As per a study by FMI, the demand for microalgae in fertilizer sector is expected to rise at a CAGR of 8.7% during the forecast period.
The market is expected to exhibit a year on year growth of over 7.7% in 2021.
According to a study by FMI, the global demand for microalgae in fertilizer sector grew at a CAGR of 5.2% during the historical period of 2016-2020 owing to improved organic farming and increasing implementation of bio-fertilizers.
Improvement in technology used for sustainable farming is expected to shift focus from microalgae sourced from freshwater to species derived from marine water due to the ample availability of the latter.
The demand for marine water microalgae in fertilizers sector is expected to rise at a CAGR of 12.1% during the forecast period of 2021 to 2031.
Rise in organic farming owing to increasing adoption of organic food consumption is driving the market towards biofertilizers. This is in turn is boosting the demand for use of microalgae in fertilizer formulations.
There has been a considerable shift toward environmental friendly agriculture practices to enhance productivity of crop, quality of crop, and improve soil stability. Key manufacturers are thus investing in research and development (R&D) activities to boost their sales and expand consumer base.
"Key players in the global microalgae in fertilizer sector are actively focusing on overcoming problems associated with chemical fertilizer and they are investing in R&D activities to innovate novel products. Through this, they aim at gaining competitive advantage," says the FMI analyst.
Key Takeaways
- Agricultural herbicides segment is expected to hold 41% of the market in 2021 and rise at a CAGR of 7.5% during the forecast period owing to its increasing application in boosting crop yield.
- Fresh water sources of microalgae will hold a dominant share of 81.2% in 2021 and project a rise of 7.7% CAGR as more preferred source of microalgae in the fertilizer sector.
- Spirulina microalgae is expected to hold dominant share of 43.4% during 2021 as it is extensively used in fertilizers to improve plant growth and crop yield.
- India will remain a key market in Asia Pacific and is expected to clock a growth rate of 10.0% CAGR during the forecast period backed by modernization in agricultural sector.
Key Drivers
- The demand for bio-fertilizers is increasing as farmers look for novel methods to maintain soil fertility in sustainable manner. The shift of consumer preference is boosting demand for environmental friendly solutions including microalgae ingredients.
- Government support to the agricultural industry in the form of granting funds for raw materials, agrochemicals, seeds, fertilizers, and other products will encourage demand for microalgae in fertilizer sector.
- Consumers are adopting a healthier approach toward their lifestyles and habits. This has resulted in demand for healthy and organic foods, hence bolstering demand for bio-fertilizers to improve the quality of food. This will bode well for the market in the long run.
Key Restrains
- Climate change and abiotic stresses will act as a restrain in the demand for microalgae in fertilizer sector in numerous countries.
- Non-availability and lack of awareness will hamper larger adoption of microalgae in fertilizer sector during the forecast period.
The key players operating in the global microalgae in fertilizer sector are focusing on expanding their product portfolio to cater the agricultural requirements of farmers worldwide as it is increasingly becoming popular in fertilizer sector.
Rising prevalence of organic food consumption is boosting demand for organic farming. This is expected to encourage manufacturers to increase investment in research and development focusing on microalgae and fertilizers.
Various new players are entering the market, hence reducing the gap between demand and supply. Product launches are therefore gaining momentum in the market.
For instance, HyFlexFuel in June 2021, launched biocrudes from biomasses including microalgae, manure, food waste, and others. Meanwhile, VegaAlga is expected to establish sustainable agricultural ecosystem by incorporating microalgae-based fertilizers.
About Future Market Insights (FMI)
Future Market Insights (FMI) is a leading provider of market intelligence and consulting services, serving clients in over 150 countries.
