Laura Mahecha
Director, Agrochemicals
Sustainable agriculture continues to drive gains for biological crop protection in the United States. American farmers continue to use biopesticides, biostimulants, biofertilizers, and natural inoculants on seeds, row crops, fruit, nuts, vegetables, and other specialty crops. Our recent research on this market has uncovered some areas driving gains for the market that are unexpected.
Home-Garden Demand Strengthens Market Dynamics
The consumer segment of the market continues to see gains of both biostimulants and biofertilizers being used in home gardens. While this use is very small in terms of volumes applied and number of acre treatments compared to those used by commercial growers, the prices paid by consumers for these natural inputs are premium, thereby driving increased sales of these products. Post-pandemic, the number of Americans cultivating their own gardens has skyrocketed.
Consumers are growing their own fruit, vegetables, and flower gardens, and many of these home gardeners are interested in maintaining natural yards that are free from synthetic pesticides, to keep their yards safe for children and pets. In 2020, 18 million Americans started gardening during the pandemic, driving the number of U.S. households that cultivate gardens at 41.7%.
Currently, this has been sustained and is increasing with 71.5 million households and over 185 million Americans gardening. As of 2023, 81% of U.S. households report gardening, and many of these home gardeners are using natural inputs, particularly biofertilizers.
Seaweed Extracts and Mixtures Lead Commercial Growth
Other areas that are growing in the United States include bacterial and fungal products and seaweed extracts. American farmers are increasingly using biostimulant mixtures to protect their crops from abiotic stress such as severe weather and pest resistance. Commonly used mixtures include those that contain seaweed extracts, humic acids, protein hydrolysates, and microbial components such as bacteria, plant extracts, and/or peptides.
Biofertilizers Face Pricing Challenges but Remain Promising
Biofertilizers have recently been challenged by commodity price pressures. However, the long-term outlook remains positive. Interest from growers in biofertilizers increases for products that improve nutrient use efficiency and enhance nutrient uptake and soil health, particularly when synthetic fertilizer prices are on a rise.
Outlook for Industry Stakeholders
Our Agrochemicals team will be publishing our latest research on Biostimulants and Biofertilizer: U.S. Market Analysis and Opportunities, in December. To learn more about how this qualitative report and detailed database of hundreds of products can help in your strategic decision-making, please contact us.
