Biofertilizers are organic fertilizers that contains living microorganisms like bacteria, fungi or its derivative products to help the plant by increasing the nutrient availability to plants through various mechanisms such as nitrogen fixation, solubilizing minerals, enabling uptake of nutrients and suppressing soil borne plant pathogens. They play an important role in enhancing soil fertility besides supplementing plant nutrients. With the growing concern of using chemical fertilizers and their residues, biofertilizers are proving to be a sustainable alternative to enhance soil health and promote organic farming. The global biofertilizers market is estimated to be valued at US$ 2.26 Bn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The key opportunity for biofertilizers market size lies in opportunity to enhance soil fertility. Continuous usage of chemical fertilizers degrades soil health by reducing organic matter content and killing beneficial soil microorganisms. This affects soil structure and reduces its nutrient holding capacity. Adopting biofertilizers helps restore soil fertility by increasing soil microbial activity. The microorganisms in biofertilizers solubilize immobilized nutrients in soil, improve soil structure and aeration which enhances nutrient availability to plants. With growing awareness about maintaining long term soil productivity, biofertilizers are increasingly being used with chemical fertilizers or replacing them altogether which is fueling the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to high capital requirement to enter in this niche market. However, new startups emerging with innovative technologies can pose threat to existing players.
Bargaining power of buyers: The bargaining power of buyers is moderate due to availability of huge buyer base. However, substitutes availability limits buyers bargaining power to some extent.
Bargaining power of suppliers: The bargaining power of suppliers is high due to concentrated industry structure with handful of large players controlling majority market share.
Threat of new substitutes: The threat of new substitutes is high due to availability of chemical fertilizers which is economically cheaper than biofertilizers.
Competitive rivalry: The competitive rivalry is high due to presence of large number of players operating in the market
SWOT Analysis
Strength: Rising need for organic farming methods, government support in many countries, eco-friendly in nature.
Weakness: High production cost, short shelf life, lack of awareness.
Opportunity: Increasing farmer acceptance, scope in cash crop farming, tie-ups with agrichemical companies.
Threats: Fluctuating raw material prices, penetration of chemical fertilizers in developing regions.
Key Takeaways
The global biofertilizers market is expected to witness high growth.
Regional analysis: North America and Europe are other prominent biofertilizers markets globally, where government support and regulations favoring organic farming methods are supporting market growth. Stringent norms against use of chemicals and emergence of sustainable agriculture practices offer opportunities for market players in these regions.
Key players: Key players operating in the biofertilizers market are Sanofi SA, Reckitt Benckiser Group PLC, Pfizer Inc., Mylan NV, GlaxoSmithKline PLC, Johnson & Johnson, Bayer, Takeda Pharmaceutical, and Sun Pharmaceutical Industries Ltd., among others. Key players are focusing on new product launches, partnerships with farmers, and expanding geographical presence especially in Asian countries.
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