The Global Agricultural Inoculants Market is valued at USD 3.84 billion in 2020 and is anticipated to register a CAGR of 7.0%, during the forecast period, 2021-2026.
In the year 2020 it has been found that COVID-19 has an impact on the whole process from the inoculants production to the consumer. COVID-19 resulted in the movement restrictions of workers, decline in demand from farmers, and closure of production facilities. All these factors hampered the agricultural inoculants market amid pandemic spread.
North America dominates the market and Europe is the second-largest market for agricultural inoculants, in terms of production and consumption. However, currently, the developing countries of Latin America, Asia-Pacific, and Africa are the fastest-growing markets for agricultural inoculants.
There is a rise in the demand and popularity of sustainable agriculture through organic farming. Organic farming is expected to help maintain soil health, nutrients cycle, productivity, and the balance of natural bio-control agents. Agricultural inoculants contain living microorganisms and their strains, which are mixed with the soil or plant surfaces to provide natural protection and nutrient solubilizing, in turn, enhancing the plants’ growth.
Key Market Trends
Popularity of Organic and Environment-friendly Farming Practices
Currently, agricultural practices are witnessing a shift in trend, from conventional to organic farming. This shift can be attributed to reasons like; growing health consciousness and concerns about environmental safety, soil health, and agricultural sustainability.
Organic compost, manure, and agricultural inoculants are used in organic farming. The global area under organic farming has increased to 72.29 million hectares in 2019. Around 186 countries practice organic agriculture. This rising acreage coupled with consumer’s demand for clean products is expected to influence the agricultural inoculants market.
In modern agriculture, the use of fertilizers and pesticides is found to be very high, and this is causing critical problems, such as soil pollution, microbial imbalance, reduction in soil fertility and productivity, and loss of natural biocontrol agents and beneficial organisms. Additionally, the emerging resistance in insects is driving interest in these alternatives. Therefore, agricultural inoculants play an important role in ensuring plant health, soil fertility, and agricultural sustainability.
North America Dominates the Market
North America accounted for the largest share in the production and consumption of agricultural inoculants. North America is developing new agricultural technologies and successfully applying those in domestic farming systems. Most agricultural inoculants are used in oilseeds crops and maize.
Hence, the demand for agricultural inoculants is expected to rise in the future due to the faster adoption of new technologies to increase crop productivity while minimizing the negative impact on the environment.
Considering the market potential of the agricultural inoculants in the region, companies are investing to gain a stronger foothold in the market and to cater to the soaring demand. For instance, in 2017, BASF expanded its manufacturing facilities in Saskatoon for biological inoculants production. The company has invested approximately CAD 10 million (USD 8 million) in the expansion project.
Competitive Landscape
The agricultural inoculant market is fragmented. Few international players having a diverse and expanding product portfolio to occupy a higher market share which can be attributed to their highly diversified product portfolios and the large number of acquisitions and agreements that they are engaged in.
The major players are also focusing on R&D activities, expansion of product portfolios, geographical expansion and aggressive acquisition strategies. For instance, Bayer launched the biological soybean inoculant, CTS 500, in Brazil in 2019.
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