Agricultural biologicals are those products that are used to benefit the production of crops as they are derived from natural ingredients. These biologicals are used to protect the crops from diseases, weeds, and pests among others. They are tiny fungal organisms or microbes which of these are extracted from the pants. The major factors that are driving the agricultural biologicals market growth include the growing awareness among the farmers around the globe towards the use of safer products instead of using harmful chemically treated products. Also, an inclination of the people towards organic food is also one of the key factors driving growth throughout the forecast period. Furthermore, increasing global demand for food owing to the growing global population base is the major driver of the global agricultural biologicals market. Increasing cases of crop diseases across the globe are also fuelling the demand for agricultural biologicals significantly. Increasing emphasis on sustainable farming practices is further bolstering the growth of the global agricultural biologicals market.
One of the prime factors that is driving the agricultural biologicals market growth is the globally growing demand for food due to the rising population around the globe. According to the FAO statistics, the world population is projected to grow by over a third, that is, 2.3 billion people, between 2009 and 2050. This, in turn, is anticipated to increase the pressure on limited available resources which includes land, air, and water among others as rapid urbanization and industrialization have further caused a major deterioration in the condition of these resources. Also, according to the statistics provided by the FAO, around 821 million in the world are undernourished. This is further increasing the propensity of the farmers towards an increase in the production of crops by the means of increasing the amount of agricultural land or by enhancing crop productivity on existing agricultural lands. However, due to rapid urbanization, the expansion of agricultural land is considered comparatively tougher which is further inclining the farmers to adopt new urban farming practices or using environmental-friendly products. This is significantly driving the adoption of agricultural biologicals such as biofertilizers, biopesticides, and biostimulants among others. These biologicals help to improve crop performance and enrich the soil while enabling plants to adapt even when growing conditions shifts (changes in climatic conditions) so as to provide food the whole year without being dependent on weather conditions.
Increasing emphasis on sustainable farming practices across the globe is another factor that is bolstering the growth of the global agricultural microbial market. 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. However, growing awareness and concern over their adverse effects on soil productivity and environmental quality is forcing scientists to discover alternatives. Agricultural biologicals protect crops from pests, weeds, and diseases while keeping crops healthy. Furthermore, the growing investments by the key players of the market in the form of R&D for the development of new products and expansion of product portfolios, agreements, and partnerships further show the potential for the market to surge in the near future. In May 2019, Marrone Bio Innovation an integrated pest management solutions company announced its strategic collaboration with Compass Minerals Plant Nutrition for the development of a new plant nutrition solution which was enhanced with microorganisms. Similarly, in March 2019, FiBL, one of the world’s leading organic farming information and research centers based out of Switzerland announced the approval of six special fertilizers of Biolchim for organic farming.
The increase in the demand for fruits and vegetables produced organically is likely to offer ample opportunities for the key players to invest in the market and further tap the potential that the market holds. One of the major factors that is boosting the demand for organically produced fruits and vegetables is the rising concerns regarding a healthy lifestyle and fitness, especially in the developed economies as the awareness regarding effects of various agrochemicals on human health and environment is being focused upon. Furthermore, according to the data from the IFOAM Organics International Statistics, a total of 71.5 million hectares of land was organically by the end of 2018 from 69.8 million hectares in 2017. Also, around 2.8 million organic farmers were reported during the same period. Since agricultural biologicals are produced naturally and do not contain any harmful chemicals, the use of these sustainable organisms leads to the production of chemical-free fruits and vegetables. Hence, the high demand for organic fruits and vegetables will continue to bolster the growth of the agricultural biologicals market until the end of the forecast period.
Geographically, the market has been segmented on the basis of North America, South America, Europe, Middle East and Africa, and Asia Pacific. The market in the Asia Pacific region is projected to grow at a rapid pace owing to high population growth in the major emerging economies such as India and China among others. Moreover, rapid industrialization and expanding urbanization in emerging economies such as China, India, and South Korea is leading to the deterioration of arable land in the region owing to which farmers need to increase the crop yield given the limited cultivable land area. All these factors are encouraging farmers across APAC countries to move towards sustainable agriculture practices.
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.