Agricultural Microbials Market - By Type (Bacteria, Fungi, Viruses, Protozoa), By Function (Soil Amendments, Crop Protection), By Formulation (Dry Formulation, Liquid Formulation), By Mode of Application, By Crop Type & Forecast, 2024-2032

Agricultural Microbials Market Size

Agricultural Microbials Market size achieved USD 7.34 billion in 2023 and will grow at 14.7% CAGR from 2024 to 2032, driven by the rising demand for sustainable agricultural practices and the imperative to boost crop productivity, microorganisms—ranging from bacteria and fungi to viruses and protozoa—are harnessed to bolster soil health, foster plant growth, and shield crops from pests and diseases.
 

The agricultural microbials industry is witnessing notable trends. Firstly, there's a pronounced shift towards sustainable and organic farming practices. Heightened awareness, both among farmers and consumers, of the adverse environmental effects of chemical pesticides and fertilizers is propelling a pivot towards bio-based alternatives. This transition is reinforced by stringent regulatory measures, particularly in regions like Europe and North America, that actively endorse organic farming. According to a report by the Organic Trade Association, organic food sales in the US reached USD 62 billion in 2023, reflecting a 12% increase from the previous year.
 

Secondly, there's a marked uptick in R&D efforts. Companies are channeling significant investments into R&D endeavors, aiming to craft innovative microbial strains and formulations tailored to address specific crops and climatic conditions. Notably, advancements in biotechnology and genomics are pivotal in driving these innovations.
 

According to the United States Department of Agriculture (USDA), the adoption of sustainable practices in agriculture has increased by 15% over the past five years. Additionally, the Food and Agriculture Organization (FAO) reports that fair trade-certified products have seen a 20% rise in market share globally.
 

Furthermore, companies are increasingly prioritizing research and development (R&D) to enhance the effectiveness of microbial products. This strategic focus is driving significant investments in creating new microbial strains and formulations designed for specific crops and environmental conditions. Notably, advancements in biotechnology and genomics are critical in facilitating these innovations.
 

Moreover, the integration of agricultural microbials with digital farming technologies is gaining momentum. Precision agriculture tools, such as drones, sensors, and data analytics, are now being utilized to optimize the application of microbial products. This approach ensures their efficient use and maximizes their benefits. This trend is particularly evident in regions with advanced agricultural infrastructures.
 

Agricultural Microbials Market Trends

The agricultural microbials industry is witnessing several trends that are set to shape its future. One significant trend is the surging adoption of bio-stimulants. These products, encompassing microbials, not only boost plant growth and stress tolerance but are also increasingly favored by farmers aiming to fortify their crops against the backdrop of climate change and erratic weather patterns.
 

Moreover, the market is expanding notably in developing regions, with Asia-Pacific and Latin America at the forefront. These areas are experiencing swift agricultural advancements, primarily driven by the imperative to secure food supplies for their burgeoning populations. To bolster productivity and curtail reliance on chemical inputs, governments and international bodies are actively endorsing sustainable agricultural practices, including the use of microbials.
 

Additionally, the ascent of biopesticides is catching the industry's attention. With regulations on chemical pesticides growing stringent, biopesticides, harnessed from microorganisms, are emerging as a favored substitute. These biopesticides promise precise pest management while keeping environmental repercussions to a minimum, aligning well with the global momentum towards sustainable farming practices.
 

Agricultural Microbials Market Analysis

Bacteria segment held USD 3.1 billion in 2023 and it is anticipated to expand at a 15.4% of CAGR during 2024-2032. The bacteria segment is a key driver in the market, fueled by the growing focus on sustainable farming practices. Nitrogen-fixing bacteria are increasingly popular for their ability to naturally enhance soil nitrogen levels, thereby reducing the dependence on synthetic fertilizers. Phosphate-solubilizing bacteria are in high demand due to their effectiveness in making phosphorus available to plants, which improves root development and boosts crop yields. Potash-mobilizing bacteria are crucial for increasing potassium availability, an essential nutrient for plant growth. The "others" category includes various beneficial bacteria that contribute to overall soil health and plant resilience.
 

The cereals & grains segment was valued at USD 2.61 billion in 2023 and garner a 15.7% CAGR from 2024 to 2032. The need for sustainable agricultural practices, which enhance soil health and crop yields, is driving the adoption of agricultural microbials in key cereals and grains such as corn, wheat, rice, and barley. These crops are essential for global food security, and the increasing demand for organic produce, along with a shift away from synthetic chemicals, is a significant factor. Microbial applications improve nutrient uptake, disease resistance, and overall crop resilience, leading to increased productivity and profitability for farmers. For example, nitrogen-fixing bacteria are widely used to naturally increase soil nitrogen levels, which is critical for cereal crop growth. Additionally, biostimulants and biofertilizers are used to enhance root development and plant vigor, addressing issues related to soil depletion and climate variability.
 

Soil amendments are expected to hold USD 14.89 billion by 2032 and are anticipated to expand at a 14.9% CAGR during the 2024-2032. Biofertilizers are a rapidly growing segment within the agricultural microbials market. They play a crucial role in enhancing nutrient availability and improving soil health, which are essential for sustainable farming practices. Biofertilizers, such as nitrogen-fixing bacteria, phosphate-solubilizing bacteria, and mycorrhizal fungi, naturally replenish essential soil nutrients, reducing the need for chemical fertilizers. This growth is driven by increasing awareness of the negative impacts of synthetic fertilizers on soil health and the environment. Farmers are adopting biofertilizers to improve crop yields and soil structure, ensuring long-term agricultural productivity.
 

Foliar spray was valued at USD 2.61 billion in 2023 and is expected to grow at a significant CAGR during the forecast period. Foliar spray has become a preferred method for applying agricultural microbials due to its direct and efficient delivery system. This technique involves spraying a fine mist of microbial solutions directly onto plant leaves. By applying microbials to the foliage, farmers can ensure rapid absorption of nutrients and protective agents through the stomata (pores) of the leaves, leading to immediate and noticeable benefits.
 

The dry formulation segment holds USD 4.07 billion in 2023. In the agricultural microbials market, dry formulations, such as granules and powders, are highly valued for their operational efficiency, extended shelf life, and cost-effectiveness. Granules are preferred for their uniform application and controlled release properties, ensuring a consistent supply of essential nutrients or microbial agents. This is critical for soil treatments, where maintaining soil health and fertility is essential. Additionally, the ease of broadcasting or direct soil application makes granules an ideal choice for large-scale farming operations.
 

North America region hold USD 2.55 billion in 2023 and expected to grow at a 15.9% CAGR till 2032. North American agricultural microbials market is witnessing robust growth, driven by advanced agricultural techniques, a heightened focus on sustainable farming, and favorable regulations. The U.S. and Canada, as key agricultural players, are leading the adoption of microbial solutions to enhance crop yields and soil quality. With a growing demand for organic and non-GMO products, farmers in the region are increasingly opting for eco-friendly alternatives to traditional chemicals. This shift is further supported by rising consumer concerns about food safety and environmental impact, resulting in a significant increase in the use of biofertilizers, biostimulants, and biopesticides.
 

Agricultural Microbials Market Share

The market is featuring multinational corporations, regional players, and startups. Key players are expanding their product portfolios, enhancing R&D capabilities, and forming strategic partnerships to strengthen their market position. Innovation through R&D is a primary competitive strategy. Companies are investing significantly in research to develop new and effective microbial strains and formulations. They are also working on improving the shelf life and stability of microbial products to make them more commercially viable.
 

Geographic expansion is another key strategy. Companies are entering emerging markets in Asia-Pacific, Latin America, and Africa to meet the growing demand for sustainable agricultural solutions. Establishing a strong distribution network and local partnerships is crucial for success in these regions.
 

Mergers and acquisitions (M&A) are also common in the industry. Large agrochemical companies are acquiring smaller microbial firms to expand their product offerings and leverage their technological expertise. These acquisitions help companies accelerate market entry and gain a competitive advantage.
 

Agricultural Microbials Market Companies

Top companies operating in the agricultural microbials industry include:

• Andermatt Group AG
• BASF SE
• Certis USA L.L.C
• FMC Corporation
• Koppert 
• Novozymes A/S
• Sumitomo Chemical Co., Ltd
• Varsha Bioscience and Technology India Pvt Ltd
• PI Industries Ltd
• Indian Farmers Fertilizer Cooperative Limited
   

Agricultural Microbials Industry News

• In October 2023, BASF SE allocated a substantial investment in the double-digit millions of euros to establish a new fermentation plant at its Ludwigshafen site. This facility will produce biological and biotechnology-based crop protection products, including fungicides and seed treatments, aimed at delivering enhanced value to farmers. Additionally, BASF plans to use this plant to manufacture the primary component of Inscalis, a cutting-edge insecticide derived from a fungal strain. The plant is scheduled to begin operations in the second half of 2025.

The agricultural microbials market research report includes in-depth coverage of the industry, with estimates and forecasts in terms of revenue and volume (USD Million) (Tons) from 2024 to 2032, for the following segments:

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Market, By Type

• Bacteria       
  • Nitrogen-fixing Bacteria
  • Phosphate-solubilizing Bacteria
  • Potash-mobilizing Bacteria
  • Others
• Fungi 
  • Mycorrhizal Fungi
  • Trichoderma
  • Others
• Viruses         
• Protozoa       

Market, By Function

• Soil Amendments    
  • Biofertilizers
  • Biostimulants
• Crop Protection       
  • Bioinsecticides
  • Biofungicides
  • Bionematicides
  • Bioherbicides

Market, By Formulation

• Dry Formulation      
  • Granules
  • Powder
• Liquid Formulation   
  • Suspension Concentrates
  • Emulsifiable Concentrates
  • Others

Market, By Mode of Application

• Foliar Spray
• Soil Treatment
• Seed Treatment
• Post-harvest

Market, By Crop Type

• Cereals & Grains      
  • Corn
  • Wheat
  • Rice
  • Barley
  • Others
• Fruits & Vegetables  
  • Apples
  • Berries
  • Citrus Fruits
  • Tomatoes
  • Potatoes
  • Others
• Oilseeds & Pulses    
  • Soybean
  • Canola
  • Sunflower
  • Others
• Other Crops  
  • Turf & Ornamentals
  • Forage Crops
  • Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA