Market Trends of biofertilizer Industry
This section covers the major market trends shaping the Biofertilizer Market according to our research experts:
Mycorrhiza is the largest Form
- Biofertilizers are living microorganisms that can enhance plant nutrition by either mobilizing or increasing nutrient availability in soils. The most common microorganisms used as biofertilizers in agriculture include mycorrhiza, Azospirillum, Azotobacter, Rhizobium, and phosphate-solubilizing bacteria.
- Among these, mycorrhiza is the most consumed biofertilizer globally. It accounted for 36.3% of the biofertilizer segment in 2022, with a market value of USD 995.3 million and a volume of 96.6 thousand metric tons. Mycorrhiza increases the root surface area of plants, thus enhancing their nutrient uptake.
- Rhizobium is the second most consumed biofertilizer globally. It accounted for 24.8% of the biofertilizer segment in 2022. North America dominated the rhizobium sub-segment with a market share of 52.7% in the same year. Row crops dominated the rhizobium sub-segment in North America, accounting for 62.4% in 2022. Rhizobium has a symbiotic association with leguminous crops, a category of row crops. Thus, row crops dominated the rhizobium sub-segment. North America also has a large cultivation area of row crops. The rhizobium sub-segment in the North American row crops market is anticipated to record a CAGR of 10.5% during the forecast period.
- Azospirillum accounted for 16.8% of the biofertilizer segment. North America dominated the Azospirillum sub-segment, accounting for 46.4% in 2022. The market value increased by about 57.8% during the historic period.
- Thus, the biofertilizer segment of the global agricultural biologicals market is expected to grow in the coming years as more farmers seek sustainable and eco-friendly solutions to improve crop yields and soil health.
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North America is the largest Region
- Biofertilizers are living microorganisms that have the ability to enhance plant nutrition by either mobilizing or increasing nutrient availability in soils. North America and Europe are the major consumers of biofertilizers in the world.
- North America accounted for 35.9% of the global biofertilizer market in 2022. The area under cultivation of organic crops in the region increased by 13.5% during the historical period, from 1.4 million hectares in 2017 to 1.6 million hectares in 2021. The demand for organic food in the region is growing rapidly, with an average per capita spending on organic food products in North America at USD 109.7 in 2021.
- The European region accounted for 31.9% in 2022 and stood as the second-largest consumer of biofertilizers. Europe had the largest area under organic farming in the world, with 6.5 million hectares in 2021. The European Commission has unveiled an action plan to increase the organic area in the member countries to occupy 25.0% of the region's agricultural land area by 2030. This factor is further expected to drive the market for biofertilizers in the region.
- The Asia-Pacific region is a leading producer of organic crops such as rice, sugarcane, and fruits and vegetables. China and India are emerging leaders, although organic farming only accounts for a small portion of their total agricultural area. The organic farming area in the region grew from 2017 to 2021, and this trend is expected to drive growth in the biofertilizer market.
- The increasing organic crop area and increasing demand for organic commodities across the world, particularly in regions like Europe and North America, may drive the demand for biofertilizers during the forecast period.
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