The global biostimulants market size was estimated at USD 1.74 billion in 2016, projected to expand at a CAGR of 10.2% from 2017 to 2025. Rising focus on enhancing productivity, coupled with rapid soil degradation, is likely to drive the market over the forecast period.
Biostimulants are emerging as an essential component in sustainable agricultural practices. Instances of environmental hazards and soil contamination from injudicious and excessive application of chemical-based products on crops have been a key issue for the industry in recent times. Biostimulants are an effective substitute for chemical-based agro products and are replacing these at a higher rate on account of their environment-friendly nature and performance efficiency.
Biostimulant manufacturers such as Biostadt India Limited are engaged in offering customized product solutions, which are specific to crop type and soil. They also educate farmers regarding the benefits of these superior agro products, along with expanding the geographic presence of the company. Key players are focusing on strengthening their position in existing market conditions, especially in emerging economies, through various expansion strategies.
Companies are adopting backward and forward integration to increase their profit margins and gain higher bargaining power. This is bound to intensify the competition over the forecast period. Research and development activities, along with expanding product lines, are predicted to majorly impact the overall competitive scenario through 2025.
Acid-based biostimulants formed the largest active ingredient segment in 2016. Products based on fulvic, humic, and amino acids are included in the acid-based segment. Amino acids are among major originators of phytohormones and aid in activating the metabolic systems of plants and seed germination. They stimulate fruit setting, flowering, pollination, and fruit development in the plant. Humic substances are naturally occurring end products resulting from the decomposition of microorganisms such as bacteria and fungi and chemical degradation of animal and plant residues in soils.
Seaweed extracts are anticipated to register the fastest growth rate over the forecast period. These are mainly used as biostimulants owing to the presence of plant growth substances such as cytokinins, auxins, and gibberellins carbohydrates, and many nutritive metal elements such as iron, aluminum, nitrogen, manganese, and potassium. Widely used seaweed extracts are brown, green, and red algae. Ascophyllum nodosum, Sargassum, Laminaria, Turbinaria, and Fucus are brown seaweed extract, which offer advantages such as greater nutrient uptake, higher yield, faster seed germination flower, fruit setting, and fruit quality.
Row crops and cereals dominate the overall biostimulants market based on crop type. They include corn, soybeans, barley, oats, millets, and cotton. These crops are grown widely across the globe in large areas and offer lucrative growth opportunities for the industry. Biostimulants increase the rate of cell division, seed size, and yields for row crops such as soybeans, corn, and barley. They contain amino acids, polyamines, and Indole-3-acetic acid (IAA), which help in overcoming barriers of cell division and cell expansion.
Global agriculture professionals are increasingly adopting biostimulants for the cultivation of row crops and cereals. Moreover, rising demand for organic cereals is anticipated to further boost this segment. Rising acceptance of sustainable as well as organic farming to meet soaring food demand is likely to create massive growth avenues for the market.
The global market is dominated by the foliar application technique, while seed treatment is expected to exhibit the highest revenue-based CAGR of 12.3% over the course of the forecast period. Seed treatment is among the most cost-effective applications as compared to conventional spraying techniques. The treatment is performance-efficient as well as not as labor-intensive as other methods. This aids in reducing overall input costs. These factors are likely to drive the segment through 2025.
In the foliar treatment of plants, the product is directly applied onto leaves to facilitate easier absorption of nutrients. Absorption is carried out by the epidermis and stomata. Biostimulants promoted for foliar treatment are primarily marketed in liquid form to enable the easier application. Glycine betaine, chelated nutrients, and IPA molecule are among the major active ingredients utilized in these products for foliar application. The treatment enables faster absorption of nutrients by leaves, enhances nutrient uptake, and increases cellular activity.
Europe is the largest revenue-generating region in the global market and is anticipated to continue its dominance over the forecast period. Supportive regulations to increase the production of organic foods are expected to increase the application of biostimulants. However, the sluggish growth of the agriculture sector in Western Europe is expected to remain a restraining factor for the market. In addition, the presence of biofertilizers is expected to pose a substitution threat over the coming years.
Asia Pacific is anticipated to witness promising growth over the forecast period on account of the presence of various agriculture-driven economies such as India, China, and Australia. Countries in Asia Pacific are highly diverse in terms of income levels, spending capacities, and food consumption habits. The agriculture sector in the region is witnessing steady growth and the population is mainly dependent on the farming sector. This presents lucrative growth opportunities for the market in the region.
Key participants in the global market for biostimulants include BASF SE, Isagro Group, Sapec Group, Biolchim S.P.A, Novozymes A/S, Platform Specialty Products Corporation, Valagro Group, Koppert B.V., Italpollina SAP, and Biostadt India Limited. Even though the market is presently in a developing stage in most emerging economies, particularly in Asia Pacific, new entrants as well as established players have numerous opportunities to look forward to.
Report Attribute |
Details |
Market size value in 2019 |
USD 2.30 billion |
Revenue forecast in 2025 |
USD 4.14 billion |
Growth Rate |
CAGR of 10.2% from 2019 to 2025 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2019 - 2025 |
Quantitative units |
Revenue in USD billion and CAGR from 2019 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, Crop Type, Region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S., Canada, Mexico, Italy, Germany, France, Spain, China, India, Australia |
Key companies profiled |
BASF SE, Isagro Group, Sapec Group, Biolchim S.P.A, Novozymes A/S, Platform Specialty Products Corporation, Valagro Group, Koppert B.V., Italpollina SAP, and Biostadt India Limited. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global biostimulants market report on the basis of active ingredient, crop type, application, and region.
Active Ingredients Outlook (Volume, Thousand Hectares; Revenue, USD Million, 2014 - 2025)
Acid Based
Seaweed Extracts
Microbial
Others
Crop Type Outlook (Volume, Thousand Hectares; Revenue, USD Million, 2014 - 2025)
Row Crops & Cereals
Fruits & Vegetables
Turf & Ornamentals
Others
Application Outlook (Volume, Thousand Hectares; Revenue, USD Million, 2014 - 2025)
Foliar
Seed
Soil
Regional Outlook (Volume, Thousand Hectares; Revenue, USD Million, 2014 - 2025)
North America
The U.S.
Europe
The U.K.
Germany
Italy
Asia Pacific
China
India
Japan
Australia
Central & South America
Brazil
Middle East & Africa
b. The global biostimulants market size was estimated at USD 2.30 billion in 2019 and is expected to reach USD 2.53 billion in 2020.
b. The global biostimulants market is expected to grow at a compound annual growth rate of 10.2% from 2017 to 2025 to reach USD 4.14 billion by 2025.
b. Europe dominated the biostimulants market with a share of 38.7% in 2019. This is attributable to supportive regulations to increase production of organic foods.
b. Some key players operating in the biostimulants market include BASF SE, Isagro Group, Sapec Group, Biolchim S.P.A, Novozymes A/S, Platform Specialty Products Corporation, Valagro Group, Koppert B.V., Italpollina SAP, and Biostadt India Limited.
b. Key factors that are driving the market growth include rising focus on enhancing productivity coupled with rapid soil degradation.
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The current pandemic situation has created disruption in the manufacturing of agrochemicals by virtue of raw material availability. Furthermore, this continual trend shall have a cascading effect on food productivity and crop yields on economies that are predominantly agrarian, during a time when demand for Agri produce shall register a spike over the medium term. Governments across the developing world are vying to incrementally ease restrictions on the manufacturing of fertilizers and maintain seasonal agricultural activities in order to reduce concerns regarding food security, which is a critical indicator for determining the course of a supply gap in the industry. The report will account for Covid19 as a key market contributor.