The global agricultural inoculants market was valued at USD 867.6 million in 2019 and is projected to rise from USD 956.7 million in 2020 to USD 3,300.52 million by 2032, at a CAGR of 10.87% during 2020–2032. In the U.S., the market is forecasted to grow substantially, reaching around USD 701.04 million by 2032, supported by the increasing use of innovative and customized inoculant solutions designed to improve crop productivity and soil health. North America led the market in 2019, accounting for 37.25% of the global share.
Despite the worldwide spread of manufacturers, the agricultural inoculants market experienced minimal disruption during the COVID-19 pandemic.
Agricultural inoculants, often referred to as microbial or soil inoculants, consist of beneficial microorganisms that act as bio-fertilizers, growth promoters, or biopesticides. These microbes are widely used across crops globally, helping to reduce dependence on synthetic agrochemicals while minimizing environmental impact. Rising demand for organically produced foods and increasing concerns about the adverse effects of chemical pesticides and fertilizers are major drivers of the market.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/agricultural-inoculants-market-101615
Drivers & Restraints
Rising Awareness of Soil Damage from Chemical Pesticides
Excessive use of chemical pesticides, while effective in protecting crops, has long-term negative effects on soil quality. Growing concerns over soil degradation due to chemicals are expected to fuel demand for inoculants. According to the Food and Agriculture Organization (FAO), global pesticide usage reached 4.1 million tons in 2018. However, challenges such as limited farmer awareness and the short shelf life of inoculants may restrict growth to some extent.
Regional Insights
North America: Leading Market Backed by Technological Adoption
North America dominated the market in 2019, valued at USD 294.2 million, owing to large-scale cultivation of inoculant-intensive crops such as soybean, corn, and canola. The rapid adoption of advanced agricultural technologies in the U.S. and Canada is further strengthening market growth.
South America: Fastest-Growing Region
South America is set to register the highest CAGR over the forecast period. High demand in Brazil and Argentina, coupled with the presence of leading companies such as Rizobacter, is boosting growth. Rizobacter, the world’s third-largest inoculant producer, is headquartered in Argentina and continues to expand its operations in the region.
Competitive Landscape
Focus on R&D and Product Innovation
Key companies are heavily investing in research and development to introduce new and effective inoculant solutions. For instance, in August 2020, Lallemand Plant Care Canada introduced LALFIX PROYIELD LIQUID SOYBEAN, a product featuring two distinct strains of nitrogen-fixing bacteria.
Key Companies in the Global Agricultural Inoculants Market
- Bayer AG (Germany)
- BASF SE (Germany)
- Corteva (United States)
- Isagro S.p.A. (Italy)
- Lallemand Inc. (Canada)
- Rizobacter (Argentina)
- Stoller Group (United States)
- Verdesian Life Sciences (United States)
- KALO (United States)
- Advanced Biological Marketing Inc. (United States)
- Others
Industry Developments
- August 2020: Stoller Argentina S.A., part of the Stoller Group, launched a combined solution package including an inoculant, a fungicide, and a biostimulant.
- April 2019: Bayer introduced CTS 500, a biological soybean inoculant in Brazil, made available for the 2019/2020 harvest.
