Europe Agricultural Microbials Market - Growth, Trends, and Forecast (2020 - 2025)

The European Agricultural Microbials Market is estimated to witness a CAGR of 15% during the forecast period. Governing bodies throughout the world, particularly in Europe, are now implementing legislative mandates with the objective of decreasing dependence on pesticides in agriculture to increase consumer and environmental safety. In order to reduce the risks associated with pesticide applications and reduce dependency on their use, Directives are expected to promote low pesticide-input by implementing integrated pest management (IPM), and provide the means to establish the necessary conditions and measures to employ these practices, as well as to ensure the security of commercial products. One major trigger is stricter regulation surrounding chemical pesticides. These regulations mean that an increased number of chemicals are under regulatory scrutiny. This, along with a high hit rate in the screening and development of a microbial, makes microbial more attractive than conventional pesticides, when it comes to launching new products in the market. Europe’s ban on neonicotinoid pesticides from 2013 to 2015 is an example and may well drive many of the region’s growers to seek alternatives for biopesticides, in order to protect their crops. Recent changes to legislation in the European Union (EU) have paved the way for development and greater adoption of microbial pesticides over synthetic pesticides. Regardless of the fact that there still exists a lot of restraint throughout the agriculture industry to shift to newer technologies and the microbial industry is expected to continue to gather market share through switching with new products being rapidly launched. Biopesticides are relatively new to the market and it is immensely needed for the growers to learn more about them. Growers require assistance in case of: proper application timing and frequency, the most effective application methods to ensure thorough crop coverage, target pest identification, pest/disease pressure and life cycle dynamics, when adopting these new technologies.

Key Market Trends

Popularity of Organic Farming in the Region

According to Eurostat, the total organic area in the European Union was 13.4 million hectares in 2018 and is still expected to grow in the coming years. The increase in the organic cultivation area between 2012 and 2018 was 34 %, which shows remarkable growth. The total organic area considered here is the sum of the 'area under conversion' and the 'certified area'. Before an area can be certified as 'organic', it must undergo a conversion process, which may take 2-3 years depending on the crop. Between 2012 and 2018, Bulgaria, Croatia, and Ireland recorded growth in the total organic area of over 100 %. However, two EU Member States reported reductions in the organic area, for example, the United Kingdom by 22.5 % and Poland by 26.1 %. As conventional synthetic options become ineffective due to pests developing resistance, growers are more and more willing to try biological options. Microbial pesticides can be very effective even in very small quantities and are quick to decompose, which causes lower exposure levels and prevents pollution-associated problems of traditional pesticides. Consumers have become more aware of the products they consume and scrutinize the safety and quality of food products. So, when farmers use microbial pesticides in agricultural land, it lessens the chance of toxicity that comes figuratively from synthetic pesticide usages. The overall increase in area under organic farming is enhancing the market for agricultural microbial in the country.

Germany is the Fastest Growing Market

Germany holds the largest share in the European agricultural microbial market and is expected to be the fastest-growing market during the forecast period. According to our analysis, by type, virus-based microbial holds the largest share of 49.6% in the country and a market value of USD 86.4 million in 2017. Farmers in Germany are getting interested in preserving the resource of soil in the long term and thus is making an important contribution to sustainable agriculture. Also, the way no-till affects soil life is of great importance as soil microorganisms are significantly responsible for functioning material cycles and soil fertility. According to BÖLW (Organic Food Production Alliance), there are about 30,000 organic farms in the country as of 2019. This is roughly one-tenth of all agricultural enterprises. To achieve the government target, a further 30,000 to 40,000 farmers would have to change over to organic farming. The rising popularity of organic farming in the country will stimulate the demand for agricultural microbial, which in turn is likely to boost the market.

Competitive Landscape

The European Agricultural Microbials Market is fragmented with the major players garnering a smaller share of the market. In the North American agriculture microbials market, companies are not only competing on product quality and product promotion but also on strategic moves to acquire greater market share. The eight acquisitions of biological companies in just the last few years indicate that the focus on microbial-based products is increasing rapidly.

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