Agricultural Biologicals Market - Forecast(2024 - 2030)

Overview

The Agricultural Biologicals Market size is forecast to reach USD 23.3 billion by 2030, after growing at a CAGR of 12.2% during the forecast period 2024-2030.  There's a growing emphasis on sustainability and eco-friendliness, with consumers and regulators alike pushing for more environmentally responsible agricultural practices. This has led to increased demand for biologicals as alternatives to synthetic chemicals, driven by their ability to enhance soil health, reduce chemical residues, and minimize environmental impact. Technological advancements are revolutionizing the sector, with innovations such as biotechnology, genetic engineering, and microbial formulations leading to the development of more effective and specialized agricultural biological products. These advancements are improving product efficacy, enabling targeted pest and disease management, and enhancing crop productivity.

Moreover, there's a notable shift towards integrated pest management (IPM) strategies, wherein biologicals play a pivotal role alongside conventional methods, promoting a holistic approach to crop protection and sustainability. Additionally, as consumer preferences lean towards organic and non-GMO foods, there's an increasing demand for biological inputs in organic farming practices, driving the adoption of agricultural biologicals. Furthermore, collaborations and partnerships between key industry players and research institutions are promoting innovation and driving the development of new biological solutions to address evolving agricultural challenges. These trends collectively underscore the growing significance and potential of agricultural biologicals in modern farming practices, as stakeholders strive towards more sustainable, efficient, and environmentally conscious agriculture.

Market Snapshot:

Report Coverage

The report “Agricultural Biologicals Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Agricultural Biologicals Market.
By Type: Biopesticides, Biostimulants and Biofertilizers
By Source: Microbials, Macrobials, Biochemicals and Others 
By Mode of Application: Foliar Sprays, Soil Treatment and Seed Treatment
By Application: Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables, Turf and Ornamentals and Others
By End User: Government Agencies, Biological Product Manufacturers, Pharmaceutical, Fragrance and Others
By Geography:  North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands and Others), APAC (China, Japan India, South Korea, Australia & New Zealand, Indonesia, Malaysia, Taiwan and Others), South America (Brazil, Argentina, Chile, Colombia and others), and RoW (Middle East and Africa).

Key Takeaways

• North America held the largest market share with 36% in 2023. The North America region is witnessing an increase owing to the adoption of biotechnology and genetically modified organisms (GMOs) is driving innovation in agricultural biologicals. Researchers are leveraging biotechnology to enhance the effectiveness and specificity of biological agents, leading to more targeted and efficient crop protection solutions.
• With increasing consumer demand for organic products, there's a growing trend towards adopting agricultural biologicals to support sustainable and eco-friendly farming practices. This shift reflects a broader societal emphasis on health, environmental stewardship, and sustainable agriculture. 
• In March 2023, Corteva, Inc. solidifies its global leadership in the expanding biologicals market by finalizing the acquisitions of Symborg and Stoller, enhancing its portfolio and expertise in sustainable agricultural solutions. The acquisitions reflect Corteva's dedication to empowering farmers with environmentally friendly tools and innovative technologies to boost productivity and address evolving farming needs. 

  By Type - Segment Analysis

Biopesticides dominated the Agricultural Biologicals Market in 2023. There's an increasing demand for sustainable agricultural practices due to environmental concerns and regulatory pressures. Biopesticides offer an eco-friendly alternative to chemical pesticides, ranging with the growing trend towards organic farming and integrated pest management (IPM) practices. In January 2023, Valent BioSciences LLC acquired FBSciences Holdings, Inc., enhancing its portfolio with sustainable agricultural solutions, including biostimulants and biopesticides, consolidating its position as a global leader in biorational products. The acquisition sets with Sumitomo Chemical's commitment to carbon neutrality by 2050, driving sustainable agricultural practices and innovation. Advancements in biotechnology and microbiology have led to the development of more effective and targeted biopesticides, enhancing their adoption among farmers seeking safe and efficient pest control solutions. Additionally, the growing awareness among consumers about food safety and environmental sustainability drives the demand for biopesticide-treated crops, further boosting the market for agricultural biologicals. According to recent data from "The World of Organic Agriculture," the global organic farming area expanded by 20 million hectares in 2022, totaling 96 million hectares. Additionally, the number of organic producers surpassed 4.5 million, while organic food sales nearly reached $142.1 billion. Moreover, the rise in organic farming and the increasing prevalence of pesticide-resistant pests fuel the need for biopesticides as part of a sustainable and integrated pest management approach in agriculture.

By Application - Segment Analysis

Foliar spray segment dominated the Agricultural Biologicals Market in 2023. The increasing demand for sustainable agricultural practices and environmentally friendly solutions is propelling the adoption of foliar sprays. Farmers are seeking alternatives to synthetic chemicals that minimize environmental impact while maintaining or enhancing crop yields. The efficacy and versatility of foliar sprays make them an attractive choice for pest and disease management, as they can be applied directly to the foliage, providing quick and targeted action. In December 2023, Corteva Agriscience launched SpadinTM 11.7% SC, a novel foliar spray insecticide with sulfoximines, offering immediate aphid control and extended residual efficacy, promoting crop health and yield preservation. SpadinTM positions with Corteva's dedication to sustainable agriculture, boasting minimal environmental impact and broad application potential across various crops. Additionally, advancements in formulation technologies have led to the development of bio-based foliar sprays with improved stability, efficacy, and shelf life, further driving their adoption. Moreover, the rising consumer demand for residue-free produce and organic foods has spurred the use of foliar sprays in organic farming practices, contributing to the segment's growth.

By Geography - Segment Analysis

The North America Agricultural Biologicals Market is projected to experience significant growth during the forecast period. The North America Agricultural Biologicals market is supported by increasing consumer demand for organic and sustainable agricultural products promotes the adoption of biologicals as alternatives to synthetic chemicals. This shift is driven by heightened awareness of environmental sustainability and health concerns, prompting farmers to seek environmentally friendly solutions. The stringent regulations on chemical pesticide usage and residue levels in food products by regulatory bodies such as the Environmental Protection Agency (EPA) and the Food and Drug Administration (FDA) drive the demand for biological alternatives. In June 2022, FMC Corporation has finalized an agreement to acquire BioPhero ApS, a Danish pheromone research and production company, enhancing FMC's crop protection solutions with innovative pheromone insect control technology. The acquisition, valued at approximately $200 million, underscores FMC's commitment to investing in sustainable agriculture and expanding its portfolio through strategic acquisitions. Additionally, technological advancements and innovations in biological formulations improve product efficacy and safety, making them increasingly attractive to farmers. Moreover, collaborations between key industry players and research institutions promote innovation and the development of new biological solutions tailored to the specific needs of North American agriculture, further driving market growth.

Drivers – Agricultural Biologicals Market

Increasing demand for sustainable agricultural practices

IPM is gaining traction due to its sustainable approach, which integrates biological, cultural, physical, and chemical control methods to manage pests effectively while minimizing environmental impact and promoting economic viability. Farmers are increasingly recognizing the long-term benefits of IPM, such as reduced reliance on synthetic pesticides, enhanced soil health, and preservation of beneficial insects. Additionally, IPM sets with consumer demand for safer, residue-free agricultural products, driving farmers to explore biological alternatives that complement IPM strategies. Furthermore, government initiatives promoting sustainable farming practices and offering incentives for IPM adoption contribute to its growing popularity among growers. Agricultural biologicals, including biopesticides and beneficial microbes, play a crucial role in IPM programs by providing targeted pest control solutions that are compatible with IPM principles. As the agricultural industry continues to prioritize sustainability and environmental stewardship, the adoption of IPM practices is expected to further drive the demand for agricultural biologicals, positioning them as integral components of modern pest management strategies.

Growing global population driving the demand for food production 

According to the United Nations data cited by Worldometer, the global population stands at 8.10 billion as of April 29, 2024. It reached 8 billion on November 15, 2022, and is projected to reach 9 billion by 2037 and 10 billion by 2058. As the world population continues to increase, there is a corresponding rise in the demand for food to sustain this growing population. This demand places pressure on agricultural systems to increase productivity while maintaining sustainability and minimizing environmental impact. Agricultural biologicals offer a promising solution to meet this demand by providing effective alternatives to traditional chemical-based methods. These products enhance crop yields, improve soil health, and contribute to sustainable farming practices. With the need to produce more food on limited arable land, agricultural biologicals play a crucial role in optimizing agricultural productivity while minimizing adverse effects on the environment. Additionally, the growing awareness of the environmental and health risks associated with chemical pesticides and fertilizers further drives the adoption of agricultural biologicals as safer and more sustainable alternatives. Overall, the increasing global population underscores the importance of innovative agricultural solutions like biologicals to ensure food security and sustainability for future generations.

Challenges – Agricultural Biologicals Market  

High costs associated with research, development, and commercialization of agricultural biologicals

High costs associated with research, development, and commercialization pose significant hurdles in the agricultural biologicals market. The intricate process of discovering, refining, and bringing innovative biological solutions to market demands substantial financial investments. Research involves extensive scientific studies to understand the biological mechanisms of control agents, optimize formulations for efficacy and safety, and ensure compliance with regulatory standards. Development entails rigorous testing across various environmental conditions and crop types to validate product performance and stability. Additionally, commercialization requires substantial resources for manufacturing, distribution, and marketing activities to reach farmers effectively. These costs can be prohibitive for smaller companies or startups, limiting their ability to compete and innovate in the market. Furthermore, the long timelines associated with research and development amplify financial risks, as success is not guaranteed and outcomes often depend on factors beyond control, such as regulatory approvals and market acceptance. Overcoming these cost challenges requires strategic planning, efficient resource allocation, and collaboration among industry stakeholders to drive innovation while ensuring economic viability in the agricultural biologicals sector.

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Agricultural Biologicals Market. in 2023, The major players in the Agricultural Biologicals Market are Bayer AG, Syngenta Crop Protection AG, Arysta LifeScience Corporation., Biolchim SPA, Certis USA L.L.C., Koppert, Monsanto Company, Valent U.S.A. LLC, Agrinos Inc., Corteva and Others.

Developments:

• In September 2023, Biobest Group N.V., along with Aqua Capital, GIC, and the management of Biotrop, has signed an agreement for Biobest to acquire 85% of Biotrop Participações s.a, a leading player in Brazil's biologicals market, with Biobest financing the acquisition through a capital increase involving existing and new shareholders. This strategic move allows Biobest to expand its presence in South America and transition from a horticulture biocontrol specialist to a major player in agricultural biologicals, covering biocontrol, inoculants, biostimulants, and pollination in both covered and open-field crops.
• In September 2023, Bayer and Kimitec formed a strategic partnership to accelerate the development and commercialization of biological crop protection and biostimulant solutions globally. Leveraging Bayer's expertise and Kimitec's innovation hub, the collaboration aims to deliver sustainable agricultural solutions to meet the growing demand for residue-free food products.
• In October 2022, Bayer has finalized its partnership with Ginkgo Bioworks, divesting its West Sacramento Biologics Research & Development site. This collaboration aims to accelerate the development of agricultural biological products, with Bayer becoming Ginkgo Bioworks' primary partner in the expanded agricultural biologicals platform, focusing on crop protection and sustainable agriculture innovations.