The global agricultural biologicals market is projected to reach USD 31.8 billion by 2029 from USD 16.7 billion in 2024, at a CAGR of 13.8% during the forecast. The growing challenges in conventional farming, such as diseases, pests, and deteriorating soils, are driving the need for more efficient agricultural biologicals. Furthermore, stringent regulations from global regulatory bodies and governments are being introduced to promote sustainable agricultural practices over chemical-based agricultural inputs. Some examples include India’s Pradhan Mantri Krishi Sinchai Yojana and the National Mission on Sustainable Agriculture. The NMSA is advocating the use of non-toxic chemical biofertilizers and biopesticides for the sake of the maintenance of soil health and, therefore, an increase in crop yield. Even as PMKSY concerns itself with irrigation, it also embeds sustainable technology and practice workings—through second green revolution components like agricultural biologicals that raise resilience and also improve soil fertility—to meet the larger ends of sustainable agriculture. AI will speed up the process of discovering and developing new agricultural biologicals by analyzing large data sets for promising natural compounds and microorganisms. Machine learning models can also forecast the efficacy of products, smoothen R&D processes, and reduce time-to-market. AI-powered tools bring a significantly higher level of accuracy to farming, according to the researchers. It is now possible to have continuous real-time crop health, soil conditions, and pest outbreaks. This allows for more targeted and efficient applications of the biologicals, reducing waste and increasing effectiveness.
Agricultural Biologicals Market Trends
Here are some trending insights and developments in the agricultural biologicals market:
Growing Demand for Sustainable Agriculture
- Increasing emphasis on reducing chemical inputs in farming is driving the adoption of biologicals as eco-friendly alternatives.
- Consumer demand for organic and residue-free food is boosting the use of biopesticides and biofertilizers.
Advancements in Biotechnologies
- R&D efforts are enhancing microbial formulations, RNAi technology, and bioinoculants for targeted pest and disease control.
- Innovations in biostimulants and biofungicides are expanding their applications across different crops.
Regulatory Support and Policy Incentives
- Government initiatives promoting sustainable farming practices and carbon reduction strategies are creating favorable conditions for the market.
- Harmonization of bio-based product regulations across regions is encouraging international trade.
Market Expansion into Developing Economies
- Developing nations in Asia-Pacific, Latin America, and Africa are emerging as key growth areas due to increasing awareness and investments in modern farming techniques.
Integration with Digital Farming
- Agricultural biologicals are being incorporated into precision agriculture practices, allowing farmers to optimize application rates and timing.
- Use of drones and sensors to apply and monitor the efficacy of biologicals is gaining traction.
Agricultural Biologicals Market Drivers: Rising trend for organically produced foods among consumers
A key driver for this market could be consumer demand for organically produced food. With increasing emphasis on health and well-being, people try to avoid artificial chemicals and GMOs in their intake of food; hence, the demand for organically produced products is on the rise. According to a 2022 report by the Research Institute of Organic Agriculture, FiBL, and IFOAM—Organics International, global sales of organic food are recorded at USD 120 billion, with maximum consumption attributed to Europe and North America. This has further motivated farmers to resort to agricultural biologicals like biopesticides and biofertilizers that play key roles in organic farming. The market will increase further as more consumers keep shifting to organics, thus demanding sustainable and biological solutions in agriculture.
Seed Treatment: The Fastest-Growing Application in the Agricultural Biologicals Market
The seed treatment segment is projected to register the highest compound annual growth rate (CAGR) during the forecast period in the agricultural biologicals market. This growth can be attributed to its increasing adoption as a preventive measure to enhance crop health and yield. Seed treatments offer numerous benefits, such as protection against diseases, pests, and environmental stresses right from the sowing stage. These treatments improve germination rates and result in stronger seedlings.
Additionally, the rising awareness and demand for sustainable and organic farming practices have driven the adoption of biological seed treatment methods. These methods help reduce chemical usage and mitigate environmental impacts. As farmers seek more efficient and eco-friendly solutions, the adoption of advanced biological seed treatments is expected to accelerate, further boosting the growth of this segment.
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Natural Products: A Key Segment by Source in the Agricultural Biologicals Market
In the agricultural biologicals market, the natural products segment is estimated to hold the second-largest market share by source. Derived from plants, animals, or microorganisms, natural products play a critical role in pest regulation, soil health enhancement, and disease management. Unlike synthetic chemicals, they offer sustainable solutions without harmful residues, aligning with the growing consumer demand for organic and residue-free produce.
The increasing preference for natural products is driven by regulatory support for sustainable agricultural practices, heightened environmental awareness, and the rising popularity of integrated pest management and soil fertility programs. While synthetic and other biological methods remain relevant, natural products have carved a significant niche within the agricultural biologicals market due to their versatility and eco-friendly benefits.
North America Region Expected to Dominate the Agricultural Biologicals Market Share.
The key market participants, coupled with the continuous launch of newer and more advanced biological products with applications in local agriculture, are driving this growth. Besides, the well-developed regulatory pathways in North America help in faster approval and adoption of new products. Large-scale commercial farming in the region focuses on higher yields with lesser resistance development in pests and diseases, raising demand for new-age agricultural biologicals. This, therefore, boosts the market through increased adoption of precision agriculture technologies in North America, hence the better application and resulting efficacy of biologicals.
Key players in the agricultural biologicals market are BASF SE (Germany), Syngenta Group (Switzerland), Bayer AG (Germany), FMC Corporation (US), Corteva (US), UPL (India), Nufarm (Australia), Novonesis (Denmark), Lallemand Inc. (Canada), Mosaic (US), Rovensa Next (Spain), Sumitomo Chemical Co., Ltd. (Japan), SEIPASA, S.A. (Spain), Koppert (Netherlands), and Gowan Company (US).