Africa Biofertilizer Market - Growth, Trends, and Forecast (2020 - 2025)
The African biofertilizers market is projected to witness a CAGR of 5.9% during the forecast period (20202025). In the East African countries, including Kenya, Sudan, Uganda, and Tanzania, low demand due to lack of awareness and understanding of biofertilizers has resulted in the poor development of the biofertilizers sector. Despite the potential of biofertilizers, rapid market growth remains a challenge in eastern Africa, not only because of the high cost of production but also due to limited demand. South Africa and Egypt occupied a share of 57.78% owing to the presence of around 80% of the biofertilizer companies in the country. Rhizobium holds a significant share among all organisms by volume. This is because the major companies provide products that contain these bacteria and are among the fast selling products, which helps the companies to maintain voluminous sales.
Key Market Trends
Increasing Food Demand and Need for Sustainable Agriculture Development
Africa has the highest population with the most extensive arable land. For instance, the SubSahara Africa region has 13% of the world population and has approximately 20% of global agricultural land. However, the area is facing severe food insecurity, which is primarily attributed to inadequate food production. The lack of access to mechanization in farming and limited use of fertilizers due to less farmer buying power is driving the demand for alternative costeffective fertilizers such as biofertilizers in the region. According to Africa Fertilizer Organization, In 2018, the total consumption of fertilizers in regions, such as Ghana, Kenya, and Mali, was reported to be 310,866 metric ton, 545,675 metric ton, and 816,375 metric ton, respectively, while the imports were 315,157 metric ton, 626,418 metric ton, and 705,746 metric ton, respectively. In order to lessen the fertilizer imports, there is a need for the production of indigenous fertilizers, such as biofertilizers, that can substitute conventional fertilizer usage in the region.
South Africa Dominates the Market
The South African biofertilizers market was valued at USD 29.3 million and accounted for 65% of the revenue for the African biofertilizers market, in 2017. Despite the ability of biofertilizers to sustainably increase the yields, along with significant economic benefit, they are not widely available to and also not adopted by smallholder farmers in South Africa. This further leads to the growing need for increased investments in localized research, the involvement of private and public sectors in the production of biofertilizers, establishment of adequate regulations, and promotion of a favorable environment for the growth of the biofertilizers market in the country.
The African biofertilizer market is highly fragmented, with the top five market players accounting for about 20% of the market. The global biofertilizer market being unregulated is the reason behind the presence of many small companies. Once proper regulations are put in place, it is highly likely that the market will be consolidated among a few companies.
Reasons to Purchase this report:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook