Agricultural biologicals refer to naturally occurring substances that help improve plant health and soil conditions. This includes biofertilizers, biopesticides, and biostimulants. Biofertilizers contain living microorganisms that help fix atmospheric nitrogen into plant-usable forms or solubilize soil phosphorus, making it available for plant uptake. Biopesticides consist of microorganisms like bacteria, fungi, viruses, nematodes, and other biological control agents that fight against various plant pathogens and pests. Biostimulants consist of compounds, substances, and other products aimed at enhancing natural processes to benefit plant nutrition, abiotic stress tolerance, and crop quality regardless of their nutrient content.
The global agricultural biologicals market is estimated to be valued at US$ 14245.71 Mn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The increasing demand for organic food and concerns regarding synthetic crop protection chemicals have boosted the adoption of alternative biopesticides in agricultural practices. Biopesticides provide a less toxic and environment-friendly option compared to chemical pesticides while controlling pests effectively. With the rise in applicability of integrated pest management strategies and growing need to reduce agricultural pollution, the demand for biopesticides is expected to increase substantially over the forecast period. The development and introduction of effective biofungicides and bioinsecticides against major crop diseases and insects will further support the market growth.
Porter's Analysis
Threat of new entrants: Low capital requirement and availability of raw materials makes threat of new entrants moderate in the agricultural biological market. However, established brands have strong distribution network and economies of scale.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and undifferentiated nature of products. They can negotiate on price easily.
Bargaining power of suppliers: A few large suppliers exist for raw materials which gives them moderate bargaining power. However, availability of substitutes restricts ability to raise prices.
Threat of new substitutes: threat of substitutes is high as chemical pesticides and fertilizers can replace biological products.Constant innovation makes substitutes a major threat.
Competitive rivalry: Intense due to large number of players. Market is growing at moderate rate adding to competition. Players differentiate through innovation and quality.
SWOT Analysis
Strength: Biological products are environment friendly with negligible toxic residues. They help improve soil health and yield.
Weakness: High perceived cost of biological products. Limited shelf life is a constraint. Requires knowledge to use correctly for best results.
Opportunity: Growing organic farming and sustainability adoption create demand. Export opportunities in developed markets exist.
Threats: Dumping of toxics due to low enforcement of regulations can impact organic cultivation. Climate change affects product quality.
Key Takeaways
The global Agricultural Biological Market Size is expected to witness high growth. The global Agricultural Biologicals Market is estimated to be valued at US$ 14245.71 Mn in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2024 to 2031.
Regional analysis: Asia Pacific region dominates the market with over 35% share led by India and China. Farmers are increasingly adopting organic practices to reduce input costs in these countries. North America region is second largest due to demand from US and Canada. Europe is another major region driven by EU policies supporting sustainable agriculture.
Key players: Key players operating in the agricultural biological market are Amezeus (HFS Group), Novozymes, Syngenta, Bayer, DuPont, BASF, Monsanto, Certis USA,Koppert and Biobest. They cater through innovation in biopesticides, biostimulants and biofertilizers for crops.
Explore more related article on this topic: https://www.newsstatix.com/the-global-agricultural-biological-market/
