Biostimulants Market Size, Share & COVID-19 Impact Analysis, By Source (Microbial and Non-Microbial), Active Ingredients (Seaweed Extracts, Humic Substances, Vitamins & Amino Acids, Microbial Amendments, and Others), Application (Foliar Application, Soil Treatment, and Seed Treatment), Crop, and Regional Forecast, 2020 - 2027

The global biostimulants market size was valued at USD 2.50 billion in 2019 and is projected to reach USD 5.35 billion by 2027, exhibiting a CAGR of 10.65% during the forecast period.

The global inorganic fertilizers (primary nutrients) industry is growing at a rate of 1.3-1.8% annually. The prominent market players are focusing on various lucrative product areas, such as specialty fertilizers and organic fertilizer segments considering the growth opportunities in these segments. Additionally, the crop producers are demanding products that have a high level of nutrient value, multifunctionality, and are environment-friendly. All these factors are indicating a promising future for the growth of the product globally.

Demand for Product to Pick Pace After Initial Lull Amid COVID-19

The outburst of the pandemic has impacted almost all the industries while impacting the agriculture sector at different levels. To halt the spread of the disease, several countries imposed complete or partial lockdown, which initially resulted in a slowdown in production and caused disruptions in the supply chain of the product. To prepare biostimulants such as protein hydrolysates, amino acids, and other various raw materials are utilized. The strict travel restrictions implemented in the initial months of the pandemic outbreak made transporting these raw materials difficult.

The increasing demand for bio-based, safe, and sustainable agri-inputs is expected to drive the demand for the product at a decent pace. Moreover, with continuous efforts of market players such as Syngenta and Valagro to remain operational with the adoption of safety measures, the market is expected to grow and attain stability in the coming months.

LATEST TRENDS

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

The growing production of organic foods and feed products without the adoption of good fertilizers combined with the hazardous effects of synthetic fertilizers and pesticides have raised questions about the environmental safety and sustainability of agriculture in the long run. Agricultural biologicals (includes biofertilizers, biopesticides, and biostimulants) have gained higher importance in recent years over synthetic farming inputs as they have received rapid recognition as environment-friendly crop production inputs.

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

DRIVING FACTORS

Rising Support from Government to Result in Enhanced Market Growth

The rising agricultural emissions have encouraged the government to upscale the production of high-quality agricultural products with lesser or no emissions. According to the estimates of the Food and Agriculture Organization of the United Nations (FAO), agriculture emissions from livestock and crops grew to over 5.3 billion tonnes in 2011 from 4.7 billion tonnes in 2001. Governments across the globe are trying to educate farmers about various benefits offered by bio-stimulant through the launch of programs. These governmental efforts are projected to significantly aid market growth in the forthcoming years. Furthermore, to encourage and support a favorable business environment for the industry, several regulatory authorities and councils have been formed. The number of associations formed for the regulation of novel products like these stimulants is increasing across the globe which is predicted to be beneficial for the growth of the market.

RESTRAINING FACTORS

The dearth of Proper Regulations & Conventions to Restrain the Market Growth

In many emerging economies, the lack of regulations associated with the product’s commercialization may hamper the development and growth of the market during the forecast period. Limited awareness and availability of quality products, lack of trust in new products, and lack of stable regulatory and supporting policy networks are some of the inhibiting factors for the growth of the market.

SEGMENTATION

By Source Analysis

Microbial Products Segment to Witness Fastest Growth

At the global as well as regional level, the demand for microbial biostimulants is predicted to grow at a rapid pace. This is attributed to a host of benefits associated with them when it comes to the growth of the plants. With the use of microbes such as fungi and bacteria, the bioavailability of nutrients to soil and plant can be greatly enhanced.

By Active Ingredients Analysis

Humic Substances to Witness Considerable Growth Owing to Their Cost-Efficacy

Humic substances that include humic and fulvic acids have been widely used by growers to produce a variety of crops. 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. The demand for seaweed extract biostimulants is projected to witness strong growth during the projected period owing to the growing cultivation of seaweed in a prominent and potentially growing market.

By Application Analysis

Foliar Treatment to Hold the Major Market Share

In 2019, foliar treatment accounted for the highest biostimulants market share in the global market. The application of bio-stimulant through foliar spray or treatment potentially maximizes the production efficiency in several crops. Foliar sprays are very beneficial for numerous high-value crops and are extremely convenient to apply on plants (leaves or foliage) as compared to the other application methods.

By Crop Analysis

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Row Crops Segment to Hold the Major Revenue

The row crop segment, which includes cereals, oilseeds, fiber crops, and pulses is expected to retain its dominance throughout the forecast period in the global market. This is attributed to the large cultivation area and application trend. However, a considerable amount of biostimulants goes for high-value crops, such as fruits and vegetables. Hence, the fruits & vegetable segment is projected to grow at a CAGR of 10.5% during the forecast period.

REGIONAL INSIGHTS

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Europe to Hold a Major Share in the Global Market

North America and Europe are the largest markets for biostimulants. They cumulatively accounted for more than 50% share in the global market. The market in Europe is expanding considerably owing to an increased emphasis on the government adopting sustainable farming substances, tools, and methods, along with the presence of several biostimulants promoting councils in the region. These materials are currently used on huge land acreages in Europe and are projected to grow prominently during the forecast period.

The market in Asia Pacific is projected to witness significant growth in the forthcoming years. This is attributable to the increasing adoption of sustainable farming practices in prominent Asian countries such as India and China. The rise in the adoption of quality agriculture products by Asian producers is also expected to contribute to the biostimulants market growth. The growing organic agriculture sector across South American economies such as Brazil and Argentina are projected to contribute to raising the demand across the region.

KEY INDUSTRY PLAYERS

Product Launches by Major Companies to Attain Highest Market Position

Market players operating in the market have realized the future growth potential of the product and hence, are making continuous efforts to innovate and launching new products in the market to establish their prominence. For instance, in October 2019, Olmix Group in collaboration with Quang Binh Agricultural Corporation (QAC) agreed to commercialize the biostimulant range of Olmix in Vietnam. 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 CropScience (Leverkusen, Germany)


• Valagro S.p.A (Atessa, Italy)


• BASF SE (Ludwigshafen, Germany)


• Isagro S.p.A (Milan, Italy)


• Syngenta AG (Basel, Switzerland)


• UPL (Mumbai, India)


• Biostadt India Limited (Mumbai, India)


• Koppert Biological Systems (Rodenrijs, Netherlands)


• Biochimica S.p.A (Bologna, Italy)


• Lallemand (Wisconsin, United States)


• Marrone Bio Innovations (California, United States)


• AlgaEnergy (Madrid, Spain)

KEY INDUSTRY DEVELOPMENTS:

• March 2020: Syngenta and SICIT Group, two major players in the global biostimulants industry signed an exclusive 15 years contract for the supply of HICURE and ISABION biostimulants. The contract is signed to promote sustainable agriculture.


• May 2019: Futureco Bioscience launched a novel biostimulant, Radisan, that is rich in microelements, amino acids, and other plant-benefitting activators and substances. The product claims to promote plant growth, aid root development, and maximize the nutrients and water absorption in the crop.


• February 2019: Itapollina launched an innovative biostimulants product (Tandem) containing Trichoderma atroviride strains, and enriched with vegetal peptides to promote rooting, increases seed germination and plant growth.

REPORT COVERAGE 

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

Along with this, the global biostimulants market report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

Report Scope & Segmentation