Biostimulants Market

[250 Pages Report] The biostimulants market is estimated at USD 3.9 billion in 2023 and is projected to reach USD 6.8 billion by 2028, at a CAGR of 11.8% from 2023 to 2028

Climate change and environmental concerns have become paramount in shaping agricultural practices. The unpredictability of climatic conditions, including shifts in temperature and increased frequency of extreme weather events, poses significant challenges to crop production. In this context, biostimulants emerge as valuable tools to help plants adapt to stress conditions induced by climate change. The capacity of biostimulants to enhance plant resilience, mitigate the impact of drought, and aid in acclimatizing crops to extreme temperatures positions them as essential components of climate-smart agriculture. As the agricultural sector grapples with the realities of a changing climate, the role of biostimulants in promoting crop adaptability becomes increasingly crucial for ensuring food security and sustainable farming practices.

The increasing adoption of organic farming practices has become a hallmark of contemporary agriculture, driven by a global shift towards sustainability and environmental consciousness. As consumers increasingly prioritize organic products, farmers are compelled to explore methods that align with these preferences. In this context, biostimulants play a pivotal role in organic farming by enhancing soil health and nutrient availability. Unlike traditional synthetic inputs, biostimulants foster plant growth and development through natural mechanisms, aligning seamlessly with organic farming principles.

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Drivers: Strong demand for high-value crops

A high-value agricultural good is one that has a high economic value per kilogram (or pound) per hectare or calorie. Fruits, vegetables, meat, eggs, milk, and fish are examples of high-value items. The main drivers of expanding demand for high-value crops (fruits, vegetables, and plantation crops) are rising incomes, rapid urbanization, and greater awareness of fruits and vegetables' health advantages. Foreign direct investment (FDI) is another element that has accelerated the transition of agricultural production toward high-value agriculture. According to the FAD Statistical Yearbook 2020 Report, primary crop production in 2020 was 9.3 billion tons, up 52% from 2000. Sugar cane, com, wheat, and rice account for half of global primary crop production

Biostimulants are mostly utilized in permanent croplands on which fruits, tree nuts, ornamentals, and plantation crops are grown. The demand for biostimulants has been mostly concentrated in high-value crops, such as fiber crops (jute and cotton), plantation crops (cocoa, pepper, and rubber), and ornamentals, as they require their application to improve crop quality and yield.

Restraints: Commercialization of low-quality biostimulant products

The proliferation of low-quality items is due to a lack of openness in patent protection regulations in many countries. Despite the fact that the biostumulants industry has low entry barriers and has allowed many rivals to begin operations, the market has grown fragmented into smaller pockets of market holdings. This has been a factor in regional or local manufacturers releasing low-quality items into the market in order to capitalize on the increased demand for biostimulants. Farmers are also drawn to these products because of their affordable prices from small-scale domestic manufacturers. Similar product compositions from several competitors undermine both consumer loyalty and product brand value. The biostimulants market is predicted to be a niche industry with significant growth tendencies, which must be capitalized on by producing innovative products that work better on a wide range of crops. When a company fails to build its unique selling proposition in the biostimulants market, it will struggle to expand its presence beyond the regional market.

The regulatory framework for biostimulants, being unclear across many regulatory bodies in the world, has allowed the entry of these duplicate products. The product has been attempted to be defined appropriately only in the European Commission. According to the Biological Products Industry Alliance, the purpose of biostimulants is not treated the same among government authorities in different Asian countries; for instance, in China, it is mostly treated as fertilizers, while in Japan and South Korea, it is considered as plant growth regulators. This somehow restricts the market for biostimulants, as it becomes difficult for the farmers to trust the products with such vagueness about their application.

Opportunities: Technological advancements in the production of biostimulants

Agricultural biostimulants are compounds that can be applied directly to plants or soil to boost the physiological processes and ability of the plant to absorb nutrients from the soil, resulting in greater production and crop quality. Biostimulants are gaining popularity as plant growth boosters in the agricultural industry. Biostimulants were first employed exclusively for vegetables and fruit crops, as well as other high-value crops such as ornamentals and plantation crops. They now serve an essential role in traditional food crops such as com, went, and lovely by being used as a supplement to fertilizers to stimulate the crop's nutrient uptake process. Furthermore, biostimulants are completely compatible with integrated crop management methods that are a subset of sustainable agriculture.

Technological innovation in the biostimulant sector allows manufacturers to develop new products in the biostimulant and plant growth promotor segments. Valagro (Italy), a biostimulant and specialty nutrient manufacturer, has developed the GeoPower technology as the platform for biostimulant products. Under this technology, raw vegetable materials are selected and tested to locate and extract natural active ingredients, further formulated as specific crop nutrient products. Apart from Valagro, Sea6 Energy (India) is also an innovative company developing new technology platforms to manufacture biostimulant products. Sea6 Energy has developed some extraction processes to fractionate sea plants into different components tailored to be used as plant growth promotors and crop nutrient products. TARMA and SPURT are two of the company’s technologies provided to growers to enhance crop quality; AgroGain is a biostimulant product offered by the company based on these technologies. UPL has bought a new range of biostimulant products based on GoActiv Technology to Australia and designed to address specific crop physiological pain points or abiotic stresses in fruits, vegetables, tree crops, vines, and broadacre crops.

Challenges: Uncertainty in global biostimulant regulatory framework

Biostimulants are not governed by any uniform classification anywhere in the world. They are not classed as a distinct category with a standardized global definition. According to EBIC, there is disagreement in Europe over whether biostimulants should be classified as plant protection or plant nourishment, resulting in a divided set of contradictory perspectives on the goods. In France, they are classified as additives, whereas in Germany, they are sold as plant straighteners or growth promoters.

The European Biostimulants Industry Consortium (EBIC) has prepared a regulation based on the views and ideas of manufacturers and research institutes and put it for EU approval in order to consolidate the regulatory framework for biostimulants in Europe. However, biostimulant compounds must be repeatedly registered to assure compliance with the rules of each European country. The data requirements and parameter range also differ by EU member country.

Based on the mode of application, foliar treatment is estimated to account for the largest market share of the biostimulants market

Foliar treatments, a subset of biostimulants, involve the application of nutrient-rich solutions directly onto a plant's leaves. This method has gained widespread popularity due to its efficiency in delivering essential nutrients directly to the target plant tissues, bypassing soil-related limitations. As a result, farmers and agricultural professionals are increasingly turning to foliar treatments to maximize crop yields and address nutrient deficiencies. Foliar treatments contribute to sustainable agricultural practices by minimizing nutrient runoff and reducing the need for excessive fertilizer application. This aligns with the global push for environmentally friendly farming methods. Foliar treatments have proven highly effective across diverse crop categories. Horticultural crops, including vegetables, fruits, and ornamental plants, exhibit enhanced yield, quality, and visual appeal through targeted nutrient delivery. High-value crops, such as specialty fruits and herbs, benefit from improved nutrient uptake, elevating their market value. Stress-prone crops, like cereals and legumes, find support in foliar treatments, which bolster resistance to environmental challenges and enhance overall productivity. This versatile agricultural approach is increasingly recognized for its precision and efficiency in addressing the specific needs of different crops, contributing to a more resilient and productive farming landscape.

Based on crop type, fruits & vegetables is anticipated to have the highest growth rate in the market

Increasing consumer awareness regarding the impact of conventional farming on the environment and health has led to a rising demand for fruits and vegetables grown using organic and sustainable practices, further fueling the need for biostimulants. The surge in demand for biostimulants in the fruits and vegetables market reflects a broader shift towards sustainable and environmentally friendly agricultural practices. As the industry continues to evolve, businesses involved in the production and distribution of biostimulants are well-positioned to capitalize on this growing market. Some of the commonly used biostimulants for fruits & vegetables are- Seaweed extracts, another key category, are rich in essential nutrients. These extracts not only stimulate plant growth but also fortify plants against stress, ultimately enhancing their resilience and overall vigor. Their wide array of essential elements contributes significantly to plant health; Derived from decomposed organic matter, humic substances form another vital group of biostimulants. These substances play a pivotal role in enhancing soil fertility, increasing water retention, and improving nutrient availability. The result is a soil environment conducive to robust plant development; Amino acids and protein hydrolysates, as biostimulants, offer plants a readily available source of amino acids. This facilitates critical processes such as protein synthesis, nutrient absorption, and stress tolerance, contributing to the overall well-being of the plant.

By active ingredients, the Microbial amendments segment is projected to witness a higher growth rate during the forecast period

As businesses increasingly recognize the importance of sustainable and eco-friendly agricultural practices, the utilization of microbial amendments has become a focal point in enhancing soil health and promoting plant growth. In this article, we delve into the reasons behind the surge in demand for microbial amendments and explore the specific plant varieties benefiting from these innovative biostimulants. Several factors contribute to the increasing demand for microbial amendments in the biostimulant market. Firstly, the rising awareness of the environmental impact of traditional agricultural practices has led businesses to seek sustainable alternatives. Microbial amendments offer a compelling solution by harnessing the power of beneficial microorganisms to improve soil structure, nutrient availability, and overall plant health. Additionally, the growing emphasis on organic farming practices has spurred interest in biostimulants, as they align with the principles of sustainable and chemical-free agriculture. Microbial amendments, in particular, provide a natural and holistic approach to enhancing crop yields while minimizing the reliance on synthetic inputs.

Plant Varieties Benefiting: A key aspect of the burgeoning demand for microbial amendments lies in their compatibility with various plant varieties. These biostimulants have shown remarkable efficacy across a spectrum of crops, including but not limited to:

• Cereals: Microbial amendments have demonstrated success in enhancing the growth and yield of cereal crops such as wheat, rice, and maize.
• Fruits and Vegetables: Horticultural crops like tomatoes, peppers, strawberries, and various fruits have exhibited improved resilience and productivity with the application of microbial amendments.
• Legumes: Given their ability to fix nitrogen from the atmosphere, microbial amendments are particularly beneficial for leguminous crops like soybeans, peas, and lentils.

The Europe market is projected to contribute the largest share of the global biostimulants market

In Europe, there is a heightened consumer awareness surrounding sustainability and environmental safety, contributing to the region's largest vegan population, notably in the UK and Germany. Veganz, a Berlin-based vegan supermarket chain, conducted a study revealing a doubling of the vegan population from 1.3 million to 2.6 million within four years (2016-2020). This trend is driving an increased demand for high-value crops, particularly vegetables and fruits, throughout the region.

Prominent players in the European biostimulants market, including BASF SE (Germany), Valagro (Italy), Biovert S.L (Spain), Koppert Biological Systems (Netherlands), Tradecorp International (Spain), and AgriTecno (Spain), are actively involved. The European market currently operates with a basic or minimal regulatory framework for biostimulant products. Consequently, a notable influx of startups, particularly in Spain and Italy, is observed. However, insights suggest that the region is on the verge of establishing a comprehensive regulatory framework to ensure the quality of products available in the market.

Key Market Players

Key players operating in this market include BASF SE (Germany), UPL (India), Valagro (Italy), Gowan Group (US), FMC Corporation (US), ILSA S.p.A (Italy), Rallis India Limited (India), Haifa Group (Israel), ADAMA (Israel), Biovert-Manvert (Spain), Koppert (Netherlands), and AgriTecno (Spain). These players in this market are focusing on increasing their presence through expansion and collaboration. These companies have a strong presence in North America, Asia Pacific, and Europe.

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Scope of the Report

Report Scope

Biostimulants Market:

By Crop Type

• Cereals & Grains
• Oilseeds & Pulses
• Fruits & Vegetables
• Flowers & Ornamentals
• Others Crop types

By Active Ingredients

• Humic substances
• Seaweed extracts
• Amino acids
• Microbial amendments
• Other active ingredients

By Mode of Application

• Foliar treatment
• Soil Treatment
• Seed Treatment

By form

• Dry
• Liquid

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In May 2022, UPL Limited (India) launched a new biosolution, Zoatin, which effectively facilitates plant uptake and utilization of phosphorus to improve crop health and yield, was launched by UPL and Chr. Hansen Holdings A/S. Zoatin uses microbiological technology to provide phosphorus availability to the soil. This will help both companies penetrate the biostimulant market in several geographies.
• In March 2022, Haifa Group (Israel) expanded to Ecuador by signing an agreement to acquire Horticoop Andina, a wholesaler of nutritional products for agriculture. This will help Haifa Group become a strong player in plant nutrition in Latin America..
• In March 2021, Gowan Company (US) announced the finalization of the purchase of Isagro S.p.A. Isagro S.p.A is now a privately owned company controlled by Gowan. In the coming months, Gowan will integrate the Isagro business. This purchase would expand Gowan Company’s commercial opportunities, deepen its scientific capabilities, and introduce its chemical synthesis.

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