Demand for Microalgae in Fertilizers Sector Snapshot
The demand for microalgae in fertilizers sector is forecast to grow at a steady pace, with its overall valuation surpassing US$ 9479 Thousand in 2021, exhibiting 7.7% year on year growth. As per Future Market Insights (FMI) analysis, demand for microalgae in fertilizers sector is expected to surge at an 8.7% CAGR over the course of the assessment period, from 2021 to 2031.
Growth prospects for the market are likely to remain positive, thanks to improvements in organic farming and the increasing use of bio-fertilizers. Spirulina will emerge as a top-selling microalgae in the fertilizers sector, accounting for more than 43% of the global market in 2021.
Key Points Covered in Demand for Microalgae in Fertilizers Sector Survey
- Market estimates and forecast 2016-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Demand for Microalgae in Fertilizers Sector and How to Navigate
- Recommendation on Key Winning Strategies
2016-2020 Demand for Microalgae in Fertilizers Sector Outlook Compared to 2021-2031 Forecast
The global demand for microalgae in fertilizer sector rose at a CAGR of 5.2% during 2016-2020 and is further expected to grow at a CAGR of 8.7% during the forecast period of 2021-31.
Conventional fertilizers provide a high volume of nutrients. However, plants only absorb around a third of such nutrients, consequently reducing crop yields. To improve crop yield while reducing chemical use, manufacturers are engaging in research and developing bio-fertilizer offerings.
Farmers are exhibiting high demand for bio-fertilizers as they intend to obtain higher yields while reducing production costs and enhancing crop quality. The use of bio-fertilizers to improve nutrient uptake is propelling the microalgae industry.
What has Made Microalgae Based Fertilizers Highly Sought-after?
Microalgae are attracting fertilizer manufacturers and farmers, because of their bio-stimulant and bio-fertilizer properties, which enhance crop production and agriculture sustainability.
Bio-stimulants are organic materials used in fertilizers. A small number of bio-stimulants can accelerate the growth and development of crops under both favorable and stressful conditions. Bio-fertilizers containing living organisms and natural substances improve chemical and biological soil properties, restoring soil fertility and encouraging plant growth.
Applying microalgae bio-stimulants and bio-fertilizers with synthetic fertilizers and plant growth regulators improve the quality and productivity of the crop. Therefore, manufacturers in agrochemical industries utilizing microalgae in various fertilizer products.
How is Focus on Crop Yield Affecting Demand for Microalgae in Fertilizers?
Crop productivity in recent years has been hampered by factors such as soil salinization, irrigation inadequacy, temperature fluctuations, and others. Inadequate usage of chemical fertilization has led to an osmotic imbalance with subsequent damage to crop growth and yields.
Spirulina and chlorella microalgae variants have proven useful in bolstering tolerance of wheat crops to salinity, while increasing the antioxidant capacity and protein content of whole grains with microalgae fertilizers. Efficacy in reducing abiotic stress and improvements to productivity and quality, drives demand in the fertilizer sector.
Will Microalgae-based Fertilizers Gain Traction as Sustainable Solutions?
Algae-based fertilizers have the potential to improve agricultural sustainability while lowering reliance on fossil fuels. Chemical fertilizers might harden soil, increase air and water pollution levels, release greenhouse gases, and decrease the fertility of the soil.
Rising concerns about sustainable farming aids environment friendly agriculture practices. Microalgae-based fertilizers reduce greenhouse gas emissions, fertilizing soil, while improving productivity. As a result, increasing microalgae consumption in fertilizers for sustainable agriculture drives the demand in the long term.
Country-wise Insights
Will the U.S. Continue Leading Demand for Microalgae in Fertilizers?
The U.S. market for microalgae in the fertilizers sector totaled US$ 2,954 Thousand in 2020. Growing at a CAGR of 7.4%, the market is projected to reach US$ 6,041 Thousand by 2031.
Microalgae consumption in fertilizer products in the U.S. is the highest in the world. Rising awareness about environment-friendly agriculture practices, improved soil stability, and enhanced productivity and quality of corps fuel bio-fertilizers use in the U.S agriculture sector.
Moreover, fertilizer manufacturers are investing in research and development to produce sustainable alternatives to overcome the problems associated with chemical fertilizer products for long-term opportunities.
Will Brazil Emerge as a Lucrative Market for Microalgae in Fertilizers?
The demand for microalgae in Brazil will account for a value share of 45.3% of Latin America in 2021, and is expected to grow at an approximate CAGR of 8.5% throughout forecast period.
Organic farming has seen a notable surge in Brazil. The growing practice of organic food consumption drives a shift towards bio-fertilizers. It is in turn increasing the demand for microalgae in fertilizer formulations.
What are the Prospects of Microalgae Sales Growth across Germany and Russia?
Germany market for microalgae in fertilizers is estimated to hold a lion’s share in Europe through 2031. The market is projected to reach 14.1% by 2031, at a compounded annual growth rate of 7.6%.
Russia exhibits high potential for the expansion of the market. Russia’s demand for microalgae in fertilizers sector will account for value of US$ 301.1 thousand in 2021 and is anticipated to reach US$ 934.2 thousand in 2031, with a CAGR of 12.0%.
Changes in climate, and constraints including abiotic stresses, hampers growth and productivity in the Europe agriculture sector. To increase productivity, farmers have started to apply NPK fertilizers, and biocides along with conventional practices.
Microalgae are used extensively in fertilizers to reduce abiotic stress. As a result, the demand for microalgae increases in fertilizer formulations in these countries.
What is Japan’s Value Share in the Microalgae in Fertilizers Sector?
According to FMI’s analysis, Japan is anticipated provide impetus to the demand for microalgae in fertilizers in the Asia Pacific with a value share of 13.5% in the year 2021.
Japan’s agriculture sector holds the ninth place in the world by volume. Rice and vegetables are the key crops in Japan. Government support to fulfil the raw material procurement including fertilizers, seeds, agrochemicals and other products open opportunities for manufacturers.
Moreover, the preference towards organic farming and bio-fertilizers to improve the quality of food products increase the demand for microalgae in these products. Additionally, spirulina and chlorella microalgae support the growth of vegetables in the country.
What are the Factors Fuelling Demand for Microalgae in the Fertilizers Sector of India?
India is a key market in Asia Pacific for microalgae demand in fertilizers sector with an approximate volume of around 21.3 DW Tons in 2021. The market will clock a growth rate of around 10.0% in terms of value for 2021-31 and is expected to contribute over 11.0% to the total demand for microalgae in fertilizers sector in Asia Pacific in 2031.
India accounted for nearly 8% of total global agriculture output, and the agriculture sector contributes more than 15% to the Indian GDP in 2021. The emerging economy contributes to modernization in the agriculture sector. Farmers prefer bio-fertilizers to maintain soil fertility in a sustainable manner. Therefore, changing consumer preference fuels fertilizer sales containing environment-friendly ingredients including microalgae ingredients.
Category-wise Insights
Which Microalgae Species Drives Revenue Generation in the Market?
Spirulina microalgae is used extensively in the fertilizers sector and it will hold a dominant share of more than 43.4% in 2021. The segment is expected to grow at a CAGR of 6.2% over the forecast period.
Spirulina microalgae enhances plant growth and crop yield. Therefore, it is utilized in organic fertilizers. Chlorella and dunaliella are cumulatively responsible for holding 27.5% of microalgae offerings in the fertilizers sector growing with a CAGR of 7.1% and 9.3% respectively.
What is the Leading Source of Microalgae for Fertilizer Applications?
Fresh water sources of microalgae are preferred in the fertilizers sector and the segment will hold a dominant share of more than 81.2% in 2021while rising at a CAGR of 7.7% over the forecast period.
Ample availability of resources, drives the use of marine water sourced microalgae. Improving technology for sustainable production is responsible for significant growth of marine water microalgae in the fertilizers sector with a CAGR of 12.1% from 2021 to 2031.
Which End Use Application Holds a Larger Share?
The use of microalgae in agricultural herbicides is expected to hold a value share of nearly 41% in 2021, and is anticipated to rise at a CAGR of 7.5% throughout the forecast years 2021-2031.
Agriculture herbicides are playing a vital role in boosting crop yield. Herbicides are non-selective, removing unwanted plants in the field enhancing crop yield. Microalgae reduces the need for chemical compounds.
Competitive Landscape
Manufacturers are aiming at expanding their product portfolio to suit agricultural requirements of farmers worldwide. Microalgae are becoming increasingly popular in the fertilizer sector.
Increased organic farming to meet consumer demand in addition to market concerns about soil sustainability, is encouraging key manufacturers to research and develop new fertilizers with microalgae. Expansion of product portfolios open up new option for consumers. Several new players are entering the market to fill the gap between demand and supply.
- In June 2021, HyFlexFuel successfully developed biocrudes from biomasses including microalgae, food waste, manure, and more.
- The VegaAlga initiative was set to establish sustainable agriculture ecosystems with the application of microalgae-based fertilizers.
- In July 2021, AgMA Energy Pvt. Ltd. announced the receipt of Ecocert certifications leveraging microalgae biotechnology for organic farming practices.
Scope of Report
| Attribute | Details |
| Forecast Period | 2021-2031 |
| Historical Data Available for | 2016-2020 |
| Market Analysis | USD Thousand for Value |
| Key Countries Covered | US, Canada, Brazil, Mexico, Chile, Peru, Germany, Italy, France, U.K, Spain, Russia, Poland, India, China, Japan, Australia, New Zealand, GCC country, Turkey, North Africa and South Africa |
| Key Segments Covered | Spices Type, Source, End Use Application and Region |
| Key Companies Profiled |
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| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
Key Questions Answered in the Report
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What is demand for microalgae in fertilizers sector market size?
Propelled by improvements in research and development and emerging technologies in the fertilizers sector, the global demand for microalgae in fertilizers sector will surpass US$ 9,479.4 Thousand in 2021 and it is also expected to surpass US$ 21,747.6 Thousand by 2031.
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At what rate did the demand for microalgae in fertilizers sector expand in the last five years?
According to FMI’s analysis, demand for microalgae in fertilizers sector sales have grown at 6.6% CAGR between 2016 and 2020. The market’s valuation stood at over US$ 8,805.2 Thousand in 2020.
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What are the key trends shaping the demand for microalgae in fertilizers sector?
Key trends shaping the market include growing environment-friendly and sustainable agricultural practices. Organic farming will continue fuelling the demand for microalgae in the fertilizers sector across the forecast period. High biotechnology potential for soil research is driving consumer attention.
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What are the key factors driving demand for microalgae in fertilizers sectors?
Growing requirements of soil conditioners, efforts to improve abiotic stress tolerance to improve crop yield and stability of soil drive the demand for microalgae in fertilizers sector over forecast period.
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What are the statistics of microalgae demand in the North America fertilizer sector?
Demand for microalgae in the fertilizer sector in North America is set to rise, aided by the demand for bio-fertilizers across the U.S. and Canada. As per FMI research, North America will hold 34.3% of the global demand in 2021.
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Which countries are key producers of microalgae in fertilizers sector?
The U.S, France, Japan, Germany and China are the key producing countries of microalgae in fertilizers sector.
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What is the cumulative share of top five companies engaged in the production of microalgae in fertilizers sector?
The cumulative market share of the top 5 players, including Algenol, Algatec (Lusoamoreiras), Allmicroalgae, Cellana LLC, and Nikken Sohonsha Corp cumulatively responsible for 55-65% of market share in 2021.
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Which countries are key exporters of microalgae in fertilizers sector?
The U.S., Russia, China, Germany and Spain are key exporters of microalgae in fertilizers sector.
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Which are the top countries driving demand for microalgae in fertilizers sector?
The U.S., Germany, France, China and Japan are the top 5 countries which are driving the demand of microalgae in fertilizers sector.
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What are the key statistics for demand for microalgae in fertilizers sector in Japan and India?
Japan is expected to hold 5.1% of the global market share during the forecast period while India accounts for 9.1% in 2021.
Demand for Microalgae in Fertilizers Sector by Category
By Species Type:
- Spirulina
- Chlorella
- Dunaliella
- Schizochytrium
- Euglena
- Nannochloropsis
- Nostoc
- Others
By Source:
- Marine water
- Fresh Water
By End Use Application:
- Biofertilizers
- Biocontrole
- Soil microalgae
- Biostimulants
- Fungicide & Insecticide
- Pesticide
- Soil Conditioner
- Agriculture Herbicide
- Animal Repellent
- Others
By Region:
- North America
- Latin America
- Europe
- Asia Pacific
- Middle East & Africa
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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