Market overview

An overview of the plant biostimulant market

With the global population expected to rise by a further two billion by 2050, the pressure on farmers to produce more high-quality crops is intensifying: this demand is driving the expansion of the plant biostimulant market, which in 2022 was valued at more than USD 3 billion and is predicted to triple in the next ten years (Future Market Insights, 2023). This is primarily due to greater understanding of the contribution that biostimulants can make to improvements in crop productivity, soil health and climate change mitigation.

Most market analysts report that the European biostimulants market accounts for roughly half of the global market. Estimates of the value of the European market ranged around USD 1.5-2 billion in 2022. (Market Date Forecast, Market and Markets and Dunham Trimmer). The compound annual growth rate (CAGR) reported is 10-12%.

Reduce uncertainty with plant biostimulants

The potential for future growth is huge and EBIC is at the forefront of driving both regulatory and commercial opportunities for plant biostimulant producers. We live in an uncertain world, with volatile geopolitics, unpredictable weather, and complex supply chains all contributing to a challenging time for agriculture and world food security. One of the key benefits of using biostimulants is that they reduce that uncertainty, improving resilience for both farmers and their crops.

Growth factors in the plant biostimulants market

• Biostimulant use is spreading from some pioneer countries to a wider number, both within Europe and the rest of the world. Related to this, biostimulants companies are expanding their professional networks and connecting with new global distributors who are helping them tap previously inaccessible markets.
• The biostimulants sector has developed new innovative products targeting specific agronomic needs, thus attracting new customers.
• Biostimulant products were initially used primarily in organic production and on high-value fruit and vegetable crops. They are increasingly being introduced in conventional crop production to respond to economic and sustainability imperatives.
• Recent high and volatile prices for inputs like fertilisers have created incentives for farmers to optimise the efficiency of input use.
• In response to consumer demands for healthy food products with minimal environmental impacts (and related policies) growers are looking for ways to use synthetic chemicals and mineral fertilisers more efficiently and effectively. Biostimulants are therefore increasingly seen as a way to improve the return on their investment in other inputs and as a way to respond to consumer demands for “softer” agricultural practices.

Innovation is driving biostimulants’ development

Biostimulants manufacturers reinvest 3-10% of turnover into research and development but it takes up to ten years to bring new products to market, a significant investment considering how little protection there is to prevent copies/reverse engineering of biostimulant products. Several EBIC member companies have reported that less than 10% of their products are patentable (and some even said none can be patented). A handful of others report that 60% or more of their products contain some patented element, although this does not mean the product as a whole is protected by patent. In many cases, it is a specific aspect of the production process that is patented.

Many companies have between 10% and 33% of their staff involved in R&D activities with a few companies slightly below that range. According to OECD figures, this indicates a high R&D intensity compared to other sectors. In addition, members have reported more than 300 R&D partnerships with universities and other public research institutes. While most of these are in Europe, they also include partners in Australia, Brazil, Canada, Chile, Ghana, Mexico, New Zealand, Turkey and the United States.