Biostimulants market - 2023-2030

Overview

Global Bio Stimulants Market reached US$ 4.05 billion in 2022 and is expected to reach US$ 9.27 billion by 2030, growing with a CAGR of 10.9% during the forecast period 2023-2030.

The growing consumer demand for organic products is spurring the expansion of organic farming practices globally. Biostimulants play a crucial role in organic farming by promoting natural processes such as nutrient uptake, stress tolerance, and soil health. As organic farming continues to gain popularity, the demand for biostimulants is expected to rise, driving market expansion.

There is a rising demand for sustainable agriculture practices in Europe, driven by concerns over environmental sustainability, soil health, and food security. Biostimulants offer environmentally friendly solutions for enhancing crop productivity, nutrient uptake, and stress tolerance, aligning with the goals of sustainable agriculture. As a result, there is increasing market demand for biostimulants in Europe.

For instance, on November 29, 2023, addressing farmers' demands for solutions to bolster crop resilience and optimize nutrient utilization, Yara introduced YaraAmplix, a novel brand of biostimulants. The launch took place at the Biostimulant World Congress held in Milan, Italy. Recognizing the detrimental impact of extreme weather events such as droughts, floods, and frosts on crop yields globally, Yara underscores the significance of biostimulants in fortifying crops against climatic stressors.

Dynamics

Increasing Demand for Organic Products

Consumer awareness and demand for organic products are steadily increasing in recent years. Consumers are willing to pay a premium for organic fruits, vegetables, and other agricultural products perceived to be healthier and more environmentally sustainable. To meet this growing demand, farmers are increasingly turning to biostimulants to enhance the quality and yield of their organic crops, driving market growth.

The biostimulants market is witnessing significant technological advancements and product innovations aimed at enhancing efficacy, application methods, and compatibility with organic farming practices. Manufacturers are investing in research and development to develop new biostimulant formulations derived from natural sources. These innovative products offer farmers more options for improving crop performance organically and sustainably, driving market growth.

Advancements in Biotechnology

Biotechnology allows for the development of advanced formulations and delivery systems for biostimulants, enhancing their stability, bioavailability, and efficacy. Microencapsulation, nanoemulsions, and other biotechnological approaches enable the controlled release of active ingredients, prolonging their effect and reducing the frequency of application. These advancements result in more efficient use of biostimulants, increasing their appeal to farmers and driving market expansion.

Biotechnology enables the development of novel biostimulant products with enhanced efficacy and specificity. Manufacturers can create biostimulants tailored to specific crops, environmental conditions, and growth stages by leveraging genetic engineering, metabolic engineering, and other biotechnological techniques. These advancements lead to a wider range of biostimulant options available in the market, catering to diverse agricultural needs and driving market growth.

For instance, on July 28, 2023, Bionema Group Ltd, launched a new series of biostimulant products in the United Kingdom. These products are tailored for application across diverse sectors such as agriculture, horticulture, forestry, and turf and amenities. Following a decade of dedicated research and development, Bionema Group is introducing seven innovative products, featuring seaweed extracts, humic and fulvic substances, and other natural nutrients.

High Cost of Biostimulant Products

The high cost of biostimulant products can make them financially inaccessible to some farmers, particularly those with small-scale operations or limited financial resources. As a result, farmers are reluctant to invest in biostimulants, opting instead for more affordable conventional fertilizers and agrochemicals. This limited affordability constrains market demand and hinders the widespread adoption of biostimulants, particularly in regions with lower income levels or less developed agricultural sectors.

Farmers often conduct cost-benefit analyses before investing in agricultural inputs, including biostimulants. The perceived value of biostimulant products must outweigh their upfront costs for farmers to justify the investment. However, the cost of biostimulants is deemed too high relative to the expected benefits, farmers opt for alternative products and practices that offer a more favorable cost-benefit ratio. This leads to reduced market demand for biostimulants and slower market growth.

Segment Analysis

The global biostimulants market is segmented based on ingredient, form, crop type, application, and region.

Wide Range of Applications and Proven Effectiveness of Acids

The acids segment is projected to hold the largest share of the global biostimulants market. Acids, such as humic acids, fulvic acids, and amino acids, are versatile biostimulant ingredients with diverse applications in agriculture. They enhance nutrient uptake, root development, and stress tolerance in plants, leading to improved crop yield and quality. The broad spectrum of benefits offered by acid-based biostimulants makes them popular among farmers across various crop types and growing conditions.

Acids are extensively studied and recognized for their effectiveness in promoting plant growth and health. Research studies and field trials are demonstrating the positive impact of acid-based biostimulants on crop performance, leading to increased confidence and adoption among farmers. The proven efficacy of acids contributes to their dominant position in the biostimulants market.

For instance, on January 31, 2023, Sumitomo Chemical acquired FBSciences Holdings, Inc., a U.S. company engaged in the business of biostimulants, a group of naturally-derived agricultural materials, and a class of biorationals. Biorationals, which have a global market valued at about $10 billion, about one-tenth that of agricultural chemicals, are expected to see continued demand growth as the need for crop protection products with lower environmental impact increases among growers and consumers.

Geographical Penetration

Growing Technological Innovations and a Strong Regulatory Environment in Europe

Europe has a well-established regulatory framework for biostimulants, providing guidelines for product registration, labeling, and marketing. The European Union's regulations ensure product safety, efficacy, and quality standards, fostering consumer confidence and market transparency. The harmonization of regulations across European countries facilitates market access and growth for biostimulant manufacturers, positioning Europe as a key player in the global market.

Europe is a hub for research and innovation in biotechnology and agricultural sciences. The region's investment in research and development is leading to the development of advanced biostimulant formulations tailored to different crops, growing conditions, and environmental challenges. Technological advancements drive market differentiation and competitiveness, giving European biostimulant companies a strategic advantage in the global market.

For instance, on October 25, 2023, Bionema Group, a leading developer and manufacturer of biocontrol technologies focusing on crop protection and plant health management, introduced RootVita, an innovative biostimulant product in the UK. RootVita is tailored for application across diverse sectors including agriculture, horticulture, forestry, turf, and amenities. It is functioning as both a biofertilizer and soil enhancer, RootVita promotes natural plant growth and enhances soil health.

COVID-19 Impact Analysis

The pandemic disrupted global supply chains, leading to shortages of raw materials, transportation delays, and interruptions in manufacturing operations. These disruptions affected the availability of biostimulant products in the market, leading to supply constraints and higher prices. Manufacturers faced challenges sourcing ingredients and fulfilling orders, impacting market supply and distribution channels.

The pandemic caused shifts in demand dynamics for biostimulant products, driven by changes in agricultural practices, consumer preferences, and economic conditions. While some farmers reduced input spending and postponed investments in biostimulants due to financial uncertainties, others increased adoption to improve crop resilience, productivity, and quality. Consumer demand for organic and sustainably produced food also influenced market demand for biostimulants, driving growth in certain segments of the market.

Russia-Ukraine War Impact Analysis

The conflict disrupted global supply chains, particularly for key raw materials and manufacturing processes used in biostimulant production. As Ukraine and Russia are major exporters of certain agricultural inputs, such as minerals and fertilizers, the conflict led to supply shortages and price fluctuations in the biostimulants market. Manufacturers faced challenges sourcing essential ingredients, impacting market supply and distribution channels.

The Russia-Ukraine war created market uncertainty and volatility, affecting investor confidence and business decisions in the biostimulants market. Fluctuations in commodity prices, currency exchange rates, and geopolitical tensions added to market uncertainty, leading to cautiousness among market participants. The unpredictable nature of the conflict contributed to heightened volatility, impacting market dynamics and investment patterns.

By Ingredient

• Acids
  • Fulvic Acid
  • Humic Acid
  • Amino Acid
• Microbial
• Seaweed Extracts
• Others

By Form

• Liquid
• Solid

By Crop Type

• Cereals and Grains
• Fruits and Vegetables
• Oil Seeds
• Turf and Ornamental
• Others

By Application

• Foliar
• Soil
• Seed

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On March 14, 2023, ADAMA Ltd. announced its acquisition of the remaining 40% stake in ADAMA Chile, formerly known as Chile Agro. This move follows ADAMA's initial investment in Chile Agro, during which the company acquired a 60% equity stake. The company is known for its flagship product, ExpertGrow, a triple mode-of-action bio-stimulant designed to enhance yield in various fruits, vegetables, and soybeans.
• On October 9, 2023, Elicit Plant launched a new bio-stimulant designed to enhance sunflower yields across Europe. This innovative product harnesses the power of phytosterols, plant-derived lipids known for triggering plants' natural defense mechanisms in the face of environmental stressors. Phytosterols are particularly effective during periods of water stress, where they aid in the regulation of stomatal openings.
• On October 12, 2022, Valent BioSciences LLC launched a significant shift in its U.S. operations. The company commenced direct sales of biostimulant products to its U.S. customer base. The establishment of this new operating unit reached full operational capacity, empowering the organization to cater to the entire U.S. market independently.

Competitive Landscape

The major global players in the bio stimulants market include Arysta Life Science Corporation, BASF SE, Biolchim S.p. A, Biostadt India Ltd, Isagro S.p. A, Hello Nature, Inc., Koppert BV, Lallemand Plant Care, Novozymes A/S, and Tradecorp International.

Why Purchase the Report?

• To visualize the global bio stimulants market segmentation based on ingredient, form, crop type, application, and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous bio stimulants market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of critical products of all the major players.

The global bio stimulants market report would provide approximately 70 tables, 64 figures, and 213 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies