Rising Trend for Organically Produced Foods to Fuel Agricultural Biological Market Growth
Growing consumer awareness on the increased use of pesticides, and fertilizers in farm-grown vegetables, and the ill health concerns associated with the consumption of such products has been creating a boom around organic food products. There were nearly 75 million hectares of organic farms worldwide in 2020. Global organic food sales increased from USD 120.65 billion to USD 106 billion between 2010 and 2020. According to a study by the ‘Organic Trade Association’ in 2019, organic food products accounted for 90% of the total organic industry. The market is expected to grow further, as major players increase their investments in research and development (R&D). Strong organic farming initiatives, as well as increased environmental awareness, have increased the demand for agricultural biologicals in the agriculture industry, thereby boosting the agricultural biological market.
In March 2021, the Organic Farming Research Foundation (OFRF), and the United States Department of Agriculture's Natural Resources Conservation Service (NRCS) signed a three-year partnership agreement to conserve the world's organic farming practices. Similarly, in India, initiatives such as the Paramparagat Krishi Viaks Yojana, the National Programme for Organic Production, and the Capital Investment Subsidy Scheme under the SHM (Soil Health Management Scheme) are encouraging farmers to adopt organic farming, which is expected to fuel the growth of agricultural biological market over the next five years.
The government participation in assisting consumers in distinguishing between legitimate and falsely labelled products has also contributed to overall development of agricultural biological market. Under the National Horticulture Mission, the government of India encourages organic farming by providing incentives to cultivators of organic food products (NHM). Farmers in India are being offered INR10,000 per hectare for a maximum area of four hectares per beneficiary, as well as a group of farmers covering 50 hectares, was awarded Rs. 5.00 lakh for organic agricultural certification.
The Ability to Correct Soil Limitation by Foliar Spray to Elevate Prospects of Agricultural Biological Market
The foliar spray category is expected to hold the highest market share in the agricultural biological market during the forecast period. Plants absorb foliar sprays 20 times faster than fertilisers supplied to the soil. During the growing season, foliar sprays assist plants in correcting for soil limitations such as low fertility and low soil temperature. Plants that are stressed by other factors such as drought, heat, cold, mechanical or insect damage, or diseases benefit from foliar treatments. Foliar feeding can be timed to encourage and/or enhance crucial periods of the plant's lifecycle, such as seedling emergence, rapid growth phases, blooming, fruiting, and seed formation. Many crops benefit from 6–8 foliar feeding treatments every season.
Increase in Number of Cases of Plant-Pathogen Infection on Crops in North America to Boost Agricultural Biological Market
The agricultural biological market revenue is expected to be dominated by North America over the forecast period. Growing acreage for field crops including wheat, cotton, and soybeans, as well as an increase in the number of cases of plant-pathogen infection on these crops, are likely to propel the biocontrol market in this area forward. The developed region of North America's access to innovative agricultural product development technologies, equipment, and other resources is likely to enhance market expansion in the next years. The United States is one of the world's largest consumers. The country's demand is being driven by the growing demand for greener and safer crop protection technologies. The country's regulatory agencies have become more involved in terms of product approvals and changing regulations to increase market penetration.
In 2019, about 15,548 thousand certified organic farms were in operation, with 7,139 thousand farms using pastureland and rangeland. Crop sales, including those from nurseries and greenhouses, totalled about $5.8 billion in the United States. The increasing number of mergers and acquisitions, as well as partnerships for research and new product development, are also expected to benefit the country's market growth. For instance, in September 2019, Verdesian Life Sciences opened its second location in the United States. The core focus area of this lab is on disruptive technologies for improving nutrient usage facilities and environmental sustainability.
Asia Pacific is expected to grow at the fastest rate since it is home to the bulk of agrarian economies, including India, Thailand, Japan, Malaysia, South Korea, and the Philippines, which employ more sustainable agricultural techniques. The organic movement is fuelled by rising consumer demand for natural foods, as well as legislative and agricultural reforms implemented by various governments. Industry participants' main tactics include investing in research and development and focusing on emerging markets as their next growth opportunity. The industry is still in its early stages of development, and merger and acquisition activities are low. The ever-rising demand for naturally grown food is expected to be a dominant force in the market.
Global Agricultural Biological Market: Competitive Landscape
In November 2020, Amy's Kitchen, a company that makes frozen organic foods, and shelf-stable soups, opened a new pizza production plant in San Jose, California. On the other hand, in January 2019, two of Marrone Bio Innovations Inc.'s products have been approved for sale in Canada by the right government organisations, according to the company. The Pest Management Regulatory Authority approved MBI-110 Biofungicide (marketed in the United States as Stargus for speciality crops) (PMRA). The Canadian Food Inspection Agency has certified Haven Sun Protectant (CFIA).
A few of the players in the agricultural biological market include BASF (Germany), Syngenta (Switzerland), Marrone Bio Innovation, Inc (US), Bayer AG (Germany), UPL (India), Gowan Company (US), and Vegalab SA (Switzerland).
Global Agricultural Biological Market is Segmented as Below:
By Product type
By Mode of Application
By Crop type
Key Elements Included In The Study: Global Agricultural Biological Market
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