Agricultural biologicals are a distinctive group of natural products such as topical or seed treatment products that are derived from naturally occurring micro-organisms, plant extracts, beneficial insects, and other organic matters. It is the fastest-growing segment in the agricultural input market. Biological farming is an environmentally sustainable and economical agricultural production system that encourages the adoption of safe products for the treatment of the crop. This is accomplished by minimizing the environmentally harmful consequences and by using non-renewable natural resources.
The agricultural biologicals are majorly used for the replacement of the chemicals used in agricultural farming as they are considered relatively safe and not leave the residue on the crop. Besides protecting the crop from pests, weeds, and diseases, it also enhances the overall fertility and productivity of the crops, thereby maintaining the health of the crops. Farmers are increasingly depending on the agricultural biologicals over the synthetic and chemical fertilizers. The market of the agricultural biologicals is driven by the rising pest attacks on the crop plantations. The crops are developing resistance towards some of the products of the plant protection which is positively impacting the market growth of the agricultural biologicals during the forecasted period.
Market Size of the Agriculture Biologicals Market
The rise in the incidence of the pest outbreak in the crops, growing awareness, and surge in the demand for the supreme quality yield from the farm produce, and the development of the pest resistance are some of the primary factors that are augmenting the market growth of the agricultural biologicals market. Chemical fertilizers and pesticides increase the yield at the cost of the quality of the crop. The exploitation of the environment due to the excessive usage of the chemicals is leading to rise in concern regarding the produce harming the health of the consumers is thus positively affecting the market of the agricultural biologicals. Agricultural biologicals don’t contain chemicals and make the yield healthier and more nutritious. The stringent regulations mandated by the agricultural product regulatory organization on the usage of the excessive amount of chemical or synthetic fertilizers and rising investment by the international market players for the development of the crop protection elements and crop nutrition products using natural references are positively impacting the market growth of the agricultural biologicals market. The government of India mandated the purchase of bio-fertilizers in August 2020 along with the purchase of urea. The government regulation states that for each bag of urea purchased, the farmer has to purchase a bag of bio-fertilizer. The intention behind implementing this rule is to encourage the use of biofertilizers over chemical fertilizers. Rising demand for the organically cultivated food products and untapped potential in the emerging market is expected to offer market growth opportunities.
However, the high cost of trials, lack of safety & regulations, low adoption rate and short-life of biopesticides and the technological and environmental constrains regarding the usage of the biologicals is expected to restrain the market growth of the agricultural biologicals.
Market Growth of Agriculture Biologicals Market
The agricultural biologicals market is segmented by application as soil treatment, seed treatment and foliar sprays. Soil Treatment and Foliar Sprays are expected to hold the significant market share on account of awareness and non-technical usage. Seed Treatment segment of the market is also expected to hold a noteworthy share and to increase at considerable rate on account of growing awareness. Further the rising demand for food due to the surge in global population which is resulting in the high demand for high agricultural yield, thus, is positively impacting the market of the agricultural biologicals. As per United Nation Department of Economic and Social Affairs, the global population is projected to reach USD 9.8 Billion by 2050.
On the basis of the region, the agricultural biologicals market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. Asia Pacific is expected to grow at the fastest region during the forecasted period on account of rapid urbanization, population boom, surge in the health concerns and growing industrialization.
Gowan Company announced its acquisition in March 2021 of all the shares of Piemme S.R.L from its shareholders and Giorgio Basile.
The outbreak of the covid-19 pandemic and the subsequent lockdown had impacted every industry. It had a positive impact on the agricultural biological industry. The lockdown and pandemic forced the government globally to scrutinize their rules and policies and to adopt sustainable measures to reduce the human carbon footprint. Further, the raised security and safety standards are encouraging the consumption of natural, healthy, and organic products for the better immunity and health.
Agriculture Biologicals Market
The increase in the crop productivity through eco-friendly substitute to protect with the biodiversity with the changing global climate is expected to augment the market during the forecasted period. Further, the limited availability of the arable land and increasing chemical resistance among the agricultural products is augmenting the market growth of the agricultural biologicals. Usually, Synthetic chemical pesticides were used to enhance the produce of agriculture, however, the chemical resistance against the pesticide in pests is global issue leading to major loss of agricultural produces. Bayer AG announced the launch of Vanity Citrus in March, 2021 that targets citrus farm pests and does not generate resistance or any residue in the harvest or environment. This is shifting the attention of the consumers towards adoption of the biologically produces pesticides and other agricultural biologicals.
Furthermore, the surge in the adoption of the organic farming by both developed and developing regions to reduce the hazardous impact of the chemical fertilizers, pesticides and others are expected to fuel the market growth of the agricultural biologicals during the forecasted period. Increase investment and favourable support by the government is creating new market growth opportunities for the agricultural biologicals market. For instance, Kerala state inaugurated its first bio-fertilizers and organic manure quality control laboratory in Pattambi in October 2020. The laboratory would help the farmers to resolve their issues by regulating their bio-products along with understanding government policies.