The global agricultural biologicals market is predicted to grow at a CAGR of 11.02% to attain a market size of US $ 19,699.792 million by the end of 2026. This market was worth US$ 9,477.038 million in the year-end of 2019. One of the prime reasons driving the growth in this market is the growing consumption of organic products among consumers for better health and longer life. Naturally occurring micro-organisms, plant extracts, beneficial insects, and many other organic materials are used in the production of agricultural biologicals, making them 100% natural and chemical-free. Furthermore, the better effect of these biologicals on insects and weed control and remover is significantly boosting the market demand. Innovation and research and development in this industry are contributing significantly to the market growth.
These biologicals are also beneficial from an environmental viewpoint, as they are chemical-free and environment-friendly, hence being widely adopted by governments and environment concerned agencies. The government of India, for instance, made it mandatory in the country for farmers to purchase a bag of bio-fertilizer along with the purchase of a bag of urea. The prime motive behind this rule is to encourage the use of biofertilizers along with raising awareness regarding their benefits and effectiveness.
Growing Consumption of Organic Food Will Boost the Market Growth. However, the Low Shelf-Life of the Product May Challenge the Market
One of the prime reasons for boosting the market for agriculture biologicals is growing organic food consumption trends. And not just food, consumers today prefer organic products such as natural skincare and hair products, and others, as they do not have any negative impact on the user. consumers today prefer a healthier lifestyle and hence are consuming organic products. growing awareness regarding human carbon impact on the world and steps ecological benefits of organic food has also led to a surge in consumption of organic products.
Further, owing to its various health benefits, such as the reduction of cancer risk by 25%, organic product consumption has increased significantly. In the United Kingdom, sales of organic food increased by 5.3% in the year 2018. Moreover, the country notes that over the span of the last 3 years, the vegetarian population grew by 52% while the vegan population grew by 104% (Source: Health Careers). In the U.S., sales of organic food grew by 5.7%, while sales of organic deli lunch meat surged by 18%. Organic pet food sales also increased in the year by 10.2% for better pet health.
One might wonder what organic food has to do with the agricultural biologicals market. the first rule of organic food production is that the crop is to grow naturally, without the usage of pesticides, fertilizers, animal by-products, or any other hazardous chemical product. The reason has been, the usage of such chemicals decreases the quality of the crop, making it less nutritious. Moreover, there are chances that these chemicals enter the final food product and contaminate it, making it unfit for consumption. Hence, to save the crop of diseases, illness, or any other threat, farmers use agricultural biologicals as an alternative.
Since these biologicals are natural, they do not contain chemicals and interfere with the product. Moreover, just like chemical products, these biologicals help in disease and insect prevention and increasing the yields. Based on source, the agricultural biologicals market is segmented into biochemical, microbial, and others. Microbials agriculture biologicals are anticipated to grow at an exponential rate during the forecasted period. This will significantly increase the market size of agriculture biologicals.
However, the market is severely constrained by the lower shelf-life of the resulting products. Chemicals additive in food and other products increases the shelf-life of the product significantly so that the consumer can use the product over a long period, without fearing spoilage. But since organic food does not involve chemicals, its lifespan is very small, especially when compared with chemical products. Moreover, organic products are much expensive than chemical products, constraining the market further. As per a survey by Health Careers, 62% of American households revealed that they would have increased their consumption of organic food if it were cheaper and more affordable. These constrain facing the organic foods hinders the market for agriculture biologicals as well. Moreover, the shorter lifespan of biologicals and lack of awareness is further limiting the market.
Rapid Urbanization and a Surge in Disposable Income Will Raise the Market for Agriculture Biologicals During the Forecasted Period
Booming population growth over time will exponentially increase the demand for food and other products. United Nations reports that the existing population growth rate will increase the size of the population to 9.8 billion by 2050, from the existing 7.8 billion (2019 estimate). Moreover, arable land is slowly decreasing with a surge in industrialization and manufacturing sectors, putting immense pressure on existing land to yield more crops. Hence, for a better chemical-free yield, farmers are expected to switch to the usage of agriculture biologicals for a better and greater crop. Furthermore, a significant surge in disposable income around the world, and especially in the Asia Pacific region, has leveled up the standard of living, increasing demand for better health products, such as organic food and products.
Soil Treatment to Hold a Noteworthy Market Share During the Forecasted Period. Foliar Spray to Grow at a Notable Rate to Attain a Dominating Position
By Application, the market is fragmented as a soil treatment, foliar spray, and seed treatment. Foliar Spray is predicted to hold dominating share in the market owing to awareness, and convenient, non-technical usage. The Soil and seed treatment fragment is forecasted to grow considerably with growing awareness and usage.
The North American Region Will Dominate the Global Agricultural Biologicals Market During the Forecasted Period and While the Asia Pacific Region Will Grow at the Fastest Pace
Geographically, the market for agricultural biologicals is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific region. The North American region is predicted to hold a dominating share owing to its agriculture sector advancement and the region’s state-of-art infrastructure. The Asia Pacific region is predicted to outstand the market and grow at a skyrocketing rate with growing awareness and adoption, especially due to encouragement by the government. The state of Kerala, for example, inaugurated the region’s first-ever bio-fertilizer and organic manure testing laboratory for resolving farmer’s byproduct issues and gaining theirs for bio-fertilizers. The Pattambi based, October 2020 inaugurated laboratory will also educate the farmers regarding government rules and regulations.