Biostimulants Market Size, Share & Industry Analysis, By Source (Microbial and Non-microbial), By Active Ingredient (Seaweed Extracts, Humic Substances, Vitamins & Amino Acids, Microbial Amendments, and Others), By Application (Foliar Application, Soil Treatment, and Seed Treatment), By Crop (Row Crops, Fruits and Vegetables, Turf & Ornamentals, and Others), and Regional Forecast, 2024-2032

The global biostimulants market size was valued at USD 3.64 billion in 2023 and is projected to grow from USD 4.03 billion in 2024 to USD 9.75 billion by 2032, exhibiting a CAGR of 11.69% during the forecast period.

Biostimulants are any microorganisms or substances applied to plants that help enhance crop quality, nutrition efficiency, and abiotic stress tolerance. The increasing adoption of organic farming, growing climatic and environmental concerns, and a global shift toward sustainability are the major drivers fueling the growth of the market.

The COVID-19 pandemic significantly impacted the global market. Prominent players in the market witnessed a decline in sales owing to supply chain disruptions and lockdowns. For instance, Bayer AG, a German multinational life sciences company, saw a 5% decrease in sales of their crop sciences products in 2020 compared to 2019. However, increasing demand for bio-based, safe, and sustainable agri-inputs led to surge in the demand for the product during in later period. Moreover, with continuous efforts of market players, such as Syngenta and Novozymes, to remain operational with the adoption of safety measures, the biostimulants industry is anticipated to attain stability and flourish in the coming months.

Biostimulants Market Trends

Burgeoning Demand for Bio-based Agri-Inputs to Aid Market Growth

The growing production of organic food and feed products without the adoption of good fertilizers combined with the hazardous effects of synthetic fertilizers and pesticides has raised questions about agriculture's environmental safety and sustainability in the long run. The use of organic and bio-based compounds in agriculture and forestry offers a significant opportunity for farmers to improve root and shoot growth, better growth potential, and stress resistance. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), in 2022-2023, agricultural land under organic production was 2,664,679.54 MT in India. The strong emphasis from governments and other stakeholders on the organic and sustainable mode of farming has increased the acceptance of these plant growth promoters (PGP).

Plant and microbial-derived products enhance plant growth, improve resource use efficiency, and increase tolerance to unfavorable soil and environmental conditions. These products receive higher acceptance from industry stakeholders, including farmers/growers and government bodies. The rising demand for high-value crops and increasing abiotic stress encourage farmers to adopt bio-based agriculture products that can potentially increase crop yields.

Biostimulants Market Growth Factors

Rising Support from the Government to Drive Market Growth

Rising agricultural emissions have prompted the government to increase agricultural production of high-quality products that emit little or no pollution. Governments across the globe are launching programs to educate farmers about the various benefits of bio-agri solutions. These governmental efforts are projected to significantly aid market growth in the forthcoming years. Furthermore, several regulatory authorities and councils have been formed to encourage and support a favorable business environment for the industry. The number of associations formed for the regulation of this novel product is increasing globally, which is predicted to be beneficial for the growth of the market. For instance, in March 2023, U.S. Representative Jimmy Panetta and Representative Jim Baird reintroduced the Plant Biostimulant Act in order to create a uniform process for the approval of commercial plant biostimulant use and intensive federal research on the technology's benefits for soil health.

Growing Awareness about the Environmental Impact of Synthetic Agricultural Chemicals to Augment the Market Growth

The growing awareness of the negative environmental impact caused by synthetic plant protection products and chemical-based fertilizers has been driving the agricultural biostimulants market growth. Farmers are increasingly seeking eco-friendly and natural options to produce their crops. The inappropriate use of inorganic agricultural inputs, such as synthetic substances, has led to an increased amount of greenhouse gases (GHGs), such as nitrous oxide (N2O), carbon dioxide (CO2) and methane (CH4). However, these products, in contrast to their synthetic counterparts, are eco-friendly and are more specific to the target crop growth and plant pests, propelling their demand in the market.

RESTRAINING FACTORS

Dearth of Proper Regulations & Conventions to Restrain the Market Growth

In many emerging economies, a lack of regulations associated with the product's commercialization may hamper the development and growth of the biostimulants market during the forecast period. The U.S. and Europe are major Western markets of these products, yet in the U.S., each state has their own biological laws and manufacturers need to get separate approval in all 50 states. Moreover, limited awareness and availability of quality products, lack of trust in new products, and lack of stable regulatory and supporting policy for networks further inhibit the global market growth. The data requirements for the product are usually acquired from those derived from synthetic chemicals in the majority of the markets. Similarly, even though these products have been commercially used for over 60 years, well-established endpoints for risk assessments still exist.

Biostimulants Market Segmentation Analysis

By Source Analysis

Non-microbial Segment leads Market Owing to its Unique Bioactive Substances

Based on source, the market is segmented into microbial and non-microbial.

The non-microbial segment is leading the market and is expected to grow significantly, owing to improving crops' biochemical and physiological traits. Non-microbial segment comprises active compounds, such as humic acids, seaweed extracts, inorganic compounds, and biopolymers. These non-microbial products facilitate plant growth without hampering the environment and human health.

Microbial products in recent years have gained traction from consumers as the availability of high-quality agricultural land is diminishing and is anticipated to continue to register fastest growth in the future. These plant growth promoters enhance the crop yields which are subjected to low-input conditions and mitigate the climate change impacts on the crops. Microbial-based products comprise free-living fungi or bacteria to form a symbiotic relationship with the crops, thereby enhancing the overall yield and alleviating the impacts of climate change. Key players in the market have been introducing new products in order to meet the rising demand. For instance, in June 2022, BioConsortia, Inc., a company developing microbial solutions, collaborated with The Mosaic Company, a U.S. producer of potash and phosphate fertilizer, to distribute BioConsortia’s new microbial biostimulant in Asia.

By Active Ingredient Analysis

Seaweed Extracts Segment Leads the Market Owing to the Rising Cultivation of Seaweed

Based on active ingredients, the market is classified into seaweed extracts, humic substances, vitamins & amino acids, microbial amendments, and others.

The seaweed extracts leads the market due to the growing cultivation of seaweed globally. Seaweed extracts are gaining prominent recognition in the global agriculture sector for improving plant health and performance. These extracts have been used for a long time, directly or indirectly, to enhance soil fertility and crop productivity.

Growers have widely used humic substances, including humic and fulvic acids, to produce various crops. The segment is expected to grow steadily during the forecast period. These products are highly capable of inducing significant changes in root morphology. Moreover, these products also aid in modifying plant membrane activities of nutrient acquisition and uptake.

Microbial inoculant use has been prominent in the past two decades, owing to the rising research and development focus of private and public agriculture sectors for overcoming problems linked with modern agricultural practices. These microbial amendments comprise free-living fungi, bacteria, and mycorrhizal fungi isolated from various environmental sources such as soil, plant residues, water, composted manures, and plants. Further, the researchers are working toward developing microbial products resistant to environmental variables, such as temperature, which opens growth prospects for the segment in the future. Hence, the segment is expected to register fastest growth in the future among other active ingredients.

By Application Analysis

Foliar Treatment Segment Holds a Major Share Due to its High Effectiveness

Based on application, the market is categorized into foliar application, soil treatment, and seed treatment.

The foliar application segment accounted for the major share due to its high effectiveness in improving plant health. Numerous studies and research have proven the benefits of foliar application. Despite being subjected to stressful conditions, they helped improve crop yields, such as maize, cowpeas, and onions. According to a study by Ali et al., 2019, the foliar application of alpha-tocopherol increased drought tolerance in wheat by improving its antioxidant defence mechanism, photosynthetic efficiency, water uptake, use, and photosynthetic pigment contents.

The seed treatment application is becoming popular among growers as seed enhancement techniques improve seed germination and seedling growth even when exposed to environmental stress. Various field trials have shown the benefits of using these products on seeds leading to fastest growth in the future. The soil treated products are expected to escalate the diversity in soil microbial populations and support plant growth in all stages.

By Crop Analysis

Row Crops Segment to Emerge as Dominant Due to High Demand for High-Value Crops

Based on crop, the market is segmented into row crops, fruits and vegetables, turf & ornamentals, and others.

The row crops segment, which includes cereals, oilseeds, fiber crops, and pulses, is expected to retain its dominance during the forecast period in the global market. This is attributed to the large cultivation area and application trend. These crop sources represent the most important crop group cultivated globally, including soybean, sunflower, and cotton.

The rise in organic farming has also contributed to boost the product's utilization in horticulture farming to induce resistance to pests and improve growth. Furthermore, there has been a rise in the demand for high-value crops and the adoption of greenhouse vegetable production. Thus, applying them to horticulture crop types offers an innovative, environment-friendly approach to attaining sustainable crop production.

The turf & ornamental crops are growing in demand due to growth in recreational sports and the development of new sports facilities with turf. Hence, this segment and the need for these products specifically designed for turf & ornamental crops is expected to increase steadily in the future.

REGIONAL ANALYSIS

Based on region, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe dominated the global market and stood at USD 1.43 billion, with the largest global biostimulants market share in 2023. The region is leading the market, with countries including Italy, Spain, Germany, and France acting as major consumers of biological products. The formation of several organizations, such as the European Biostimulants Industry Council and ACI’s Biostimulants Association, has further improved the overall market growth in the region. The market in Europe is expanding considerably owing to the government's increased emphasis on adopting sustainable farming substances, tools, and methods, along with several product-promoting councils in the region. The regulatory framework for agriculture in the European Union is increasingly becoming receptive to environmental concerns, nudging the development of novel products that are eco-friendly and sustainable and allow the plant to make the most of its resources. For instance, in July 2023, Bionema Group Ltd, one of the leading biocontrol technology developers and manufacturers, launched a new range of biostimulant products in the U.K. market. The company has been launching products under seven brand names, including O-Stimula, Grostimula ATCA, Grostimula EW, Plantgro, RootVita SP, Groprim and Floretocare.

Increased investments in the R&D of agricultural biologicals drive the North America market growth. The region accounts for the second largest market and is expected to continue to grow steadily in the future. The product has emerged as an ideal input for complementing conventional chemical treatments to help enhance plant growth and vigour. These are increasingly viewed as an integrated part of a holistic approach to help maximize yields. Recent advancements in technology and science are one of the major factors driving the course and evolution of agriculture research, thereby influencing the uptake of these bioproducts in promoting stress tolerance and growth in various ranges of crops and plants. Key players have also been setting up new operating facilities in order to meet the rising demand in the region. For instance, in October 2022, Valent BioSciences LLC. launched a new operating unit, enabling the organization to serve the entire U.S. market. The new unit and business team are focused on discovering, developing, and commercializing arbuscular mycorrhizal fungi (AMF) products, among other products, in order to maximize retailer and grower profitability.

The market in Asia Pacific is projected to witness significant growth in the forthcoming years. This is attributable to the increasing adoption of sustainable agriculture practices, growing awareness of the detrimental impact on the environment caused by chemical fertilizers, and ever rising population in major Asian countries, such as India and China. A rise in the adoption of quality agriculture products by Asian producers is also expected to contribute to the market's growth. The perpetually growing population across several Asian economies has increased the need for higher food production. Furthermore, the intensifying focus of Asian governments on food security and sustainability in food production is bringing growth opportunities for these biologicals in the region. For instance, in October 2021, the Government of India imposed rules for regulating such products and other crop nutrients used to enhance the productivity of soil and impacting biotic and abiotic stress tolerance. Such a new framework for regulating the production would help in avoiding the use of unauthentic as well as toxic ingredient based products.

The growing organic agriculture sector across South American economies, such as Brazil and Argentina, is projected to contribute to rising demand for the product across the region. Moreover, the government of South America has been promoting practices that contribute to the reduction of social and environmental concerns through sustainable agriculture techniques and favor the use of these products.

The agriculture sector is still at its budding stage; despite the fact that the Middle East is the most water-scarce and dry region in the world, the region is still investing in the production of some of the major agricultural products such as date palm, wheat, barley, sorghum to meet the demands of the consumers. However, over the last decade, the development as well as use of new technologies have helped to identify the longstanding agricultural problems in the region.

List of Key Companies in Biostimulants Market

Product Launches by Major Companies to Attain Highest Market Position Boosts Market Growth

Market players have realized the product's future growth potential. They are continuously trying to innovate and launch products in the market in order to meet the farmers' demand for solutions to increase crop resilience and nutrient use efficiency.

For instance, in November 2023, Yara International ASA, announced the launch of YaraAmplix, a new brand of products. The new portfolio contains natural ingredients, such as seaweed and plant extracts, which deliver targeted effects, such as improved nutrient use efficiency, crop yield, and enhanced tolerance to abiotic stress and quality.

Many other large and small market players are embarking on strategies, such as merger and acquisition, research & development, collaboration with the government, and others to establish their prominence in the market.

LIST OF KEY COMPANIES PROFILED:

• Bayer AG (Germany)


• Syngenta AG (Switzerland)


• UPL Limited (India)


• Gowan Group (U.S.)


• BASF SE (Germany)


• Marrone Bio Innovations (U.S.)


• SEIPASA S.A. (Spain)


• P.I. Industries (India)


• Novozymes A/S (Denmark)


• Koppert Biological Systems (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• May 2023 – Yara International announced the construction of a new global production plant for biostimulants and specialty crop nutrition products, which were designed to increase yields and improve quality.


• January 2023 – Sumitomo Chemical Co., Ltd., one of the major Japanese chemical companies, acquired FBSciences Holdings, Inc., a U.S.-based biostimulants manufacturing company.


• January 2023 – Archer Daniels Midland Company announced the launch of a NeoVita 43 biostimulant that boosts corn yield by efficiency in nutrient use. 


• March 2022 - Valagro collaborated with its Indian subsidiary Valagro Biosciences to launch its innovative biostimulant Talete in the Indian market. Talete is the solution created by Valagro to increase Crop Water Productivity.


• February 2022 - LIPOFABRIK, a start-up specializing in plant protection and biostimulant products, developed a unique biostimulant based on Bacillus subtilis, Plant Boost. The product is currently authorized in Belgium, France, Spain, the Netherlands, Germany, Italy, and the U.K.

Report Coverage

The market report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the global market share, size, and growth rates for all possible segments in the market.

The report also provides an elaborative analysis of the market trends, dynamics and competitive landscape. The report presents various key insights: an overview of related markets, research methodology, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

Report Scope & Segmentation