The biostimulants market is estimated to be valued at USD 2.6 billion in 2019 and is projected to grow at a CAGR of 11.24%, to reach USD 4.9 billion by 2025. The growth of the biostimulants market is driven by the increase in the need for sustainable agriculture; easier availability of certain raw materials, namely, humic acids and seaweeds; and strong demand for high-value crops such as fruits, vegetables, and plantation crops. However, due to the lack of transparency in the patent protection law in various countries, low-quality products are being produced. Thus, duplication during biostimulant product formulation restrains the growth of the biostimulants market.
With the launch of new innovative products, these restraints could be overcome and would provide opportunities for the biostimulants market to grow. It would also be a platform for the development of more innovative extraction technologies.
High price of amino acid contributes to its dominance in the global biostimulants market.
Biostimulants encompass a diverse range of active ingredients, which includes microbial amendments, amino acids, humic acids, fulvic acids, seaweed extracts, and others (which include polysaccharides, trace minerals, and vitamins). These are most commonly used in formulations and have been acclaimed as biostimulant ingredients by the regulatory bodies and associations such as the European Biostimulant Industry Council (EBIC).
As per the industry experts, amino acids are expensive in comparison with other active ingredients.This is due to the high cost associated with the extraction and downstream formulation processes of amino acids.
Humic substances are mentioned to be the least expensive of all active ingredients. Thus, the amino acids segment is projected to remain dominant in the market, in terms of value, during the forecast period.
The fruits & vegetables segment held the dominant market share in the biostimulants market, based on crop type.
Biostimulants can be used for all major crop types across the globe.The major crops considered in the biostimulants market include melons, leafy vegetables, tomatoes, potatoes, cotton, corn, and wheat.
The dosage and the impact of the product vary with respect to different crops.
Based on crop type, fruits & vegetables dominated the biostimulants market, in terms of value, in 2018.This was mainly due to the higher application of biostimulants to crops such as tomatoes, cucumbers, potatoes, grapes, peppers, broccoli, and strawberries.
Also, it helps to enhance the characteristics of the produce, including higher sugar content, rich color, and fruit development and enlargement.