Biofertilizers are products that contain living microorganisms that help in increasing the nutrient supply or stimulating plant growth by mobilizing nutrients when applied to seeds, plant surfaces or soil. They enrich the nutrient quality of the soil and helps increase crop productivity. The global biofertilizers market is currently dominated by nitrogen-fixing biofertilizers.

The global biofertilizers Market is estimated to be valued at US$ 2.26 Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Organic farming is one of the major opportunities driving the growth of the biofertilizers market. There is a rising demand for organic foods among consumers due to increasing concerns regarding the residual effects of chemicals used in conventional farming. Biofertilizers help improve soil fertility and promote plant growth without using any synthetic chemicals. The adoption of biofertilizers is increasing among farmers engaged in organic farming as they provide eco-friendly nutrients to crops. The growth in organic farmland across major economies will boost the consumption of biofertilizers during the forecast period.

Porter's Analysis:
Threat of new entrants: The threat of new entrants in biofertilizers market is low as it requires significant investments and technological capabilities to produce biofertilizers. Moreover, established players have economies of scale which make it difficult for new players to compete.

Bargaining power of buyers: The bargaining power of buyers is high in this market as biofertilizers is not significantly differentiated and buyers can switch between brands easily.

Bargaining power of suppliers: The bargaining power of raw material suppliers is moderate as the key raw materials used in biofertilizers such as nitrogen-fixing bacteria are available from multiple suppliers globally.

Threat of new substitutes: The threat of substitutes is moderate as chemical fertilizers can be used as substitutes for biofertilizers. However, growing environmental concerns are driving demand for eco-friendly biofertilizers.

Competitive rivalry: The competitive rivalry in the market is high due to presence of many global and regional players competing on factors such as product quality, pricing and innovation.

SWOT Analysis:
Strength: Biofertilizers are environment-friendly and aid in improving soil health and fertility. They help reduce usage of chemical fertilizers.
Weakness: High production costs and low consumer awareness regarding benefits of biofertilizers. Dependency on climatic conditions for certain strains.
Opportunity: Increasing preference for organic farming worldwide due to rising health and environmental concerns offers significant growth prospects.
Threats: Fluctuating raw material prices and availability could increase biofertilizers production costs. Substitutes such as synthetic chemical fertilizers.

Key Takeaways:
The Global Biofertilizers Market Size is expected to witness high growth over the forecast period due to rising focus on sustainable agriculture worldwide. The global biofertilizers market is estimated to be valued at US$ 2.26 Bn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030.

North America accounts for the largest share currently due to favourable government policies supporting organic farming in countries like the US and Canada. Europe is another major market driven by stringent environmental regulations regarding use of chemicals in agriculture.

Key players operating in the biofertilizers market are Sanofi SA, Reckitt Benckiser Group PLC, Pfizer Inc., Mylan NV, GlaxoSmithKline PLC, Johnson & Johnson, Bayer, Takeda Pharmaceutical, and Sun Pharmaceutical Industries Ltd., among others. Regional analysis shows that Asia Pacific is expected to grow at the fastest pace during the forecast period. This can be attributed to rising population, increase in disposable income, and growing focus on improving farm productivity through use of biofertilizers in countries such as India and China.

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