Agricultural Biologicals Market Size, Share, Industry, Forecast and outlook (2024-2031)

Agricultural Biologicals Market is segmented By Type (Biopesticides, Biofertilizers, and Biostimulants), By Source (Microbials and Biochemicals), By Mode of Application (Foliar Spray, Soil Treatment, and Seed Treatment), By Application (Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Agricultural Biologicals Market Size

The Global Agricultural Biologicals Market reached USD 13.6 billion in 2023 and is expected to reach USD 39.3 billion by 2031 and is expected to grow with a CAGR of 14.2% during the forecast period 2024-2031. Agricultural biologicals generally have lower environmental impacts compared to conventional pesticides and fertilizers.

Agricultural biologicals, also known as biopesticides or biofertilizers, are a category of products used in agriculture that are derived from living organisms, including plants, microorganisms, and beneficial insects. These biologicals offer an alternative or complementary approach to conventional chemical-based pesticides and fertilizers. For instance, Bayer, a leading agricultural innovations company provides a collection of more than 1,25,000 microbial strains that allows them to use genetic diversity to develop new and beneficial products for farmers globally. 

They often have reduced toxicity and a shorter persistence in the environment, leading to less pollution and lower risks to non-target organisms. Increased consumer demand for pesticide residue-free produce and sustainable agricultural practices has led to a rise in the adoption of biopesticides. For instance, according to World Health Organization, there are more than 1000 pesticides used around the world to ensure food is not damaged or destroyed by pests. Each pesticide has different properties and toxicological effects.

Agricultural Biologicals Market Summary

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Agricultural Biologicals Market Dynamics

Increasing Demand for Eco-Friendly and Organic Products are Expected to Drive the Market Growth

There is a growing awareness among consumers about the environmental and health impacts of conventional agricultural practices. Consumers are increasingly seeking eco-friendly and organic products that are produced using sustainable methods and have minimal pesticide residues. This shift in consumer preferences is driving the demand for agricultural biologicals.

The global organic food market has been expanding steadily over the years. According to the International Federation of Organic Agriculture Movements (IFOAM), the global organic market reached approximately $105 billion in 2020. This growth indicates a rising demand for organic products, which often rely on agricultural biologicals for pest management and nutrient supplementation.

Risk Levels of Synthetic Chemicals in Agriculture to Accelerate Market Growth

Synthetic chemicals used in agriculture, such as chemical pesticides and fertilizers, can have adverse effects on the environment. They can contaminate water sources, harm non-target organisms including beneficial insects and pollinators, and contribute to soil degradation and pollution. Increasing environmental concerns have led to a demand for safer and more sustainable alternatives, driving the adoption of agricultural biologicals.

The use of synthetic chemicals in agriculture has raised concerns about potential risks to human health. Prolonged exposure to chemical pesticides can have harmful effects on farmworkers, nearby communities, and consumers through pesticide residues in food. These concerns have led to a preference for eco-friendly and organic products, driving the demand for agricultural biologicals.

The Lack of Clearly Defined Regulatory Standards for Biologicals will Impede Industry Expansion

Agricultural biologicals often face challenges due to the lack of consistent and well-defined regulatory frameworks across different regions. Varying regulatory requirements and interpretations can create uncertainty for manufacturers, making it difficult to navigate the registration and approval processes for agricultural biologicals.

The lack of clearly defined regulatory standards can increase compliance costs for manufacturers. Without clear guidelines, companies may need to invest additional resources in conducting extensive testing and documentation to meet the varying regulatory expectations. This can hinder market access for smaller companies or limit innovation due to financial constraints.

Agricultural Biologicals Market Segmentation Analysis

The global agricultural biological market is segmented based on type, source, mode of application, application, and region.

Fruits and Vegetables Dominate the Market Owing to Increasing Demand for Organic Fruits and Vegetables

Fruits and vegetables are essential components of a healthy diet, and there is a growing consumer demand for high-quality, safe, and sustainably produced produce. This demand has led to increased adoption of agricultural biologicals in the cultivation of fruits and vegetables. Fruits and vegetables are often considered high-value crops due to their perishability, market demand, and higher profitability compared to staple crops. Farmers and growers of fruits and vegetables are more likely to invest in agricultural biologicals to protect their valuable produce from pests, and diseases, and to enhance their quality.

Consumers are increasingly concerned about pesticide residues in their food. As fruits and vegetables are often consumed raw or with minimal processing, there is a higher preference for residue-free or reduced-residue produce. For instance, according to Statista, in 2020, fruits and vegetables had the highest application of agricultural biologicals compared to other applications. This is expected to continue into 2027, staying constant at about a 34% market share. Agricultural biologicals, such as biopesticides, offer an alternative to conventional chemical pesticides, aligning with this consumer preference.

Agricultural Biologicals Market Geographical Share

The North America Region Held the Largest Share of the Agricultural Biologicals Market

North America has been at the forefront of technological advancements in agriculture, including the development and adoption of agricultural biologicals. The region has a strong research and development infrastructure, fostering innovation and the commercialization of new agricultural biological products. 

North America has witnessed a growing trend towards sustainable agriculture practices, including the use of agricultural biologicals. This shift is driven by factors such as environmental concerns, consumer demand for organic and environmentally friendly products, and regulatory incentives supporting sustainable farming practices.

Agricultural Biologicals Market Companies

The major global players in the market include Monsanto Company, BASF SE, Arysta LifeScience Limited, Bayer AG, Valagro SpA, Syngenta AG, Koppert B.V., Certis USA, Agrinos AS, and DowDuPont Inc.

COVID-19 Impact on Agricultural Biologicals Market

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis

Covid-19 Impact

The COVID-19 pandemic has resulted in disruptions in global supply chains, including the availability and transportation of agricultural inputs. Restrictions on international trade, lockdown measures, and reduced workforce have affected the production and distribution of agricultural biologicals, potentially causing delays and shortages in the market. Many governments have implemented stimulus packages and support measures to mitigate the economic impact of the pandemic. These measures may include financial support and incentives for sustainable and organic farming practices, including the use of agricultural biologicals. Such support can contribute to the growth and adoption of agricultural biologicals in the market.

Key Developments

• In July 2022, Ginkgo Bioworks, the leading horizontal platform for cell programming, announced the signing of a definitive agreement for the previously announced transaction with Bayer to expand Ginkgo's platform capabilities in agricultural biologicals.
• In September 2022, Corteva, Inc., and Symborg announced that Corteva has signed a definitive agreement to acquire Symborg, an expert in microbiological technologies based in Murcia, Spain. Respected throughout the biologicals industry, Symborg possesses a diversified existing portfolio, an emerging biocontrol pipeline, and a skilled employee base with robust technical knowledge and demand generation expertise.
• In December 2021, a super acquisition occurred in the global agrochemical industry when Albaugh Group, a U.S. generic agrochemical company, acquired Rotam, an agrochemical company headquartered in Hong Kong, China. With this transaction, Albaugh acquired a broad product portfolio that is extendable to new destination markets, with foreseeable increases in the market share in major global agricultural markets.

Why Purchase the Report?

• To visualize the global agricultural biologicals market segmentation based on type, source, mode of application, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of agricultural biologicals market-level with all segments.
• The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study. 
• Product mapping is available as Excel consists of key products of all the major market players.

The global Agricultural Biologicals market report would provide approximately 69 tables, 67 figures, and 190 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies