The India biostimulants market is projected to grow at a CAGR of 14.06% during the forecast period to reach US$145.947 million by 2027, from US$58.112 million in 2020.
Biostimulants are substances that improve plant growth, resilience to water, and tolerance to abiotic stresses while reducing the need for fertilizers. These compounds are effective in modest quantities, promoting the smooth operation of the plant's critical activities and allowing for high yields and high-quality products. Furthermore, regardless of nutrient content, biostimulants improve nutrition efficiency, abiotic stress tolerance, and plant quality attributes. The market for biostimulants in India is expected to be driven by rising investment and the need to boost yield per acre. Furthermore, increased demand for organic food will drive up demand for organic farming, which will increase the need for biostimulants.
Increased demand for organic food is expected to drive the market for biostimulants in India.
Following the pandemic in 2020, a paradigm change occurred in India, with consumers beginning to purchase more organic goods as a preventive health strategy. This shift in perspective is anticipated to continue to fuel the organic food market's growth in the future. This will further increase the demand for the biostimulants market in the country. According to the Research Institute of Organic Agriculture (FiBL) and International Federation of Organic Agriculture Movements (IFOAM) Organics International Report 2021, India ranks first in Asia and fifth globally with 23 lakh hectares under organic farming. Moreover, as per a FiBL report from 2021, India expanded the fastest by adding about 3.6 lakh hectares of organic land. It also expects India's organic industry to grow faster, owing to the increased demand for organic products during the COVID-19 outbreak.
Biostimulants play a significant role in crop nutrition and crop protection in organic farming and gardening. According to an ASSOCHAM report, the Indian organic industry was worth over Rs 1,200 crore in 2019 and was expected to reach 2,000 crores in 2020. This momentum is projected to grow in strength and force in the coming years because consumers are increasingly gravitating toward healthy and organic foods. This movement has caught fire and is being fanned furthermore by the health anxieties stoked by the corona contagion. Moreover, as per APEDA statistics, Indian organic exports increased by 50% from the previous year to 5,151 crores in 2018/19. In addition, India's export of organic food items increased by 51% to US$1,040 million in the fiscal year 2020-21, according to a report provided by the Ministry of Commerce & Industry.
Major developments by the government and key players in the market will further accelerate the growth of biostimulants in India.
The Indian government announced in April 2021 that biostimulants would be governed by the same standards that regulate fertilizer and other crop nutrients used to boost soil health. This will aid in the regulation of the 1,500 crore biostimulant sector, which promises farmers increased yields, quality, and other benefits through the usage of various chemicals and microbes. In addition to this, in May 2021, Acadian Seaplants Ltd (ASL), a Canadian firm, produced the first seaweed-based biostimulants in India to help farmers increase their agricultural productivity. The company's Indian subsidiary plans to assist farmers in meeting the rising demand for high-quality, natural biostimulants and bio-nutritional products that boost crop output, quality, and farmers' return on investment over time.
In March 2021, Sea6 Energy, a Bengaluru-based firm, received the country's first patent on a new biostimulant product. Sea6 Energy has discovered and patented several unique compounds derived from grown red seaweeds that can particularly induce these effects in plants, and these compositions are the subject of their patents. Moreover, in May 2019, AlgaEnergy, a Spanish biotech company, and Krishi Rasayan Exports (KREPL) formed a joint venture to manufacture bio-stimulants based on microalgae that improve soil health, with plans to invest US$ 20 million in the business over the next three to four years. The technology solution provided by the Spanish company can be used not only in agriculture and aquaculture but also in human and plant nutrition, cosmetics, and other fields. All these developments are expected to contribute to the growth of the biostimulants market in India.
COVID-19 had a positive impact on the biostimulants market in the country as consumers are paying more attention to health, convenience, and sustainability. People are becoming more aware of the importance of chemical-free and organic foods in boosting immunity and improving overall health. This pandemic has influenced consumer behavior in favor of organic produce to the point where it may become an integrated part of people's shopping habits. For instance, organic food sales at Modern Bazaar, a North Indian modern trade retail chain, have increased by 25%. Similarly, Natureland Organics, an organic food firm based in Rajasthan, has seen a 60 percent increase in sales. In addition, India has around 15,000 certified organic farms, according to the International Fund for Agriculture and Development (IFAD).
|Market size value in 2020||US$58.112 million|
|Market size value in 2027||US$145.947 million|
|Growth Rate||CAGR of 14.06% from 2020 to 2027|
|Forecast Unit (Value)||USD Million|
|Segments covered||Active Ingredient, Origin, Application, And Crop Type|
|Companies covered||AgriLife, Tradecorp APAC Pty. Ltd., Acadian Seaplants Ltd., Isagro, Valagro, Bayer AG, Koppert B.V., Eastman Chemical Company, Biostadt India Ltd, BASF|
|Customization scope||Free report customization with purchase|
Key Market Segments
Tradecorp APAC Pty. Ltd.
Acadian Seaplants Ltd.
Eastman Chemical Company
Biostadt India Ltd
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