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Biostimulant Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Global Biostimulant Market is projected to register a CAGR of 11. 71% during the forecast period (2022-2027). As a result of the recent COVID-19 pandemic, the supply and demand got poorly hit, and this has led to reduced demand for products in the market.
New York, June 13, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Biostimulant Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06062823/?utm_source=GNW
However, most of the biostimulant plants and companies were allowed for operation, as they were deemed as an essential business in the United States. The continued movement of agri-food products and inputs was considered essential by North American countries, such as Canada, as a plan to manage COVID-19. The Federal Government of Canada announced that crop inputs are considered essential commodities during the COVID-19 outbreak and ensured a resilient market for biostimulants. Therefore, companies were able to continue manufacturing products. However, the pandemic did affect the market dynamics in terms of demand falling off for some crops in the wake of the virus.
The organic food industry, which is growing at a healthy rate, is the major driving force behind the growth of the biostimulant market. Increased awareness among the farmers, especially in the Asia-Pacific region, regarding the benefits of biostimulants is another factor augmenting the market’s growth. The market is also growing due to the increased adoption of sustainable farming methods. Europe is the largest geographical segment of the market studied. The increasing concern on environmental health is anticipated to aid the growth in the market over the forecast period. Due to the diversity of sources and the complexity of the resulting product, the biostimulant products still lack a clear categorization and a single definition to work on. Technical challenges include formulating and blending biostimulant utilizing materials and/or plant protection products.However, at the same time, due to the increasing demand from the North American and European countries, the seaweed extract segment, is expected to witness the fastest growth during the forecast period. Biostimulants are widely used on cereals, fruits, and vegetables. These segments account for around half of the market share. The demand from the North American region is driven by the demand from the turf and ornamental segment of the region. Therefore, due to the growing demand from the organic food industry and the active participation of key players, the biostimulant market is anticipated to grow during the forecast period.
Key Market Trends
Expansion in Organic Production Practice
Biostimulants are significant for the future of the agricultural industry in terms of promoting organic practices. Biostimulants can enhance soil microflora, which, in turn, helps make the uptake of nutrients more efficient. Others increase antioxidant activity in plants and boost internal defenses against environmental stresses and disease pressure. Biostimulants are associated with organic farming and gardening, which are currently witnessing healthy progress in conventional agriculture as well. These are increasingly being perceived as a response to the consumer demand for ‘softer’ agricultural practices. In response to the increasing need to meet food sufficiency and the importance of safe farming practices, the organic food industry is recording an exponential double-digit growth rate. The expanding health-conscious consumer base around the world is opting for organic food to avoid adverse health effects caused by chemical preservatives or genetically modified ingredients of inorganic food. Organic food and related agriculture currently account for around 5.0-10.0% of the food market, varying from region to region. According to FiBL, the organic area share of total farmland in Europe increased from 3.1% in 2018 to 3.4% in 2020. Similarly, the organic area share of total farmland in Latin America increased from 1.1% in 2018 to 1.4% in 2020. As organic food products are produced without using any pesticide or fertilizer, the demand for biostimulantsis on the rise. Consequently, the increasing popularity of organic farming drives the demand for biostimulants.
Europe Dominates the Global Market
Europe is the largest and fastest-growing segment of the market studied and has registered the highest CAGR in 2021. The European Union’s stringent regulations on environmental safety and support for organic farming have paved the way for a flourishing biostimulant market in European countries, such as Germany, Italy, the United Kingdom, Spain, and France. For instance, in Germany, the German Federal Office of Consumer Protection and Food Safety (BVL) developed a regulatory framework for “plant strengtheners” (PS) that corresponds to biostimulants, as defined under Section 2.1. Commercial products containing more than 5.0% of seaweed extracts cannot be considered as PS. In Spain, significant changes have been made toward regulations of crop inputs over the past few years. According to the new regulations, fertilizers need to be regulated before the sale. However, the sales of OMDF (other means of plant defense), into which most biostimulants fall, can be carried out with prior registration. In addition, inventions in plant biostimulants targeting specific agronomic needs are attracting new customers in Europe. For instance, Arysta LifeScience launched a new biostimulant that improves the quality of fruit and vegetable yields while relieving stress in the United Kingdom in 2017. The product contains GA142, an active ingredient found in seaweed harvested in North Brittany, where the tides are some of the highest in the world. The GA142 is extracted within 24 hours using a unique cold manufacturing process to retain fresh seaweed’s active characteristics and ensure a consistently high-quality product.
Competitive Landscape
The biostimulant market is highly fragmented, with various small and medium-sized companies and a few big players, resulting in stiff competition in the market. The development of regional markets and local players in different parts of the world is the major factor for the fragmented nature of the market. North America and Europe are the two regions showing maximum competitor activities. The major companies in the biostimulant market include UPL Limited, Biostadt India Limited, Isagro SPA, Valagro SPA, and Tradecorp International, among others. These major players are investing in new products and improvisation of products, expansions, and acquisitions for business expansions. Another major area of investment is the focus on R&D to launch new products at lower prices.
Additional Benefits:
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