The global bio stimulant market (henceforth referred to as the market studied) was valued at USD 2,638 million, in 2020 and is projected to reach USD 5,040 million by 2026 , registering a CAGR of 11. 71% during the period of 2021-2026.
New York, April 15, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Biostimulant Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06062823/?utm_source=GNW
As a result of the recent COVID-19 pandemic, the supply and demand got poorly hit and this has led to reduced demand for the products in the market. Most of the biostimulant plants and companies were allowed for operation as they were deemed as an essential business in the United States. 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 growth of the market studied. 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. Biostimulants are widely used on cereals, fruits, and vegetables. These segments account for around half of the market share. The demand from the North America region is driven by the demand from turf & ornamental segment of the region.
UPL Corporation Limited, Tradecorp International, and Biostadt India Ltd. cover the majority of the market share. Acquisitions, partnerships, and investments are the most adopted strategies in the market.
Key Market Trends
Expansion in Organic Production Practice is Driving the Market
Biostimulants are significant for the future of the agricultural industry, in terms of promoting organic practices. Biostimulants can enhance soil microflora, which, in turn, help 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 global organic food industry is recording an exponential double-digit growth rate. The expanding health-conscious consumer base around the globe 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 2.7% in 2016 to 3.12% in 2018. Similarly, the organic area share of total farmland in Latin America, increased from 0.99% in 2016 to 1.06% in 2018. 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 is growing at a CAGR of 12.3% in 2020.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, United Kingdom, Spain and France. For instance, in Germany, the German Federal Office of Consumer Protection and Food Safety (BVL) has 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 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 whilst relieving stress, in 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 the active characteristics of fresh seaweed and to ensure a consistently high-quality product. Thus, with increasing demand, bringing credibility to biostimulants/biologicals by regulatory initiatives and innovations ,the biostimulant market is driving the growth of the market in Europe.
The Global 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 Global Biostimulant Market include: UPL Limited, Biostadt India Limited, Agrinos AS, Valagro SpA., and Ilsa SpA., among others.
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