Agricultural Microbials Market Size, Share & Analysis | 2032

Report Description

Agricultural Microbials Market Outlook 2032

The global agricultural microbials market size was USD 7.2 Billion in 2023 and is projected to reach USD 30.2 Billion by 2032, expanding at a CAGR of 14.2% during 2024–2032. The market growth is attributed to the increasing demand for sustainable agricultural practices and environmentally friendly solutions.

Increasing awareness and concerns regarding environmental sustainability have led to a rising demand for agricultural microbials globally. These microorganisms play a vital role in promoting sustainable farming practices by reducing chemical inputs, enhancing soil health, and improving crop yields.

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Rising adoption of organic farming practices is propelling the market. Organic farmers rely on biological inputs to maintain soil fertility, manage pests and diseases, and meet organic certification standards. This trend aligns with consumer preferences for organic produce, further boosting the market.

Government initiatives and regulations supporting sustainable agriculture are driving the market. Regulatory bodies across the globe are emphasizing the use of bio-based products and encouraging farmers to adopt integrated pest management (IPM) practices. This regulatory support, coupled with advancements in microbial technology, is propelling the market. For instance,

• In January 2024, the European Union (EU) implemented stricter regulations on the use of chemical pesticides in agriculture. This move is part of the EU's Farm to Fork strategy, which aims to promote sustainable food production and reduce the environmental footprint of farming practices. The new regulations encourage farmers to adopt alternative pest management strategies, including the use of agricultural microbials, as viable alternatives to chemical pesticides.

Impact of Artificial Intelligence (AI) in Agricultural Microbials Market

Artificial Intelligence (AI) is revolutionizing the agricultural microbials sector by optimizing microbial formulations, enhancing precision farming techniques, and improving overall farm management practices. AI algorithms analyze vast amounts of agricultural data, including soil health, weather patterns, and crop conditions, to provide insights that optimize the effectiveness of agricultural microbials. These technologies enable farmers to make data-driven decisions, leading to improved crop yields, reduced environmental impact, and sustainable farming practices.

Agricultural Microbials Market Dynamics

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Major Drivers

Increasing demand for sustainable agriculture practices is driving the market. Farmers are increasingly adopting eco-friendly solutions to enhance crop productivity and reduce environmental impact, leading to a surge in the use of microbial products in modern farming techniques. This trend is fueled by growing consumer awareness of food quality and safety, driving the demand for agricultural microbials as a key component of sustainable agricultural systems. For instance,

• In January 2022, Certis Biologicals introduced its new product MeloCon, a water-dispersible concentrate containing spores of a natural soil fungus, for controlling a wide variety of nematodes throughout their lifecycle. The new formulation offers advantages to producers for conventional and organic acreage.

Rising regulatory support for bio-based products is spurring the market. Governments worldwide are implementing stringent regulations to promote eco-friendly farming practices and reduce reliance on chemical inputs. Farmers seek compliant and effective solutions for crop protection and soil health management, which further fuels the market.

High investment in research and development (R&D) is driving innovation in the market. Companies are investing heavily in developing advanced microbial formulations tailored to specific crops and environmental conditions. This focus on R&D is projected to result in the introduction of novel microbial products with enhanced efficacy, leading to increased adoption, thus propelling the market. For instance,

• In February 2022, Andermatt added new biostimulants and animal health products to its portfolio, including Plutex for controlling diamondback moth.

Existing Restraints

Limited awareness and education among farmers are expected to impede the market. Many farmers may lack knowledge about the benefits and proper application of microbial products, leading to hesitancy in incorporating them into their farming practices. Bridging this knowledge gap through education and outreach programs is crucial to overcome, thus restraining the market.

Regulatory challenges, including complex approval processes and compliance requirements, are anticipated to restrain the market. Obtaining regulatory approvals for microbial products is time-consuming and costly, posing barriers to market entry for smaller companies and startups. Simplifying regulatory frameworks and streamlining approval processes help alleviate this restraint and encourage innovation and competition in the market.

Emerging Opportunities

Increasing focus on precision agriculture is creating opportunities for the market. Precision agriculture techniques, such as remote sensing, GPS technology, and data analytics, enable farmers to make data-driven decisions for targeted application of microbial products. This approach optimizes resource utilization, enhances crop health, and reduces environmental impact, driving the market.

Rising demand for organic and sustainable food products is anticipated to create new avenues in the market. Consumers are increasingly seeking food that is produced using eco-friendly methods, driving farmers to adopt organic farming practices. Agricultural microbials play a crucial role in organic farming by promoting soil health, reducing chemical inputs, and enhancing crop resilience, positioning them as key components of sustainable agriculture and creating opportunities for the market.

Growing investments in agricultural biotechnology and microbial research are creating opportunities in the market. Companies and research institutions are investing in developing novel microbial formulations with enhanced efficacy, specificity, and environmental compatibility. These advancements are expected to result in a broader range of microbial solutions for fruit & vegetable crop protection, soil health management, and biofertilization, opening up new opportunities for the market. For instance,

• In September 2021, Valent BioSciences LLC and Kansas State University formed a formal long-term partnership to research soil health and carbon-aware farming. The collaborative study team investigates the interactions between soil conservation management techniques and MycoApply brand soil inoculants, which include arbuscular mycorrhizal fungus, to impact soil health.

Scope of the Agricultural Microbials Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Regional Outlook

In terms of region, the global agricultural microbials market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America, held a major market share in 2023, due to its strong agricultural sector, high adoption of advanced farming practices, and favorable government policies supporting sustainable agriculture. The region benefits from a large agricultural land area, technological advancements in agriculture, and a growing awareness of the benefits of agricultural microbials in improving crop yields and soil health is driving the market in the region. For instance,

• In 2020 a report published by the Environmental Working Group mentioned that American consumers spent a total of USD 20.4 Billion on organic fruits and vegetables.

The market in Europe is projected to grow at a significant pace during the forecast period, owing to increasing investments in agricultural biotechnology, rising demand for organic produce, and supportive regulatory frameworks promoting bio-based products. The agricultural industry in the region is experiencing a shift toward eco-friendly farming practices, driving the adoption of agricultural microbials for pest management, soil enhancement, and crop nutrition, thus fueling the market.

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Agricultural Microbials Market Segment Insights

Microbial Type Segment Analysis

Based on microbial type, the agricultural microbials market is divided into bacteria, fungi, viruses, and protozoa. The bacteria segment held a major share of the market in 2023 and is expected to generate the largest revenue in the market during the projected period, owing to its widespread use in biofertilizers, pest management, and soil health enhancement.

Bacteria-based agricultural microbials are known for their versatility, efficacy, and eco-friendly nature, driving their adoption among farmers globally. Additionally, the rising demand for sustainable agricultural practices, coupled with favorable government initiatives promoting bio-based products, is driving the adoption of bacteria-based agricultural microbials. These factors are propelling the segment. For instance,

• In June 2020, Anand Agricultural University (AAU) developed a liquid biofertilizer as an eco-friendly alternative to chemical fertilizers.

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Crop Type Segment Analysis

In terms of crop type, the market is divided into cereals & grains, fruits & vegetables, oilseeds & pulses, and others. The fruits & vegetables segment generated a major revenue share of the market in 2023, attributed to the increasing consumer demand for fresh and healthy produce. Fruits and vegetables are high-value crops that require specialized care, including pest management and soil health maintenance, driving the segment.

The fruits & vegetables segment is expected to lead the market in terms of revenue during the projection period, due to the growing preference for sustainably produced organic fruits and vegetables. Consumers are becoming conscious of food safety and environmental sustainability, leading farmers to adopt organic farming practices and utilize agricultural microbials for natural pest control and soil enrichment, further boosting the segment.

Formulation Segment Analysis

On the basis of formulation, the global market is bifurcated into liquid and dry. The liquid segment held the largest market share in 2023, attributed to its convenience of use, ease of application, and faster absorption by plants. Liquid formulations of agricultural microbials are preferred by farmers for foliar spray applications and irrigation systems, leading to higher adoption rates. For instance,

• In January 2022, Certis Biologicals launched MeloCon LC, containing Purpureocilium lilacinum strain 251, a water-dispersible concentration that eradicates destructive nematodes.

The dry segment is anticipated to grow at a substantial CAGR during the projected period, due to its longer shelf life, cost-effectiveness, and suitability for seed treatment and soil application. Dry formulations of agricultural microbials are gaining popularity among farmers due to their ease of storage, transportation, and compatibility with various farming practices, enhancing the segment.

Mode of Application Segment Analysis

Based on mode of application, the agricultural microbials market is segmented into foliar spray, soil treatment, seed treatment, and others. The foliar spray segment led the market in terms of revenue in 2023, owing to its efficiency in delivering microbial products directly to plant leaves for quick absorption. Foliar spray applications are widely used for pest and disease management, enhancing crop health and yield, boosting the segment.

The seed treatment segment is projected to register a robust growth rate during the assessment years, due to increasing emphasis on seed quality, disease prevention, and improved germination rates. Seed treatments with microbial formulations offer targeted protection against soil-borne pathogens and promote beneficial interactions with plant roots, resulting in healthier crops and higher yields.

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Application Segment Analysis

On the basis of application, the market is divided into crop protection, soil health management, biofertilizers, and others. The crop protection segment generated a major revenue share of the market in 2023, attributed to the increasing need for sustainable pest management solutions. Agricultural microbials are gaining traction as alternatives to chemical pesticides, offering effective control against pests and diseases while minimizing environmental impact and promoting beneficial microbial activity in the soil, thus enhancing the segment.

The biofertilizers segment is projected to register a robust growth rate during the assessment years, due to the growing demand for organic farming practices and eco-friendly agricultural inputs. Biofertilizers derived from microbial formulations contribute to nutrient cycling, soil fertility enhancement, and plant growth promotion, aligning with the global trend toward sustainable agriculture.

End-user Segment Analysis

Based on end-user, the agricultural microbials market is segmented into farmers, agricultural cooperatives, research institutions, and others. The farmers segment led the market in terms of revenue in 2023, owing to the direct utilization of agricultural microbials by individual farmers across diverse agricultural operations. Farmers are increasingly adopting microbial solutions for crop protection, soil health improvement, and sustainable farming practices, thus driving the segment.

The agricultural cooperatives segment is projected to register a robust growth rate during the assessment years, due to collaborative efforts among farmers and cooperative organizations to implement advanced agricultural practices. Agricultural cooperatives leverage collective resources, knowledge-sharing platforms, and joint initiatives to enhance productivity, reduce input costs, and promote the adoption of agricultural microbials for improved crop management. These collaborative strategies are driving the segment.