The global agricultural biologicals market to show promising growth and biopesticides and biostimulants market are the reason for agricultural biologicals market growth.
Over the past few years, Agricultural Biologicals have witnessed significant improvements which have helped in transforming Agricultural biologicals around the globe. Agricultural biologicals help the process of improving yield and productivity in numerous ways. One of them is development of Biopesticides, which when used in plants, directly impact plant health and reduces plant damage. Another method of strengthening plant productivity is the usage of biostimulants, which encourages plant growth by boosting its overall development. The Global Agricultural Biological market is expected to grow at a CAGR of 14.6%, from $4,528.19 million in 2014 to $8,951.76 million by 2019. Currently, a majority of the revenue in this market comes from the North American (especially the U.S.) and the European (especially Spain) regions.
Rising demand for Organic food products, rising world population and Reduced Chemical Hazards are likely to boost the Agricultural Biologicals market
There has been substantial increase in demand for organic food products around the globe. The main reasons for the increased demand in the organic food market have been the growth in the increase in number of health conscious individuals, increasing concern about the environment. Increased distribution in the retail sector is also serving to the needs of health-conscious consumers. Major supermarket chains such as Wal-Mart and Costco in the U.S. are increasing their offerings of organic foods. The growing population has increased the demand for qualitative food products to effectively meet its requirements all around the world. Population and income grow in Tandem. Thus increasing disposable income of the people is ultimately leading to increase in their purchasing power. Biologicals being bio-based helps in eliminating the chemical hazards caused due to the excess use of chemicals in agricultural practices. Various programs designed by governments and different agencies are being conducted across the globe to promote the application of agricultural biologicals. Thus all these factors are driving the growth of Agricultural Biologicals market
Cereals & Grains and Fruits & Vegetables are the dominant applications markets for Agricultural Biologicals
Cereals & Grains is leading the global agricultural biologicals market, with around 29% market share, and is also the fastest growing market segment. Farmers in the Asia-Pacific, North American, and European regions are facing a rise in the demand for organic agricultural products. This has propelled the demand for agricultural biologicals in cereal & grain cultivation. Agricultural biologicals were initially used in high value fruits & vegetables.The application of agricultural biologicals for fruits & vegetables has showed an early growth of plants, better shelf life, high yield, and less prevalence of plant disease. Therefore, its consumption in the fruits & vegetables market segment is increasing at rapid pace.
Global Regulatory Environment for Bio based Agrochemicals
The ultimate exemption from tightening regulatory restrictions is anticipated to fuel the overall agricultural biological market development. However, developers of biologicals have been discouraged by the traditional chemical mindset of regulatory bodies. The U.S. is the leading country in terms of registered active ingredients for biopesticides, which has produced tangible results. Investments have been poured into research and development in the United States because of its acceptable, committed, and sensible approval system in comparison to other regions across the world. The U.S. registered 400 active ingredients for biopesticides as of early 2013, while China registered 85 as of 2011. Europe registered 79 as of 2013, Brazil registered 26 as of 2011, and India registered 15 active ingredients for biopesticides as of 2011
Agricultural Biological Market: Future Outlook
The global demand for Agricultural Biological Market is expected to grow at a significant rate in the coming years. Biologicals are used as a part of Integrated Pest Management (IPM), wherein these substances are used in combination with new synthetic crop chemistries. The penetration of organic products in the world has created awareness among developed economies. This trend towards the adoption of organic products has led to the growth of the global agricultural biologicals market. Asian and Latin American Countries are likely to emerge as key players in the Agricultural Biologicals Market in the near future.
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