Biostimulant Market

Global Biostimulant Market Forecast

• The approximately US$2.9 Bn market for biostimulants (2022) to reach nearly US$4.9 Bn by 2030-end
• Market size likely to witness expansion at a CAGR of 7.8% over 2023 - 2030

Quick Report Digest

1. The biostimulant market is growing due to increasing recognition of the importance of sustainable agriculture. Biostimulants enhance crop productivity, improve nutrient uptake, and reduce environmental impact. Regulatory support, technological advancements, and a focus on eco-friendly farming practices are driving market expansion to meet global food security and sustainability goals.
2. Seaweed extracts have secured the largest market share in biostimulants due to their natural growth-promoting properties. Rich in beneficial compounds, they enhance plant growth, stress resistance, and nutrient uptake, aligning with the growing demand for sustainable, eco-friendly agricultural practices.
3. Foliar application dominates the biostimulants market due to its immediate and direct impact on plants. It facilitates efficient nutrient absorption, photosynthesis, and stress tolerance. Farmers appreciate its rapid results, versatility, and compatibility with various crops, contributing to its largest market share.
4. Fruits and vegetables lead the biostimulants market due to consumer demand for high-quality, sustainably grown produce. Biostimulants enhance yield and quality, and these crops often require specialised care and protection, making biostimulants crucial. Consumer preference for healthy and eco-friendly food drives their dominance.
5. Europe holds the largest market share in the biostimulants market due to its strong focus on sustainable agriculture, stringent environmental regulations, and growing consumer demand for organic products. Government support, investment in R&D, and innovative biostimulant solutions drive its rapid growth.
6. The biostimulants market in North America is expected to experience stable revenue growth over the forecast period due to increasing funding for agricultural biological research and development initiatives.
7. The commercialisation of low-quality biostimulants challenges the market by undermining trust and credibility. Inferior products can lead to disappointing results for users, hindering adoption. Quality control and adherence to rigorous standards are essential to maintain the industry's integrity and ensure market sustainability.
8. The evolving regulatory landscape presents challenges for the biostimulants market, as varying regulations and definitions of biostimulants can create confusion and compliance difficulties for manufacturers. Striking a balance between innovation and standardised rules is essential for market stability and growth.

A Look Back and a Look Forward - Comparative Analysis

The biostimulant market is growing due to increased awareness of sustainable agriculture practices and the need for eco-friendly solutions. Biostimulants enhance crop yield and quality while reducing the environmental impact of conventional chemical fertilizers and pesticides.

Regulatory support for biostimulant products and advancements in biotechnology are also driving market growth as farmers seek cost-effective and environmentally responsible ways to improve crop productivity and resilience.

The market witnessed staggered growth during the historical period 2018 – 2022. This is due to the substantial growth of the major end-use application sectors, such as seed and soil. Biostimulants are applied to sources to enhance germination, early seedling development, and overall plant vigor. They promote root growth, nutrient uptake, and stress tolerance, resulting in stronger, healthier plants. This can lead to improved crop yields and quality, making biostimulant-treated seeds a valuable choice in agriculture.

The biostimulant market is poised for substantial growth. Factors driving this growth include increasing demand for sustainable agriculture practices, rising environmental concerns, and stricter regulations on chemical fertilizers. Advances in biotechnology and research on microbial-based biostimulants are expected to contribute to market expansion.

As farmers seek eco-friendly solutions to enhance crop productivity and mitigate climate-related challenges, the biostimulant market is likely to see continued innovation and investment.

Key Growth Factors

• Growing Demand for Higher Crop Productivity

The growing demand for higher crop productivity is a significant driver propelling the biostimulant market. With a global population on the rise and limited arable land available, there is an increasing need to maximise agricultural output.

Biostimulants offer a sustainable solution by enhancing nutrient uptake, root development, and stress tolerance in plants. They improve crop yields and quality without relying heavily on chemical fertilizers, reducing the environmental impact, and ensuring long-term soil health.

Moreover, the changing climate patterns and extreme weather events pose challenges to traditional agriculture. Biostimulants play a vital role in helping crops withstand these challenges, making them a crucial component in climate-resilient agriculture.

As the agricultural sector seeks innovative and eco-friendly ways to meet the rising food demands, the biostimulant market is poised for significant growth and adoption by farmers worldwide.

• The Organic Farming Boom

The boom in organic farming is a key driver fueling the biostimulant market. Organic agriculture emphasizes sustainability and prohibits the use of synthetic chemicals, making biostimulants an attractive option. Biostimulants improve soil health, nutrient availability, and plant resilience, aligning with organic farming principles.

As consumers increasingly prioritise organic produce, farmers are turning to biostimulants to enhance crop yields and quality while adhering to organic standards. This shift towards organic farming practices is expected to drive the demand for biostimulants, making them integral to the success of organic agriculture in meeting market demands.

• Increasing Government Support

Increasing government support is a significant driver for the biostimulant market. Governments worldwide are recognising the environmental benefits and sustainable agriculture potential of biostimulants. They are implementing policies, incentives, and regulatory frameworks that encourage their use.

Subsidies, research funding, and tax incentives for adopting biostimulants are becoming common, enabling farmers to integrate these eco-friendly solutions into their practices. This support not only promotes sustainable agriculture but also helps address food security and environmental concerns, propelling the biostimulant market's growth as it gains broader acceptance and adoption in the agricultural sector.

Major Growth Barriers

• Changing Regulatory Landscape

The changing regulatory landscape poses challenges to the biostimulant market. As governments work to define and regulate biostimulants, there needs to be more certainty surrounding product classification, labeling, and quality standards. Compliance with evolving regulations can be costly and time-consuming for manufacturers, potentially hindering market growth.

Additionally, differing laws in various regions create market fragmentation, making it challenging for companies to navigate a complex global landscape. To thrive in this environment, the biostimulant industry must adapt to evolving regulatory requirements while maintaining product efficacy and safety to ensure market sustainability.

• Commercialisation of Low-quality Biostimulants

The commercialisation of low-quality biostimulant products presents a challenge to the biostimulant market. Inferior products can undermine the credibility of the industry and erode trust among farmers and consumers. These low-quality biostimulants may need to deliver the promised benefits, leading to disappointing results and financial losses for users.

Such experiences can deter adoption and tarnish the reputation of biostimulants. Ensuring quality control, standardisation, and rigorous testing is essential to mitigate this challenge and maintain the integrity of the biostimulant market.

Key Trends and Opportunities to Look at

1. Microbial Biostimulants

Microbial biostimulants, harnessing beneficial microorganisms, are revolutionising the biostimulant market. They enhance nutrient uptake, improve soil health, and protect plants from stress and diseases. These products offer eco-friendly, sustainable solutions that align with modern agriculture's focus on reduced chemical inputs and enhanced crop resilience.

As microbial biostimulants gain acceptance, they are expected to play An important role in shaping the future of agriculture and sustainable food production.

2. Precision Agriculture, and IoT

The rise of precision agriculture, and IoT integration are transforming the biostimulant market by enabling precise, data-driven application of biostimulants. IoT devices and sensors monitor soil conditions, plant health, and weather, allowing farmers to optimise biostimulant use for maximum effectiveness.

This reduces wastage, improves resource efficiency, and enhances crop yields, making precision agriculture and IoT integral to the future of biostimulant adoption in modern farming practices.

3. Biostimulant Formulations

Biostimulant formulations are revolutionising the biostimulant market by enhancing product stability and shelf life. These advancements ensure the longevity and efficacy of active ingredients, making biostimulants more reliable for farmers.

The development of stable formulations fosters confidence in product performance, encouraging wider adoption and growth in the biostimulant market.

How Does the Regulatory Scenario Shape this Industry?

The regulatory scenario significantly influences the biostimulant market. Regulations governing biostimulants vary by country and region, impacting product development, marketing, and market access. In recent years, there has been a concerted effort to define and harmonise regulations for biostimulants.

In the European Union, for example, the introduction of the EU Fertilizing Products Regulation has aimed to establish a clear regulatory framework for biostimulants, distinguishing them from fertilizers and pesticides. This framework is expected to provide greater clarity for manufacturers and ensure product safety for end-users.

Additionally, regulatory support and approvals play a crucial role in the market's growth. The registration and certification of biostimulant products by regulatory authorities provide credibility and confidence to both farmers and consumers. Companies that comply with regulatory requirements gain a competitive advantage, and their products are more readily adopted by farmers seeking reliable and safe solutions.

However, the evolving nature of biostimulants and the complexity of their modes of action present challenges for regulators. Striking the right balance between providing clear guidelines and allowing for innovation is essential.

As the regulatory landscape continues to evolve, collaboration between industry stakeholders and regulatory authorities is vital to ensure that biostimulants can fulfill their potential in sustainable agriculture and contribute to global food security.

Fairfield’s Ranking Board

Top Segments

1. Seaweed Extracts Active Ingredient Dominant

Seaweed extracts have captured the largest market share in the biostimulant market due to their versatility and proven efficacy. They contain natural growth-promoting compounds, including cytokinins, auxins, and amino acids, which enhance plant growth and stress resistance.

Seaweed extracts also offer benefits such as improved nutrient uptake, disease resistance, and enhanced soil health. Their organic and sustainable nature aligns with modern agriculture's focus on eco-friendly practices, driving their widespread adoption and market dominance.

Vitamins and amino acids will be experiencing the highest CAGR in the biostimulant market due to their essential role in plant metabolism and growth. These compounds act as cofactors in enzymatic reactions, promoting nutrient absorption and photosynthesis. Their application results in improved plant vigor, increased yield, and enhanced stress tolerance.

As the demand for sustainable agriculture and eco-friendly solutions rises, vitamins and amino acids' effectiveness in improving crop performance fuels their rapid growth in the biostimulant market.

2. Foliar Application Will Surge Ahead

Foliar application has captured the largest market share in the biostimulant market due to its direct and rapid impact on plant health and productivity. Applying biostimulants through the leaves allows for efficient absorption of nutrients and active compounds, enhancing photosynthesis, nutrient uptake, and stress tolerance.

This method provides a quick response and is versatile, making it a preferred choice for many farmers seeking immediate and visible results, thereby driving its dominance in the biostimulant market.

Seed will represent the strongest category of the biostimulant market due to its potential to enhance crop performance from the earliest stages. Biostimulants applied to seeds promote germination, root development, and stress resistance, providing a strong foundation for plant growth. This approach offers a convenient and efficient way to integrate biostimulants into farming practices, making it increasingly popular among growers and contributing to its rapid growth in the market.

3. Fruits & Vegetables Lead

Fruits and vegetables have captured the largest market share in the biostimulant market due to the heightened consumer demand for high-quality, nutritious, and sustainably grown produce.

Biostimulants are used extensively in horticultural crops to enhance yield, quality, and shelf-life. Additionally, these crops often require specialised care and protection from stressors, making biostimulants an essential component in their cultivation.

As consumers increasingly prioritize healthy and eco-friendly food options, the market for biostimulants in fruits and vegetables continues to expand. Row crops and cereals are all set for strong growth in the biostimulant market due to the need for increased agricultural productivity and sustainability.

Biostimulants offer solutions to optimize the growth of staple crops like corn, wheat, and soybeans. They improve nutrient uptake, stress tolerance, and overall crop resilience, ensuring higher yields and better-quality grains. As the global demand for staple foods rises, the adoption of biostimulants in row crop and cereal production is rapidly increasing.

Regional Frontrunners

Europe in the Bandwagon

Over the forecast period, the European biostimulant market will account for the largest revenue share due to the increased attention, respective governments have placed on the use of sustainable farming products, tools, and techniques, as well as several biostimulants promoting councils in the region.

For instance, a legal framework for ‘Plant Strengtheners’ (PS), which are biostimulants as specified in Section 2.1, was created in Germany by the Federal Office of Consumer Protection and Food Safety (BVL).

The European Union's agricultural regulatory framework is becoming more open to environmental considerations, encouraging the creation of novel models, methods, and practices that are sustainable, eco-friendly, and enable a plant to make the most of its resources. In Europe, biostimulant compounds are already used extensively and this is expected to increase significantly over the forecast period.

Gains for North America for Growing Emphasis on Organic Farming

North America’s biostimulant market gains from a strong focus on sustainable agriculture, environmental regulations, and increasing consumer demand for organic and eco-friendly products are driving the adoption of biostimulants.

One of the main factors influencing agricultural research development and the adoption of these bioproducts in enhancing stress tolerance and growth in various crops is the recent advancements in science and technology.

Furthermore, the sale of these products is being driven in this region by the rising use of organic agricultural techniques and the synergistic effects of PGP. According to a 2019 organic survey conducted by the US Department of Agriculture (USDA), there were 16,585 organic farms in the country.

Fairfield’s Competitive Landscape Analysis

The global biostimulant market is a consolidated market with fewer major players present across the globe. The key players are introducing new products as well as working on the distribution channels to enhance their worldwide presence. Moreover, Fairfield Market Research is expecting the market to witness more consolidation over the coming years.

Who are the Leaders in the Global Biostimulant Space?

• BASF SE
• Isagro
• Valagro
• Syngenta
• FMC Corporation
• Koppert Biological Systems
• Agrinos
• Haifa Group
• Humintech
• Hello Nature International
• Tagrow Company Ltd.
• AXEB Biotech
• Novozymes A/S
• Biolchim
• UPL Limited

Significant Company Developments

New Product Launches

• July 2022: Seipasa, a Spanish company specialised in development, formulation, and production of natural solutions for agriculture, introduced its line of biostimulants and nutrition products for the Ecuadorian market. The release of Seipasa's Kynetic4, Bryosei, Seipafol Mix, or Talsei products, among others, is part of the company's strategy to improve its business in the region.
• July 2021: ADAMA, an Israeli company, has completed the acquisition of a majority 51% stake in Huifeng's vital crop protection synthesis and formulation facilities. This strategic move is anticipated to substantially enhance ADAMA's commercial presence within China while also fortifying its operational capacities, making it more competitive on a global scale.
• June 2021: FMC Corporation, a US-based company, has unveiled a fresh brand identity for its plant health division, which will now be known as "Biologicals by FMC." This division will market a range of products, including biostimulants, biofungicides, and other plant health solutions, under this newly established brand.

Distribution Agreement

• January 2021: BASF SE, headquartered in Germany, has entered a collaborative partnership with Delair, a French company, to expand the scope of BASF SE's research and development initiatives related to seeds, traits, and crop protection. This collaboration will empower BASF's global network of agricultural research facilities to leverage the Delair AI cloud platform. This platform will facilitate the efficient organisation and standardisation of data collected from drone-based field research studies.

An Expert’s Eye

Demand and Future Growth

As per Fairfield’s Analysis, an increase in demand for quality agriculture products is driving the market. The market demand for biostimulants is driven by the increasing need for sustainable agriculture and eco-friendly solutions to boost crop productivity.

Biostimulants enhance nutrient uptake, stress resistance, and overall plant health, aligning with modern agricultural practices. As global population growth and environmental concerns intensify, the biostimulant market is poised for future growth.

Factors such as regulatory support, technological advancements, and the focus on organic farming contribute to a positive outlook, with sustained demand and expansion expected in the years ahead.

Supply Side of the Market

The leading countries in the biostimulant market include the United States, where a strong emphasis on sustainable agriculture drives adoption, followed by European nations such as Spain, Italy, and France, which have well-established markets.

Emerging economies like China, and India are also significant players due to their growing agricultural sectors and increasing demand for eco-friendly solutions. These countries contribute significantly to the global biostimulant market's growth and development.

Raw materials for biostimulants include plant extracts, seaweed, humic substances, amino acids, and microbial cultures. Suppliers vary depending on the specific raw material. For example, major suppliers of seaweed extracts include companies like Acadian Seaplants and BioAtlantis.

Amino acids can be sourced from companies like Ajinomoto, and Kyowa Hakko Bio. Humic substances may come from suppliers like Humintech, while microbial cultures may be obtained from Novozymes or Lallemand Plant Care, among others.

Global Biostimulant Market is Segmented as Below:

By Active Ingredient:

• Seaweed Extracts
• Organic Acids
• Microbial & Amendments
• Vitamins & Amino Acids
• Trace Elements

By Application:

• Foliar
• Seed
• Soil

By Crop Type:

• Fruits & Vegetables
• Row Crops & Cereals
• Turf & Ornamentals

By Geographic Coverage:

• North America 
  • U.S.
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Turkey
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Argentina
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Egypt
  • Nigeria
  • Rest of the Middle East & Africa