India Biostimulants Market Size, Share & COVID-19 Impact Analysis, By Source (Microbial and Non-microbial), By Active Ingredient (Seaweed Extracts, Humic Substances, Vitamins & Amino Acids, Microbial Amendments, and Others), By Application (Foliar Treatment, Soil Treatment, and Seed Treatment), By Crop Type (Row Crops, Fruits & Vegetables, Turf & Ornamentals, and Others), and Forecast, 2022-2029

The India biostimulants market size was valued at USD 230.98 million in 2021. The market is projected to grow from USD 266.58 million in 2022 to USD 734.13 million by 2029, exhibiting a CAGR of 15.57% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with biostimulants experiencing a higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the India biostimulants market exhibited a growth of 15.34% in 2020 as compared to 2019.

Biostimulants are biologically-derived substances applied to plants or soil to improve nutrient uptake ability, abiotic and biotic stress tolerance, and protection from pests. Unlike the traditional crop protection chemical inputs, such as pesticides and herbicides, biostimulants are unique single products with multiple avenues for promoting crop growth. As there is widespread depletion of soil health due to the overuse of chemical inputs and fertilizers, an increasing number of conventional farmers in the country are incorporating these biologicals into their farming regimes. The increased investment and the need to improve yields per hectare are expected to drive this market in India. In addition, as the demand for organic foods increases, so does the demand for organic farming, which is further predicted to aid the market’s growth in the country.

COVID-19 IMPACT

Unsettled Supply Chain of Raw Materials Amid COVID-19 Pandemic

The pandemic outbreak had initially resulted in the market's slowdown due to various socio-economic changes. Since the outbreak, along with other crops promoting and protecting biologicals, the Government of India accepted plant stimulants as one of the essential products. The non-availability of migrant labor and transportation and logistical delays initially hampered the market supply chain flow. The market players witnessed a slight decline in revenue generated during the first quarter of 2020. For instance, Gujarat State Fertilizers & Chemical Ltd.'s revenue declined by 12.14% in the 1^st quarter of 2020 due to nationwide lockdown and halt in economic activities. However, during Q3-Q4 2020, the revenue started to increase by 28.98% and 1.67%, respectively, as the regulations imposed by the government were relaxed. Even though the sudden outbreak of COVID-19 had an unprecedented impact on cash flow disruption in raw material procurement and product distribution, the demand for Plant Growth Promoters (PGP) is predictable to increase post-COVID-19 to ensure overall food security. The companies are expected to rigorously implement digital solutions and develop novel ingredients to continue the revenue generation, which can serve as an opportunity for company growth even after post-COVID 19.

LATEST TRENDS

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Growing Inclination Toward Organic Agriculture to Augment Market Growth

Organic agriculture eliminates the use of chemical fertilizers and other chemical additives such as synthetic pesticides and genetically modified crops. Organic farming using organic nutrient sources is expected to boost the India biostimulants market growth. Plants grown in organic farms are often deficient in nutrients due to low nutrients or low solubility of nutrients in soil solutions. Plant stimulants increase soil cation exchange capacity (especially reducing nutrient leaching in sandy soils), add nitrogen to crops, and improve nutrient solubility in soil solutions. The awareness about bio inputs is increasing significantly among producers and consumers. The robust emphasis from governments and other stakeholders on the sustainable and organic mode of farming has increased the acceptance of biologicals in the country. In addition, the growing demand for organic food products is also positively affecting organic agriculture, which is predicted to further surge the demand for biostimulants in the coming years.

DRIVING FACTORS

Magnitude of Risks Associated with the Use of Synthetic Chemicals in Agriculture to Favor Market Growth

In recent decades, fertilizers and pesticides have played a vital role in boosting agricultural production. However, there is growing concern about the negative effects of the widespread use of synthetic chemicals. This factor leads to reduced soil quality, environmental pollution, and human health risks. Along with this, the inoculants can also improve plants, thereby reducing chemical fertilizers and improving sustainability. As a result, sustainable and eco-friendly farming methods using innovative solutions, such as inoculants, are expected to gain sales momentum in the country. In recent years, there has been a surge in investment by both Indian and MNCs in the biostimulant product segment. For instance, in May 2018, Canadian company Acadian Seaplants Ltd (ASL) came up with seaweed-based plant-stimulants for Indian farmers to overcome challenges such as stress and increase their agricultural outputs. With its wide range of products, the company is expanding its presence in the Indian market.

Increased Government Support to Boost Market Growth

India is an agriculture-based country with nearly 50% of the population dependent on agricultural activities for their livelihood. The growing awareness among farmers about the benefits of agrochemicals, backed by various government initiatives and funds, is likely to propel the market performance in the coming years. In response to high commercial potential and the growing awareness among consumers about the use of synthetic chemicals in agriculture and their detrimental effects on health and the environment, the Indian government has encouraged development for agriculture biologicals. Currently, India is one of the few countries globally that has its regulations for biostimulants, which were recently published as a new product category under the Fertilizer Control Amendment (FCA) 2021, which outlines regulations for the registration of plant stimulants. The new regulatory and supervisory framework will boost the confidence of market participants in this industry and is also anticipated to increase investment in R&D, leading to the development and commercialization of new products, which will benefit farmers with access to superior quality products.

RESTRAINING FACTORS

Sub-optimal Commercialization and Marketing of the Product in India to Hinder Market Growth

The Indian market is witnessing a comparatively slower growth rate, which is likely to be further hindered by the absence of required growth momentum due to lackluster marketing and commercialization activities. The marketing of the product is lagging far behind in the country. Additionally, plant stimulants have also failed to achieve the desired level of use and perception by farmers to displace the dominant position of their synthetic chemical counterparts in the country's agriculture market. Also, the demand for generic plant growth regulators and crop protection chemicals is likely to increase domestically due to its popularity among end-users, ease of use, and cost-effectiveness. Such factors are expected to further hamper market growth.

SEGMENTATION

By Source Analysis

Non-microbial to be Leading Segment Owing to its Unique Bioactive Substances

Non-microbial is the leading segment and is expected to grow significantly, owing to improving crops' biochemical and physiological traits. The stimulation of crop productivity and seedling growth in response to the application of non-microbial plant inoculants is due to the action of bioactive substances on primary or secondary metabolism, resulting in an extensive range of biochemical, physiological, and molecular responses. In addition, the use of Protein Hydrolysates (PHs), which contain mainly free amino acids and signaling peptides have gained prominence. PHs' potential to enhance vegetable quality, seedling and plant growth, germination, and increase crop productivity, especially under environmental stress conditions, further contributes to this segment's growth.

Using microbial-based inoculants can enhance the uptake of nutrients and assimilation into the soil. It maximizes nutrient use efficiency by acting on the root system and increasing micro and macronutrient solubilization, ensuring better nutrient uptake and performance. The nutrient use efficiency of elements, such as phosphorus and nitrogen, is essential for the environment. Thus, microbial-based inoculants display soil conditioner and promote plant growth, driving the segment's growth.

By Active Ingredient Analysis

Seaweed Extracts Segment to Hold Major Share as it Contains Wide Array of Elicitor Component

The seaweed extracts segment is the most widely used active ingredient. It is expected to maintain its dominance in the coming years, owing to its ability to elicit and directly promote plant growth and defense reactions. Additionally, there is a growing demand for seaweed extract biostimulants due to the growing cultivation of seaweed. Organizations are also capitalizing on launching the latest seaweed-based sustainable plant protection products to meet the demand. For instance, in November 2019, at the 14^th International Crop Science Conference & Exhibition (ICSCE), India's most exclusive event on agri inputs, the Central Salt and Marine Chemicals Research Institute has introduced its liquid seaweed plant biostimulant. The technology has been patented and purchased by one of India's leading manufacturers of plant growth promoters.

Humic Substances (HS) are gaining popularity among manufacturers and customers as they have hormonal-like activities that influence sugar metabolism, causing internal hormonal and chemical changes in the plants. It has been recognized as an essential contributor to the physicochemical properties of soil. In addition, most of the effects of HS refer to the stimulation of root growth and improved plant nutrition by increasing the number of nutrients in the soil.

The vitamins & amino acids segment is expected to grow considerably in the coming years. Amino acid-based biostimulants, such as serine, threonine, and proline, are responsible for biotic and abiotic stress amelioration. In some fruits, acid-based inoculants lead to greater weight, volume, firmness, and enhanced acidity, chlorophyll, and ascorbic acid content. Vitamins and amino acids can improve soil respiration, biomass, and microbial activity as microorganisms can easily use peptides and amino acids as carbon and nitrogen sources. The ability of amino acids to form complex and chelate with several macro and micronutrients is currently being used by several industries to develop highly nutrient efficient inoculants.

By Application Analysis

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Foliar Treatment to be the Most Adopted Application Method as it Maximizes Production Efficiency

The foliar treatment segment holds the major market share as it is fast-acting and effective for treating nutrition deficiencies. It serves as a timely measure to prepare the crops for expected biotic or abiotic stress such as drought, chill, or heat stresses. This treatment is very instrumental in the case of necessary intensive mineral nutrition and can address an urgent need in a relatively short period. Therefore, they are especially efficient as preventive and curative treatments.

The seed treatment method is expected to witness the fastest growth as it has beneficial effects on the plant's resilience, the development of the root system, and the productivity of the crop. This treatment improves crop yields while helping plants fight plant pathogens and lessen biotic stress. The potential to increase the availability of plant nutrients in the root system is further aiding the segment's growth.

By Crop Type Analysis

Row Crops Segment to Emerge Dominant Due to its High Demand

The row crops segment is the dominant segment as it responds to plant stimulants with improved tolerance to diseases and higher productivity. The segment includes cereals, fiber corn, and other crops widely grown in large areas with lucrative growth opportunities. In addition, the amino acid content helps increase the cell division rate, yield, and seed size of the crops, which further contributes to the market's growth.

The fruits & vegetable segment is expected to witness substantial growth as biostimulants promote fruit tree crop yield and quality. It improves the commercial quality of the fruits, including nutritional and esthetical properties. The chitosans ingredient provides postharvest coatings of fruits and vegetables to prevent postharvest decay and increase product shelf life. Furthermore, the increasing demand for quality fruits and vegetables among health-conscious customers is expected to boost this segment.

KEY INDUSTRY PLAYERS

Extensive Focus on Mergers & Acquisitions to Expand Business

Various prominent players are active across this market. The leading players, such as Novozymes, Syngenta, BASF SE, UPL Ltd., and Rallis India Ltd., have a well-developed sales and distribution network and large-scale production facilities. In addition, they are also focusing on increasing transparency in the country's supply and value chain, as India offers huge potential for the agrochemicals industry to flourish in the coming years. For instance, in July 2018, UPL Ltd. announced that under its subsidiary UPL Corporation Limited, it signed an agreement to acquire Arysta LifeScience Inc. from Platform Specialty Products Corporation. The company is a global manufacturer of pioneering crop protection solutions such as BioSolutions and SeedTreatment. This acquisition is expected to fulfill UPL's objective of creating an integrated patent and post-patent agricultural solutions business.

LIST OF KEY COMPANIES PROFILED:

• Rallis India Ltd. (India)


• Gujarat State Fertilizers & Chemicals Limited (India)


• PI Industries (India)


• Bayer AG (Germany)


• UPL Limited (India)


• FMC Corporation (U.S.)


• BASF SE (Germany)


• Southern Petrochemical Industries Corporation (India)


• Novozymes (Denmark)


• Syngenta (Switzerland)

KEY INDUSTRY DEVELOPMENTS:

• October 2021 - Tradecorp, a Spanish company expert in micronutrients and specialty fertilizers, launched the biostimulant Biimore, marketed as Quikon, in India. Biimore biostimulants are intended for fruit swelling and the development of horticultural and tree crops, and pre-flowering in broadacre legume crops.


• April 2021 - The Government of India announced setting up a regulatory body and compliance requirements for the biostimulants market in India. The regulations require manufacturers to label their products with chemical composition, expiration dates, and mandatory pre-registration with the government.

Report Coverage 

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The India biostimulants market research report provides quantitative and qualitative insights. It also offers a detailed analysis of its active ingredients, crop type, application, market size, and growth rate for all possible segments in the market.

Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, research methodology, recent industry developments such as mergers & acquisitions, regulatory scenario in critical countries, and key industry trends.

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