The global biostimulants market size is expected to showcase exponential growth by reaching USD 5.35 billion by 2027 while exhibiting a CAGR of 10.65% between 2020 and 2027. This is attributable to the increasing incidence of abiotic stress inland and the growing demand for organic food products across the globe. The report further observes that the market was worth USD 2.50 billion in 2019 and is likely to showcase significant growth in the forthcoming years.
Market to Gain Momentum after Initial Lull Amid COVID-19
The pandemic situation, owing to the novel coronavirus has kept the world economy reeling and mostly negative. The effects were felt on the agricultural sector as the halt of operations led to a complete disruption in the supply chain of the products. However, the increasing demand for bio-based organic food products and sustainable agri-inputs is driving the companies to resume operations by practicing all the required safety measures.
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Biostimulants are agricultural products that are widely adopted in the production of crops. They provide several benefits to the crops such as reducing the need for fertilizers and increasing the growth of plants. They are supplied in small concentrations to improve the vital processes of plants, while ensuring that the outcome leads to high yields of the crops, along with optimum quality products. Owing to the increasing demand for eco-friendly solutions to ensure plant growth, modern agriculture practices include the wide adoption of biostimulants across the globe.
What does the Report Include?
The report includes a detailed assessment of various growth drivers and restraints, opportunities, and challenges that the market will face during the projected horizon. Additionally, the report provides comprehensive research into the regional developments of the market, affecting its growth during the forecast period. It includes information sourced from the advice of expert professionals from the industry by our research analysts using several methodologies. The competitive landscape offers further detailed insights into strategies such as product launches, partnerships, mergers and acquisitions, and collaborations adopted by the companies to maintain market stronghold between 2020 and 2027.
Increasing Incidence of Abiotic Stress in Land to Propel Demand
Abiotic stress involves factors such as high salinity, fluctuating temperature, water deficiency, and ultraviolet radiation that affect the development and growth of the plant. According to the U.S. National Institutes of Health (NIH), 20% of the total land cultivated and 30% of that irrigated is affected by high salinity across the globe. To prevent the destruction of crops, farmers are extensively adopting biostimulants that aid in enhancing the plant health and growth, while ensuring the optimum level of nutrients to them. Therefore, the increasing incidence of abiotic stress is expected to drive the global biostimulants market during the forecast period.
Row Crop Held a 45.74% Market Share Backed by Large Cultivated Area Globally
The segment row crop, based on crop, that includes fiber crops, cereals, pulses, and oilseeds held a market share of about 45.74% in 2019. The segment is further likely to experience exponential growth owing to the large area that is cultivated to grow these crops.
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Europe to Remain at the Forefront; Rising Government Support for Promoting Sustainable Farming to Spur Growth
Among all the regions, Europe is expected to showcase significant growth and remain dominant by holding the highest global biostimulants market share during the forecast period. This is attributable to the growing government support to promote sustainable farming in the region. Additionally, the presence of biostimulants materials council is expected to drive the market in the forthcoming years. The market in the Asia Pacific is likely to showcase an augmented growth owing to the increasing adoption of sustainable farming practices and the growing demand for organic food products in countries such as India and China between 2020 and 2027.
North America was worth USD 582.23 million in 2019 and is anticipated to experience considerable growth owing to the favorable government regulatory structure to promote organic farming and the increasing focus on improving the quality of the products during the forecast period.
Collaboration between Major Companies to Consolidate Their Market Positions
The global biostimulants market report observes that the major companies, namely, Bayer CropScience and BASF SE are collaborating with each other to strengthen their positions and develop new biostimulants in the lucrative global marketplace. The other players are adopting strategies such as the introduction of new products, mergers and acquisitions, and partnerships to gain a major chunk of the market share during the forecast period.
Key Industry Development:
March 2020: SICIT Group announces its collaboration with Syngenta to promote sustainable agricultural practices. According to the company, the 15-year-old contract is aimed at supplying biostimulants such as HICURE and ISABION. Additionally, the agreement emphasizes in developing collagen-based biostimulants in the near future.