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Biofertilizers Market

The market for Biofertilizers was estimated at $3.3 billion in 2025; it is anticipated to increase to $5.3 billion by 2030, with projections indicating growth to around $8.8 billion by 2035.

Report ID:DS1305044
Author:Vineet Pandey - Business Consultant
Published Date:
Datatree
Chemicals & Materials
Agrochemicals
Biofertilizers
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Report Summary
Market Data
Methodology
Table of Contents

Global Biofertilizers Market Outlook

Revenue, 2025

$3.3B

Forecast, 2035

$8.8B

CAGR, 2026 - 2035

10.4%

The Biofertilizers industry revenue is expected to be around $3.3 billion in 2026 and expected to showcase growth with 10.4% CAGR between 2026 and 2035. This trajectory positions the global Biofertilizers market as a central pillar of sustainable agriculture, as policymakers, agribusinesses, and farmers seek cost-effective alternatives to synthetic fertilizers. Rising concerns over soil degradation, nutrient runoff, and greenhouse gas emissions are accelerating the transition toward microbial inoculants that enhance soil health while reducing chemical input dependency. Supportive government incentives for organic farming, tightening regulations on synthetic fertilizer usage, and consumer demand for safe, residue-free food are reinforcing the structural importance of Biofertilizers in both developed and emerging markets. Furthermore, advancements in strain development, carrier technologies, and cold-chain logistics are improving product performance and shelf life, strengthening the long-term relevance of Biofertilizers across diverse agro-climatic zones.

Biofertilizers are biologically derived inputs containing beneficial microorganisms that colonize the rhizosphere, fix atmospheric nitrogen, solubilize bound phosphates, and stimulate root growth to improve nutrient uptake and crop yield in an environmentally friendly manner. Their key features include enhanced soil biological activity, better nutrient-use efficiency, compatibility with integrated nutrient management programs, and suitability for organic and regenerative agriculture systems. Application of Biofertilizers is most prominent in Cereals & Grains and Fruits & Vegetables, which together account for approximately 71.9% of total industry demand, reflecting their critical role in maximizing staple food security and high-value horticultural output. Among product categories, nitrogen-fixing Biofertilizers lead the market, generating around $1.21 billion in revenue in 2025 as farmers prioritize solutions that boost nitrogen availability in intensive cropping systems through seed treatment, soil application, and precision farming practices. Recent trends such as the adoption of multi-strain consortia, liquid and encapsulated formulations, and data-driven application recommendations are further propelling demand for Biofertilizers as a strategic tool to enhance crop productivity and resilience.

Biofertilizers market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Biofertilizers Market Outlook

Market Key Insights

  • The Biofertilizers market is projected to grow from $3.3 billion in 2025 to $8.8 billion in 2035. This represents a CAGR of 10.4%, reflecting rising demand across Cereals & Grains, Pulses & Oilseeds, and Fruits & Vegetables.

  • Novozymes, UPL, and Chr. Hansen Holding A/S are among the leading players in this market, shaping its competitive landscape.

  • U.S. and India are the top markets within the Biofertilizers market and are expected to observe the growth CAGR of 7.6% to 10.9% between 2024 and 2030.

  • Emerging markets including Indonesia, South Africa and Vietnam are expected to observe highest growth with CAGR ranging between 10.0% to 13.0%.

  • Transition like Adoption of Sustainable Farming Practices is expected to add $502 million to the Biofertilizers market growth by 2030.

  • The Biofertilizers market is set to add $5.5 billion between 2025 and 2035, with manufacturer targeting Pulses & Oilseeds & Fruits & Vegetables Application projected to gain a larger market share.

  • With

    rising environmental concerns and increased emphasis on sustainable agriculture, and

    Advancements in Biofertilizer Technology, Biofertilizers market to expand 169% between 2025 and 2035.

biofertilizers market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Biofertilizers - Country Share Analysis

Opportunities in the Biofertilizers

Large-scale row crop agribusiness in North America is also rapidly embedding Biofertilizers into regenerative agriculture and precision agriculture programs to reduce dependence on synthetic nitrogen. Corn and soybean integrators are integrating nitrogen-fixing products at scale, attracted by their role in stabilizing yields, lowering emissions, and improving long-term sustainable agriculture outcomes. Nitrogen-fixing biofertilizers, the largest segment at roughly $1.21 billion globally in 2025 and projected to reach $1.97 billion by 2030 with a 10.2% CAGR, are positioned for outsized growth in this commercial segment.

Growth Opportunities in Asia-Pacific and Europe

In Asia-Pacific, Biofertilizers adoption is most advanced in Cereals & Grains, where high dependency on rice and wheat creates strong demand for nitrogen-fixing and phosphate-solubilizing microbial inoculants that support soil health enhancement and reduce chemical fertilizer use. Top opportunities include localized strain development for paddy and maize systems, crop-specific consortia for Pulses & Oilseeds in India and Southeast Asia, and tailored Biofertilizers for intensive Fruits & Vegetables clusters in China and South Asia, positioned as environment-friendly inputs that enable crop yield improvement under rising input-cost pressure. Competition is characterized by a dense network of small and mid-sized domestic manufacturers alongside regional bio-based agri-inputs suppliers, intensifying price sensitivity but leaving white space in high-quality, standardized formulations and seed-treatment Biofertilizers. Key regional drivers include government incentives for organic crop production, national soil-health missions, and expanding regenerative agriculture pilots that favor robust distribution partnerships and contract manufacturing models.
In Europe, Biofertilizers show highest relevance in high-value Fruits & Vegetables and specialty crops, where growers prioritize residue-free production and compliance with strict environmental regulations, followed by increasing use in Cereals & Grains as part of integrated nutrient-management schemes. Top opportunities lie in premium, certified Biofertilizers for organic and transition farms, advanced microbial consortia for protected horticulture, and seed-applied solutions aligned with precision agriculture platforms, enabling measurable crop yield improvement and reduced synthetic nitrogen use. The competitive landscape is consolidated around specialized biologicals manufacturers and ag-tech integrators, creating strong barriers to entry yet leaving room for niche players focused on crop- or country-specific registrations and customized formulations. Core regional drivers include the Green Deal and Farm to Fork policies, fertilizer regulation tightening, carbon-farming incentives, and retailer-driven sustainability standards, all of which favor investments in data-backed Biofertilizers portfolios and long-term technical service capabilities.

Market Dynamics and Supply Chain

01

Driver: Rising Organic Farming Adoption and Soil Health Degradation Driving Biofertilizer Demand

The expansion of organic farming practices is also a major growth factor for the biofertilizers market, as growers seek certified inputs that enhance yields without synthetic chemicals. Biofertilizers such as nitrogen fixing bacteria, phosphate solubilizing microorganisms, and mycorrhizal fungi align well with organic standards while supporting nutrient availability and crop productivity. Separately, increasing soil health degradation caused by prolonged chemical fertilizer use is also accelerating demand for biological alternatives. Declining microbial activity, nutrient imbalance, and reduced soil structure are also pushing farmers to adopt biofertilizers to restore soil fertility and biological balance. Technological also advances in microbial strain selection, carrier materials, and shelf life stabilization are also improving field performance and reliability. Together, organic farming growth and soil restoration needs are also reshaping fertilizer strategies, driving sustained adoption of biofertilizers across cereals, pulses, horticulture, and high value crops globally.
Supportive government initiatives are also a key driver accelerating biofertilizer adoption and market penetration. Many countries are also promoting sustainable agriculture through subsidies, farmer training programs, and incentives that encourage reduced chemical fertilizer usage. Biofertilizers benefit directly from these policies as they align with national goals for soil conservation, lower input costs, and reduced environmental impact. Regulatory frameworks supporting organic certification and residue free food production further strengthen demand. In parallel, public funding for agricultural biotechnology research is also improving microbial formulation quality and scalability. These measures are also expanding commercial availability, increasing farmer awareness, and integrating biofertilizers into mainstream nutrient management practices across both smallholder and commercial farming systems.
02

Restraint: Inconsistent Field Performance and Limited Farmer Awareness Suppressing Adoption Rates

A major restraint for the biofertilizers market is the inconsistent performance reported by farmers under varying agro-climatic conditions. Unlike chemical fertilizers with predictable nutrient release, microbial inoculants can be sensitive to soil pH, temperature, and moisture, leading to variable yield responses. Limited awareness about proper application timing and carrier quality further reduces confidence among smallholder farmers. This inconsistency dampens demand and slows repeat purchases, particularly in regions with limited extension services. As a result, revenue growth is constrained, and biofertilizer suppliers face pressure to invest more in farmer education and field validation studies before achieving widespread adoption.
03

Opportunity: Organic cereal and pulse farming sector in India and Southeast Asia and High-value horticulture and greenhouse vegetables in European Union markets

Rapid expansion of organic farming for cereals and pulses in India and Southeast Asia is creating robust demand for Biofertilizers that enhance soil health and nutrient efficiency. Smallholders and cooperatives are beginning to replace synthetic nitrogen and phosphorus inputs with nitrogen-fixing and phosphate solubilizing biofertilizers, deploying microbial inoculants and plant growth-promoting rhizobacteria to stabilize yields while cutting residues. Phosphate solubilizing & mobilizing products, projected to grow from about 0.67 to $1.13 billion globally by 2030 at an $11.2% CAGR, should see the fastest uptake in this regional segment.
Intensifying regulation on synthetic fertilizers in European Union horticulture and greenhouse vegetables is accelerating the shift toward Biofertilizers that sustain high crop yield with lower residues. Growers of tomatoes, berries, and leafy greens are prioritizing mycorrhizal and potassium solubilizing & mobilizing biofertilizers that optimize water and nutrient uptake by the soil microbiome. Mycorrhizal products, already generating about $0.82 billion globally in 2025 and forecast to reach $1.36 billion by 2030 at a 10.7% CAGR, are expected to post the strongest growth in controlled-environment cultivation.
04

Challenge: Lack of Standardization and Regulatory Frameworks Hindering Market Scalability and Trust

In many agricultural economies, weak regulatory frameworks and absence of standardized quality benchmarks hinder biofertilizer market development. Variability in colony counts, contamination risks, and false labeling reduce buyer trust and discourage large scale procurement by institutional buyers. Without stringent registration requirements and performance standards, inferior products can underperform, leading to reduced demand and negative market perception. For example, regions with unclear certification processes see slower commercial uptake, limiting revenue growth for reputable manufacturers and discouraging investment in new strain development or distribution networks despite growing interest in sustainable agriculture.

Supply Chain Landscape

1

Microbial R&D

Chr. Hansen Holding A/SLallemand Inc
2

Biofertilizers Manufacturing

NovozymesRizobacter Argentina S.A
3

Distribution & Marketing

UPL LimitedRizobacter Argentina S.A
4

Agricultural Applications

Row Crop AgricultureHorticulture & Specialty CropsTurf & Ornamental Plants
Biofertilizers - Supply Chain

Use Cases of Biofertilizers in Cereals & Grains & Fruits & Vegetables

Cereals & Grains : In cereals and grains cultivation, biofertilizers are increasingly adopted to improve nutrient efficiency and soil health while reducing dependence on chemical fertilizers. Nitrogen fixing biofertilizers such as Azotobacter and Azospirillum are most commonly used in crops like wheat, rice, and maize, where they enhance nitrogen availability and support steady vegetative growth. Phosphate solubilizing bacteria are also applied to improve phosphorus uptake in nutrient deficient soils. These biofertilizers help increase yield stability, improve root development, and enhance tolerance to moisture stress, making them particularly valuable in large scale cereal production systems.
Pulses & Oilseeds : Pulses and oilseeds rely heavily on biofertilizers due to their natural compatibility with biological nutrient inputs. Rhizobium based biofertilizers are widely used in pulses such as chickpea, lentil, and soybean, enabling effective atmospheric nitrogen fixation through root nodulation. In oilseeds, phosphate solubilizing and potassium mobilizing biofertilizers are commonly applied to support seed formation and oil content. These inputs improve nutrient use efficiency, enhance soil fertility, and reduce input costs for farmers. Biofertilizers also support sustainable crop rotations by improving soil microbial activity and long term productivity.
Fruits & Vegetables : In fruits and vegetables, biofertilizers are used to enhance crop quality, yield consistency, and soil biological balance. Mycorrhizal fungi and phosphate solubilizing biofertilizers are most widely applied, improving nutrient uptake, root surface area, and water absorption. Nitrogen fixing bacteria are also used to support leafy vegetables and fruit bearing plants. These biofertilizers contribute to better flowering, fruit set, and uniform produce quality. Their use is particularly important in horticulture systems focused on organic farming, residue free produce, and long term soil health improvement.

Impact of Industry Transitions on the Biofertilizers Market

As a core segment of the Agrochemicals industry, the Biofertilizers market develops in line with broader industry shifts. Over recent years, transitions such as Adoption of Sustainable Farming Practices and Technological Advancements in Biofertilizer Production have redefined priorities across the Agrochemicals sector, influencing how the Biofertilizers market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Adoption of Sustainable Farming Practices

The accelerated adoption of sustainable farming practices is emerging as a primary growth catalyst for the Biofertilizers market, directly translating environmental and regulatory pressures into measurable economic value. As farmers shift from synthetic chemicals to Biofertilizers as environmentally friendly inputs, driven by the need to protect soil health and build climate-resilient, regenerative agriculture systems, demand is expanding beyond niche organic farming into mainstream crop production. By enhancing soil fertility and improving crop yield through microbial biofertilizers and nitrogen-fixing bacteria, this transition is expected to add approximately $502 million to Biofertilizers market growth by 2030. This quantifiable uplift underscores how sustainability is no longer a cost burden but a profit-aligned strategy, structurally repositioning Biofertilizers as critical inputs in future-ready, sustainable agriculture value chains.
02

Technological Advancements in Biofertilizer Production

The biofertilizers industry now incorporates advanced production methods through its transition to new technologies. The development of genetically modified biofertilizers through biotechnology advancements has resulted in products that demonstrate enhanced performance. The biofertilizers industry underwent a transformation through technological progress which simultaneously transformed the biotechnology and genetic engineering fields.