Changing consumer trends towards organic food consumption coupled with growing requirement for high agricultural production to match the needs of rising population are some of the factors predicted to promote the demand for biofertilizers over the next few years. Biofertilizers market worth USD 535.8 million in 2014, is predicted to exceed USD 1.66 billion mark by 2022, growing at a CAGR of 13.2% over the period of 2015-2022. Growing environmental concerns along with a shift in trend towards the use of bio-based products to reduce greenhouse emissions are predicted to drive the industry growth over the coming eight years.
Biofertilizers find their use in soil treatment and seed treatment applications. For instance, its use in agriculture helps in decomposing organic residues and promotes the plant growth. Furthermore, environmental legislations passed by the EU and EPA to prevent the use of synthetic fertilizers owing to loss of nitrogen in underground water are predicted to boost biofertilizers market size. Owing to its ecofriendly features, biofertilizers have become very popular in Europe and North America.
Spain biofertilizers market size, by product, 2012-2022 (USD Million)
Soil treatment applications segment is predicted to grow significantly at a rate of 12.5% over the forecast timeframe driven by the growing use of biofertilizer for improving the fertility of soil resulting in high crop yield.
Seed treatment applications segment contributing 65% towards the overall revenue share in 2014, is predicted to witness a significant growth over the forecast period. Biofertilizers adds macronutrients like sulfur, phosphorous, and nitrogen in seed treatment applications to increase the nutritional contents of vegetables, crops, and fruits.
Phosphate solubilizing biofertilizers market is predicted to register a CAGR of 13% over the period of 2015-2022, owing to the acceptance of organic farming routes. For example, bacteria like aspergillums, bacillus, and pseudomonas are primarily used to provide phosphorous macronutrients to plants.
The nitrogen fixing biofertilizers market which contributed more than 75% towards the overall revenue in 2014, is predicted to witness a substantial growth over the forecast timeline due to its growing use in soil and seed treatment applications. For instance, bacterium like azospirillum brasilense, azotobacter, and rhizobium are mainly used for nitrogen fixation in soil and seed treatment applications.
Asia Pacific biofertilizers market is predicted to grow at a rate of 13.5% over the forecast timeline owing to the growth of agriculture sector in Malaysia, China, Pakistan, and India. Furthermore, rising government support for implementing new techniques of farming to increase the crop yield is predicted to boost the demand for biofertilizers in these regions.
North America biofertilizers market which contributed over 30% of the overall revenue in 2014, is anticipated to witness a noticeable growth over the forecast timeline driven by favorable attitude towards agriculture in countries like U.S. and Canada coupled with increasing use of bio-based products in farming.
Key market participants include Mapleton Agri Biotec Private Limited, Novozymes A/S, Antibiotice, Labiofam S.A., and CBF China Biofertilizer AG. These industry participants will try to optimize their revenue share through mergers & acquisitions and new product development.