|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Global Agricultural Inoculants Market is anticipated to register a CAGR of 12.4%, during the forecast period (2021-2026). In the year 2020 it has been found that COVID-19 has an impact on the whole process from the inoculants production to the consumer. COVID-19 resulted in the movement restrictions of workers, decline in demand from farmers, and closure of production facilities. With the shutdowns, the production cost increased with less availability of labor and inputs, while the crop prices received by the US producers have fallen. This limited the demand for crop protection chemicals, including bioherbicides and inoculants, in the region.
There is a rise in the demand and popularity of sustainable agriculture through organic farming. Additionally, Various government initiatives promote the adoption of inoculants to spread awareness of microbial inoculants globally. For example, FERTIBIO, an Italian Operational Group, uses microorganisms and biomaterials to develop innovative bio inoculants to cultivate food and feed crops. All these factors are anticipated to boost the market growth.
Bacterial incolunats are observed to be widely used. The popular genera used are Bradyrhizobium, Sinorhizobium, Azorhizobium, Mesorhizobium, andAllorhizobium. Majority of the bacteria-based bio-inoculants used are Rhizobium-based, which constitute a major portion of the global demand. By geography, North America dominates the market and Europe is the second-largest market for agricultural inoculants, in terms of production and consumption. However, currently, the developing countries of Asia-Pacific are the fastest-growing markets for agricultural inoculants.
The top players in the market are BASF SE, Rizobacter, Premier Tech, and Novozymes. BASF SE is found to be a dominant player in the market in 2020, followed by Rizobacter Argentina SA. These companies were involved in various mergers and acquisitions, expansion, and product innovation.
Scope of the Report
Agricultural inoculants, also known as beneficial microorganisms, can be used in agriculture as amendments for soil and plants. Various types of microorganisms are used in agriculture, as plant growth promoters, nutrient providers, and plant-protecting natural elements. Agricultural inoculants are applied to improve plant nutrition, and can also be used to promote plant growth by stimulating plant hormone production. The Global Agricultural Inoculants Market is segmented by Function (Crop Nutrition and Crop Protection), Microorganism (Bacteria, Fungi and Other Microorganisms), Mode of Application (Seed Inoculant and Soil Inoculant), Crop Type (Grains &Cereals, Pulses & Oilseeds, Commercial crops, Fruits & Vegetables, and Other applications) and Geography (North America, Europe, Asia Pacific, South America, and Africa).
|Mode of Application|
|Grains & Cereals|
|Pulses & Oilseeds|
|Fruits & Vegetables|
Key Market Trends
Popularity of Organic and Environment-friendly Farming Practices
Currently, agricultural practices are witnessing a shift in trend, from conventional to organic farming. This shift can be attributed to reasons like; growing health consciousness and concerns about environmental safety, soil health, and agricultural sustainability. Organic compost, manure, and agricultural inoculants are used in organic farming. According to the Research Institute of Organic Agriculture (FiBL), the area under organic cultivation increased from 57.8 million hectares in 2016 to 72.3 million hectares in 2019. This indicates the growing demand for organic solutions such as inoculants. This has led to increased investments in localized research, involvement of private and public sectors in the production of these inoculants, the establishment of effective regulations, and the promotion of a favorable environment for the growth of the market.Around 186 countries practice organic agriculture. This rising acreage coupled with consumer's demand for clean products is expected to influence the agricultural inoculants market.
In modern agriculture, the use of fertilizers and pesticides is found to be very high, and this is causing critical problems, such as soil pollution, microbial imbalance, reduction in soil fertility and productivity, and loss of natural biocontrol agents and beneficial organisms. Additionally, the emerging resistance in insects is driving interest in these alternatives. Therefore, agricultural inoculants play an important role in ensuring plant health, soil fertility, and agricultural sustainability.
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North America Dominates the Market
North America accounted for the largest share in the production and consumption of agricultural inoculants. North America is developing new agricultural technologies and successfully applying those in domestic farming systems. Most agricultural inoculants are used in oilseeds crops and maize. Soybean inoculation at planting is more common in the United States. In the United States, soil inoculants are registered for use by the USEPA (the United States Environment Protection Agency). The increasing cost of chemical inputs, their adverse effect on soil mass and the environment. Hence, the demand for agricultural inoculants is anticipated to rise in the future due to the faster adoption of new technologies to increase crop productivity while minimizing the negative impact on the environment.
Considering the market potential of the agricultural inoculants in the region, companies are investing to gain a stronger foothold in the market and to cater to the soaring demand. For instance, in 2017, BASF expanded its manufacturing facilities in Saskatoon for biological inoculants production. The company has invested approximately CAD 10 million (USD 8 million) in the expansion project.
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The agricultural inoculant market is fragmented. Few international players having a diverse and expanding product portfolio to occupy a higher market share which can be attributed to their highly diversified product portfolios and the large number of acquisitions and agreements that they are engaged in. The major players are also focusing on R&D activities, expansion of product portfolios, geographical expansion and aggressive acquisition strategies.
Amid the rising demand, major strategies adopted by the key players, such as Certis USA LLC, Syngenta, Bayer CropScience AG, Novozymes, and BASF SE, also contributed to the growth of the agricultural biologicals market in the country. For instance, in April 2021, Novozymes and Univar solutions expanded their partnership to the United States and Canada. The companies have decided to market next-generation biological solutions with microbial innovations.
Further, in March 2021, BASF and Ag Biome collaborated to introduce a new biological fungicide in Europe, the Middle East, and Africa. This collaboration has broadened BASF’s bio-solution portfolio.
Product launch is another major strategy adopted by the players in the market. For instance, In October 2019, Advanced Biological Marketing (ABM) launched a new Product, SabrEx, specifically for soybeans. It is a biological seed treatment that enhances nutrient efficiency and increases plant growth. Bayer, another well established company in the market launched biological soybean inoculant, CTS 500, in Brazil in 2019.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Crop Nutrition
5.1.2 Crop Protection
18.104.22.168 Other Bacteria
22.214.171.124 Other Fungi
5.2.3 Other Microorganisms
5.3 Mode of Application
5.3.1 Seed Inoculation
5.3.2 Soil Inoculation
5.4 Crop Type
5.4.1 Grains & Cereals
5.4.2 Pulses & Oilseeds
5.4.3 Commercial Crops
5.4.4 Fruits & Vegetables
5.4.5 Other Applications
5.5.1 North America
126.96.36.199 United States
188.8.131.52 Rest of North America
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 Rest of Asia-Pacific
5.5.4 South America
22.214.171.124 Rest of South America
126.96.36.199 South Africa
188.8.131.52 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Advanced Biological Marketing Inc.
6.3.2 BASF SE
6.3.3 Premier Tech
6.3.4 Lallemond Inc.
6.3.6 Mapleton Agri Biotec Pty Ltd
6.3.8 New Edge Microbials Pty Ltd
6.3.9 T.Stanes & Company Limited
6.3.10 AEA Investors (Verdesian Life Sciences LLC)
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF THE COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Global Agricultural Inoculants Market market is studied from 2016 - 2026.
What is the growth rate of Global Agricultural Inoculants Market?
The Global Agricultural Inoculants Market is growing at a CAGR of 12.4% over the next 5 years.
Which region has highest growth rate in Global Agricultural Inoculants Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Agricultural Inoculants Market?
North America holds highest share in 2020.
Who are the key players in Global Agricultural Inoculants Market?
Advanced Biological Marketing Inc., BASF SE, Novozymes, Rhizobacter, Premier Techy are the major companies operating in Global Agricultural Inoculants Market.