According to a new report published by Allied Market Research, titled,"Biostimulant Market by Type, Crop Type, and Application: Global Opportunity Analysis and Industry Forecast, 2017-2023,"the global biostimulant market size was valued at $1,784 million in 2016, and is projected to reach $4,089 million by 2023, growing at a CAGR of 12.6% from 2017 to 2023. Europe is one of the prominent consumers of biostimulants, accounting for more than 40% of the total market in 2016.
Biostimulants are naturally derived fertilizer additives used to enhance plant growth and productivity. These products also contribute towards nutritional enhancement of agricultural products. Acid- and extract-based biostimulants are the major types of biostimulants available in the market. Acid-based biostimulants include humic acid, fulvic acid, and amino acid, whereas seaweed extracts and other plant extracts are considered under plant extracts. Various regulations are imposed on the use of biostimulants by regulatory bodies.
Increase in demand for high crop yields and quality, and focus on sustainable agriculture to protect the environment drive the growth of biostimulant products. However, lack of education and awareness among farmers about the benefits of using biostimulants in agricultural activities is expected to impede the biostimulant market growth in the near future.
Acid-based biostimulants are expected to maintain dominance in the global biostimulant market during the biostimulant market forecast period. However, the extract-based biostimulants are anticipated to gain traction as well. In 2016, Europe dominated the acid-based biostimulant market, with more than 40% revenue share. Humic acid was the dominant type among the acid-based biostimulants in 2016, and is expected to maintain the similar trend during the forecast period. Among the extract-based biostimulants, seaweed extracts held a major market share in 2016.
The harmful effects of synthetic fertilizers and pesticides on the environment and human have raised concerns for the government and other agencies. However, the use of fertilizers cannot be cut off completely, as this would have a negative effect of the demand-supply gap of food production. Moreover, government organizations have taken proactive measures for regulating the production and usage of eco-friendly products, imposing ban on certain chemicals, and setting their maximum usage limits. Thus, there is an urgent need to produce bio-based agrochemicals to minimize the hazardous effects of synthetic agrochemicals on the environment. In addition, growing inclination of consumers towards using bio-based products, especially in the Asia-Pacific region has presented new opportunities for market players. Furthermore, the benefits associated with using biostimulants, such as low toxicity, high specificity, and enhanced efficiency have led to higher adoption of such products. Thus, numerous opportunities exist in the market for the development of biostimulants.
Row crops & cereals dominated the global biostimulant market, with 63% revenue share in 2016. Turf & ornamentals segments is expected to grow at the highest CAGR during the forecast period as compared to the other crop types considered. Growth in usage of biostimulants in the aforementioned crop types is anticipated to drive the global biostimulants market.
The foliar application segment dominated the market in 2016, and is expected to maintain this trend during the forecast period. However, the significant higher CAGR of seed application segment drives the biostimulant industry.
Key Findings of the Biostimulant Market:
- In terms of value, the extract-based segment is expected to grow at a CAGR of 13.2% during the forecast period.
- Europe is projected to maintain its lead position throughout 2023, growing at a CAGR of 12.2%, in terms of value.
- The seed application segment is estimated to grow at a high CAGR of 14.4%.
- Italy is expected to occupy around 25% of the European market by 2023.
- India is expected to grow at the highest CAGR of 13.7%, in terms of value, from 2017 to 2023.
In 2016, Europe and North America collectively accounted for approximately 65% share of the global market, and are expected to continue their dominance, owing to rise in focus on sustainable agriculture.
The major companies profiled in the market include BASF SE, Biolchim S.p.A., Isagro S.p.A., Koppert B.V., Biostadt India Limited, Italpollina S.p.A, Novozymes A/S, Platform Specialty Product Corporation, Sapec Group, and Valagro S.p.A.