The Asia-Pacific bio-fertilizer market is projected to register a CAGR of 10.8% over the forecast period (2020-2025). In year 2019, bio-fertilizers market revenue for China is highest followed by India, Australia, and Japan, respectively. China accounted for 43.2% (approx) of the bio-fertilizers market share for Asia-Pacific region in the same year.
Key Market Trends
Increased Practice for Organic Farming
As per FiBL report 2018, the leading countries by area were reported to be China by 3 million hectares and India by 1.8 million hectares in 2017. The countries in the region are providing subsidy and other financial assistance to farmers to promote organic farming in the respective countries. For instance, Government of India is promoting biofertilizers through various schemes of National Mission for Sustainable Agriculture (NMSA)/ Paramparagat Krishi Vikas Yojana (PKVY), Rashtriya Krishi Vikas Yojana (RKVY), and National Mission on Oilseeds and Oil Palm (NMOOP), National Food Security Mission (NFSM), and Indian Council of Agricultural Sciences (ICAR). Additionally, the rise in demand for organic products is booming due to an increase in conscientious consumers, increasing incomes, along with improved farming practices that make organic yields more robust. Thus, the increasing demand for organic food has increased the area under organic farming which will boost the bio-fertilizer market in the region.
China Dominates the Biofertilizers Market
The Asia-Pacific region is majorly influenced by the Chinese market with the Chinese biofertilizer market projected to register a CAGR of 11.3% during the forecast period (2020-2025). The Chinese economy is moving toward a green agricultural practice by encouraging the farmers to scale back the use of chemical fertilizers and switch to bio-based and organic alternatives. In this regard, in 2017, China’s Ministry of Agriculture released a pilot plan for fertilizer replacement in around 100 districts of China, which aimed at reducing chemical use fertilizer by at least 20% by 2020. At present, the number of microbial fertilizer producers has been growing every year. Some larger fertilizer manufacturers have also stepped into the industry. China has over 300 bio-fertilizers producing enterprises with an annual product output of about half a million metric tons.
Asia-Pacific Biofertilizer market is fragmented in nature as there are many players with small shares in the market. Major companies operating in the region are Syngenta, Agrinos, National Fertilizer Ltd, etc are adopting various strategies, such as product launches, partnerships, and acquisitions, to gain a larger share in the market. For instance:
- June 2018 – Kiwa Bio-Tech Products Group Corp., has established a cooperative relationship with Postal Savings Bank of China Co. Ltd (“PSBC”), Shaanxi Branch, to provide financial support to its clients, including crop growers, family farms, farmers’ professional cooperatives and others.
- June 2017– Symborge has taken an equity position in Thinkbio, an Australian Agtech company to collaborate on microbial research, development and innovation initiatives to strengthen their collective biotechnology product solutions.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support