- Current demand for multi-functional biofertilizers that improve quality and yield of crops in market
MOUNTAIN VIEW, California, Dec. 20, 2012 /PRNewswire/ -- An increasing number of farmers in North America are replacing chemical fertilizers with biofertilizers, which are less expensive and more environmentally-friendly. In addition, the region's focus on mass production, high crop productivity, large farms and cooperatives, and advanced farming technologies have further spurred demand for biofertilizers, broadening the scope of the market in North America.
New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Strategic Analysis of the Biofertilizers Market in North America, finds that the market earned revenues of over $132.9 million in 2011 which is projected to equal $205.6 million by 2018.
"Biofertilizers are available in nitrogen-fixing and phosphate-solubilizing forms, and can be combined into multi-functional formulations that increase yields per acre of legume and non-legume crops," said Frost & Sullivan Senior Industry Analyst Raghu Tantry. "Their prescribed usage also improves the quality of crops."
On the downside, biofertilizers need major investments and long timelines to meet stringent research and testing requirements. The barriers to market entry are high, as regulatory processes are expensive, involving expert teams, sophisticated research and field trials. Since not many companies are capable of developing reliable products, there are few tested brands in the market.
Additionally, purchasing processes often involve several time-consuming steps, such as technical decisions at the seed retailer and farmer levels, as well as price decisions at the purchasing agent level.
To penetrate the North American biofertilizer market, companies must provide technical support and customer service with staff that are well-versed in different crops, fertilizers and applications. They also need to create biofertilizer formulations that are compatible with the agricultural practices in the United States and Canada, which are more advanced than in most Western European countries.
"The future of the biofertilizers market lies in multi-functional product types that can be used on non-legumes, legumes, as well as commodity crops," said Frost & Sullivan Vice President of Chemicals, Materials and Food research Shomik Majumdar.
Working closely with value chain participants, including seed retailers, farmers, and purchasing agents will help build strategies to meet the market's regulatory and technological challenges.
Strategic Analysis of the Biofertilizers Market in North America is part of the Chemicals & Materials Growth Partnership Services program, which also includes research in the following: Trends in European Agrochemicals Markets, North American and Western European Biopesticides Market, and Asia Pacific Biopesticides Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Strategic Analysis of the Biofertilizers Market in North America
SOURCE Frost & Sullivan