The market, estimated at USD 668.47 million in 2016, is expected to grow to USD 1.39 billion by 2022, witnessing a CAGR of 13.3% over the forecast period. The market is highly fragmented, with many small and large players present across different geographical regions.
Biofertilizers are a renewable source of plant nutrients, which supplement chemical fertilizers. These are selected strains of beneficial soil microorganisms that are used either for seed treatment or soil application. Investment in R&D, to introduce effective strains, is the most sought after strategy by major players. The key players in the market are also focused on new product launches to cater to wider consumer base and expand the market share in local markets.
The tremendous growth of the market is backed by an increasing demand for organic food around the world, which is further backed by the increasing per-capita income and improved standard of living. Also, the increasing environmental concerns for negative impacts of chemical fertilizers and growing support from governments to manufacturers are also acting as major drivers for the market. However, low product efficacy under unfavorable conditions, high-demand and easy regulatory structure for synthetic fertilizers, and less awareness among farmers about the application and benefits are few of the key constraints for the market. The market potential of biofertilizers is very strong with R&D for improving the shelf life of the products and increasing the reliability, stability and target specificity of the product. These factors are defining the biofertilizers market size which is growing all across the globe. Companies have the opportunity to penetrate the untapped markets of Asia-Pacific (especially, China and India) and South America.
By microorganisms, the market is segmented into rhizobium, azotobacter, azospirillum, blue-green algae, phosphate solubilizing bacteria, mycorrhiza, etc., and by crop type, the into cereals, legumes, fruits and vegetables, plantations, etc.
The Asia-Pacific market is likely to witness a CAGR of 16%, which is the highest growth rate, globally; followed by South America. By microorganisms, Azotobacter is one of the popular nitrogen-fixing bacteria that accounts for more than 20% of the market. It is also one of the fastest growing market segments, with a CAGR of 15%. By crop type, the fruits & vegetable segment is growing at a higher CAGR followed by cereals.
Major Companies in the Sector Include:
Recent Industry Insights
Kiwa Bio-Tech Products Group Corporation signed a strategic cooperation agreement with CCOOP Group Co. Ltd., in February 2016.
Key Deliverables in the Study
The report holds importance for the following stakeholders-
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