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Source: https://www.marketsandmarkets.com/Market-Reports/top-10-trend-agricultural-b...
Top Trends in the Agricultural Biologicals Market Analysis, 2028
The global agricultural biologicals market is projected to grow at a CAGR of 13.7% from an estimated value of USD 14.7 billion in 2023 to reach USD 27.9 billion by 2028. Awareness of organic food products and concerns toward environmental safety and favorable regulations are the key drivers affecting the growth of the agricultural biologicals market. The role of agricultural biological products has become an integral part of integrated pest management practices (IPM) in developed markets, wherein the biological products are used in combination with new synthetic crop chemistries. Strategic developments such as expansions, new product launches, and agreements have been adopted by the majority of key players to strengthen the market.
Top Trends in the Agricultural Biologicals Market Dynamics
Drivers: Growing preference for organic products
The rising awareness among consumers about the increasing use of pesticides and fertilizers in farm-grown vegetables has led to an increase in the adoption of organic food products. The absence of residues of pesticides, fertilizers, growth hormones, and antibiotics has encouraged consumers to opt for organic foods. This increasing consciousness has also promoted the concept of farm-to-table among consumers. According to a report published by FiBL on "The Organic Market in Europe 2021: Current Statistics'', the retail sales of organic food products have increased significantly in European countries in recent years. Some of the largest producers of organic products between 2018 and 2019 include Denmark, Sweden, Switzerland, Austria, and Luxembourg.
Restraints: Commercialization of low-quality biological products
Lack of transparency in patent protection laws in various countries has led to the prevalence of low-quality products. As the top trends in the agricultural biologicals market has limited barriers to entry, which has facilitated many competitors to commence operations, the nature of the market has become fragmented. This has been a factor in the introduction of low-quality products in the market by regional or local manufacturers to gain the advantage of the benefits of the growing demand for biologicals. The low prices of these products provided by small-scale domestic manufacturers also attract farmers. Similar product formulations from many competitors reduce consumer loyalty as well as the brand value of the products. The biologicals market is projected to be a niche market experiencing strong growth trends, which has to be capitalized on by developing products that are innovative and act on a wide range of crops providing better results. When a company does not develop its unique selling proposition in the biologicals market, it finds difficulty in expanding its presence other than in the regional market.
The regulatory framework for biologicals, being unclear across many regulatory bodies around the world, has allowed the entry of duplicate products. A product has been attempted to be defined appropriately only in the European Commission. According to Biological Products Industry Alliance, the purpose of agricultural biologicals is not considered the same by government authorities in different Asian countries. For instance, in China, they are mostly treated as fertilizers, while in Japan and South Korea, they are considered plant growth regulators. This restricts the market for biologicals, as it becomes difficult for the farmers to trust the products with such vagueness about their application.
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