Biofertilizers 2021
Our latest Biofertilizers report has now been released, read below for more information on what the report covers or access your free sample report.
A biofertilizer is a product containing a living microorganism
which promotes growth by increasing the supply or availability of
primary nutrients to the host plant. Confusingly, biofertilizers
also sometimes go by other names such as: microbial inoculants,
soil inoculants, bioinoculants, microbial based fertilizers,
bioenhancers or phytostimulators, Plant Growth Promoting
Rhizobacteria (PGPR's), or rhizoremediators.
Biofertilizers are often times referred to and defined as a
"sub-category" of biostimulants. The most important types of
biofertilizers are N-fixing, phosphorous and potassium solubilisers
and mycorrhizae, as well as well as microbial consortia.
Frass is another growing category of biofertilizer, and an area
where a lot of product development is taking place. Frass is
excrement from the digestive system of various pests. It is a
microbial inoculant, and in particular a soil inoculant, a source
of desirable microbes that promote the formation of compost.
Therefore, one of the uses of frass can be defined as a
biofertilizer.
Biofertilizers market sizing and growth
drivers
Estimates of the global market for biofertilizers varied
considerably in the past, depending on the source. Eight different
market studies estimated that global biofertilizers market sales
varied between USD 668 million to USD 1.254 billion in 2016 and was
expected to grow up to USD 4 billion on the higher end in 2025.
However, more recent estimates are showing less spread and tend to
look more like a consensus is closer to being established. The
general consensus is now that the biofertilizers market is expected
to grow with a CAGR of between 10 % and 12 % from 2019 to
2027.
The reasons for the increasing interest in the biofertilizers
sector are numerous. Environmental concerns about protecting soil
fertility and minimizing adverse effects on the environment,
coupled with growing consumers demand for better quality residue
free food, influence the rise of demand for biofertilizers.
Additionally, scientific advances leading to the development of
more-effective products, and new companies entering, influences the
market. Finally, the recent legislative developments are boosting
grower confidence in products.
While the biofertilizers market is expected to grow, some factors
are impacting sales. The poor reputation of biofertilizers still
lingers, and convincing evidence is sometimes lacking. As the
sector is comparatively new, many growers and advisers lack
knowledge. In addition, fluctuating commodity prices mean that when
prices are low, growers may be less keen to invest in a new input.
Additionally, lower versatility, restricted shelf life and high
production costs of biofertilizers, and the need to change existing
processes on the farm to integrate biofertilizers application can
hinder the further development of the market.
Regional differences
There are regional differences in biofertilizers adoption rates,
which are caused by local regulation and government initiatives to
establish more sustainable farming practices, rate of awareness of
biofertilizer technology, access to quality biofertilizer products
and use of traditional agricultural methods in the current farming
system. North America was the largest market in 2019, accounting
for 32.6% of global biofertilizer sales. Growth of the
biofertilizers market in the region is driven by Canada and the
U.S.
Europe is the second-largest consumer of biofertilizers and held a
30% share of the global biofertilizer market in 2019. Growing
preference towards organic food coupled with rising awareness
regarding hazards associated with chemical fertilizers and
atmospheric pollution has resulted in high consumption of
biofertilizers in this region. Together North America and Europe
accounted for over 50% of the global biofertilizer products
revenue. A favourable regulatory scenario, especially in North
America and Europe is expected to be a key driving factor for
demand growth over the next few years.
Asia Pacific was the third larger consumer of biofertilizers and
accounted for over 15% of global revenue share in 2019. The
application of biofertilizers in India is growing significantly
with many regional producers catering to very small farmers. The
government has initiated and subsidizes several programmes,
especially those dealing with organic agriculture. The Chinese
government encourages the use of biofertilizers and admits the need
to improve technology, quality and product marketing.
Africa is still developing the inoculant market but is hampered by
lack of farmer knowledge, poor logistics and distribution.
In terms of the global sales by product segments, there is a
consensus that nitrogen-fixing bacteria NFB (Rhizobium,
Azotobacter, Azospirillum, Acetobacter) represent around 75-80% of
revenue globally. Phosphate-solubilizing microorganisms PSM
represent 15% of global sales, whereas Potassium-solubilizing
microorganisms KSM represent 5-7%.
Research and Development
It takes only around two to five years to bring a new biofertilizer
product to market. For products which efficiency depends on many
factors, many field trials may be necessary. Companies selling
biofertilizers have often been too small to fund this level of
research. In addition, the historical lack of legislation has meant
that many biofertilizers were able to be sold without the backing
of scientific data.
In recent years, a more scientific approach to developing
biofertilizers has evolved. This has raised the possibility of
creating patentable elements, thus making the sector more
attractive to investors. R&D is indispensable for bringing more
products onto the market and improving efficiency. Areas being
studied include: biofertilizer use in non-legume crops, better
Bradyrhizobium strains, application of mycorrhiza, co-inoculation
and pre-inoculated seeds, and microbiome research. Through
microbiome research scientists are today trying to understand the
benefits of fungal, bacterial, and eukaryotic symbionts.
The biostimulants and biofertilizers sector, with its potential for
growth and innovation, has encouraged venture capitalists to
invest. This inflow of money has allowed start-ups to attract
scientific talent from existing successful agribusinesses and
academic institutions. Notable startup companies include Indigo
Agriculture, Concentric, NewLeaf Symbiotic and Pivot Bio.
Formulations and Applications
Correct formulation of biofertilizers is important to ensure an
effective product that is easy to use. Laboratory isolation and
screening based on plant growth-promoting traits of new microbial
strains are followed by in vitro, greenhouse and/or field
experiments, including a range of crops to evaluate the microbial
effectiveness and persistence in the soil. This is necessary
because even if interesting laboratory evidence is obtained, this
does not always result in plant growth promotion under field
conditions.
The biofertilizer formulations can be liquid, freeze-dried powder
and carrier-based formulations. Different formulations have their
advantages and disadvantages. Carrier based formulations are
cheaper and easier to produce, while they are contamination prone
and have a limited shelf life. Liquid formulations have longer
shelf life - 2 to 3 years, are more effective and contamination
free, but cost more. In terms of value, the liquid biofertilizers
segment was estimated to dominate the global market in 2020.
Quality of biofertilizers has to be controlled at various stages of
production: during mother culture stage, carrier selection, broth
culture stage, mixing of broth and culture, packing and storage.
The following factors - Edaphic, Climate and Biotic, can influence
the efficacy of the biofertilizers application. The assurance of
efficacy for a biofertilizer in a particular soil with a specific
variety of crop is thus a complex task.
Company profiles and product lines
The inoculant market in Europe and the Americas is dominated by the
large multinational companies, Novozymes and BASF, although smaller
multinationals are active and there are many regional
companies.
In the Indian subcontinent and China there are many small and
medium local companies whereas Africa has relatively few active
companies. Details on the contents of the products sold in these
countries are often limited or unavailable.
About the Author
Marina Altman is a business intelligence specialist and writer. She
graduated from ETH Zürich with a Master's Degree in Management,
Technology and Economics and wrote her Master Thesis on the "Future
potential of grain production in Russia". She worked for several
years at Syngenta's Business Intelligence Department and later as a
freelance author of agricultural reports and competitive analysis.
Marina is also the author of Crop Science Biostimulants 2020.
Please contact alan.bullion@ihsmarkit.com for any further
information on the new Crop Science Biofertilizers 2021 report.
This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.