Sep. 5, 2019
The biofertilizers market is projected to reach USD 3.8 billion by 2025, from USD 2.0 billion in 2019, recording a CAGR of 11.2%. Rising awareness about the hazards of chemical fertilizers among consumers, soil degradation, nitrate emissions, along with government initiatives, is projected to witness significant growth during the forecast period.
The nitrogen-fixing biofertilizers segment is estimated to dominate the biofertilizers market due to the increasing acceptance and high efficiency to fix atmospheric nitrogen.
The usage of fertilizers is high due to the growing food demand and increasing crop production. Nitrogen fertilizers are among the highly used by the farming community. Thus, there is a considerable demand for nitrogen-fixing biofertilizers, which can be either used through carrier-based powder form or else in liquid formulations in farming. Biological nitrogen fixation is one of the ways of converting elemental nitrogen into a usable form for the plants. Moreover, awareness of water pollution and nitrate emissions is driving the need for alternative sustainable sources such as nitrogen-fixing biofertilizers.
The growing area under cultivation of fruits & vegetables and the increasing adoption of biofertilizers to increase quality and shelf life provides tremendous growth opportunities.
There is an increasing trend towards cultivation and demand for fruits & vegetables due to the increase in per capita income, and rising consumption of fruits & vegetables due to increasing health awareness. The application of biofertilizers is also high, particularly for fruits & vegetable due to high returns on investment as consumers are willing to pay more for organic chemical-free products. Thus, with the increase in production of fruits vegetable segment, the application of biofertilizers is also expected to increase.
With the increasing demand for organic food products, North America is estimated to dominate the biofertilizers market in 2019
Changing lifestyle and increasing buying power among consumers has increased the demand for biofertilizers. High adoption of advanced irrigation systems such as drip & sprinkler irrigation and widespread acceptance of biofertilizers among the farmers is further propelling the market growth. The farmers in this region are highly skilled in terms of knowledge and machinery. Due to the rampant use of chemical fertilizers, the fertility of the soil is declining. To maintain soil fertility as well as the yield of crops, farmers are sustainably opting for biofertilizers.