Global Biofertilizers Market Size 2018 by Product (Nitrogen Fixing, Solubilizing, Others), by Application (Seed Treatment, Soil Treatment), By Region and Forecast 2022 to 2032

Over the forecast period, the biofertilizers market is anticipated to grow with a CAGR of 13.4%, crossing USD 3 billion mark by 2025. The global biofertilizers market is owed to increase in fertilizer demand due to an increase in global food production and development of new technologies in the production of biofertilizers. High growth potential in emerging markets and untapped regions provides the players in the biofertilizer market with new growth opportunities.

On the other hand, lack of awareness and low adoption of biofertilizers coupled with poor infrastructure are some factors that restrict the market for biofertilizers. The global market for biofertilizers is expected to see significant growth in the period 2019–2025 due to the provision of physical pest barriers. Furthermore, these products protect plants from pathogens and increase zinc and phosphorus absorption. Furthermore, the use of biofertilizers in agriculture helps to decompose organic residues and stimulates the development and growth of plants in general.

Because of the low environmental impact and growing need to increase agricultural yield to meet global population demands, the use of biofertilizers has been triggered. Increasing consumer requirement for organic foods is expected to have a positive impact on the market for biofertilizers over the next five to seven years.

Seed treatment was the largest biofertilizer application and in 2018 represented 69.7% of the market. Treating seeds with biofertilizers aids to sustain attacks on bacteria and viruses and also helps to increase yield. Furthermore, biofertilizers help to harness and make available atmospheric nitrogen to the plant. Biofertilizer-treated seeds can increase soil phosphorous content by solubilizing it and enhancing availability. Soil treatment is the other primary biofertilizer application and involves spraying biofertilizers over agricultural land. It increases the soil's fertility and improves crop yields.

The key issue in market growth and acceptance for biofertilizers is the value chain of the industry. It consists of producers and suppliers of raw materials, producers of biofertilizers, channels of distribution and end users (farmers, domestic growers). Biofertilizers are produced from various sources, including law crops, frying oils, potato peels, manure, and waste from slaughterhouses, organic domestic waste, and residues from the food industry. Feedstock suppliers, who outfit the producers of biofertilizers, also have a significant presence. Swedish Biogas, for example, is an integrated company producing biofertilizers as a by-product of the production of biogas. The company also supplies independent producers of biofertilizers with raw materials. Most suppliers of raw materials incur logistical costs, i.e. procurement and delivery of raw materials to manufacturers. With most of the raw materials being bio-waste, suppliers' profitability is high, estimated at about 10% of the added value. Majority of the biofertilizer manufacturers are integrated across different stages of the value chain as product demand is largely dependent on end-use industry growth. 90% of all manufactured biofertilizers are used in maize, rice and maize production.

Key forms of organic food products include fruits, vegetables, meat products, natural alcoholic beverages such as beer & wine. Growing consumer awareness of the adverse impact of inorganic food on human health has led to a shift in the trend towards promoting the market for organic food and is expected to remain one of the key growth factors for the market for biofertilizers over the forecast period.

North America is the second largest biofertilizer market and accounted for approximately 25.2% of global market share in 2018. The U.S. holds the largest share in North America, with more than 80% of the market share of North America. The growth in organic and environmentally friendly farming practices has increased demand for biofertilizer products, especially in the U.S. and Canada. However, in the taxonomy of North American biofertilizers industry, Mexico & Canada are still emerging markets. Therefore, biofertilizers' multifarious advantages lead to their wide usage, as well as rendering increased adoption and usage for sustainable farming. The country's positive agricultural outlook has driven the region's demand for bio-based products. Owing to the growing usage of bio based crop nutrition products & rising food quality standards, North America is expected to retain its dominant position in the future.

Asia Pacific is expected to undergo fastest progress over the forecast period, with increased demand from regional markets such as India, China and Taiwan. Asia Pacific is anticipated to cross USD 900 million mark by the end of 2025 due to the increased consumer preference towards organic food and growing agricultural activities.