable harsh weather conditions. They are water-soluble and easily absorbed by plants. They are fast-acting and available in various forms, including pellets, liquid, granules, and spikes. Furthermore, the expansion of the natural gas and crude oil industry in North America is expected to fuel the growth of the synthetic fertilizer market, thus restricting the demand for biofertilizers over the forecast period.

Market Concentration & Characteristics

The global biofertilizers industry is fairly concentrated, with a large number of companies focusing on regional markets. CBF China Biofertilizers, Novozymes A/S, Symborg, and Lallemand Inc. are key players in the market. The majority of the companies have established exclusive agreements with distributors to cater to end-users.

The key players are involved in research and development initiatives and expansion in emerging regional markets. As market growth is still in its nascent stage, merger and acquisition activity is moderate. The major rationale behind acquisition is either improving the product portfolio or expanding geographies. The number of product approvals and investments in bio-ingredients is growing rapidly, which is expected to result in intense market competition in the future.

Product Insights

Nitrogen-fixing biofertilizers dominated the market with a revenue share of 71.3% in 2023. This is attributable to the correction of heavily contaminated soil and water reserves caused by the usage of synthetic fertilizers for decades globally. Plant growth demands high phosphorus content in the soil, fixed nitrogen presence, and several other essential minerals in the soil, which are sufficed by the utilization of biobased fertilizers. Furthermore, the use of various biofertilizers depending on the soil and crop type promotes the healthy development of plants without any adverse effect on human health as well as on the environment.

Nitrogen-fixing bacteria are the most commonly utilized biofertilizers, as plants do not have the ability to convert atmospheric nitrogen into fixed nitrogen, which is essential for their growth and development. Azotobacter, Rhizobium, and Azospirillum are the majorly used bacteria for nitrogen fixation in seed and soil treatment applications. Nitrogen-fixing Rhizobium has the ability to develop an endosymbiotic association with the roots of legumes, which paves its way for use as biofertilizers in the cultivation of leguminous crops. The aerobic nature of Azotobacter, along with its neutrality in alkaline soil, has increased its application scope in the cultivation of crops, including maize, wheat, cotton, mustard, and potato.

However, Bacillus, Pseudomonas, and Aspergillus are the majorly used bacteria for providing phosphorous macronutrients to plants. These biofertilizers have the ability to hydrolyze organic as well as inorganic phosphates from insoluble compounds through the involvement of soluble bacteria. Across the Asia Pacific, countries such as India, Australia, China, and Thailand have been predominantly reliant on synthetically formulated phosphate fertilizers. Major agricultural input companies have their decades-old facilities in the region serving the region’s local farming base with synthetic fertilizers, which slightly act as a restraining factor for phosphate solubilizing products across the Asia Pacific.

Apart from nitrogen-fixing biofertilizers and phosphate solubilizing products, which are the two majorly demanded products worldwide, multinational companies working in the spectrum are also focusing on mass commercializing potassium mobilizing biofertilizers, zinc solubilizing products, and NPK consortia liquid products. Silicate bacteria are among the most common potassium-solubilizing bacteria, which include Bacillus glucanolyticus, B. mucilaginous, B. circulans, and B. edaphicus.

Crop Type Insights

The cereals and grains application segment held the largest revenue share of 38.8% in 2023. Cereals and grains production demand a substantial quantity of biofertilizers for healthy development. Studies conducted worldwide indicated that cereal and grain crops reflected high development and growth with Azotobacter inoculation which aided in reducing nitrogen requirement by crops. Further, for the healthy development of wheat, phosphate solubilizing bacteria and Azoteobacter inoculation proved to be highly efficient biofertilizers in terms of crop yield. Utilization of these for cereal and grain cultivation results in high vegetation growth and high photosynthesis activity.

Growing demand for soybean, sunflower, and groundnuts across the globe is considered to be the key benefiting factor behind the product’s application in the oilseeds and pulses sector. Further, with multiple microbiological advancements in determining the suitable composition of biofertilizers for application in wheat cultivation among major cereals & grains cultivation, the demand is projected to reflect high growth over the forecast period worldwide.

Biofertilizer consumption in oilseeds and pulses was recorded as the highest in North America and Asia Pacific regions due to increasing demand for soybean, groundnut, sesamum, and sunflower. Biofertilizer compositions with phosphorus solubilizing bacteria, rhizobium, plant growth-promoting rhizobacteria, and vesicular arbuscular mycorrhiza have been proven to be most effective for a range of pulses and oilseed cultivation globally.

Application Insights

The seed treatment application dominated the market with a revenue share of 71.2% in 2023. This is attributed to the benefits of induced nutritional values in the seeds. Aggressive consumption of synthetic fertilizers and a multitude of other crop care chemicals, such as pesticides and insecticides, over the past couple of years, has led to a substantial deterioration in soil quality across all major agrarian economies. However, several governments have imposed regulations on the agricultural sector across all developing and developed economies, taking into consideration the environmental hazards caused due to excessive use of chemical products in farming, which is projected to reflect a positive growth trend for biofertilizers in various seed and soil applications across the globe.

Seed inoculation or seed treatment is one of the most significant points of application globally. Seed treatment includes dipping of the desired seeds in a mixture of phosphorus and nitrogen fertilizers. Later, the seeds are sun-dried and subsequently sown in the fields. The inoculant coating made on the seeds enables quick and healthy growth of the plants. The key objective of incorporating biofertilizers during seed treatment is majorly to induce essential nutrients such as sulfur, zinc, nitrogen, and phosphorus, which enhance the nutritional value of vegetables & fruits and cereals & grains.

Biofertilizers also play a key role in soil treatment application as they significantly improve the soil condition and make it more convenient for plants to absorb essential minerals from the soil. When applied to the soil, they fix the nitrogen present in the soil and root nodules. They also aid in scavenging phosphate in the soil and make it readily available for plant intake. In addition, it also significantly improves soil mineralization by decomposing the available organic substances in the soil, thereby enhancing soil properties for cultivation. These characteristics portrayed by biofertilizers on soil application reflect a substantial enhancement of around 15% to 25% in crop yield.

Regional Insights

The North America biofertilizers market dominated globally, with a revenue share of 32% in 2023. Increasing government interventions in farming practices held in the region led to significant changes in agricultural trends & methods across the U.S. and Canada. With stringent regulations in place, over 19,017 farming communities are practicing organic farming in the region to ensure sustainable long-term business.

The development of organic farmland grew exponentially in the region due to increasing awareness among consumers about the benefits associated with organic food consumption and in farming committees about the long-term positive effects of switching from chemical-based crop care products to organic counterparts. With the advancement in microbiology through research & development activities conducted by various agricultural institutions and multinational manufacturers in the region, the U.S. is gradually turning into a hub for organic farming.

U.S. Biofertilizers Market Trends

The biofertilizers market in the U.S. held the largest share of 32% in the North America region in 2023. The growing adoption of organic food products is a key factor driving the industry. The sales of organic food products in the country reached about USD 64 billion in 2023 from USD 48 billion in 2018.

Europe Biofertilizers Market Trends

The biofertilizers market in Europe is expected to grow at a significant rate from 2024 to 2030. According to the European Union, the region is the second-largest market globally in terms of organic food sales, accounting for sales of over USD 48.3 billion in 2022. France, Spain, Italy, and Germany account for over 59% in terms of organic farmland in the region.

Italy biofertilizers market held a major share in the Europe market in 2023. The country held 2.3 million hectares of organic farmland area in the same year. Moreover, Italian natives have been indulged into rich food taste with health benefits, which includes basic staples, fruits & vegetables and all other farm produces. This has motivated the local farming community to help preserve the traditional Italian food culture involving organic produce, which, in turn, boosted organic cultivation practices for a prolonged period.

The biofertilizers market in Germany is driven by the country’s aim to increase its organically farmed agricultural land area to over 20% by 2030. As of 2023, about 1.9 million hectares of agricultural land is organically farmed.

Asia Pacific Biofertilizers Market Trends

The Asia Pacific biofertilizers market is expected to witness the fastest CAGR from 2024 to 2030. Asia Pacific region is a hub for majority of the agrarian economies including India, Thailand, Japan, Malaysia, South Korea, Philippines, and more which are shifting their paradigm towards a more sustainable form of agriculture.

In terms of organic agricultural practices, 21 countries in the Asia Pacific have implemented national standards and regulations for organic harvesting, and five other Asian countries, including Nepal, Bangladesh, Pakistan, Kyrgyzstan, and Jordan, are in the process of drafting such regulations. As of 2021, the region has over 42 million hectares of organic agricultural land.

The biofertilizers market in India is expected to be the fastest growing market in the Asia Pacific region, with a CAGR of 14.2% from 2023 to 2030. This growth is largely supported by increasing awareness amongst farmers regarding its benefits on soil health, along with the central governmen0t’s push to organize the biofertilizers sector in the country by taking them under the purview of fertilizer regulations. Other government efforts contributing to the growth momentum include the provision of subsidies to farmers, the establishment of task forces aimed at easing logistical constraints and providing incentives/subsidies to manufacturers under its National Mission of Sustainable Agriculture.

Central & South America Biofertilizers Market Trends

Biofertilizers market in Central & South America is anticipated to witness significant growth from 2024 to 2030 which can be attributed to the vast improvements in agricultural sector across Brazil and Argentina. The region has over 9.9 million hectares of organic farmland.

Brazil biofertilizers market is driven by the focus on ecological succession, agroforestry, and pest control practices to enhance soil fertility and health. The organic farmland accounts for over 12% of its total agricultural land area.

Middle East & Africa Biofertilizers Market Trends

The biofertilizers market in MEA is gradually evolving and is expected to grow at a CAGR of over 13% from 2024 to 2030. The organic agricultural farmland availability across the region is increasing by around 14% annually with an increasing number of farmers switching from traditional chemical-based agricultural practices and moving toward more sustainable farming practices.

Saudi Arabia biofertilizers market is expected to grow at a lucrative rate over the coming years. As of 2020, the country’s organic farm area was 27 thousand hectares compared to 25 thousand hectares in 2019.

Key Biofertilizers Company Insights

The market for biofertilizers is fragmented, with a large number of domestic companies focusing on regional markets. The market leaders are companies that have initially established a significant presence in the global industry. In their quest to develop products with new natural ingredients, the companies have developed product formulations that are well-accepted and have established a significant geographical presence. With significant sales figures, they have cemented their position in the market for biofertilizers.

Emerging players in the market for biofertilizers have integrated manufacturing and distribution and focused on product innovation. The key companies have developed processes and formulated products to adopt the product differentiation strategy. These companies also work with farmers to develop customized products.

Some of the key players operating in the market include

• CBF China bio-fertilizer is one of the significant market players with a large geographical presence. The company has made significant inroads into China which has shown the potential to become a major market in the coming years. The significant investment in new product development and geographical expansion is expected to cement its market position.

• Symborg S.L. is a biotechnology company involved in the research, development, and commercialization of biofertilizers. The company believes in maximizing crop yield without harming the environment and using minimal resources. The company's product portfolio includes biofertilizers and biostimulants. The biofertilizers are marketed under the brand names BLUEN and VITASOIL. It has subsidiaries in Europe, North America, Asia, and South America.

Recent Developments

• In December 2023, Novozymes and Chr. Hansen entered into a joint venture to establish Novonesis, which is a biosolutions company catering to over 30 industries.

• In August 2023, Bionema, a UK-based manufacturer of biofertilizers, biostimulants, & biocontrol products, launched a new range of biofertilizers for application in agriculture, forestry, horticulture, and turfs. The products were developed through a novel Incapsulex technology platform.

Biofertilizers Market Report Scope

Report Attribute	Details
Market size value in 2024	USD 1.88 billion
Revenue forecast in 2030	USD 3.94 billion
Growth rate	CAGR of 13.3% from 2024 to 2030
Historical data	2018 - 2023
Forecast period	2024 - 2030
Quantitative units	Revenue in USD million/billion, Volume in Kilotons, and CAGR from 2024 to 2030
Report coverage	Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered	Product, application, crop type, region
Regional scope	North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
Country scope	U.S., Canada, Mexico, Germany, UK, France, Italy, China, Japan, India, Brazil, Argentina
Key companies profiled	CBF China Biofertilizers; Novozymes A/S; AgriLife; Mapleton Agri Biotec; Biomax; Rizobacter Argentina SA; Symborg S.L.; National Fertilizers Ltd.; Lallemand Inc.; Labiofam SA; Sigma Agri-Science, LLC; Agrinos Inc.; Kiwa Bio-Tech Products Group Corporation
Customization scope	Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs. Explore purchase options

Global Biofertilizers Market Report Segmentation

This report forecasts revenue & volume 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, crop type, and region:

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

  • Nitrogen Fixation

  • Phosphate Solubilizing

  • Others

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

  • Seed Treatment

  • Soil Treatment

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

  • Cereals & Grains

  • Oilseeds & Pulses

  • Fruits & Vegetables

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

    • Argentina

  • Middle East and Africa