Agricultural Biologicals – A Movement Towards Modern Agriculture

Agricultural biologicals are naturally derived from natural materials and are used to protect the plants and crops from weed, pests, and various diseases. The major factors that drive the market include the growing focus on sustainable agriculture and growing organic food demand.

The global market for agricultural biologicals are projected to show decent growth during the forecast period majorly on the account of increasing demand for food throughout the globe primality due to the growing global population. Furthermore, the increase in the number of cases related to crop diseases in many countries around the world is also significantly driving the demand for various bioproducts and thereby driving the agricultural biologicals market growth. Furthermore, the growing focus of the farmers towards sustainable agriculture is one of the key opportunities for the market to surge in the coming years. A shift towards sustainable farming techniques is further replacing the use of chemical fertilizers with naturally processed products such as microbes and biostimulants, thereby positively impacting market growth during the forecast period.

MARKET OVERVIEW

Growing agricultural practices in the various economies around the world and an inclination towards sustainable agriculture in many countries like India, Japan and numerous countries of the European and the North American region due to the growing demand for food are the key drivers for the growth of agricultural biologicals market during the next five years. According to the statistics provided by the United Nations, the global population is projected to reach around 9.7 billion by 2050. This population growth is putting pressure on limited available natural resources such as land and water in terms of rapid urbanization and growing food demand. Furthermore, to meet the growing demand for food, the FAO projects that by 2050 the agricultural production will be 60% higher in comparison with the year 2007. As a result, farmers need to increase crop production, either by increasing the amount of agricultural land or by enhancing crop productivity on existing agricultural lands. Expanding urbanization is pressurizing farmers to adopt new urban farming practices or using environmental-friendly fertilizers. Moreover, urbanization also plays an important role regarding the shift towards sustainable farming practices as the agricultural or arable land required for the cultivation of crops in order to feed the growing population is shrinking due to a shift to the urban areas from the rural areas. The use of chemical fertilizers, herbicides, and pesticides derived from fossil fuels has led to increased agricultural production on limited arable land across the globe. According to the World Bank, fertilizer consumption increased from 119.37 kilograms per hectare of arable land in 2006 to 140.553 kilograms per hectare of arable land in 2016. However, growing awareness and concern over their adverse effects on soil productivity and environmental quality is forcing scientists to discover alternatives such as agricultural microbials and biofertilizers.

In addition, the increasing demand for organically produced fruits and vegetables will fuel the demand for agricultural biologicals during the forecast period. Rising awareness about good health and fitness and the harmful effects of various agrochemicals on human health and the environment is continuously boosting the demand for organic fruits and vegetables across different regions. According to the IFOAM Organics International statistics, around 2.8 million organic producers were reported in 2018. Also, a total of 71.5 million hectares of land was organically managed at the end of 2018.

SEGMENT ANALYSIS

The agricultural biologicals market is segmented on the basis of type, application, source, and geography. By type, the market has been classified into biofertilizers, biopesticides, and biostimulants. The application segment has been further segmented soil treatment, seed treatment, and foliar sprays. On the basis of the source, the market has been classified into biochemical, microbial, and others. By geography, the segmentation is done on the basis of North America, South America, Middle East, and Africa, and Asia Pacific.

By type, the biopesticides segment is anticipated to hold a noteworthy market share owing to its essential qualities regarding the protection of crops and plants from pests and weeds without the use of any chemicals and harming the quality of the produce. Furthermore, these do not cause any harm to the environment which is also a key factor supporting its demand. The biostimulants segment is projected to show a notable growth due to its quality to enhance the yield per hectare as the demand for food is rising and there is a considerable decline in the arable land in major countries, which in turn is supplementing the growth of this segment over the forecast period.

By application, the foliar spray segment is projected to show a robust growth owing to more convenience offered by foliar sprays. Furthermore, these sprays are considered highly effective due to their direct applications on the crops and leaves thereby enhancing the absorption qualities of the crops and plants.

Geographically, the Asia Pacific region is anticipated to show notable growth in the coming years due to a considerably large population base in comparison with the other regions. Furthermore, the growing adoption of sustainable farming practices in countries like Japan, China, and India among others further bolsters the market growth in the region throughout the forecast period. The North American and the European regions are anticipated to hold a notable share due to the high adoption of these biologicals on account of high focus towards the protection of the environment. Furthermore, the presence of key market players in the North American region further supports its growth during the next five years.

COMPETITIVE STRATEGIES

There is a high volume of companies working in the agricultural biologicals market, however, some have solidified their position as the leading providers in this industry. These players are involved in a plethora of investments, product launches, R&D, partnerships, and acquisitions as a part of their growth strategies to further strengthen their position and provide better products to their customers worldwide, which is further expected to propel the growth of the market in the coming years. Some of these are:

• In September 2019, Verdesian Lifesciences announced the opening of their second laboratory in the United States which will primarily focus on various emerging technologies aimed towards the improvement of plant nutrients by keeping environmental sustainability into consideration.
• In July 2019, Seipasa announced their agreement with QSI Ecuador for the expansion of its commercial presence and also announced the launch of a new product range, specifically for the market in Ecuador.
• In March 2019, FiBL a globally leading research center focused on organic farming in Switzerland announced that they have given the approval to the six special fertilizers manufactured by Biolchim used in organic farming.
• In February 2019, UPL, an Indian multinational company announced the acquisition of Arysta Lifesciences, a globally known company for its innovative crop solutions. The company aimed to enhance its crop protection solutions business segment and further strengthen its position in Africa and the eastern part of the European region.

ABOUT THE AUTHOR:

Rachit Gulati is a Market Research Analyst at Knowledge Sourcing Intelligence, working on estimates and global/regional specific reports on multiple industries ranging from automation to food and beverages, with a special knack for automotive and healthcare. With the addition of his formal education in Economics, Commerce, and Finance, he is able to provide more light on the macro aspects of the story. To read more articles by him, and for more information regarding multiple global markets, visit www.knowledge-sourcing.com.

Knowledge Sourcing Intelligence is a market research and consulting firm based out of India. Steered by some of the industry experts, the company provides syndicated reports, custom research, and consulting services.