Biostimulant Market

Preliminary research of Fairfield Market Research indicates a promising growth outlook for global biostimulant market during the course of next few years.

Key Report Findings

• Global biostimulant market attained the valuation of around US$2.5 Bn in 2021
• Spike in adoption of organic farming to augment the biostimulant market
• Organic F&B sales saw a whopping increase from about US$81.6 Bn in 2015 to US$119.1 Bn in 2019
• The US alone houses over 16,585 organic farms, report the USDA
• Europe to remain a regional frontrunner in biostimulant industry
• Favorable regulatory and policy structure to reinforce growth opportunities for market

Market Analysis in Brief

Extensively used on vegetables, fruits, and cereals, biostimulants prominently find wide application in North America’s ornamental and turf sector. With agriculture industry consistently facing the threat in form of deteriorating soil fertility, evolving climatic conditions, a host of plant diseases, and overuse of pesticides, use of biostimulants presents a reliable potential solution. In this backdrop, the boom around organic farming has been on the rise over the recent past, which is creating a favorable growth environment for the biostimulant market. With anticipated growth in adoption of sustainable farming practices, demand for biostimulants will also heighten.

Growth Drivers

Escalating Demand for Higher Crop Productivity

The growing adoption of sustainable agriculture continues to strengthen revenues generated by the global biostimulant market. The agricultural and food production systems of the world are facing unprecedented challenges from a range of factors, including booming population figures, rising levels of hunger and malnutrition, the negative effects of climate change, unprecedented loss of biodiversity, and the overexploitation of natural resources. The scarcity of cultivable land is boosting the demand for biostimulants to boost crop productivity.

Furthermore, the biostimulants market continues to index growth due to the increasing use of biostimulants in powder form found in cosmetic goods such as soaps, shampoos, and creams. The biostimulants market is also expected to be driven by the manufacturing of liquid biostimulants for usage in fertilizers and insecticides due to improved plant stress tolerance. Several agricultural science advancements and the ongoing influx of investments toward R&D activities are also slated to likely boost biostimulant market growth. This market is being augmented by well-established businesses engaging in various R&D initiatives.

For instance, in June 2021, Using GoActiv Technology, UPL Australia unveiled a new line of biostimulant treatments that target specific crop physiological pain sites or abiotic stresses in fruits and vegetables, as well as vine and tree crops. To prove their respective dominance in the global biostimulant market, several established organizations as well as SMEs pursue strategies including mergers & acquisitions, as well as collaborations with government bodies and other entities.

Organic Farming Boom

In organic farming and gardening, biostimulants play a crucial role in crop nutrition and protection. Following the onset of the pandemic in 2020, customers began to buy more organic goods as a preventive health measure, ushering in a paradigm shift in consumer behaviour. This shift is expected to accelerate the expansion of the organic food sector. This will increase the demand for biostimulants even further. Organic food is residue-free, doesn't spread hazardous diseases, and does not cause environmental damage, as such, it is increasingly in demand for personal health and sustainable reasons. Thus, the demand for biological crop nutrition is expected to expand due to the increased demand for organic food and the adoption of organic farming practices.

According to FiBL-IFOAM-SOEL-Surveys, organic farming has been implemented in 187 nations, and as of the end of 2019, 3.1 million organic farmers harvested crops on approx. 72.3 million hectares of agricultural land. These surveys also expect the organic market to grow quickly as the demand for organic products rises. In addition, FiBL-IFOAM-SOEL reports that organic food & beverage sales increased from US$81.6 Bn in 2015 to US$119.1 Bn in 2019.

Increasing Government Support

Respective governments have increased their agricultural production of superior goods with little-to-no pollution due to increasing agricultural emission concerns. Governments worldwide are beginning to educate farmers about the many advantages of bio-based agricultural solutions. In the coming years, market growth is expected to be greatly aided by these governmental initiatives. Additionally, several regulatory bodies and councils have been set up to promote and aid in a positive business environment for the sector.

Around the world, a growing number of authorities are beginning to regulate biostimulants, which is expected to be good for this market's further expansion. For instance, in April 2021, the Government of India announced the establishment of a regulatory agency and compliance standards for their domestic biostimulant market. According to the regulations, producers must pre-register with the government and label their products with chemical composition tables and expiration dates.

Growth Challenges

Lack of Regulatory Standardization

The development and expansion of the biostimulant market throughout the projected timeline may be hampered in many emerging economies due to a lack of standardized regulations concerning a product's commercialization. The growth of the biostimulant market is constrained by a lack of quality products that are widely known and readily accessible, a lack of confidence in newly launched products, and unstable regulatory and supportive policies for networks. The bulk of these markets often obtain the data needed from those products that have synthetic substances. Similarly, even though these products have been used in commerce for over 60 years, there are currently no recognized endpoints for risk evaluations.

COVID-19 Impact

Consumer buying habits during the COVID-19 pandemic indicated a major shift from non-organic to organic, which is still happening today. Slowly but surely, the emphasis on preventative healthcare is bringing about a change in traditional farming methods worldwide. Producers are being urged to produce more using resources and methods that are more environmentally friendly. The pandemic sped up the manufacturing sector's transition from international to local-based economies. In the mix of it all, producers of biostimulant raw materials faced issues related to operational continuity and supply constraints. Governments worldwide, however, largely supported the agriculture sector, and extensive efforts were made to manage the normal streamlining of operations to sustain productivity.

Overview of Key Segments

Seaweed Extract Segment Secures Top Spot

The biostimulant market based on application is segmented into humic substances, humic acid, fulvic acid, seaweed extracts, microbial amendments, amino acids, and other active ingredients (including vitamins, trace minerals, and polysaccharides). The seaweed extracts sub-segment is expected to dominate the market over the forecast period due to expanding seaweed production operations. In agriculture, seaweed extracts are becoming increasingly well-known for enhancing the health and productivity of plants. For a long time, these extracts have been used, either directly or indirectly, to increase crop production and soil fertility.

Auxin, cytokinins, major and minor nutrients, amino acids, vitamins, and compounds related to growth promotion like abscisic acid are also present in seaweed extracts, thus fuelling a rise in revenues for this sub-segment. Humic compounds, such as humic and fulvic acids, have long been used by farmers to produce various crops. These products have a strong potential to cause severe morphological alterations in the roots. Additionally, these compounds support changing nutrient absorption and acquisition activities in plant membranes.

Foliar Application Category to Remain Dominant

Based on the mode of application, the biostimulant market is segmented into foliar, soil treatment, and seed treatment. The foliar category accounted for the largest market share in 2021 and is expected to increase significantly over the next several years as this method is highly effective at enhancing plant health. Several studies and research have proved the advantages of foliar treatment. Despite being put through difficult circumstances, they contributed to raising yields for crops including maize, cowpeas, and onions. Following a study by Ali et al., 2019, the foliar application of alpha-tocopherol improved wheat's antioxidant defense system, photosynthetic efficiency, water uptake, utilization, and photosynthetic pigment levels to boost drought tolerance.

Growth Opportunities Across Regions

Europe to Benefit from Governments’ Take on Sustainable Farming Products

Over the forecast period, it is expected that the European biostimulant market will account for the largest revenue share due to the increased attention respective governments have placed on the use of sustainable farming products, tools, and techniques, as well as several biostimulants promoting councils in the region. For instance, a legal framework for "Plant Strengtheners" (PS), which are biostimulants as specified in Section 2.1, was created in Germany by the Federal Office of Consumer Protection and Food Safety (BVL). The European Union's agricultural regulatory framework is becoming more open to environmental considerations, encouraging the creation of novel models, methods, and practices that are sustainable, eco-friendly, and enable a plant to make the most of its resources. In Europe, biostimulant compounds are already used extensively and this is expected to increase significantly over the forecast period.

North America to Grow Lucrative with Spike in Funding for Agri-Bio-R&D

The biostimulant market in North America is expected to experience stable revenue growth over the forecast period due to increasing funding for agricultural biological research and development initiatives. These products have been found to be a perfect alternative to traditional chemical treatments for boosting plant vigour and growth. These are increasingly seen as a seamless part of a comprehensive strategy to boost yields. One of the main factors influencing agricultural research development and the adoption of these bioproducts in enhancing stress tolerance and growth in various crops is the recent advancements in science and technology. Furthermore, the sale of these products is being driven in this region by the rising use of organic agricultural techniques and the synergistic effects of PGP. According to a 2019 organic survey conducted by the US Department of Agriculture (USDA), there were 16,585 organic farms in the country.

Global Biostimulant Market: Competitive Landscape

A few players in the biostimulant market include BASF SE, UPL, Valagro S.p.A, Gowan Company, ILSA S.p.A., Rallis India Limited, Haifa Group, Adama Ltd., Biovert S.l., Start-ups/SME’s, Koppert Biological Systems, Tradecorp International, Agritecno, Axeb Biotech Sl, Mafa Bioscience, Lawrieco, Devi Cropscience, Bioflora, Agricen, and Bonumose Inc.

Recent Notable Developments

• In July 2022, Seipasa, a Spanish company specialized in development, formulation, and production of natural solutions for agriculture, introduced its line of biostimulants and nutrition products for the Ecuadorian market. The release of Seipasa's Kynetic4, Bryosei, Seipafol Mix, or Talsei products, among others, is part of the company's strategy to improve its business in the region
  
  
• In January 2021, Ambition, a crop supplement formulation including amino acids and fulvic acids, was launched by Bayer AG for the Chinese market. Ambition is the first amino acid biostimulant from Bayer to hit the Chinese market

Regional Classification of Global Biostimulant Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Biostimulant Market

• Biostimulant Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2019 - 2022
• Volume Consumption at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Production Output Analysis (Major Producing Regions)
• Key Trade Statistics (Import and Export)
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

Post Sale Support, Research Updates & Offerings

We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.

• The report will be prepared in a PPT format and will be delivered in a PDF format.

• Additionally, Market Estimation and Forecast numbers will be shared in Excel Workbook.

• If a report being sold was published over a year ago, we will offer a complimentary copy of the updated research report along with Market Estimation and Forecast numbers within 2-3 weeks’ time of the sale.

• If we update this research study within the next 2 quarters, post purchase of the report, we will offer a Complimentary copy of the updated Market Estimation and Forecast numbers in Excel Workbook.

• If there is a geopolitical conflict, pandemic, recession, and the like which can impact global economic scenario and business activity, which might entirely alter the market dynamics or future projections in the industry, we will create a Research Update upon your request at a nominal charge.