The agricultural microbials market is projected to grow at a CAGR of 15.14% from 2016 to 2021, to reach a projected value of USD 5.07 Billion by 2021. The increased adoption of organic agricultural products in the developing countries and rise in demand for high-value fruit & vegetable crops result in the growth of the agricultural microbials market. The market is further driven by factors such as technology and product development of innovative agricultural microbials that can be cost-effective as well as used on a broad crop portfolio.
On the basis of type, the agricultural microbials market is led by bacteria, followed by fungi. Bacterial agricultural microbials are helpful to the crops in a way that they detoxify the soil and fight the root diseases and provide stability to the soil system. Due to these factors, the bacterial segment dominates the agricultural microbials market. R&D and innovative experiments are conducted by leading players to invent new products to reduce the drastic impact on non-target species and ecosystem. High awareness among the developed countries to use organic and biological agricultural methods that results in high crop yield is another driving factor to boost the growth of the agricultural microbials market. Other factors include growing customer attention towards increasing the crop value of cereals & grains, fruits & vegetables, and other crops that include turf & ornamentals.
Amongst the crop types of agricultural microbials, fruits & vegetables accounted for the largest market share followed by the others segment in 2015. High demand and trade for exotic fruits & vegetables in the developed countries is the main reason for the growth of agricultural microbials for this segment.
Asia-Pacific accounted for the largest market share for agricultural microbials, China being the fastest-growing in the region, from 2016 to 2021. Increasing awareness among customers to use organic products and high production of tropical and sub-tropical fruits & vegetables are some of the factors driving the agricultural microbials market in the region. Agricultural microbials formulations such as dry formulation are among the widely used in North America, as it helps as a better medium to maintain microbial dormancy and increases the shelf life of biological products.
The shorter shelf life of microbes is one of the restraints for the agricultural microbials market. Several parameters such as culture medium, pH, temperature, and other physiological factors affect the productivity and efficiency of the agricultural microbial products.
BASF is one of the prominent players in the agricultural microbials market focuses on innovative and complementary crop protection solutions. The company’s core competencies are advanced manufacturing and quality control systems, regulatory expertise, market knowledge, and R&D capabilities. Recently, the company opened a new R&D center at the Crop Protection division’s headquarters in Limburgerhof, Germany into operations, boosting its global R&D network to meet the growing demand for solutions beyond classical crop protection.