With increasing EU support and their ability to meet consumer demand for a gentler impact on the environment, biostimulants are increasing in popularity. The question is do you need them in your biologicals portfolio? Increasing numbers of agricultural companies are focusing on them as strategic development areas. So should you consider adding them to your portfolio? Let’s take a closer look.
Amino acids and humic acids are the major types of bio-stimulants and hold ~ 65% of global market share. Protein hydrolysates and Plant Growth promoting Rhizobacteria (PGPR) are gaining adoption owing to their mixability with other biological agents and biofertilizers.
Emerging categories such as Seaweed Extracts and PGPR have significant growth potential driven by differentiating mode of action and greener environmental footprint.
The former supports ‘biofortification’ of plant tissue (enhanced nutritional value). Whereas the latter offers economic and environmental benefits for higher crop yield, savings on fertilizers, and reduced losses to the environment.
More complex to develop, PGPR is predominantly manufactured by large international agriculture players. European regional companies tend to choose seaweed extract which has an easier formulation process.
Alongside improved ROI, biostimulants address the growing demand for agriculture products with lower environmental impact. And it’s not gone unnoticed by the EU who are registering them in member states. They are also expected to introduce new standards for Biostimulant processes and methods. And with the European Biostimulants Industry Council (EBIC) fostering collaboration amongst organizations, the sector is definitely gaining momentum.
“Notably, there are no clear guidelines for qualification and registration of bio-stimulants products. Therefore these products are typically registered as biofertilizers, while in common practice bio-stimulants are seen as a separate segment”
You’ll gain early access to a market where registering products can take a few years. Furthermore, the biostimulants market is highly fragmented with no clear leaders or winners yet, which leaves room for emerging players to capture market share. But be aware that maximizing leverage and the market’s full potential requires overcoming some challenges:
With increasing interest in their efficacy and ongoing support, biostimulants present an appealing opportunity. It is worth considering adding them to your portfolio. If you’d like to find out more about the industry or any aspect of this article, please do contact our team.
Anuj Dhariwal, a-connect Client Service Partner, joined our Client Service team in 2022. He is focusing on helping Agribusiness and Food clients overcome a variety of complex business challenges. He brings experience from Bain & Company, Bayer AG, and Novozymes, and holds B.Tech, M.Tech from IIT, and a PhD in Industrial Biotechnology.
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