Biostimulants Market - Forecast(2024 - 2030)

Biostimulants Market Overview

Biostimulants market size is forecast to reach US$5.4 billion by 2027, after growing at a CAGR of 10.2% during 2022-2027. Biostimulants are products that increase plant growth, water resistance, and resistance to abiotic stresses while reducing the need for fertilizers. These substances are effective in small concentrations, favoring the smooth operation of the plant's vital processes and allowing for high yields and high-quality products. Humic acids, seaweed extracts, amino acids, polysaccharides, plant hormones, and other biostimulants are gaining popularity due to their high efficiency and low toxicity. The growing need to increase crop yield and quality, the growth of organic farming and demand for organic food, the wide range of benefits of biostimulants in crop production, and growing awareness about environmental safety with biostimulant use are driving the biostimulants market forward. During the forecast period, however, scientific and technical difficulties in developing biostimulants will pose a challenge to market growth.

COVID-19 Impact

Biostimulants are widely used in the production of various crops, which necessitates intensive crop care such as seed preparation, soil management, crop protection, and more. However, due to the COVID – 19 outbreaks, crop production activity faced challenges such as late crop care and biostimulants product supplies, trade and delivery concerns, and more in the first few months of 2020. The negative impact on emerging market economies was exacerbated by the combination of lengthy lockdowns in rich market economies and local societal estrangement. Thus, the prolonged shutdown had an impact on the agricultural business, thereby limiting the biostimulants market growth in 2020. However, after the spread of the Covid-19 pandemic, in 2021, the consumption pattern of consumers showed a responsible shift from non-organic to organic. An emerging focus on preventive healthcare is gradually but systematically bringing about a shift in the global conventional farming practices and producers are encouraged to produce more organic alternatives using sustainable methods and resources due to which the market outlook for biostimulants during the forecast period is not much hindered.

Report Coverage

The report: “Biostimulants Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the biostimulants industry.

By Form: Dry, and Liquid
By Product Type: Microbial (Plant Growth Promoting Bacteria, Non-pathogenic Fungi, Mycorrrhizal Fungi, Nematodes, and Others), and Non-microbial (Seaweed Extracts, Humic Acids, Salicyclic Acids, Humic Substances, Fulvic Acids, Phosphite, Chitins and Chitosan, polysaccharides, Amino Acids, and Others)
By Application Method: Foliar Application, Soil Treatment, and Seed Treatment.
By Crop Type: Cereals & Grains (Wheat, Corn, Barley, Oats, and Others), Oilseeds (Soybean, Rapeseed, Sunflower, and Others), Fruits (Banana, Apple, Grapes, Oranges, Others), Vegetables (Cabbage, Tomato, Potato, Onion, and Others), Plantation Crops (Tea, Coffee, and Others), Turf and Landscape, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• Europe dominates the biostimulants market owing to the increasing organic farming in the region. For instance, According to the Research Institute of Organic Agriculture (FiBL), the organic area share of total farmland in Europe increased from 2.0% in 2016 to 3.0% in 2019.
• There is a growing demand for food that is produced sustainably, with lower levels of synthetic chemicals and higher levels of biologicals. And biostimulants are assisting in the long-term resolution of this issue, thereby stimulating market growth.
• The use of synthetic fertilizer to the bare minimum required by government and non-government organizations is assisting the growth of the biostimulants market.
• Furthermore, during the forecast period, government initiatives to support the agricultural industry by providing subsidies for organic and bio-based farming are expected to drive market growth.

Figure: Europe Biostimulants Market Revenue, 2021-2027 (US$ Billion)

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Biostimulants Market Segment Analysis – By Product Type

The non-microbial segment held a significant share in the biostimulants market in 2021 and is forecasted to grow at a CAGR of 10.5% during 2022-2027. This segment's large share is due to its widespread availability, wide range of plant benefits, and higher efficacy. These products can cause significant morphological changes in roots. Furthermore, these products aid in the modification of nutrient acquisition and uptake activities in plant membranes. Amino acids are a major source of phytohormones, which help to activate plant metabolic systems and promote seed germination. They encourage the plant to set fruit, flower, pollinate, and develop fruit. These factors associated with non-microbial biostimulants are anticipated to drive its demand in the agriculture sector during the forecast period.

Biostimulants Market Segment Analysis – By Application Method

The seed treatment segment held a significant share in the biostimulants market report in 2021 and is forecasted to grow at a CAGR of 8.9% during 2022-2027. Biostimulant seed treatment is a technique for reducing environmental stress during sowing and increasing yield, all starting with seed germination. When compared to traditional spraying techniques, seed treatment is one of the most cost-effective applications. The treatment is both effective and time-saving compared to other approaches. This helps to lower overall input costs. Seed treatment biostimulants are low-cost, efficient, and environmentally friendly seed treatment biostimulants that can improve seed performance, germination capacity, and seedling vigor, all of which are important for plant growth and development under both controlled and abiotic stress conditions. Thus, seed treatments with biostimulants, which can be a sustainable, green, and promising approach in agriculture, are becoming more popular, thereby driving market growth.

Biostimulants Market Segment Analysis – By Geography

Europe region held the largest share in the biostimulants market in 2021 up to 31%. The agriculture i.e. crop production industry is flourishing in the region, which is accelerating the demand for biostimulants in the region. For instance, according to the International Production Assessment Division (IPAD) of the USDA’s Foreign Agricultural Service (FAS), Corn production in the European Union (EU) for marketing year (MY) 2021/22 is expected to be a record 70.4 million metric tonnes (MMT), up 5% from last year and 9% higher than the 5-year average. Wheat production in the United Kingdom (UK) for marketing year (MY) 2021/22 was 14.3 million metric tonnes (MMT), up 9.7 MMT (48%) from last year's disastrous crop. The crop in MY 2021/22 is 0.7mmt (5%) higher than the 5-year average. Wheat production in the European Union (EU, 27 members) was estimated at 137.5 million metric tonnes (MMT), up 11.6 MMT from the previous year and 5% higher than the 5-year average. Barley production in the European Union (EU27 + UK) is expected to reach 64.1 million metric tonnes (MMT) in 2020/21, up 2% from the previous year. Thus, the growth in the European agriculture sector is set to accelerate the demand for biostimulants in the region, thereby driving market growth.

Biostimulants Market Drivers

Bolstering Growth of Organic Farming

Biostimulants are important for the agricultural industry's future in terms of promoting organic farming practices. Biostimulants can help to improve soil microflora, which helps to improve nutrient uptake efficiency. Others boost internal defenses against environmental stresses and disease pressure by increasing antioxidant activity in plants. Biostimulants are commonly associated with organic farming and gardening, but they are also making progress in conventional agriculture. For instance, according to The Research Institute of Organic Agriculture (FiBL) statistics, In 2016, the global area under organic cultivation was 58.1 million hectares, which has increased by 24.4 percent to 72.3 million hectares in 2019. Organic farming is becoming more popular as a result of ongoing support from various governments. To accelerate organic farming in India, the Indian government has launched programs such as the National Program for Organic Production (NPOP) and the National Project on Organic Farming (NPOF). To boost the country's organic farming sector, the US government has launched programs such as the Organic Agriculture Research and Extension Initiative (OREI) and the Organic Transitions (ORG) programs. Such government initiatives coupled with the advantages of using biostimulants are set to post relatively solid growth for the market during the forecast period.

Higher Crop Production in a Smaller Area of Land

Biostimulants play an important role in providing crops with the nutrients they require to grow and increase crop yield while also being an environmentally friendly option. As a result, they are frequently used during crop production. With the world's population growing at an exponential rate, enough crops must be grown each year to feed everyone, which is why crop production is increasing around the globe. For example, the Food and Agriculture Organization (FAO) reports that primary crop production was 9.4 billion tonnes in 2019, up 53 percent from 2000. Global agricultural production is expected to increase by 1.4 percent per year over the next decade, according to the (OECD). Yield growth is expected to account for 88 percent of global crop production expansion between now and 2030. Agricultural growth has accelerated in recent years, but the majority of this growth has been fueled by higher yields per unit area rather than increased farmland area. To meet the demand for grain and feed the expanding population on existing arable land, it is recommended that annual crop production and yield be increased annually within the same area of arable land by 2030. The demand for biostimulants will significantly increase to improve crop yield within the same area of arable lands and provide crops with proper nutrients, which will undoubtedly drive market growth during the forecast period.

Biostimulants Market Challenges

Commercialization of Low-quality Biostimulants

The prevalence of low-quality products is due to a lack of transparency in patent protection laws in various countries. Although the biostimulants market has low entry barriers and has allowed many new competitors to enter the market, the market has fragmented into smaller pockets of market holdings. This has been a factor in regional or local manufacturers introducing low-quality products to the market to profit from the growing demand for biostimulants. Farmers are attracted to these products because of their low prices from small-scale domestic manufacturers, which is hampering biostimulant sales. 

Biostimulants Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the biostimulants market. Biostimulants top 10 companies include:

1. Bayer CropScience
2. UPL Ltd.
3. FMC Corporation
4. Valagro S.p.A
5. Syngenta AG
6. Gowan Group
7. ILSA S.p.A
8. Rallis India Limited
9. BASF SE
10. Haifa Group 

Recent Developments

• In February 2021, UPL AgroSolutions Canada announced that OHM Biostimulant, its first biosolutions product in Canada, has been approved by the Canadian Food Inspection Agency. OHM is a liquid form of Ascophyllum nodosumseaweed extract that optimizes nutrient use efficiency for improved plant growth and development.
• In June 2021, UPL Australia has introduced a new line of Biostimulant products based on GoActiv Technology, which is intended to address specific crop physiological or abiotic stresses in fruits, vegetables, vines, and tree crops. GoActiv Technology is based on a 100 percent pure extract from the seaweed species Ascophyllum nodosum. 

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