Increasing environmental hazards on agriculture as a result of excessive use of chemical fertilizers coupled with support from the government and regulatory bodies through various policies issued for the production of biofertilizers is one of the major factors expected to drive the demand for biofertilizers over the forecast period. However, slow effects of biofertilizers over chemical fertilizers and low adoption of biofertilizers is anticipated to hamper the growth of the market. Increasing scope of biofertilizers in developing and emerging economies such as China is expected to open new opportunities for the biofertilizer industry within the next few years.
Nitrogen fixing were the majorly consumed biofertilizers in the industry in 2012, accounting for over 78% of the global demand. These biofertilizers are majorly used to improve crop yield and involve several potential benefits in environmental application, in addition to their agricultural usefulness. Furthermore, increasing consumption for leguminous and non-leguminous plant products is also expected to augment the demand for nitrogen fixing biofertilizers over the forecast period. Phosphate solubilizing is expected to show the fastest growth over the next few years owing to their potential use in developing a cost-effective and eco-friendly multifunctional bio control agent and biofertilizer in agriculture. The market for other types of biofertilizers such as potash mobilizing and zinc mobilizing are saturated due to low demand from the farmers.
Demand for biofertilizers was the highest from seed treatment, accounting for approximately 72% of the global demand. Biofertilizers are extensively used in seed treatment owing to technological advancement and rising environmental concern from the use of chemical fertilizers. Furthermore, the demand for bio based soil treatments owing to increasing environmental concern is also expected to drive the demand for biofertilizers over the next few years.
The biofertilizer demand was significantly high in North America in 2012, accounting for 32% of the global demand, owing to the presence of a large industry of genetically modified (GM) crops in the region, especially the U.S., where biofertilizers are widely used in the treatment of crops. RoW accounted as the second largest region in the industry owing to rising demand for natural food products, environmental hazards associated with chemical fertilizers, and promotion of biofertilizers by certain government agencies to create awareness among the masses. Asia Pacific is expected to witness the fastest growth within the forecast period owing to the growing demand for organic food coupled with intensive organic farming in the region. Furthermore, national governments of emerging economies such as China and India are promoting the use of biofertilizers through tax incentives, tax exemptions and grants for the production and distribution of biofertilizers. These factors are expected to boost the demand for biofertilizers in Asia Pacific over the forecast period.
Agri Life, Antibiotice S.A., Biomax, Gujrat State Fertilizers & Chemical Ltd., Novozymes, Lallemand Inc., Madras Fertilizers Ltd., National Fertilizers Ltd., and Symborg S.L. are some of the key players present in the biofertilizer industry.
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