Inoculants offer revolutionary solutions in agricultural biological space, boosting crop yields naturally while improving soil health and reducing reliance on chemical inputs. These bio-based products provide beneficial microorganisms directly into the soil mass, supporting the ecosystem and healthy plant growth. Considered microscopic powerhouses, inoculants help increase crop nutrient availability, enhance stress tolerance and root development, and improve soil health. According to MarketsandMarkets, the global agricultural inoculants market is estimated to be valued at USD 607.3 million in 2022 and is projected to reach USD 906.8 million by 2027, recording a CAGR of 8.3% in terms of value.
Though constituting a small sector of the global agrochemical industry, the agricultural inoculants market has grown significantly due to the increasing need for a sustainable approach to agricultural operations in developed countries. Growing awareness about sustainable farming, environmental safety, and increased demand for organic food products have increased the use of agricultural inoculants. Strong research funding by key manufacturers for product developments, such as compatible combinations of biological and chemical components, is expected to drive the market’s growth over the next five years.
Demand for high-value crops provides high-growth opportunities for inoculant application
Eco-friendly solutions like inoculants can help maintain soil fertility and plant health in organic farming systems. Companies are focusing on technological advancements for more effective inoculant strains and integration with precision agriculture for optimized applications. As farmers become more aware of the long-term economic benefits of inoculants, developing economies with growing populations will present a vast potential for inoculants as part of sustainable practices. The market for inoculants specifically designed for high-value crops like soybean is also poised for significant growth. Globally, soybean is the most inoculant-consuming crop, carrying bacteria from the genus Bradyrhizobium. Brazil is one of the global leaders in the use of inoculants for the soybean crop, where approximately 78% of the copping area is inoculated yearly (ANPII 2018).
Encapsulation technologies to be applied for improved product effectiveness
The physical formats of commercially inoculated with plant growth-promoting microbes create major issues for the microbial strains’ survival in the face of abiotic conditions. Hence, using polymers through the encapsulation technique has been demonstrated to be a successful alternative. For example, the bioencapsulation of spore-forming bacteria increases their resistance to environmental factors. Fungi like Trichoderma and Metarhizium have successfully promoted crop growth, including Cajanus cajan, Lactuca sativa, and Solanum tuberosum, through their polymer-based encapsulation. Depending on the requirements and the type of microbes, multiple bioencapsulation approaches are employed, including the substance or polymer used and the required size of the capsule.
Limited awareness and usage due to inconsistent results pose major challenges for wider adoption
There has been low awareness and knowledge among farmers about agricultural inoculants and their usefulness in increasing cost-yield sustainably. In most regions, farmers perceive agricultural inoculants to have a gradual positive effect compared to chemical fertilizers. The acceptance is low in developing and under-developed countries, such as India, South Africa, and the Middle East. As inoculants are perceived to have a gradual positive effect compared to chemical fertilizers, farmers are unwilling to take risks regarding the production capacity. Though microbial inoculants have a huge success rate, a large amount is required for optimum functionality. Further, plant growth-promoting microbes (PGPR) are highly selective and targeted, resulting in inconsistent quality and efficacy under varied field conditions. Hence, low awareness of inoculants, lack of availability, and slow results are the major problems farmers face when using agricultural inoculants.
PGPM-based inoculants to remain dominant with high-growth projections in the agriculture sector
Considered cost-effective alternatives for chemical fertilizers, the demand for agricultural inoculants is driven by growing environmental concerns, rising organic food demand, and sustainable farming practices. Agricultural inoculants help fix atmospheric nitrogen and mobilize soil nutrients. They improve the quality of soil, enhance the growth of crops, and increase yield by improving the uptake of nutrients. They also increase the efficiency of crop protection chemicals and manures. Among agricultural inoculants, plant growth-promoting microorganisms account for the largest share. They help improve crop productivity by increasing nutrient availability, controlling phytohormones, and boosting plant tolerance to biotic and abiotic stresses.
By microbe, bacterial strains are set to grow at the highest rate due to varied applications
Bacterial inoculants are used majorly as agricultural inoculants to improve crop productivity and palatability of food, respectively. They serve as an alternative to chemical fertilizers and promote organic farming. Among bacterial microbes, Rhizobacteria form the majority of agricultural formulations as nitrogen-fixing bacteria with strong growth prospects. It helps increase the yield of soybeans, chickpeas, and many other leguminous crops. Among fungal inoculants, Trichoderma spp. is mostly used as a biocontrol agent. Players like BASF (Germany) and Novozymes A/S (Denmark) offer agricultural inoculants formulated with rhizobia.
Application in oilseeds & pulses slated for strong growth as high-value crops
Oilseeds are important cash crops in developing countries where they are grown abundantly. The most important crops in this category are soybeans, canola, lentils, and beans. The global demand for soybeans is increasing, as it is a rich source of protein for vegetarians. The demand for high-yielding and disease-resistant soybean seeds is also growing, as it is a cash crop of premium value. Due to these factors, the oilseeds & pulses segment is anticipated to grow at the highest CAGR during the forecast period. Cereals & grains will continue to dominate the agricultural inoculants market comprising wheat, corn, barley, and rice, as the most abundant crop around the globe.
North America exhibits the highest demand for agricultural inoculants globally
North America formed the largest share of the global agricultural inoculants market. Due to the shrinking agriculture growth and public settlements, farmers are adopting new technologies to increase the productivity of soil and the yield of crops. To maintain the fertility of the soil, as well as the yield of the crop, farmers prefer opting for organic agricultural practices. This has increased the demand and consumption of agricultural inoculants in this region. The US dominates the agricultural inoculants market due to its vast arable land and advanced farming practices pertaining to major crops like wheat, corn, and soybean. ADM Animal Nutrition, Cargill, Agri King, Chr. Hansen Holding AS, and Corteva Agriscience are the major companies with a significant presence in North America. Germany, Spain, and France are some of the important European markets with high-growth potential due to the growing demand for organic food in the region. In South America, Brazil is one of the leaders in using inoculants for the soybean crop.
The agricultural inoculants market landscape is characterized by dynamic innovation and strategic partnerships. Key players in this market include Corteva Agriscience (US), BASF SE (Germany), Bayer AG (Germany), Novozymes A/S (Denmark), Cargill, Incorporated (US), Archer Daniels Midland Company (US), DSM (Netherlands), Chr. Hansen Holding A/S (Denmark), Lallemand Inc. (Canada), Kemin Industries, Inc (US), Verdesian Life Sciences (US), BIO-CAT (US), Microbial Biological Fertilizers International (South Africa), Agrauxine (US), and Provita Supplements GmbH (Germany). The major players are investing heavily in R&D to develop cutting-edge formulations. They focus on increasing their presence through agreements and collaborations. They also have manufacturing facilities and strong distribution networks across North America, Asia Pacific, and Europe.
Conclusion
Microbial inoculants have become widely accepted as potential alternatives or complements to chemical fertilizers and pesticides in agriculture. Companies are engaging in advanced research in this area as the use of microorganisms, particularly plant-growth-promoting microorganisms (PGPMs), offers significant support for crop nutrition and pest control. Research & development activities are focused on mass production and inoculation techniques for culturable microbes. New approaches are being taken to develop improved inoculants, including – (1) using microbial isolates for specific target crops, (2) inclusion of heterofermentative microbes, (3) inclusion of newer organisms other than conventional, (4) engineering of LAB strains for specific microorganisms inhibition, and (5) cloning and gene expression.
Interest in biologicals, including biopesticides and biofertilizers, and their potential use in sustainable agriculture will continue to propel the demand for inoculants globally. However, low-quality commercial products, due to a lack of quality standards, decrease efficiency, cause high on-field variability, and lower farmers’ confidence. Hence, there is a need for increased quality standards for the number of microbes delivered and for the presence of contaminants. While many strategies for formulating target-specific inoculants are being tested, the most successful approach must be determined.
