Biostimulants Market

According to MarketsandMarkets, the Biostimulants Market is projected to reach USD 7.6 billion by 2029 from USD 4.3 billion by 2024, at a CAGR of 12.0% during the forecast period in terms of value. Biostimulants are substances with growth-promoting activities on plants, mostly related to nutrient uptake and stress tolerance, which enhance crop productivity and quality. As such, farmers are gradually becoming interested in biostimulants in order to maximize returns from their crops. Most biostimulants of natural origin are considered compatible with organic farming practices. Growing consumer preference toward organic farming will drive the demand for biostimulants. Biostimulants exert their positive effects on root development, general efficiency of nutrient uptake, and stimulation of whole-plant growth through their various modes of action. It is in this light that, as indicated by the Research Institute of Organic Agriculture FiBL and IFOAM-Organics International 2024, organic farming is adopted in 188 countries. In excess of 96.4 million hectares of agricultural land was organically managed by at least 4.5 million farmers. The European Commission adopted the following new targets updated in the From Farm to Fork strategy and EU Biodiversity in May 2020, which are aligned to the overarching goals of the European Green Deal of transforming Europe into the first climate-neutral continent by 2050. One of the key targets under these strategies is to meet the ambitious objective of having at least 25% of the total agricultural area under organic farming in Europe by 2030. These trends are expected to boost the consumption of biostimulants such as seaweed extracts, humic substances, and minerals and vitamins.

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Market Dynamics

Driver : Rise in demand for sustainable agricultural practices

The application of biostimulants will increase due to growing awareness of benefits of organic foods, organic regulations implementation, and adaptation of GLOBALGAP policies. The majority of fruits, vegetables, and cereals have had an increasing government subsidies and financial aid to utilize on organic practices. Organizations that facilitate in research is the Research Institute of Organic Agriculture (FBL) in Switzerland and regulatory support by the US Department of Agriculture (USDA). The European Commission has set the Farm to Fork (F2F) strategy, facilitating the transition in the best way possible to a sustainable, resource-efficient, and resilient food system that complies with proper standards. It was launched on May 20, 2020 and is one of the key elements of the European Green Deal—new growth strategy for the European Union—setting ground for reaching a climate-neutral continent by 2050. The use of microbial inoculants ensures correct and timely enhancement of nutrient availability, uptake, and assimilation from the soil solution, which can be a tool to foster sustainable agricultural practice. Biostimulants enhance nutrient-use efficiency by designing the root system architecture and by enhancing the solubilization of macro and micronutrient fertilizers. This has strategic effects not only for the improvement of crop growth but also in the area of environmental conservation and sustainability.

Restraint : Lack of regulations

One of the restraints to the biostimulants market is a lack of harmonized regulations and definitions. Contrasted to conventional agricultural inputs such as fertilizers and pesticides, biostimulants generally encompass a wide array of products with divergent compositions and modes of action, making it difficult for regulators to come up with clear guidelines on the registration, labelling, and use of products. Lack of standard definitions may generate misconceptions among farmers, retailers, and consumers regarding the performance and application of biostimulant products.

In the US, every federal state has its own regulatory program concerning fertilizers, plant or soil amendments, and biostimulants. To maintain standards for these inputs, each state regulation contradicts another. The manufacturers find the process of registration for a product or label to be tough in many US states. To that end, Congress has called for a report with recommendations and an appropriate definition of biostimulants from the major authorities of biostimulant sectors, including the Secretary of Agriculture, the EPA Administrator, states, and relevant stakeholders in the region.

Opportunity : Integration of biostimulants with fertilizers for nutrient optimization

Integration of biostimulants with fertilizers provides an excellent opportunity for nutrient management optimization in agriculture. Biostimulants improve the promotion of plant growth, enhance stress tolerance, and work  synergistically with fertilizers to improve nutrient uptake and efficiency. The US's FBSciences is at the forefront of nutrient use efficiency with its uniquely developed, unmatched biostimülant technology in Transit. Transit Soil and Transit Foliar are flagship solution categories of their biostimulant formulations and are engineered to work inside plants. Through rapid uptake, absorption, and translocation, they ensure better NUE for both applied fertilizers and those existing naturally in the soil.

Another milestone in the period under discussion came up in 2023 when ADM—USD, a global leader in agricultural origination and processing, launched a disruptive agricultural biostimulant called NeoVita 43, showing great potential to help farmers grow more corn by increasing nutrient utilization efficiency. In multiyear trials at the University of Illinois at Urbana-Champaign, NeoVita 43 with liquid starter fertilizer had shown dramatic results, boosting corn yields up to seven bushels per acre above that achieved with starter fertilizer alone. NeoVita 43 achieves this by enhancing microbial activity in the rhizosphere—the area of soil surrounding plant roots—and, in the process, makes more available nutrients for plant uptake.

Challenge: Variability of product efficacy

Biostimulant efficacy can be influenced by a number of factors, such as the formulation of products, application timing, abiotic/biotic environmental conditions, and crop genetics. Consequently, farmers experience variable results upon applying biostimulant products, while uncertainty about economic and agronomic gains is even accrued to a greater extent. Moreover, non-standardization of testing protocols and performance metrics has caused ambiguity for farmers when evaluating and comparing biostimulant products. In 2019, USDA-APHIS (Animal and Plant Health Inspection Service) coordinated on-site meetings with industry trade associations and State and Federal agencies in support of developing a report requested by Congress. This report outlines potential regulatory, non-regulatory, and legislative recommendations, including the definition of plant biostimulants, aimed at ensuring their efficient review, approval, consistent national labeling, and accessibility for agricultural producers.

BIOSTIMULANTS MARKET ECOSYSTEM

Key players within this market consist of reputable and financially robust biostimulants manufacturers. These entities boast extensive industry tenure, offering diversified product portfolios, advanced technologies, and robust global sales and marketing networks. Prominent companies in this market include BASF SE (Germany), UPL (India), FMC Corporation (US), Rallies India Limited (India), Sumitomo Chemical Co., Ltd. (Japan), Corteva. (US), Nufarm (Australia), Syngenta Crop Protection AG (Switzerland), PI Industries (India), ILSA S.p.A. (Italy), Coromandel International Limited (India), Haifa Group (Isarel), T.Stanes and Company Limited (India), Gowan Company (US), and Koppert (The Netherlands).

In crop type segment, cereals & grains holds significant market share in the global biostimulants market.

The consumption of cereals and grains is crucial for meeting the dietary needs of a growing population. There is a need to enhance cereals & grains yield to fulfill the growing demand. The application of biostimulants is helping to fulfill the demand. According to the FAO reports, global cereal utilization for the year 2023/24 is likely to show an upward movement tendency compared to previous years. More global stocks of cereals are forecast by 2024. This suggests a steady supply of cereals to meet demand. The growing demand for cereals highlights the importance of improving agricultural productivity, potentially leading to greater use of biostimulants to optimize yields and meet global requirements.

In 2023, foliar application stood as the major segment within the mode of application segment of the biostimulants market.

Biostimulants products, applied to foliage, can act directly on the biochemical pathways of the plant through the leaf surface, conditioning an increase in protein synthesis as well as in the number of enzymes. All these effects can help to provide better growth of roots and shoots. Biostimulant follar treatments can enhance plant productivity. Foliar-applied amino acids increase in the photosynthetic rate and dry matter partitioning to increase crop yield. Proteins and B vitamins are added to plants against fungal diseases.

Some of the products used through foliar spray are YaraVita Biotrac by Yara (Norway), a liquid formulation developed for the stimulation and enhancement of plant performance. This product is uniquely formulated in such a way that it relieves problems created by abiotic stressors like cold and drought by using bioactive compounds and nutrients from the algae Ascophyllum nodosum. Koppert (Netherlands) offers Vidi Fortum ablotic stress resistance; Vidi Fol stimulates plant growth; Vidi Parva enhances nutrient uptake and increases root length.

In active ingredients segment, seaweed extracts hold the significant share in the biostimulants market. 

Seaweed Extracts from marine algae  are among the most efficient means in agriculture, with high organic matter, nutrient, and plant growth hormone content, such as cytokinin and auxins. On account of these properties, they have an expanded application to increase crop yield by enhancing nutrient uptake. The dominance of seaweed extracts is especially seen in the Asia Pacific region, which accounted for 99.5% of global production in 2021. China produced 61%. These extracts are used locally in China and Japan but also exported to Europe and North America. In November 2023, Acadian Seaplants Limited launched BioSwitch, an innovative and multi-use seaweed-based technology that boosts plant growth, soil vitality, and resistance to environmental stressors by taking advantage of the unique properties of Ascophyllum nodosum through a specialized extraction process.

Europe to dominate the biostimumlants market during the forecast period.

According to the European Environment Agency, agriculture is one of the most widespread uses of land in Europe. EBIC (The European Biostimulants Industry Council) plays an important role in highlighting how the biostimulants sector contributes to helping farmers grow adequate volumes of high-quality crops profitably while efficiently using resources. EBIC calls for the implementation of a regulatory framework that will establish a single European biostimulants market, underpinned by recognition of their contributions to sustainable agricultural production, green innovation, economic growth, and other societal goals. According to EBIC reports from 2022, biostimulants can increase nutrient uptake and assimilation by up to 25% and improve crop quality in terms of size, color, ripeness, or impact resistance by an additional 15%. There are a number of major players in the European biostimulants market, such as BASF SE (Germany), Valagro (Italy), Biovert S.L (Spain), Koppert (Netherlands), and AgriTecno (Spain).

Key Market Players 

The key players in this market include BASF SE (Germany), UPL (India), FMC Corporation (US), Rallies India Limited (India), Sumitomo Chemical Co., Ltd. (Japan), Corteva. (US), Nufarm (Australia), Syngenta Crop Protection AG (Switzerland), PI Industries (India), ILSA S.p.A. (Italy), Coromandel International Limited (India), Haifa Group (Israel), T.Stanes and Company Limited (India), Gowan Company (US), and Koppert (The Netherlands). These market participants are emphasizing the expansion of their footprint via agreements and partnerships. They maintain a robust presence in North America, Asia Pacific, South America, RoW, and Europe, and they are supported by manufacturing facilities and well-established distribution networks spanning these regions.

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Scope of the Report

This research report categorizes the biostimulants market based on active ingredients, crop type, mode of application, formulation, and region.

Target Audience

• Biostimulants traders, retailers, and distributors
• Biostimulants manufacturers & suppliers
• Related government authorities, commercial research & development (R&D) institutions.
• Regulatory bodies, including government agencies and NGOs.
• Commercial research & development (R&D) institutions and financial institutions.
• Government and research organizations.
• Venture capitalists and investors.
• Technology providers to biostimulants and biostimulants companies.
• Associations and industry bodies. 

Biostimulants Market:

By Active Ingredients

• Humic Substances
• Seaweed Extracts
• Amino Acids
• Microbial Amendments
• Minerals & Vitamins
• Other Active Ingredients

By Crop Type

• Cerals & Grains
• Oilseeds & Pulses
• Fruits & Vegetables
• Flowers & Ornamentals
• Other Crop Types

By Mode of Application 

• Foliar Treatment
• Soil Treatment
• Seed Treatment

By Formulation

• Dry
• Liquid

By Region:

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

Recent Developments

• Sumitomo Chemical India Ltd.  finally launched its much-anticipated Biorational product, Promalin, in Shimla, Himachal Pradesh, in March 2023. Valent Biosciences, headquartered in Illinois, USA, did all the extensive research and development related to the creation of Promalin. It is a subsidiary of globally well-known Sumitomo Chemical Co., Ltd. of Japan for offering pioneering Biorational solutions. This is the first launch of Promalin in India by Sumitomo Chemical India Ltd. The product contains two main ingredients: an effective blend of the two naturally occurring gibberellins in plants, Gibberellin 4 and Gibberellin 7, and a naturally occurring cytokinin compound called 6-Benyzladenine.
• In the Series B funding round in August 2022, BASF Venture Capital GmbH and Aqua-Spark invested in Sead Energy Pvt. Ltd. for INR 1402 million (approximately USD 18.5 million). Sead Energy is producing biostimulants for agriculture from red spaweed, which is a sustainable raw material mainly found in tropical waters in Asia. Their consolidated model brings together cultivation technology for deep water and bad weather, aided by satellite imaging for optimum selection of places to grow seaweed. With operations in Bali, Indonesia, for commercial seaweed farming and Tuticorin, India, Sead Energy is one of the major producers and processors of tropical red seaweed. This will further diversify the portfolio of biostimulants while enhancing its leading position in the new future market for seaweed-derived products at BASF.
• In June 2022, FMC Corporation launched its "Biologicals by FMC" brand to outline its commitment to growing areas of biological crop protection and huge investment involved in innovation-rich pipelines. With more than 50 biological products and sales in over 50 countries, which contain award-winning biostimulant and bionematicide products. With the launch of Zironar biofungicide/bionematicide in the US and Provilar biofungicide in Brazil this year, coupled with four global biopesticide launches planned in the next four years, FMC will feature as a big market player in biostimulants, entailment to its commitment to finding solutions for agricultural challenges with new inventive biological technologies.

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