The Global Inoculant Market was valued at USD 1.08 Billion in 2022 and is projected to reach USD 3.60 Billion by 2030, registering a CAGR of 9.00 % for the forecast period 2023-2030.
Market Definition
The industry that creates good with advantageous microorganism to enhance soil health and encourage plant growth is known as the global inoculant market. To increase crop output and quality, inoculant is frequently employed in horticulture, agriculture and silage production. The desire for greater crop yield, the growing popularity of organic farming, and the necessities for sustainable agriculture techniques are some of the factors driving the inoculant industry. Because inoculant can improve soil health, boost nutrient availability and minimize fertilizer use they are also becoming more and more popular. In the upcoming year, the requirement for greater crop output and the growing demand for sustainable agriculture method are likely to fuel the expansion of worldwide inoculant market. The expanding trend of organic farming, which stresses the use of naturals material like inoculant to improve soil health and boost plant growth, is also anticipated to benefit the market. Government programs encouraging the use of microbial products in agriculture and the growing popularity of organic farming techniques also have impact on the industry.
Market Size:
- 2022: USD 1.08 Billion
- 2030: USD 3.60 Billion
- CAGR (2023-2030): 9.00%
Inoculant Market Dynamics
Drivers : Adoption of environmentally friendly and organic farming method is trending in the right direction
Globally there has been a notable shift in people eating tastes and behaviors, these days consumers are more concern with nutritious value, quality, health of the food they eat. They have started to progressively switch to eating organic food because of these worries, despite the fact that organic food is more expensive than conventional food. Because more people are prepared to pay for organic products if they improve their health and wellness, this increased consumer knowledge is driving growth in the organic sector. As a result, more land is being used for organic farming worldwide. The market for inoculant is expanding as a result of increased need for organic input to increase crop production in order to develop crops that are resistance to abiotic stress, farmers are using more inoculants. Additionally, government in a number of developing nations including India, are assisting farmer in switching to organic and sustainable farming method. Inoculants are a type of microbial biofertilizer that help to enhance soil fertility by fixing atmospheric nitrogen, solubilizing phosphorus, and producing growth-promoting substances. The use of inoculants in agriculture helps to reduce the dependence on synthetic fertilizers, which can have negative impacts on the environment and human health. Organic farming emphasizes the use of natural inputs and sustainable practices to maintain the health of the soil, crops, and livestock. Inoculants are a key component of organic farming; this factor is anticipated to propel the global growth of inoculant market.
For instance, in October 2022, Natural Resource Defense Council, The Climate, Health, and Economic Case for Expanding Organic Agriculture, published in partnership with the Swette Center for Sustainable Food Systems at Arizona State University and Californians for Pesticide Reform, distills the latest scientific research on the wide-reaching benefits of organic farming systems, and offers insights from more than a dozen organic farmers and ranchers around the country working at every scale of organic.
The Increasing demand for food due to increasing global population
The growing demand for food due to increasing global population is expected to fuel the growth of global inoculant market. Increased crop yield can help fulfill the world rising food demand due to inoculant. Furthermore, because inoculant allow farmers to grow more crops per acre, they can lessen strain on arable land. The rising demand for agriculture products, the popularity of organic farming. Farmers growing knowledge of advantages of inoculant and the world expanding population are all driving the forces behind the worldwide inoculant market. It is frequently necessary to put fresh land under cultivation in order supply rising demand of food. In places that were not previously farmed, inoculant can be employed to improve the soil condition and make the land acceptable for cultivation, this can be increasing significant in areas with limited land. With a growing global population, there is a greater need for higher crop yields to meet the increased food demand. Inoculants, such as microbial and microbial-based products, can enhance crop productivity by promoting better nutrient uptake, nitrogen fixation, and disease resistance in plants. This leads to increased agricultural productivity, helping to produce more food on the same or less arable land, overall, this factor, fueling the growth of inoculant market.
For instance, in December 2022, according to Ministry of Agriculture and Welfare, Food grain production has increased from 308.65 million tons in January 2022 to 315.72 million tons in December 2022 (as per 4th advance estimates) which is the highest ever food grain production. As per third advanced estimates, horticulture production during 2020-21 was 331.05 million MT which is increased to 342.33 million MT during 2021-22. It is the highest ever production for Indian horticulture.
Recent Developments
February 2023, Corteva, Inc. cements its position as a global leader in the rapidly expanding biologicals market with today’s announcement that it has closed the acquisitions of Symborg, an expert in microbiological technologies based in Murcia, Spain; and Stoller, one of the largest independent companies in the biologicals industry, based in Houston, Texas, U.S. These acquisitions illustrate Corteva’s commitment to providing farmers with sustainable solutions that bring value and productivity to the farm.
March 2022, AMVAC and BASF are pleased to announce a collaboration to develop Rhizo-Flo® granular soybean inoculant as an exciting addition to the expanding SIMPAS-applied Solutions portfolio. Rhizo-Flo is a unique and leading soybean inoculant designed to deliver high concentrations of viable and effective Bradyrhizobium cells and ultimately improved yields.
Restraint : Insufficient knowledge of silage and agriculture inoculant
The majority of farmers either don’t know anything about agriculture inoculant or know very little about how they might help increases cost yield sustainability. Compared to chemical fertilizers, farmers believe agriculture inoculant to have progressive beneficial effect in majority of places. Most countries, including South Africa, India and Middle East, have very poor acceptance rates for agriculture inoculant. More than half of the people in these countries depend mostly on agriculture for their income, thus farmer is reluctant to take risk with their ability to produce. Therefore, farmers have not accepted agricultural inoculant particularly well. The institute of management development and research reports that small retailers and shopkeeper believes agriculture inoculant are of inconsistent quality, hence they are reluctant to stock and sell them. Awareness of inoculants, lack of availability, and slow results are the major problems farmers face in using Microbial. Therefore, unawareness about Microbial among farmers is a major hindrance to market growth. A similar case is seen with livestock farmers for non-microbial.
For instance, in January 2022, according to Farming UK, A lack of knowledge is holding many farmers back from investing in new agricultural technology, according to a new survey by NFU Mutual. Lack of access to finance was the second highest reason limiting respondents (30%), followed by uncertainty about the future (17%) and supply chain difficulties (7%).
Challenges : Restricted usage of inoculant globally
Microbial inoculant technology has a number of benefits over pesticide use, but its application is not as ubiquitous as it may be in world. Although there have been several successful applications of microbial inoculant in liquid form, or in dry formulations, most of these methods are not feasible on a broad scale. This is due to the fact that the significant quantity is necessary for the inoculant to perform at their best. Unlike broad spectrum chemical input plant growth promoting microorganism are very selective and focused. It affects only the chosen or targeted organism. As a result, produces inconsistent quality and efficacy in field setting when multiple organisms are operating concurrently. Inoculants are relatively expensive compared to other crop inputs. This is due to the fact that they are a highly specialized product that requires a significant amount of research and development. The high cost of inoculants is a major barrier to entry for new companies, and it is also limiting the adoption of inoculants by farmers.
Opportunities : South American grassland pasture expansion
Depending on the country, up to half of the land area in continental region is used for the production of livestock. The raising of cattle for meat is significant economic activity in Brazil, where pasture land make up around 2.5 times the area is used for other crops. According to the Brazilian association of meat exporting industries, which take into account the input, services and revenue of entire meat business chain. With a 14.4% global market share and 2.2 million ton of beef exported in the world. Compared to other crops, grass Pasteur occupies a significant larger amount of land. Utilizing premium plant growth promoting micro-organism as inoculant is crucial tactics for enhancing the quality and quantity of feed biomass, hence boosting livestock productions sustainability and productivity. Inoculants can help to improve the drought tolerance of forage crops. This can be especially important in South America, where many regions are prone to drought. Inoculants can help to improve the digestibility of forage crops, which can lead to increased productivity of livestock. This can help farmers to increase their profits.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 1.08 Billion |
| Market Forecast in 2030 | USD 3.60 Billion |
| Compound Annual Growth Rate (CAGR) | 9.00 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Type, By Microbe, By Crop & By Region |
| By Type |
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| By Microbe |
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| By Crop |
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| By Form |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Inoculant Market
The Inoculant Market is segmented by type, Microbe, Crop and region.
By Type : The Microbial segment held the largest market share in 2022
By type is sub segmented into microbial, non-microbial. The Microbial segment accounted for highest market share 60% in global Inoculant market for 2022. The growing need to increase crop yields while utilizing less resources and the growing demand for sustainable agriculture practices have led to an expansion of the microbial inoculant business, Microbial inoculants aid in enhancing soil quality and accelerating plant growth in agriculture by utilizing beneficial microorganisms such as nitrogen-fixing bacteria, mycorrhizal fungi, and bacteria that support plant growth. These microorganisms help plants absorb nutrients from the soil and increase their resilience to disease and pests. The growing popularity of organic agricultural methods is also driving up demand for microbial inoculants.
On the other hand, the grains and Seeds segment has the significant market share over the forecast period, due to the growing need for sustainable agriculture and the growing focus on environmental preservation are the primary factors driving this segment's growth. Non-microbial inoculants accelerate plant growth by providing essential nutrients like potassium, phosphate, and nitrogen. These minerals are often lacking in soil, although being essential to plant growth and development, non-microbial sector also includes inoculants containing plant growth regulators and other organic compounds that promote plant development. Moreover, as farmers become more conscious of the benefits of using inoculants in crop production, the non-microbial category is growing.
By Microbe : The bacterial segment was the leading segment in 2022
By component, which is divided into bacterial, fungal, others. The beverages segment accounted for largest share 50% in global inoculant market for 2022. Throughout the course of the study, the bacterial inoculants segment is anticipated to account for the highest proportion of the worldwide inoculants market. The several advantages that bacterial inoculants offer, such as enhanced nutrient availability, better soil structure, and enhanced plant growth and health, are the cause of the increase. The many advantages provided, together with the simplicity of production and delivery, are further factors contributing to the expansion. Beneficial bacteria that enhance soil fertility and plant growth, such as those that fix nitrogen, dissolve phosphate, and stimulate plant growth, are found in bacterial inoculants, which are administered directly to the soil or seed.
On the other hand, the fungal segment is anticipated to expand over the forecast period, fungal inoculant especially Trichoderma Species have the capacity to solubilize phosphorus and other necessary nutrient from the soil, so providing plant with easy access to them. This increased intake of nutrient encourages plant development and output, especially in soils low in phosphorous. Inoculant containing fungi function as organic biocontrol agents, inhibiting detrimental soil disease and enhancing plant wellbeing.
By Crop : The Cereals & grains segment was the leading segment in 2022
By Crop, which is divided into cereals & grains, oilseeds & pulses, fruits and vegetables, forage, other. The Cereals & grains segment accounted for largest share 40% in global Inoculant market in 2022. Inoculants are being utilized more often in cereal and grain crops because of their ability to improve soil fertility and increase yield. By introducing beneficial bacteria into the soil through inoculants, it is possible to improve plant growth and development and assist in the fixation of atmospheric nitrogen. The growing global demand for grains and cereals is anticipated to drive this segment's growth throughout the forecast period.
Oilseeds & pulses segment is anticipated to register rapid growth in forecast period, Oilseeds are widely produced and are significant cash crops in developing nations. In this group, beans, lentils, canola, and soybeans are the most significant crops. Because soybeans are an excellent source of protein for vegetarians, their demand is rising globally. A premium cash crop, soybeans are in high demand, hence disease-resistant and high-yielding seeds are in high demand. These considerations suggest that the oilseeds and pulses segment will expand at the highest compound annual growth rate over the study period.
Regional Analysis
North America occupied the largest market share in 2022:
North America has the largest revenue market share 45% in 2022, for a variety of reason North America has emerged as an Inoculant industry leader. Farmers are adopting new technologies to increase soil productivity and crop yield due to shrinking agricultural growth and public settlements. This is due to the high adoption rate of inoculants in the United States and Canada, driven by the increasing demand for sustainable agriculture practices and the growing awareness of the benefits of inoculants. The United States is the largest market for inoculants in North America, with a significant share of the market contributed by corn and soybean crops.
On the other hand, Asia Pacific accounted for the significant share over the forecast period, The countries in the region include Australia, Japan, China, India, and others. One of the main factors propelling the inoculants market's expansion is the Asia-Pacific region's rising need for food goods. Higher agricultural yields are required as a result of the region's growing population and rising demand for food goods. Because inoculants can increase crop yields and lessen reliance on artificial fertilizers, farmers in the area find them to be a desirable choice.
List of the prominent players in the Inoculant Market:
- Corteva Agriscience
- BASF SE
- Bayer AG
- Novozymes A/S
- Cargill
- Incorporated
- Archer Daniels Midland Company
- DSM
- Chr. Hansen Holding A/S
- Lallemand Inc.
- Kemin Industries, Inc
- Verdesian Life Sciences
- BIO-CAT
- Microbial Biological Fertilizers International
- Agrauxine
- Provita Supplements GmbH
Segmentation Analysis of the Inoculant Market
By Type
- Microbial
- Non-Microbial
- Bacterial
- Fungal
- Others
- Cereals & grains
- Oilseeds & pulses
- Fruits & Vegetables
- Forage
- Others
- Dry
- Liquid
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Inoculant Market:
The COVID-19 pandemic has caused significant disruptions to the cattle and feed industries' supply chains and the whole feed input value chain, affecting every stage from the acquisition of raw materials to processing, packaging, and distribution. It is anticipated that COVID-19 will have a brief negative effect on the global market because most businesses have enough inventory of finished goods and raw materials. However, if the epidemic worsens and trade restrictions are not relaxed, they are anticipated to have difficulties in growing. It is anticipated that the epidemic will significantly affect the worldwide inoculants market's supply and value chains. need for animal feed is linked to the need for silage inoculants, and the demand for animal products is linked to the demand for animal products. It is anticipated that the demand for feed and inoculants will decline as a result of decreased sales of livestock and livestock products on the international market. The world's developed market economies' meat and edible meat offal export-import trade data are shown in the following figure. Since the COVID-19 epidemic started to spread over the world in January 2020, there has been a sharp fall in export-import trade.
