According to a new research report published by Transparency Market Research (TMR) titled ‘Biostimulants Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019–2027,’ the global biostimulants market is estimated to reach value of US$ 5,526.8 Mn by 2027. It is anticipated to expand at a CAGR of 12.3% during the forecast period.
The global biostimulants market is primarily driven by growth of end-user industries such as agriculture. The biostimulants market in Asia Pacific is estimated to expand at a CAGR of nearly 13.0% during the forecast period, owing to high demand for biostimulants in China, India, and the ASEAN sub-region.
Sustaining the level of food production to meet the demand of growing global population, without endangering the natural resources, has been a challenge for the agricultural sector over the last few years. Rapid growth of population has raised concerns regarding food security. Demand for food is increasing due to rise in population. Underdeveloped as well as developing countries still lack proper infrastructure for storage and distribution of food grains and edible agricultural produce. There exists need to improve the yield of crops, which are cultivated on the existing land, in order to meet the increasing demand for food.
Use of advanced agrochemicals is required in order to meet this demand. However, excessive use of conventional agrochemicals can result in degradation of the environment. Eco-friendly crop production is likely to be essentially desirable in the next few years. This is likely to significantly drive the demand for non-toxic and eco-friendly biostimulants in the near future. Biostimulants stimulate plant growth by improving the efficiency of nutrient and water use and by providing protection from abiotic stress. The rising demand for eco-friendly agro products is anticipated to drive the global biostimulants market between 2019 and 2027.
Humic acid & fulvic acid and fruits & vegetables segments to dominate the global biostimulants market
In terms of product, the global biostimulants market has been divided into humic acid & fulvic acid, amino acids, microbial stimulants, seaweed, vitamins, and biorationals. Among these, the humic acid & fulvic acid segment dominated the global biostimulants market, in terms of revenue, in 2018.
Humic acid and fulvic acid increase the cation exchange capacity (CEC) of the soil or any other substrate, thereby refining the soil capability to provide plants with crucial nutrients. Humic substances also facilitate electrochemical potential in the root zone, which boosts the uptake of nutrients. Humic and fulvic acids are intermediate chelators; they hold mineral ions in such a way that they are not lost in the soil but are made available to plants when required. Humic substances form a passage between mineral cations and clay particles.
Based on application, the global biostimulants market has been divided into oilseeds & pulses, cereals & grains, fruits & vegetables, and others. The fruits & vegetables segment is anticipated to dominate the market from 2019 to 2027. When applied to fruits and vegetables, biostimulants enhance several parameters of the crop quality including color, firmness sugar contents (BRIX), and post-harvest quality. Biostimulants optimize the fruit size and crop uniformity. They stimulate cell division in young fruits. Biostimulants also offer nutrients vital for plant metabolic processes such as photosynthesis. This, in turn, increases the marketable yield.
Significant potential for biostimulants market in North America
Based on region, the global biostimulants market has been segmented into North America, Latin America, Asia Pacific, Europe, and Middle East & Africa. The biostimulants market in North America is projected to expand at a CAGR of more than 11.0% during the forecast period. North America is expected to offer significant opportunities to the biostimulants market during the forecast period. Lack of a definite regulatory framework for biostimulants had been a challenge for market participants until recently.
However, the (U.S.) Agriculture Improvement Act of 2018, also identified as the 2018 Farm Bill, which was passed in December 2018, involved formal recognition of biostimulants and made significant provisions for them. The 2018 Farm Bill provided a clear boundary for distinguishing biostimulants from other agro products such as fertilizers and pesticides. Defining biostimulants and forming a regulatory path for their commercialization are expected to increase their adoption in the next few years. This is projected to provide growth opportunities to the biostimulants market in North America during the forecast period.