The biostimulant market generally incorporates plant health promoters which include diverse categories of products aimed toward optimizing and improving the physiological processes in plants. Biostimulants are nature-identical compounds or microorganisms that, when applied in small quantities, enhance plant growth and crop yield through natural mechanisms. The use of biostimulants can help reduce fertilizer use which benefits farmers with lower input costs and reduces environmental pollution.
The global biostimulants market is estimated to be valued at US$ 3237.27 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity to increase crop yield through the use of biostimulants is expected to drive the growth of the market. Biostimulants help improve the uptake of nutrients in soils and increase resistance to biotic and abiotic stresses thus allowing the crops to perform better even in adverse conditions. They enhance photosynthesis and increase biomass production which leads to higher crop yields. With growing global food demand and decreasing arable land, biostimulants provide an effective solution to farmers for sustainably increasing their crop productivity. Their ability to boost crop immunity and resistance against stresses is further increasing their adoption especially in developing countries.
Porter's Analysis
Threat of new entrants: Low-medium. Establishing a biostimulant production facility requires significant capital investments and regulatory approvals, limiting threats. However, entry barriers are lower for smaller players.
Bargaining power of buyers: Medium. Buyers have moderate bargaining power due to the availability of substitutes. However, branded products and solutions offer value.
Bargaining power of suppliers: Medium-high. Key raw material suppliers possess strong bargaining power due to the consolidated nature of sourcing. However, the market is moving towards proprietary, value-added formulations.
Threat of new substitutes: Medium-high. Alternate solutions like conventional agri-inputs can substitute biostimulants. However, the focus on sustainability provides some insulation against substitutes.
Competitive rivalry: High. The market is highly competitive with global players offering differentiated proprietary solutions. Pricing pressure exists due to strong competition.
SWOT Analysis
Strengths: Biostimulants aid in sustainable intensification of agriculture. They improve crop yields and quality while minimizing the environmental footprint. The market is witnessing high demand from organic and conventional farmers.
Weaknesses: Lack of regulatory frameworks and approved product labels in some regions. High research costs associated with discovering new active ingredients. Dependence on climatic/seasonal conditions for revenues.
Opportunities: Rising demand for high-value and organic crops presents opportunities. Growth prospects in emerging markets of Asia Pacific and Latin America. Increase in R&D activities to develop more effective formulations.
Threats: Threat from substitutes like conventional agri-inputs. Economic slowdowns can temporarily impact sales. Climatic/weather vagaries adversely impacting crops and associated demand.
Key Takeaways
The Global Biostimulants Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by rising awareness about sustainable agriculture practices. The market size is projected to reach US$ 5,732.22 Bn by 2030 from US$ 3,237.27 Bn in 2023, registering a CAGR of 5.9%.
Europe dominates the global biostimulants market currently due to strong regulatory support and high adoption among farmers. However, the Asia Pacific region is expected to witness the fastest growth during the forecast period supported by initiatives to increase crop yields and quality in major countries like India and China.
Key players operating in the biostimulants market are BASF SE, UPL, Biolchim S.p.A., Valagro S.p.A, Haifa Group, Sapec Group, and Novozymes A/S. These players are engaged in new product launches, acquisitions, and partnerships with distribution partners and farmers to expand their geographic presence and product portfolios. Strategic R&D also continues to develop more effective, sustainable biostimulant formulations.
Get More Insights Here
https://www.newsintv.com/news/offshore-the-decommissioning-a-best-growing-sector/
https://www.trendingwebwire.com/biostimulants-market-size-share-growth-outlook-2023/
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