Market Trends of Global Agricultural Biologicals Industry
Increasing Area Under Organic Cultivation
Organic agriculture has emerged as a significant contributor to sustainable food systems, with 187 countries practicing it globally. As of 2021, there was 72.3 million ha of organic agricultural land worldwide, with an average increase of 2.9% across all regions from 2018 to 2021. Organic arable land accounted for 14.4 million ha, representing 19.9% of the total organic agricultural land.
The strongest markets for organic farming are North America and Europe, accounting for 41.0% of the global organic arable land. In 2022, Europe had 6.5 million ha of organic arable land, equivalent to 44.1% of the overall organic arable agricultural area. The most significant crops grown organically in North America and Europe are apples, strawberries, cereals, and olives.
Developing countries in Asia-Pacific are also joining the organic agriculture movement and becoming self-sufficient in producing and providing fresh organic produce to meet their domestic demand. The trend of organic farming is gaining momentum in Asia-Pacific, with the region recording an 18.8% increase in organic arable land from 2017 to 2022. The major initiatives by governments in the region also play a vital role in the growing trend of organic farming. For example, Japan's Basic Plan for Food, Agriculture, and Rural Areas aims to triple the number of organic farmers and lands by 2030.
The growth of organic agriculture is driven by the rising awareness of the benefits of organic farming, such as promoting soil health, reducing environmental impacts, and producing healthier food.
United States Dominates the Market
According to the data of the US Department of Agriculture's Agricultural Statistics Service, there were more than 1,400 registered organic farms in the Unites States in 2016. Furthermore, around 3,454,441 acres of land was treated with biological fertilizers in 2017. Organic exports of fruits and vegetables amounted to USD 548 million in 2016. Hence, the increasing demand for organic crops is leading to an upsurge in the demand for biological products in the country. The US Environmental Protection Agency (EPA), which is associated with the regulation of pesticides in the United States, has made the registration of biopesticide products more efficient through the development of modified test methodologies and clear guidance documents, as a result of which, currently, over 430 biopesticide ingredients are available in the country.
The major strategies adopted by key players, such as Certis USA LLC, Syngenta, Bayer CropScience AG, and BASF SE, have also contributed to the growth of the agricultural biologicals market in the country. For instance, in 2017, Agrinos and Van Diest Supply Company partnered to drive the use of biological crop solutions among the farmers in the country.
