Agricultural Biologicals Market By type (Biopesticides, Biofertilizers, Biostimulants), By source (Microbials, Biochemicals), By application (Cereals & grains, Oilseeds & pulses), By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032

Report Overview

Agricultural Biologicals Market size is expected to be worth around USD 21.9 Bn by 2032 from USD 10.16 Bn in 2022, growing at a CAGR of 8.2% during the forecast period from 2023 to 2032.

The Agricultural Biologicals Market is booming. Farmers and other agricultural actors are turning to bio-based solutions as demand for sustainable and eco-friendly farming grows. This blog article discusses the Agricultural Biologicals Market, its importance, important developments, and big investments. We'll also discuss the market's development and applications, industries investing in it, its main drivers, ethical issues, and responsible usage. We'll conclude with examples of its use in business applications.

The Agricultural Biologicals Market is a fast expanding agricultural market that provides bio-based agricultural solutions. These solutions attempt to replace chemical-based agricultural techniques with more sustainable and environmentally friendly ones. Organic product demand, food safety and environmental concerns, and the requirement for agricultural production and productivity drive the market.

The Agricultural Biologicals Market offers farmers and agricultural players bio-based solutions. Biofertilizers, biopesticides, and more are available. The market aims to offer sustainable, chemical-free agricultural options. By harnessing nature, agricultural output and productivity may be increased while reducing environmental effect. The Agricultural Biologicals Market is a significant, expanding market that supports sustainable agriculture.

The Agricultural Biologicals Market provides sustainable and eco-friendly alternatives to chemical-based agricultural techniques. These options are environmentally friendly, safer for farmers and consumers, and can boost agricultural output. Farmers may use bio-based solutions to limit their use of toxic chemicals and pesticides, which can affect the environment and humans. The Agricultural Biologicals Market benefits soil health, chemical discharge, plant development, crop quality, and more.

The Agricultural Biologicals Market has seen numerous advancements recently. Biopesticides, made from plants, microbes, and fungus, are important. Biopesticides are frequently as effective as standard pesticides without the environmental and health risks. Biofertilizers, biostimulants, and biocontrol agents promote soil health and plant growth while reducing environmental impact.

Many companies are investing in the Agricultural Biologicals Market to promote sustainable, eco-friendly agricultural techniques. Agriculture, food and beverage, healthcare, and others are included. Investors in this market want to lower their environmental effect while meeting client demand. More industries will invest in the Agricultural Biologicals Market as demand for sustainable agriculture rises.

Driving factors

Sustainable Agriculture Drives Organic Food Demand

Due to rising consumer demand for organic and non-toxic food products, the Agricultural Biologicals market has experienced remarkable growth. A heightened awareness of sustainable agriculture practices motivates individuals to prioritize the health effects of their food choices and production methods. This shift results in an increase in the adoption of environmentally favorable agricultural practices and bio-based crop protection products, which drives the growth of the Agricultural Biologicals market.

Chemical Input Concerns Promote Biologicals

Growing apprehension regarding the harmful effects of chemical pesticides and fertilizers drives Agricultural Biologicals Market. Informed consumers are now aware of the long-term environmental and health effects of conventional agricultural chemical inputs. Consequently, the demand for alternative methods of pest control and fertilization that provide safer and more sustainable solutions is on the rise, resulting in a greater adoption of biologicals.

Biotechnology Advances Enable New Biologicals

Significant advances in biotechnology and genetic engineering techniques pave the way for the development of innovative biologicals, thereby accelerating Agricultural Biologicals Market. These developments permit the development of biological solutions that improve crop yields and quality. Government initiatives designed to promote the use of biologicals in agriculture, combined with the increasing adoption of precision farming techniques, contribute to the expansion of the market. Precision agriculture enables producers to optimize crop management practices by taking into account the unique characteristics of each crop and field, thereby maximizing yields while minimizing environmental impact.

Regulations and New Tech Change Markets

Agricultural Biologicals Market is susceptible to regulatory changes that could have a significant impact on its expansion. The increasing demand for environmentally favorable agricultural methods and bio-based products may result in the introduction of regulations encouraging their use, thereby positively influencing market expansion. In addition, emerging technologies such as CRISPR gene-editing tools and RNA interference techniques have the potential to revolutionize the Agricultural Biologicals market in the near future.

Competition and Consumer Behavior Disrupt Markets

Potential disruptors in the Agricultural Biologicals market include the advent of new competitors, technological advancements, and changes in consumer behavior. Increased market participant competition may result in price battles, eroding profit margins. In contrast, consumers' emphasis on ecological practices influences their purchasing decisions, resulting in a transition toward eco-friendly products. To flourish in this dynamic environment, market-active companies must demonstrate agility and innovation in order to effectively capitalize on these opportunities.

Restraining Factors

Ineffective Against Particular Pests and Diseases

The limited effectiveness of biologicals against certain pests and diseases is one of the most significant challenges in the agricultural biologicals market. Chemical pesticides offer rapid and potent solutions, whereas biologicals may not always be able to provide complete prevention due to their slow-acting nature. Their efficacy is restricted to a particular spectrum of pests and diseases, which may impede their capacity to effectively address certain agricultural challenges.

High Research and Development Costs

The exorbitant cost of research and development (R&D) is a significant barrier to the widespread use of biologicals. Introducing a biological product to the marketplace requires extensive testing, verification, and adherence to safety regulations. The cost of research and development for biologicals exceeds that of chemical pesticides, creating a barrier for small businesses with limited resources. This financial burden restricts investment and delays the development of innovative biological solutions.

Absence of Consistency in Regulations and Approval Procedures

Companies in Agricultural Biologicals Market face difficulty due to the absence of standardized regulations and approval procedures across different regions. Diverse regulations make it difficult and time-consuming to navigate product approval processes in various regions. The lack of harmonized guidelines creates compliance challenges and increases the difficulty of bringing biological products to market. This lack of standardization may lead to confusion among producers regarding the proper application and benefits of biologicals.

Limited shelf life and storage stability

Comparing biologicals to chemical pesticides, they have a reduced expiration life and less storage stability. Biological products are perishable, necessitating cautious handling, storage, and transport to preserve their efficacy. The limited shelf life and storage stability of biologicals pose obstacles to assuring their availability and quality for producers. In addition, the need for specialized storage and handling facilities increases the overall costs and logistical complexities of biologicals distribution.

Availability Restricted in Certain Regions

In certain regions, primarily developing countries and rural areas where conventional chemical pesticides dominate the market, the availability of biological products remains limited. Despite their potential to provide more sustainable and eco-friendly solutions, the lack of availability hinders widespread adoption of biologicals. The limited availability of biological products necessitates investments in distribution networks, education, and awareness campaigns to promote their utility and accessibility.

Type Analysis

In recent years, the Agricultural Biologicals Market has acquired significant momentum, with the Biopesticides Segment emerging as the dominant variety. Biopesticides are derived from naturally occurring microorganisms and are viewed as an environmentally benign alternative to traditional chemical pesticides. The Biopesticides Segment has several advantages over chemical pesticides, such as increased crop yield, decreased pesticide residue contamination, and increased soil fertility. These advantages have led to extensive adoption by producers worldwide.

Consumer trends and behavior pertaining to the Biopesticides Segment have also played a significant role in propelling their growth in the Agricultural Biologicals Market. Consumers are becoming increasingly aware of the environmental impact of conventional agricultural practices and are demanding alternatives that are sustainable. The Biopesticides Segment provides a viable solution that aligns with changing consumer preferences, thereby driving market demand. Over the coming years, it is anticipated that the Biopesticides Segment in the Agricultural Biologicals Market will grow at the quickest rate.

Source Analysis

The Microbial Segment, which consists of bacteria, fungi, and viruses, dominates the Agricultural Biologicals Market. For soil treatment, crop protection, and disease management, microbial products are widely used in agriculture. Microbial pesticides have a number of advantages over traditional chemical pesticides, including lower toxicity, greater selectivity, and reduced development of resistance.

To consumer trends and behavior pertaining to the Microbial Segment, the Agricultural Biologicals Market has also benefited from their expansion. The rising demand for organic and non-toxic food products among consumers has led to the widespread adoption of microbial solutions. Over the future years, it is anticipated that the Microbial Segment in the Agricultural Biologicals Market will experience the quickest growth rate. With governments promoting sustainable agriculture practices and consumers becoming increasingly aware of the environmental impact of conventional agricultural methods, it is anticipated that demand for Microbial Segment will increase significantly.

Application Analysis

The Fruits and vegetables Segment, which includes commodities like tomato, cucumber, banana, grapes, strawberries, and others, dominates the Agricultural Biologicals Market. Due to their high value, perishability, and susceptibility to pests and diseases, the Fruits and Vegetables Segment is regarded as a profitable Agricultural Biologicals Market.

Fruits and vegetables Segment growth in the Agricultural Biologicals Market has also been significantly influenced by consumer trends and behavior. Consumers are becoming increasingly health-conscious and increasingly demanding natural and organic foods. In the coming years, it is anticipated that the Fruits and vegetables Segment in the Agricultural Biologicals Market will grow at the quickest rate. Increasing demand for high-quality and organic food products, coupled with the development of novel biological agricultural products.

Key Market Segments

By Type

• Biopesticides
• Biofertilizers
• Biostimulants

By Source

• Microbials
• Biochemicals

By Application

• Cereals & grains
• Oilseeds & pulses
• Fruits & vegetables

Growth Opportunity

Emerging Market Distribution Network Expansion

The agricultural biologicals market experiences significant growth due to the expansion of distribution networks in emerging economies. As these economies develop and expand their agricultural sectors, the demand for agricultural biologicals rises. This presents opportunities for companies in the market to expand their reach and tap into new markets, driving overall market growth.

Boosting New Biologicals R&D

Investment in the Research and Development of new biologicals fuels the growth of the agricultural biologicals market. Companies actively involved in R&D efforts are developing innovative products that enhance crop yield, quality, and shelf life. These advancements in biological solutions contribute to the increasing demand for agricultural biologicals as farmers seek to optimize their crop production and profitability.

Precision Farming Adoption Growing

The adoption of precision farming technologies plays a vital role in the growth of the agricultural biologicals market. Precision farming techniques, combined with the use of agricultural biologicals, boost efficiency and productivity in agricultural activities. Farmers are increasingly embracing these technologies to achieve higher yields, improved crop quality, and enhanced resistance against pests and diseases, thus driving the demand for agricultural biologicals.

Eco-Friendly Farming Demand Rising

The growing consumer demand for eco-friendly farming practices propels the agricultural biologicals market's expansion. With increased environmental consciousness, consumers seek sustainable and environmentally friendly products. Agricultural biologicals provide an alternative to traditional farming practices that can harm the ecosystem. As a result, the market experiences growth as farmers transition towards more sustainable methods, driven by the demand for eco-friendly products.

Organic farming's rise

Organic farming practices gain popularity as consumers recognize the health and environmental benefits of organic products. Organic farming emphasizes natural farming methods and avoids the use of synthetic chemicals like fertilizers and pesticides. Agricultural biologicals align with organic farming principles, enabling farmers to enhance their organic practices. This increasing popularity of organic farming drives the demand for agricultural biologicals, contributing to market growth.

Latest Trends

Adoption of Sustainable Agricultural Practices

Globally, sustainability has been a significant concern for producers. In recent years, the adoption of sustainable agricultural practices has increased significantly. Sustainable agriculture seeks to preserve healthy soil, reduce water and air pollution, and safeguard natural resources. This trend has prompted a shift toward organic cultivation, which does not employ chemical fertilizers, synthetic pesticides, or genetically modified organisms (GMO). Biologicals play a significant role in this transition, as they provide eco-friendly and sustainable solutions for pest management, crop nutrition, and disease control.

Crop Protection Products Made from Biomaterials

Biobased crop protection products are gaining popularity among producers around the globe. This increase is due to the detrimental impacts of synthetic pesticides on the environment and human health. Bio-based products are derived from natural materials like microorganisms, fungi, and plant compounds. These products offer an environmentally favorable alternative to traditional pesticides, as they target specific pests without endangering the environment or beneficial insects. Many manufacturers have invested in research and development to create more effective products in response to the growing demand for bio-based goods.

Acceptance of Integrated Pest Management

IPM is a sustainable approach to pest management that combines biological, cultural, and chemical methods. IPM offers an all-encompassing and effective approach to pest management, which has led to a significant increase in its use. IPM techniques include the use of biological control agents, crop rotation, physical and chemical control. These techniques reduce the use of synthetic pesticides, make the environment safer, and promote biodiversity. Biologicals, such as biopesticides, play a crucial role in IPM because they offer an effective and environmentally favorable method of insect control.

Biotechnology and Genetic Engineering Investments

Innovation within the Agricultural Biologicals market is driven by biotechnology and genetic engineering. Utilizing biotechnology and genetic engineering enables the development of new products that can increase crop yields, enhance resistance to pests and diseases, and decrease the use of synthetic pesticides. Biotechnology and genetic engineering also present opportunities for the creation of novel biological products, such as biofertilizers and biostimulants. Increasing investments in biotechnology and genetic engineering are anticipated to spur the creation of novel and innovative biological products for the Agricultural Biologicals Market.

Organic and non-toxic food products

Demand for non-toxic and organic food products has been driven by the trend toward healthier lifestyles and organic food consumption. Consumers' growing awareness of the harmful effects of synthetic pesticides on their health and the environment has resulted in an increase in demand for organic and non-toxic products. Utilizing biologicals to create organic and non-toxic food products is gaining popularity. Focus is being placed on the development of biological inputs for enhanced crop nutrition, pest control, and disease management.

Regional Analysis

Sustainable farming and organic food demand are rising across North America. These changes have boosted the region's market, which has also shifted toward ecologically friendly farming.

Sustainable farming has grown throughout North America for years. Traditional agricultural techniques are unsustainable and deplete natural resources, causing environmental deterioration. Sustainable agricultural strategies reduce environmental effect while boosting production and profit.

Regenerative agriculture has great potential. It improves biodiversity, soil health, water quality, and ecosystem services via holistic agricultural management. It encourages healthy soil, crop and animal variety, low pesticide use, and livestock integration into farming operations. Regenerative agriculture may rehabilitate damaged ecosystems, enhance agricultural yields, and reduce climate change by sequestering carbon in soil.

Organic farming is also sustainable. Organic food sales have been rising consistently. Organic farming bans industrial pesticides, fertilizers, GMOs, and irradiation. Compost, cover crops, and crop rotation keep soil fertile, avoid pests, and boost yields. Organic farming benefits the environment and consumers.

Consumer tastes are also fueling sustainable agriculture. Consumers are learning about conventional farming's environmental and health implications. They want better, safer, more sustainable food. Organic food has more nutrients, antioxidants, and no pesticides or synthetic additives, making it healthier. Organic farming also reduces exposure to contaminants like water nitrates, which can cause health problems.

Ethical consumerism has increased organic product demand. Ethical consumerism addresses social and environmental justice concerns through the market. It encourages sustainable production and consumption, enabling consumers to improve society and the environment. Businesses are extending their manufacturing facilities to serve the burgeoning organic market.

Key Regions and Countries

North America

• US
• Canada
• Mexico

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

Agricultural biologicals are formulations comprising living organisms or naturally occurring compounds that benefit plants and soil. In recent years, Agricultural Biologicals Market has attracted considerable interest due to the growing popularity of sustainable agricultural practices.

BASF SE, Bayer AG, Syngenta AG, Marrone Bio Innovations, Corteva Agriscience, and UPL Limited are the leading companies in this market. Biofungicides, bioinsecticides, and bioherbicides are among the solutions provided by BASF SE, one of the foremost companies in the agricultural biologicals market. The company has made substantial investments in R&D to expand its product line and provide innovative solutions.

Bayer AG is another significant market participant that offers biological solutions under the brand name BioControl. Additionally, the company has partnered with biotech startups to create new products and technologies.

The Swiss corporation Syngenta AG provides a variety of biological solutions, including biofungicides, biostimulants, and bioinsecticides. The company has a strong presence in both developed and emergent markets, and it continues to invest in research and development to expand its product offerings.

US-based Marrone Bio Innovations focuses on the development of bio-based solutions for agricultural protection and plant health. The business provides an assortment of bioinsecticides, biofungicides, and biostimulants.

The DowDuPont spinoff Corteva Agriscience offers biological solutions under the BioRational brand. Additionally, the company has collaborated with a number of startups to create new products and technologies.

UPL Limited, an Indian multinational corporation, has a strong presence in the agricultural biologicals market, offering insecticides, fungicides, and plant growth regulators, among other solutions. Additionally, the company has collaborated with a number of biotech startups to develop novel solutions.

Top Key Players in Agricultural Biologicals Market

• The Dow Chemical Company
• Bayer CropScience AG
• BASF SE
• Isagro Spa
• Novozymes A/S
• Marrone Bio Innovation Inc.
• Certis USA LLC
• Koppert B.V.
• Certis USA LLC
• Agrinos AS

Recent Development

In March 2021, Bayer AG purchased Biological Industries, expanding their agricultural biologicals line. Bayer may now provide farmers PGRs, bio-stimulants, and bio-fungicides thanks to this purchase.

In June 2021, BASF SE launched Serifel, a biofungicide that controls a wide spectrum of agricultural fungal infections. This groundbreaking device helps farmers manage crop diseases more efficiently and sustainably.

In July 2021, Syngenta Group launched Taegro, a crop-sucking pest bioinsecticide. This pest management tool claims to be more targeted and effective than chemical pesticides, giving farmers a more sustainable option.

In August 2021, Marrone Bio Innovations acquired biofungicide and biostimulant business Biologicals Mexico. Marrone Bio Innovation's leadership in sustainable agricultural solutions will be strengthened by this move.

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