The global agricultural microbial market is expected to grow at a CAGR of 13.07% over the forecast period to reach a total market size of US$8,269.146 million by 2025, increasing from US$3,956.654 million in 2019. Microbes live in the soil and have a close association with plants and together they form microbiomel. Microbes include bacteria, fungi, viruses, and protists among others. They can boost the growth of the plant by improving access to supplements. Many microbes are beneficial such as they can help in the decomposition of organic matter, recycling of old agricultural material, offer phosphorus or nitrogen as nutrients and provide benefits such as heat and drought tolerance along with resistance to insects and plant diseases.
By type, the global agricultural microbial market has been segmented as bacteria, protozoa, viruses, and fungi. Bacteria are expected to hold a significant share in the market and are also anticipated to witness substantial growth in the coming years. Each year insect pests cause damage to the agricultural field that costs billions of dollars to the farmers. According to the United States Department of Agriculture (USDA), in 2013, insect pests represented approx 18% of the crop losses at the global level. Thus, farmers are increasingly turning towards bacterial based biopesticides in order to protect their crops from insects which are leading to increased adoption of these microbial, thus driving the bacterial microbial market growth. The demand is set to grow at a good rate owing to the burgeoning adoption of these microbial to reduce the use of chemical insecticides as much as possible. This coupled with the growing need to provide crops produced in a safe and secure manner is further going to accelerate the bacterial microbial market growth in the forecast period.
Foliar spray is anticipated to witness substantial growth over the forecast period
Foliar spray is a technique of feeding plants by applying directly to leaves, increasing the use of microbial foliar sprays in horticulture and field crops is projected to drive the growth of the foliar spray segment during the forecast period. Foliar spray mode of application ensures efficient distribution of microbial in plants and is widely used in developing countries like India, China, and Brazil. Limited availability of agricultural land coupled with increasing demand for food due to a growing population is expected to drive the demand for foliar spray around the globe. In addition, they have a significant advantage over other modes of application such as easy application and uniform distribution of nutrients to crops which makes it more acceptable among farmers in many regions. Furthermore, increasing product launches by big market players increase the competition in the market which further augments the growth of the market for foliar spray in the coming years. For instance, recently OHP announces key formulation change to its Ancora microbial insecticide which is designed to make spray applications more easily in nursery and greenhouses.
North America is holding a significant share in the market
By geography, the agricultural microbial market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The agricultural microbial market in North America is estimated to hold a significant share in 2019 and is anticipated to grow rapidly on account of increasing adoption of integrated pest management (IPM) practices in countries like the United States and Canada. The presence of major market players an early adoption of advanced technologies is the major factor behind the growth of the North America Agricultural Microbial market. Intensification of agriculture and its environmental impacts including soil erosion and release of greenhouse gases is driving the demand for agricultural microbial in countries like the U.S, Canada, and Mexico. Rising demand for livestock feed owing to shift towards protein-rich diet patterns is further spurring the growth of the agricultural microbial market in North America. Growing concerns over environmental sustainability are further boosting the demand for agricultural microbial in this region. Mature breakfast cereal market and high consumption of meat and eggs in the region is one of the major factors for the growing demand for agricultural microbial to increase crop productivity. Rising cases of pest attacks and growing concerns towards high usage of pesticides will continue to propel the growth of the agricultural microbial market in the region during the forecast period. In addition, the Asia Pacific region is a decisive component in the global food supply chain with countries like India and China leading the way in front. According to the Asian Development Bank, more than 2.2 billion people in the region rely on agriculture for their livelihood and in a country like China which has nearly 25% of the world population and only 7% of the world’s arable land adoption of microbial is anticipated to witness substantial growth during the forecast period. In addition, growing population, coupled with rising disposable income and a burgeoning middle-class population will drive the demand for food and agricultural commodities which is further expected to boost the adoption of agricultural microbial in the coming years.
Prominent key market players in the Indian agricultural microbial market include Certis USA, BASF SE, Novozymes, Monsanto Company, Sumitomo Chemical, and Bayer CropScience among others. Due to intense competition, different firms are adopting different strategies to improve their margins. Large enterprises look for strategic partnerships including mergers and acquisitions and joint ventures to boost their market share. For instance, on 7th June 2018, Bayer completed the acquisition of Monsanto. Together the companies aim for innovation and accelerate the production of new products with the integration of next-generation technologies in farming. Also, on 24th August 2017, BASF announced its expansion of manufacturing facilities for biological inoculants production in Saskatoon, Canada. The investment made by the company in the expansion project amounted to approximately USD8 million. The expansion was made in response to the growing demand for the company’s biological inoculants at the global level. Furthermore, in 2017, Certis USA announced the acquisition of the leading manufacturer of Biopesticide products, LAM International. Major players in the global agricultural microbial market have been covered along with their primary competitive strategies. The report also mentions recent deals and investments of different market players over the last couple of years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the global agricultural microbial market.