Bio-Fertilizers Market Size (2024-2030)

The global bio-fertilizers market, valued at $2.22  billion in 2023, is forecasted to attain a market size of $4.61 billion by 2030, projecting a compound annual growth rate (CAGR) of 11% during the forecast period from 2024 to 2030.

The growth of the bio-fertilizers market is expected to be propelled by the increasing demand for organic food and sustainable agricultural practices. Farmers' heightened awareness regarding the detrimental impacts of chemical fertilizers on both soil and human health is also anticipated to contribute to this growth trajectory. Moreover, factors such as the expanding population and diminishing arable land further augment the demand for bio-fertilizers, as they aid in enhancing soil fertility and crop yield. Additionally, governmental initiatives aimed at fostering the adoption of bio-fertilizers and promoting organic farming are poised to catalyze market growth.

Industry Overview:

The bio-fertilizers market represents a rapidly burgeoning segment within the agricultural domain. These naturally occurring organisms serve to bolster crop productivity while being environmentally benign, offering a viable alternative to synthetic fertilizers, which can exert adverse effects on soil and surrounding ecosystems. The utilization of bio-fertilizers also holds the potential to curtail agricultural input costs for farmers. The escalating demand for organic food items coupled with an increasing awareness of sustainable farming practices are key drivers propelling the expansion of the bio-fertilizers market. Notably, the Asia Pacific region stands as the largest market for bio-fertilizers, owing to its substantial agricultural sector and escalating demand for organic food products. The market landscape is characterized by the presence of numerous small and medium-sized players vying for market share based on product quality, pricing strategies, and distribution networks.

COVID-19 Impact on the Bio-Fertilizers Market:

The COVID-19 pandemic has yielded a mixed impact on the bio-fertilizers market. On one hand, there has been a surge in demand for bio-fertilizers fueled by an escalating interest in sustainable farming practices, heightened environmental consciousness, and an increased appetite for organic food products. Conversely, disruptions in supply chains and logistics have posed challenges to the production and distribution of bio-fertilizers. The pandemic-induced shortages of raw materials, labor, and transportation have resulted in inflated prices and diminished availability of bio-fertilizers. Furthermore, constraints on international trade and travel have impeded the bio-fertilizers market, given the reliance of many nations on imports of these products. The closure of retail outlets and disruptions in farming activities have further compounded these challenges. Nonetheless, the burgeoning adoption of e-commerce platforms has facilitated bio-fertilizers distribution, and governmental initiatives supporting sustainable farming practices have offered a glimmer of hope. Overall, the bio-fertilizers market is poised to rebound and expand post-pandemic, driven by the mounting demand for sustainable agricultural practices and organic food products.

Market Drivers:

Growing Demand for Organic Food Drives Bio-Fertilizers Market Growth:

The escalating global demand for organic food is underpinning the expansion of the bio-fertilizers market. This trend is fueled by heightened awareness of health and environmental concerns. Bio-fertilizers play a pivotal role in enhancing soil fertility and productivity, thereby aligning with the principles of organic farming. Consequently, the burgeoning demand for organic food is anticipated to propel the adoption of bio-fertilizers.

Favorable Government Policies Drive Global Bio-Fertilizers Market Growth:

Numerous governments worldwide are actively promoting the adoption of bio-fertilizers through various policies and initiatives. For instance, in India, the government has rolled out several programs aimed at incentivizing the use of bio-fertilizers and providing subsidies to farmers. Similarly, the European Union has set ambitious targets to reduce the usage of chemical fertilizers and promote the adoption of bio-fertilizers. These favorable policy measures are anticipated to fuel the growth of the bio-fertilizers market.

Market Restraints:

Limited Awareness Hinders Bio-Fertilizers Market Growth:

Despite the increasing demand for bio-fertilizers, there persists a dearth of awareness among farmers regarding the benefits of these products. Farmers often exhibit a preference for chemical fertilizers due to their long-standing familiarity and experience with their usage. This lack of awareness poses a significant impediment to the growth of the bio-fertilizers market.

Low Shelf Life Constricts Bio-Fertilizers Market Growth:

A prominent challenge confronting bio-fertilizers is their limited shelf life. These products contain live microorganisms that are susceptible to degradation if not stored and transported under optimal conditions. Consequently, their short shelf life complicates transportation to distant locations, thereby restricting demand primarily to regions where they are locally produced. This presents a hurdle to market expansion in regions lacking local bio-fertilizer production facilities.

Market Segments:

This analysis of the global Bio-Fertilizers Market is structured around segmentation criteria including Crop Type, Type, Form, and Region.

Bio-Fertilizers Market—By Crop Type

• Cereals & grains
• Pulses & oilseeds
• Fruits & vegetables
• Others

The segmentation of the bio-fertilizers market by crop type encompasses cereals & grains, pulses & oilseeds, fruits & vegetables, and others. The dominance of the cereals & grains segment is anticipated due to the substantial demand for bio-fertilizers in staple food crop cultivation such as wheat, corn, and rice across various global regions. Furthermore, the increasing adoption of bio-fertilizers by farmers to mitigate the environmental impact of synthetic fertilizers on these crops is expected to propel the growth of the cereals & grains segment. Significant growth is also anticipated in the fruits & vegetables segment, driven by rising consumer demand for organic food products. The pulses & oilseeds segment is forecasted to experience moderate growth, primarily fueled by the demand for bio-fertilizers in crops like soybean, peanuts, and lentils. Similarly, the other segment, comprising crops such as cotton and sugarcane, is expected to witness moderate growth attributable to the escalating adoption of bio-fertilizers aimed at enhancing soil fertility and crop yield.

Bio-Fertilizers Market – By Type

• Rhizobium
• Azotobacter
• Azospirillum
• Phosphate Solubilizing Bacteria (PSB)
• Others

The segmentation based on types includes Rhizobium, Azotobacter, Azospirillum, Phosphate Solubilizing Bacteria (PSB), and others. Rhizobium is anticipated to lead the market during the forecast period owing to its pivotal role in nitrogen fixation in leguminous plants, thereby augmenting their growth and yield. The increasing awareness regarding the adverse effects of chemical fertilizers on the environment and the imperative for sustainable agricultural practices are driving the adoption of bio-fertilizers, with Rhizobium emerging as a key type due to its efficacy in enhancing soil fertility and reducing reliance on chemical fertilizers. Additionally, the growing demand for organic food products and government initiatives advocating the use of bio-fertilizers are expected to stimulate market growth for Rhizobium bio-fertilizers.

Bio-Fertilizers Market – By Form

• Liquid
• Carrier-based
• Others

Segmentation by form comprises liquid, carrier-based, and others. The carrier-based segment is poised to dominate the market during the forecast period owing to its ease of use and longer shelf life compared to liquid bio-fertilizers, rendering them more cost-effective. Additionally, carrier-based bio-fertilizers are convenient to handle and can be applied through various methods including fertigation, broadcasting, seed treatment, or soil application. Although the liquid bio-fertilizers segment is projected to register significant growth due to their high nutrient content and rapid absorption by plants, their adoption is limited by higher costs and shorter shelf life compared to carrier-based alternatives. Overall, the increasing demand for sustainable agricultural practices and growing awareness regarding the environmental advantages of bio-fertilizers are anticipated to propel market growth.

Bio-Fertilizers Market – By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East and Africa

The Asia Pacific region is poised to lead the Bio-Fertilizers market, driven by increasing adoption of sustainable agricultural practices and rising demand for organic food products. The presence of key manufacturers and suppliers in the region further contributes to market growth. Europe represents a significant market for bio-fertilizers, with a focus on reducing chemical fertilizer usage and promoting sustainable agriculture. North America is experiencing steady growth in the bio-fertilizers market, supported by increasing demand for organic food products and government initiatives promoting sustainability in agriculture. Significant growth is also anticipated in the rest of the world, driven by rising demand for organic food products, heightened awareness of the adverse effects of chemical fertilizers on the environment, and supportive government policies. Overall, the bio-fertilizers market is expected to witness robust growth globally due to escalating environmental concerns and the imperative to reduce reliance on chemical fertilizers.

Major Key Players in the Market:

1. Novozymes A/S
2. Rizobacter Argentina S.A.
3. T. Stanes & Company Limited
4. National Fertilizers Limited (NFL)
5. Gujarat State Fertilizers & Chemicals Ltd. (GSFC)
6. Camson Bio Technologies Limited
7. Lallemand Inc.
8. Symborg S.L.
9. Krishak Bharati Cooperative Limited (KRIBHCO)
10. Biomax Naturals

Market Insights and Developments:

• In January 2020, the Indian government initiated the National Bio-Fertilizer Programme to promote the use of bio-fertilizers in the country. The program offers financial assistance to farmers for bio-fertilizer purchases and promotes the production and distribution of high-quality bio-fertilizers. This initiative is expected to drive market growth in India and create opportunities for bio-fertilizer manufacturers.
• In September 2020, Novozymes introduced a new bio-fertilizer product designed to enhance nitrogen absorption by crops, thereby improving yields and reducing environmental impact. This innovation is anticipated to boost the adoption of bio-fertilizers among farmers and drive global market growth.
• In November 2021, the European Commission approved three new bio-fertilizer products under the EU Fertilising Products Regulation, aimed at improving soil fertility and reducing reliance on chemical fertilizers. The approval of these products is expected to accelerate the development and adoption of bio-fertilizers in the European market.