Agricultural biostimulants have been around for quite some time now. However, in the last couple of years, the Biostimulants market has witnessed increasing demand in response to the rapidly rising population around the world. Biostimulants are natural substances comprising diverse formulations of substances, compounds, and micro-organisms. They are applied on seeds, plants, and soil to improve crop yield and quality and make them more tolerant to abiotic stress. Between 2011 and 2014, the use of biostimulants increased from 15% to 20% due to the increasing production of the substance.
The growing awareness about biostimulants and the benefits they offer to the agricultural sector are resulting in their increased uptake, especially for use in natural or organic farm practices. This is a key factor aiding the expansion of the market for biostimulants around the world.
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Demand for Biostimulants Grows in Response to Growing Population
Over the last few years, the demand for biostimulants has increased substantially due to the growing demand for food subsequent to the rising population worldwide. The demand from the market for biostimulants has majorly increased because biostimulants are considered crucial for improving the crop yield per hectare. Additionally, using biostimulants also helps to significantly reduce abiotic stress in plants, which is identified as another key factor aiding the expansion of the global biostimulants market.
Favorable Government Policies Boost Global Biostimulants Market
Companies in the global market for biostimulants have been capitalizing on the favorable policies implemented by governments around the world to encourage agricultural production. With governments in several countries substantially increasing their agricultural spending, the demand for biostimulants across the agriculture sector is anticipated to increase. Furthermore, the environment-friendly attributes and organic origin of biostimulants are also fuelling demand from the market.
Lack of Technological Advances Hampers Global Biostimulants Market
Despite witnessing impressive growth opportunities following the increased government spending, the global market for biostimulants is not immune to certain challenges. The most crucial being the lack of technological advances in the field. Furthermore, the biostimulants market presently has no guidelines; however, a few organizations promoting the use of biostimulants are in the process of devising a regulatory framework for the market. The market for biostimulants further faces a challenge from the high research and development costs. Lack of awareness regarding the benefits offered by these agricultural products is also anticipated to hamper the overall growth of the market.
Segmentation Based on Active Ingredients and Crops
In terms of the active ingredient in the biostimulant, the global market for biostimulants can be segmented into extract-based, acid-based, and others. Of these, the acid-based active ingredient segment held the largest share in the market in 2014, trailed by the extract-based segment. Based on crop type, the use of biostimulants in row crops was the highest in the market in 2014, trailed by fruits and vegetables. In 2014, the turf and ornamental application segment held over 5% of the market in 2014 and is expected to expand at a CAGR of 6.0% between 2015 and 2025.
Western Europe Dominates Global Market for Biostimulants
Regionally, the global biostimulants market is segmented into Asia Pacific excluding Japan (APEJ), Eastern Europe, Western Europe, Latin America, North America, Japan, and the Middle East and Africa. Among these segments, Western Europe dominated the global market for biostimulants in 2014, accounting for a share of over 30% in terms of revenue in the market. The region is expected to continue dominating the global market over the next few years as well. However, APEJ is anticipated to exhibit the highest CAGR of 13.5% between 2015 and 2025.