The global agricultural microbial market is expected to grow at a compound annual growth rate of 12.61% over the forecast period to reach a market size of US$9,087.791 million in 2026 from US$3,956.654 million in 2019.
However, the major factors hampering the market growth and adoption of agricultural microbial are the high application cost and delayed effects of microbial inoculants as compared to conventional chemical agrochemicals. Manufacturers are witnessing several challenges in their growth due to the presence of several counterfeit products in the market and the implementation of government regulations.
Growth Factors.
Rising population and increasing demand for food security
The growing need to feed an ever-growing global population, coupled with the increasing demand for sustainable agricultural practices and the concern of the general public over environmental safety is one of the leading drivers for the agricultural microbial market. An increase in urbanization and less availability of arable land are motivating farmers to adopt efficient crop-protection techniques. There has been a broader acceptance and recognition of the increasing benefits of microbial. With the amount of arable land per person declining and the expansion of population, global crop yields must increase to meet the food production needs. As a result, an increase in the demand for microbial products and agricultural production is being witnessed. Along with this, the high demand for microbial to achieve sustainable crop intensification is expected to favor market growth. This has boosted their popularity and demand as a biological source to improve production, and their incorporation in integrated farming practices is likely to narrow the yield gaps.
Increasing awareness regarding the harmful effects of synthetic chemicals
The use of synthetic pesticides and fertilizers has shown various detrimental effects on the environment and human health. According to the United Nations and the Food and Agriculture Organization, synthetic fertilizers account for 13% of the total agricultural greenhouse gas (GIG) emissions. There have been numerous efforts to improve agricultural management practices as synthetic fertilizers cause widespread damage to the ecology. The prominent players in the market and various government and non-government organizations support sustainable agricultural practices by providing funds and subsidies on agricultural microbial. They help mitigate the efforts and act as a valuable ingredient for enabling sustainable agriculture practices.
Restraints.
Low Adoption
Besides the various benefits of agricultural microbial, it is witnessed to have relatively low adoption rates than synthetic chemicals. This is mainly due to the lack of awareness and low commercialization of biologicals. Along with this, there are considerable challenges with the utilization of microbes and their mode of application. For instance, the microbial culture used for seed treatment o impairs the convenience of sowing seeds. Furthermore, the storage-stability of microbial hinders their effective utilization as they have low on-seed survival rates. Hence, the farmers often refrain from using microbes.
Key Developments
- April 2020 - Sumitomo Chemicals Company successfully acquired four South American subsidiaries of Nufarm Limited - in Brazil, Argentina, Chile, and Colombia, respectively - to expand its global footprint in the crop protection business in various regions around the world.
- April 2020 - Sumitomo Chemicals invested USD 30 million into a joint venture with Conagen, a US biotechnology company. Through this, the company aimed to promote its strategic business alliance with Conagen further and develop innovative high functional products and processes by way of innovative use of biologicals.
- March 2020 - a new automated greenhouse facility was developed in Marana, Arizona, US, by Bayer CropScience, for providing growers with the most innovative, sustainable, and technically advanced agricultural solutions, focusing on crop protection solutions.
- January 2020 - BASF SE, for its Agricultural Solutions business in Singapore, developed a multipurpose facility designed to handle six different formulation technologies and supply the company’s patented crop protection products to farmers across the fast-growing Asia Pacific region.
- October 2019 - Bayer CropScience launched its latest biological innovations, collectively known by the brand name, Biologicals, by Bayer at 2019 Annual Biocontrol Industry Meeting (ABIM).
Impact of COVID – 19.
The COVID – 19 pandemic is expected to hurt the growth of the agricultural microbial market as due to the pandemic, supply chains around the globe were disrupted leading to an inadequate supply of microbial to farmers in need. Moreover, restrictions imposed on the movement and gathering of people led to a decline in agricultural activities, thus, reducing the demand for microbial.
Competitive Insights
Prominent/major key market players in the global agricultural microbial market include Certis USA, BASF SE, Novozymes, Sumitomo Chemical, and Bayer CropScience among others. The players are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the Global Agricultural Microbial Market.
Segmentation:
By Type
- Bacteria
- Protozoa
- Viruses
- Fungi
By Crop Type
- Cereals and Grains
- Fruits and Vegetables
- Oilseeds and Pulses
- Others
By Function
- Crop Protection
- Soil Amendment
By Mode of Application
- Soil Treatment
- Seed Treatment
- Foliar Spray
By Formulation
- Dry Formulation
- Liquid Formulation
By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- United Kingdom
- France
- Others
- Middle East and Africa
- Saudi Arabia
- South Africa
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Others
Table of Contents
Companies Mentioned
- Certis USA
- BASF SE
- Novozymes
- Sumitomo Chemical
- Bayer CropScience
- Queensland Agricultural Seeds
- Syngenta AG
- Dow AgroSciences
- Novagreen Inc.
- XiteBio Technologies
Methodology
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Table Information
Report Attribute | Details |
---|---|
Published | April 2021 |
Forecast Period | 2019 - 2026 |
Estimated Market Value ( USD | $ 3956.65 million |
Forecasted Market Value ( USD | $ 9087.79 million |
Compound Annual Growth Rate | 12.6% |
Regions Covered | Global |
No. of Companies Mentioned | 10 |