Biofertilizer market to expand to $6.94 billion by 2031

The biofertilizer market is projected to grow from $4.08 billion in 2026 to $6.94 billion by 2031, at a Compound Annual Growth Rate (CAGR) of 11.2 percent during the forecast period, says market analysis firm Markets and Markets.

“The global biofertilizers market is experiencing significant growth, driven by an increasing focus on sustainable agriculture, soil health restoration, and a reduction in chemical fertilizer dependence across major farming economies,” said the firm in its June 2026 report. 

The document noted rising demand for organic products, as well as North America’s position as the most profitable market in the world for the category, offering producers a staggering revenue of 39 percent in 2026.

The nitrogen-fixing biofertilizers category is projected to have the biggest growth in the next five years, Markets and Markets says, with an estimated CAGR of nearly 12 percent. Meanwhile, the seed treatment segment is expected to register the highest CAGR of 12.5 percent during the same period.

Trends driving growth in the biofertilizer market

The demand for biofertilizers has been on the rise in recent years, says the firm, primarily due to the emergence of sustainable nutrition strategies and eco-friendly farming technologies that reduce reliance on synthetic fertilizers. 

“Growing awareness of soil health deterioration, declining nutrient utilization efficiency, environmental pollution, and the sustainability of farming systems would further boost biofertilizer demand for diversified crops,” Markets and Markets noted. 

Additionally, the consistent rise in R&D thrust areas by agro-biotech companies toward strain screening, microbial mass production, formulation, and delivery techniques is further supporting the development of novel, broad-spectrum, cost-effective bioagents.

Bacterial biofertilizers are leading the way

According to the marketing firm, bacterial biofertilizers hold the largest market share, as they are widely compatible with major crops such as cereals, grains, fruits, and vegetables. 

“Increased integration of microbiological technologies into conventional and organic farming, efforts to restore soil fertility, the development of integrated nutrient management systems, and a focus on biodegradable and biological crop production methods are boosting market potential,” the report reads. 

Likewise, phosphate-solubilizing and mobilizing biofertilizers are the largest segment of the global market, primarily due to their essential role in increasing phosphorus availability and improving nutrient uptake across various crops. In this case, demand is fueled by growing concerns about phosphorus shortages, reduced fertilizer efficiency, and rising costs of synthetic alternatives, Markets and Markets says.

The European market is set to grow fast

The extensive adoption of sustainable farming methods, paired with stringent environmental protections and restrictions on chemical fertilizers in the region, makes Europe the fastest-growing market for biofertilizers. 

“Promoting organic farming and regenerative agricultural practices across countries such as Spain, Italy, France, Germany, and the Netherlands is likely to considerably increase biofertilizer use,” says the report. “Moreover, European Union schemes, which are tailored to minimize the use of synthetic chemicals and enhance biological soil inputs, are expected to further drive market trends.”

 The increasing consumer demand for residue-free and organic products, along with significant innovations and investments in microbial technology and precision agriculture methodologies, is also expected to impact the European biofertilizer market's growth.

*All images are referential.

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