Bio-Fertilizers Market

Bio-Fertilizers Market Size

Global Bio-Fertilizers Market size was recorded at USD 2,872.3 million in 2023, which is estimated to be valued at USD 3,142.8 million in 2024 and is projected to reach USD 6,458.5 million by 2031, growing at a CAGR of 10.84% from 2024 to 2031.

Demand for bio-fertilizers is rising due to factors such as their environmental benefits, growing consumer preference for organic foods, government initiatives, and the need to enhance soil health. This trend reflects a notable shift toward sustainable agricultural practices.

In the scope of work, the report includes products offered by companies such as Kula Bio, Inc., Novonesis Group, Rizobacter Argentina S.A., Corteva Agriscience Business, Lallemand Inc., AgroLiquid, Growtech Agri Science and Research Private Limited, IPL Biologicals, Valagro, and SPIC.

The rapid increase in the global population is creating a robust demand for crop production. Farmers often use harsh chemicals and pesticides to boost yields, which may negatively impact crop nutrition and soil health. However, there is growing interest in organic farming, where bio-fertilizers play a crucial role. These natural products enhance soil health, support sustainable farming, and promote the growth of healthy crops.

The bio fertilizer market is expected to witness growth due to several factors such as favorable government support for organic farming, rising adoption of precision farming, and its major role in disease and pollutant protection.

• For instance, in October 2024, NBRI established a bio fertilizer production unit in Odisha, India, with an annual production capacity of 1,400 tones.

Bio-fertilizers are substances containing living microorganisms that enhance soil fertility and promote plant growth. They include beneficial bacteria, fungi, or algae that improve nutrient availability, fix nitrogen, degrade organic matter, and protect plants from diseases.

Unlike chemical fertilizers, bio-fertilizers are eco-friendly, cost effective, reduce environmental pollution, and improve soil health by enhancing the soil quality. Common types of bio-fertilizers include nitrogen bio-fertilizers, phosphorus bio-fertilizers, and phosphate solubilizing bacteria. As demand for organic farming and sustainable agriculture grows, bio-fertilizers are gaining popularity for their role in reducing chemical inputs and promoting eco-friendly farming practices.

Analyst’s Review

As awareness of the harmful effects of chemical fertilizers increases, manufacturers operating in the global bio-fertilizers market are investing in research and development. These products, made from natural ingredients, are cost-effective and help reduce overall fertilization costs for farmers. Government initiatives supporting sustainable agriculture further promote the use of bio fertilizer. Bio-fertilizers are versatile and applicable in both horticulture to food crop cultivation.

• In July 2024, the Indian Council of Agricultural Research (ICAR) developed a more efficient bio fertilizer strain that can be customized for specific crops and soils, thereby improving its shelf life. Furthermore, ICAR trains farmers to raise awareness of these benefits. This development is expected to boost demand for bio-fertilizers by addressing crop-specific and soil-specific needs, improving their effectiveness and shelf life.

This could lead to broader adoption among farmers, supporting the expansion of the bio-fertilizers market. Manufacturers are anticipated to focus on innovation, cost reduction, and targeted marketing to meet this growing demand.

Bio-Fertilizers Market Growth Factors

The increasing consumer demand for organic food is driving the adoption of bio-fertilizers, which are considered a more sustainable and eco-friendly alternative to chemical fertilizers.

Additionally, the rise of precision farming, along with technologies such as GPS-guided GIS software, enables more efficient and targeted application of liquid bio-fertilizers, enhancing their effectiveness and stimulating the growth of the bio fertilizer market. This trend compels both farmers and manufacturers to invest in innovative, customized solutions to improve crop yields and soil health.

Furthermore, bio-fertilizers support seed treatment to boost crop yield. Numerous fresh fruit and vegetable sellers are reducing their reliance on chemical fertilizers by partnering with bio-fertilizer producers.

• For instance, in May 2024, Fresh Del Monte Produce partnered with Vellsam Materias Bioactivas to establish a bio-fertilizer plant in Kenya, utilizing pineapple residue from Del Monte’s Kenya subsidiary to produce sustainable bio fertilizer products for East Africa.

However, several farmers hesitate to adopt bio-fertilizers due to limited knowledge and strong competition from readily available, cost-effective traditional chemical fertilizers. Governments and key players are addressing these issues by increasing awareness and availability through various initiatives. Furthermore, ongoing research efforts and technological advancements aimed at improving the shelf life and efficiency are promoting the adoption of bio-fertilizers among farmers.

Bio-Fertilizers Market Trends

The bio-fertilizers market is witnessing significant innovation with the integration of farm management software, which helps farmers optimize the application of bio-fertilizers. This technology allows for precise tracking and management, enhancing the efficiency and effectiveness of fertilizer use.

By providing real-time data, farmers can ensure better crop yields while reducing waste and improving sustainability. Such advancements make bio-fertilizers more attractive, particularly for larger-scale farming operations looking to improve productivity and reduce environmental impact through more accurate application methods.

Another notable trend is the increased demand for bio-fertilizers in non-traditional markets like urban farming and home gardening. As sustainability becomes a priority, both urban growers and home gardeners are turning to bio-fertilizers as an eco-friendly alternative to chemical options. This shift aligns with a growing preference for organic and locally grown food, driving the demand for bio-fertilizers.

Furthermore, the use of organic waste such as agricultural residues for bio-fertilizer production supports the circular economy by minimizing waste and lowering production costs, making bio-fertilizers more affordable and accessible for various agricultural sectors.

Segmentation Analysis

The global market has been segmented based on type, crop type, source, mode of application, and geography.

By Type

Based on type, the market has been segmented into nitrogen-fixing bacteria, potassium solubilizing bacteria, phosphate solubilizing bacteria, and others. The nitrogen-fixing bacteria segment led the market in 2023, reaching a valuation of USD 2,014.1 million. These bio-fertilizers are microorganisms that convert atmospheric nitrogen into organic compounds easily absorbed by plants.

These bio-fertilizers serve as an eco-friendly alternative to chemical nitrogen fertilizers, which contribute to greenhouse gas emissions. Examples of nitrogen-fixing bacteria include Rhizobium, Azospirillum, and Acetobacter. These bacteria replace chemical nitrogen and phosphorus, improving soil health.

Additionally, they enhance water retention, protect plants from drought, and reduce the risk of soil-borne diseases. Moreover, they support sustainable farming practices by promoting healthier crops and reducing reliance on harmful chemical fertilizers.

By Crop Type

Based on crop type, the market has been bifurcated into cereals & grains, oilseeds & pulses, fruits & vegetables, and others. The cereals & grains segment secured the largest revenue share of 45.32% in 2023. Bio-fertilizers offer several benefits for cereal and grain crops. They enhance soil fertility by improving nutrient availability, essential for healthy growth.

Furthermore, bio-fertilizers promote better crop development, leading to improved water and nutrient absorption. They protect crops from diseases and pests, reducing reliance on chemical pesticides. Additionally, bio-fertilizers improve microbial activity, resulting in healthier, more sustainable cereal and grain production with increased yields and a reduced environmental impact.

By Source

Based on source, the market has been classified into bacteria, fungi, and algae. The algae segment is forest to witness significant growth, recording a robust CAGR of 14.05% through the forecast period. Bio-fertilizers derived from algae offer numerous benefits for plant growth. They improve soil structure by enhancing microbial activity and promote better root development and water retention.

Rich in essential trace elements, vitamins, and growth hormones, these fertilizers boost plant health and resilience. Additionally, they enhance tolerance to environmental stresses such as drought and extreme temperatures, supporting more sustainable and productive agricultural practices. With rising demand for healthier, more resilient crops, algae-based bio-fertilizers are likely to witness significant expansion, offering farmers effective and environmentally friendly solutions.

By Mode of Application

Based on mode of application, the market has been classified into soil treatment and seed treatment. The seed treatment segment is poised to capture the largest market share of 62.28% by 2031.

Seed treatment with bio-fertilizers involves applying beneficial microorganisms to enhance germination and improve plants resistance to pests and diseases. Available in powder or liquid form, this treatment improves soil structure, restores fertility, and improves nitrogen levels, promoting healthier crops and sustainable farming practices.

By promoting healthier crops and reducing the reliance on chemical fertilizers, seed treatment with bio-fertilizers supports more sustainable farming practices. As farmers seek eco-friendly solutions to increase productivity and reduce environmental impact, this method is expected to gain immense prominence in the near future.

Bio-Fertilizers Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America emerged as the leading region in the Bio-Fertilizers market in 2023, attaining a valuation of USD 992.7 million.  This growth is largely attributed to the rising demand for organic food, as consumers increasingly seek healthier, pesticide-free options.

Growing awareness of the environmental and health impacts of chemical fertilizers is prompting farmers to adopt more sustainable alternatives, such as bio-fertilizers. Furthermore, ongoing research and innovations in bio-fertilizer technologies are improving their efficiency and effectiveness, making them a more attractive choice for modern agriculture.

In addition, strong government support through subsidies, policies, and initiatives promoting sustainable farming practices is increasing the adoption of bio-fertilizers, supporting regional market growth.

Asia-Pacific bio-fertilizers market is poised to grow at a highest CAGR of 12.19% over the forecast period. This projected growth is fostered by the increasing demand for food grains due to population growth and the expansion of cultivable land.

Rising awareness of the harmful effects of chemical fertilizers is further boosting the adoption of bio-fertilizers. Additionally, governments are actively promoting sustainable farming practices, thereby aiding regional market expansion. Through tax incentives, subsidies, and targeted programs, they are supporting the shift toward more environmentally-friendly and cost-effective agricultural solutions.

Competitive Landscape

The global bio-fertilizer market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, could create new opportunities for market growth.

List of Key Companies in Bio-Fertilizers Market

• Kula Bio, Inc.
• Novonesis Group
• Rizobacter Argentina S.A.
• Corteva Agriscience Business
• Lallemand Inc.
• AgroLiquid
• Growtech Agri Science and Research Private Limited
• IPL Biologicals
• Valagro
• SPIC

Key Industry Developments

• August 2024 (Partnership): IPL Biologicals Ltd., an agri-biological company specializing in biopesticides, biofungicides, and bio-fertilizers, partnered with AFEPASA, a Spanish manufacturer of biocontrol and plant stimulation products. This collaboration expanded IPL’s reach for its proprietary microbial biopesticides, strengthening its global presence.

The global bio-fertilizers market is segmented as:

By Type

• Nitrogen-Fixing Bacteria
• Potassium Solubilizing Bacteria
• Phosphate solubilizing bacteria
• Others

 By Crop Type

• Cereals & Grains
• Oilseeds & Pulses
• Fruits & Vegetables
• Others

By Source

• Bacteria
• Fungi
• Algae

By Mode of Application

• Soil treatment
• Seed Treatment

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America