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The agricultural biologicals industry is expected to reach USD 27.9 billion by 2028, reflecting a significant growth from USD 14.6 billion in 2023. This surge is attributed to the rise of organic farming practices and government initiatives promoting sustainable agriculture.
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Expanding Organic Farmland Creates Demand for Biological Solutions
The global trend towards organic farming, fueled by consumer preference for products free from synthetic inputs, is a major driver for the agricultural biologicals market. As organic farming gains traction, the demand for biological products as a core component of organic farming systems is pushing market expansion.
A recent report by FiBL and IFOAM – Organics International revealed a global increase in organic farmland and retail sales in 2023. Organic farmland expanded by 1.3 million hectares, reaching a total of 76.4 million hectares. This growth necessitates a rise in agricultural biologicals including biopesticides, beneficial microorganisms, and organic fertilizers. These inputs are crucial for complying with organic standards and supporting organic farming practices.
Microbials: A Sustainable Solution Leading Market Growth
Microbials hold a significant market share within the agricultural biologicals market due to growing concerns over the environmental impact of conventional agriculture, heavily reliant on chemical inputs. Microbials offer a natural and eco-friendly alternative, reducing dependence on synthetic pesticides and fertilizers. As sustainability becomes a priority for consumers and regulators, the demand for microbial-based agricultural products is rising.
Microbial products, including beneficial bacteria, fungi, and other microorganisms, improve soil health and nutrient availability by forming symbiotic relationships with plant roots, facilitating nutrient uptake and enhancing plant growth. Recognizing the importance of soil health for sustainable agriculture, farmers are increasingly adopting microbials to promote soil fertility and nutrient cycling.
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South America, with its vast agricultural lands, is experiencing a growing awareness of the environmental impact of conventional practices. As a result, there is a rising demand for agricultural biologicals as a more sustainable alternative. These biological products contribute to improved soil health, biodiversity, and overall ecosystem sustainability. Additionally, South American countries, major exporters of agricultural commodities, are adopting agricultural biologicals to meet the stringent regulations of international markets, particularly in Europe and North America.
Agricultural Biologicals Market Share
The major players in the agricultural biologicals market include BASF SE (Germany), Syngenta AG (Switzerland), Bayer AG (Germany), UPL (India), and Corteva Agriscience (US), among others. These players are constantly innovating and developing new products to cater to the growing demand for sustainable agricultural solutions.
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