Biostimulants Market Report: Size, Share and Outlook by 2031

The biostimulants market is projected to expand significantly, increasing from US$ 3,112.49 million in 2022 to US$ 5,796.94 million by 2028. This growth represents a compound annual growth rate (CAGR) of 10.9% over the forecast period from 2022 to 2028.

Biostimulants are composed of a variety of components, including plant hormones, microorganisms, trace elements, seaweed extracts, and enzymes. These substances are applied to the soil, seeds, or foliage of various crops such as grains, cereals, fruits, vegetables, and oilseeds. Their primary function is to enhance plants' resilience to environmental stresses, improve nutrient availability, increase chlorophyll production, boost metabolic processes, and enhance water retention capabilities. Additionally, biostimulants are known to elevate antioxidant activity and promote root development and cell growth.

The global biostimulants market is categorized by product type into several segments: humic substances, amino acids, microbial stimulants, seaweed extracts, and others. Notably, the seaweed extracts segment was the market leader in 2021.

Geographically, the biostimulants market is divided into regions including North America, Europe, Asia Pacific (APAC), South and Central America (SCAM), and the Middle East and Africa (MEA). Europe held the largest market share in 2021, but the Asia Pacific region is anticipated to experience the fastest growth during the forecast period. The increasing association of biostimulants with organic farming practices, which are gaining traction in conventional agriculture, is a significant factor contributing to this growth. The robust agricultural sector in the Asia Pacific, coupled with a rising trend towards organic farming, is driving the demand for biostimulants. These products are often used alongside organic fertilizers to enhance plant health and soil fertility, addressing growing concerns about soil quality, environmental safety, and sustainable agricultural practices. Furthermore, heightened consumer awareness regarding the adverse effects of traditional chemical fertilizers and pesticides is propelling market expansion.

Impact of the COVID-19 Pandemic on the Biostimulants Market

The COVID-19 pandemic had a detrimental impact on the biostimulants market in 2020, primarily due to the closure of manufacturing facilities and restrictions on transportation and logistics. Supply chain disruptions significantly affected the availability of biostimulants. In response, manufacturers implemented extensive changes to their operations to adhere to national and regional health guidelines aimed at protecting employees from COVID-19. Many global manufacturers temporarily halted operations or reduced workforce numbers during production. The pandemic increased costs for farmers while simultaneously decreasing their income. Additionally, the imbalance between supply and demand during this period led to a decline in the market demand for biostimulants. However, as governments began to relax social restrictions and vaccination efforts progressed, businesses started to recover. The resurgence of various end-use industries also contributed to the recovery of the biostimulants market. Notably, during the pandemic, consumer interest shifted towards healthier, chemical-free food options, which positively influenced the biostimulants market's performance during and after the crisis.

Key players in the biostimulants market include BASF SE, UPL Limited, Valagro, Gowan Company, FMC Corporation, ILSA S.p.A., Haifa Negev Technologies LTD., ADAMA, Rallis India Limited, and AgriTecno Biostimulants and Plant Nutrition. These companies are employing various strategies, such as mergers and acquisitions and new product launches, to enhance their market presence and expand their customer base. For example, in 2020, Syngenta Group acquired Valagro, a move expected to strengthen Syngenta's position in the biological crop protection sector.

The overall size of the global biostimulants market has been determined through a combination of primary and secondary research methods. The research process began with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and gain deeper analytical insights. Participants in this research included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the biostimulants market.