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What's driving the Biostimulants Market growth? BASF SE, Biolchim S.p.A., Isagro S.p.A., Koppert B.V., Biostadt India Limited, Italpollina S.p.A., Novozymes A/S, Platform Specialty Product Corporation, Sapec Group and Valagro S.p.A.

07-03-2019 01:20 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Biostimulants

Biostimulants

Biostimulants

Biostimulants are emerging as an essential component in sustainable agricultural practices. Instances of environmental hazards and soil contamination from injudicious and excessive application of chemical-based products on crops have been a key issue for the industry in recent times. Biostimulants are an effective substitute to chemical-based agro products and are replacing these at a higher rate on account of their environment-friendly nature and performance efficiency.

Biostimulant manufacturers such as Biostadt India Limited are engaged in offering customized product solutions, which are specific to crop type and soil. They also educate farmers regarding the benefits of these superior agro products, along with expanding the geographic presence of the company. Key players are focusing on strengthening their position in existing market conditions, especially in emerging economies, through various expansion strategies.

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Companies are adopting backward and forward integration to increase their profit margins and gain a higher bargaining power. This is bound to intensify the competition over the forecast period. Research and development activities, along with expanding product lines, are predicted to majorly impact the overall competitive scenario through 2025.

Active Ingredient Insights

Acid-based biostimulants formed the largest active ingredient segment in 2016. Products based on fulvic, humic, and amino acids are included in the acid-based segment. Amino acids are among major originators of phytohormones and aid in activating the metabolic systems of plants and seed germination. They stimulate fruit setting, flowering, pollination, and fruit development in the plant. Humic substances are naturally occurring end products resulting from decomposition of microorganisms such as bacteria and fungi and chemical degradation of animal and plants residues in soils.

Seaweed extracts are anticipated to register the fastest growth rate over the forecast period. These are mainly used as biostimulants owing to presence of plant growth substances such as cytokinins, auxins, and gibberellins carbohydrates, and many nutritive metal elements such as iron, aluminum, nitrogen, manganese, and potassium. Widely used seaweed extracts are brown, green, and red algae. Ascophyllum nodosum, Sargassum, Laminaria, Turbinaria, and Fucus are brown seaweed extract, which offer advantages such as greater nutrient uptake, higher yield, faster seed germination flower, fruit setting, and fruit quality.

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Crop Type Insights

Row crops and cereals dominate the overall biostimulants market based on crop type. They include corn, soybeans, barley, oats, millets, and cotton. These crops are grown widely across the globe in large areas and offer lucrative growth opportunities for the industry. Biostimulants increase the rate of cell division, seed size, and yields for row crops such as soybeans, corn, and barley. They contain amino acids, polyamines, and Indole-3-acetic acid (IAA), which help in overcoming barriers of cell division and cell expansion.

Global agriculture professionals are increasingly adopting biostimulants for cultivation of row crops and cereals. Moreover, rising demand for organic cereals is anticipated to further boost this segment. Rising acceptance of sustainable as well as organic farming to meet soaring food demand is likely to create massive growth avenues for the market.

Application Insights

The global market is dominated by the foliar application technique, while seed treatment is expected to exhibit the highest revenue-based CAGR of 12.3% over the course of the forecast period. Seed treatment is among the most cost-effective applications as compared to conventional spraying techniques. The treatment is performance-efficient as well as not as labor intensive as other methods. This aids in reducing overall input costs. These factors are likely to drive the segment through 2025.

In the foliar treatment of plants, the product is directly applied onto leaves to facilitate easier absorption of nutrients. Absorption is carried out by the epidermis and stomata. Biostimulants promoted for foliar treatment are primarily marketed in liquid form to enable easier application. Gycine betaine, chelated nutrients, and IPA molecule are among the major active ingredients utilized in these products for foliar application. The treatment enables faster absorption of nutrients by leaves, enhances nutrient uptake, and increases cellular activity.

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Regional Insights

Europe is the largest revenue-generating region in the global market and is anticipated to continue its dominance over the forecast period. Supportive regulations to increase production of organic foods are expected to increase the application of biostimulants. However, sluggish growth of the agriculture sector in Western Europe is expected to remain a restraining factor for the market. In addition, presence of biofertilizers is expected to pose a substitution threat over the coming years.

Asia Pacific is anticipated to witness promising growth over the forecast period on account of presence of various agriculture-driven economies such as India, China, and Australia. Countries in Asia Pacific are highly diverse in terms of income levels, spending capacities, and food consumption habits. The agriculture sector in the region is witnessing steady growth and the population is mainly dependent on the farming sector. This presents lucrative growth opportunities for the market in the region.

Biostimulants Market Share Insights

Key participants in the global market for biostimulants include BASF SE, Isagro Group, Sapec Group, Biolchim S.P.A, Novozymes A/S, Platform Specialty Products Corporation, Valagro Group, Koppert B.V., Italpollina SAP, and Biostadt India Limited. Even though the market is presently in a developing stage in most emerging economies, particularly in Asia Pacific, new entrants as well as established players have numerous opportunities to look forward to.

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