Italy and Spain Biostimulants Market size was valued at USD 170 million in 2017 and is expected to witness growth of more than 12% CAGR from 2018 to 2024.
Spain Biostimulants Market, By Product, 2013 – 2024 (USD Million)
Italy and Spain are exhibiting rising demands for hybrid seed usage in various crop cultivations owing to changing food consumption trends of the consumer. Thus, it will foster new opportunities for seed treatment applications resulting in a significant increase in biostimulants demand. Spain accounts for the leading country in Europe for the rapid advancements in the agricultural industry. Key factors including growing organic food industry, high-quality food demands, evolving technology in water & soil treatment and reducing arable lands availability are propelling growth for the product portfolio.
Focus on increasing the soil fertility along with improving the farm productivity will drive the product growth in Italy and Spain Biostimulants market. Advantages of increasing the plant tolerance and recovery from abiotic stresses including extreme climatic conditions, droughts, unfavourable salinity, and floods will augment the industry demand. Factors including enhanced crop nutrition and crop protection will support the biostimulants market. Additionally, biotic stress tolerance against bacteria, fungi, and viruses has enhanced the product adoption rate. Active ingredients are easily available, and the processing cost is low. Thus, the high availability and lower cost to end-user is a motivational factor for its increasing usage.
Key factors affecting the crop yield include extreme temperatures, stressful growing conditions, and irregular rainfall. Rapid advancements in agricultural methods including increased plant recovery & tolerance from abiotic stresses will support the business expansion. Increasing consumer concerns for healthy dietary intake and rising demands for variants in food & beverages among the young population will augment the significant market growth.
The mechanism of improved water use efficiency is driving the product demand. Government regulations on usage of new and specific bio stimulants will moderately affect the market growth in Spain. Under the Spanish regulatory scheme “ORDEN’, commercial products can be launched in the market and require no approval after they have been notified. Italy’s national fertilizer legislation ‘Decreto Legislativo’ categorizes bio-stimulants under specific action products. Reducing arable land in European countries particularly Italy coupled with government regulations against environmental impacts of specific fertilizers will drive the industry growth.
Companies are focusing on strategic R&D investments to expand the product portfolio through technological advancement & product innovations. The manufacturers are also involved in mergers & acquisitions and supply agreements with raw material suppliers, research institutions and competitors to gain a competitive advantage. For instance, Arysta Lifescience Corporation acquired Etec Crop Solutions to enhance their product development capabilities and expand in specialties segment.
Acid Based active ingredients in Italy accounts for over USD 30 million in 2017. Acid-based ingredients dominate the industry. The segment includes humic acid, fulvic acid, vitamins, & amino acids. Reduced processing costs and high availability of active ingredients used for bio-stimulants are the factors encouraging industry growth.
Humic acid has been largely used owing to increased soil fertility and improved root nutrition. Wide applicability on crops including vegetables, fruits, citrus, root crops, trees, small grains, grass & turf has led to augmented market share. Rising product knowledge among farmers will further support the increased demand for humic and fulvic acid.
Foliar spray segment in Spain will witness significant gains at approximately 11% over the forecast period. Potential applications in organic farming coupled with rising necessity to improve farm productivity will propel the business. The application is gaining a significant importance in the market owing to its benefits including ease of use and application. This technique is most preferred for biostimulants supply chain as it offers ingredients in a much straighter manner over other applications.
Italy & Spain is projected to expand foliar feeding technique for biostimulants over the forecast period. Loss of irrigation space coupled with soil degradation is expected to upsurge the soil treatment in biostimulants market. Growing food demand with the necessity to improve farm yield encourages producers to use bio-stimulants to improve crop yield efficiencies. The surge in the arable land will further supplement growth in the regional industry.
Row crop segment in Italy accounted for over 50% revenue share in 2017 owing to factors such as high production of oilseeds and food grains coupled with sustainable farming practices. High water absorption capacity and increased root length for efficient nutrient uptake along with healthy and strong crop appearance will positively impact the biostimulant product penetration in the market. Manufacturers of biostimulants are working towards implementation of cost-effective production processes and reduction in the number of fertilizer applications.
Row crops include products such as sugarcane, wheat, soybeans, cotton, and corn. Seasonal cultivation of these crops makes this segment a lucrative option in bio stimulant market. This is due to the quick and predictable profit earned by the crop yields. Reduced labour and machine hour due to planned farming is another added advantage for the commercialization of the segment.
Dry form of biostimulant in Spain will grow at over 6.5% from 2018 to 2024. The key factors stimulating the segment demand include plant respiration, photosynthesis, and improved lateral bud development. Although dry biostimulants application requires more labour compared to the liquid form, it possesses many benefits including high water solubility, humic acid, chelated iron, soluble sea kelp, amino acids, dextrose, vitamins, and minerals necessary for plant growth.
Reduced product cost owing to technological advancements and expanding production will boost the industry demand. Higher shelf life and better nutritional value are among the key factors positively affecting the liquid biostimulants market. Ease of applications and low labour cost will complement the product market growth over the forecast period.
Italy & Spain biostimulants market share is moderately fragmented due to the presence of many regional and multinational players. Biostimulants market share is at the developing stage. To gain profitability, companies are adopting mergers and acquisition strategy to capture bigger market share. Some of the notable Italian players include Green Has Italia, Biolchim, SICIT, Italpollina, Timac Agro, Isagro, and Valagro. Daymsa, Seipasa, Bures Professional, Lida Plant Research, Plant Response, Earth Alive Clean Technologies, Hefe Fertilizers, and Grupo Batlle are the major players in Spain’s biostimulants industry.
Daymsa, Seipasa, Lida Plant Research, Bures, and Plant Response Biotech are some major players in Spain for the biostimulants industry. Rapid technological developments in agricultural industry by the top players will augment the business strengthening & widening. For instance, on 20th June 2018, Seipasa announced their strategy based on the zero residues and sustainable development for berries cultivation in order to improvise their agricultural production output.
Development of biostimulants as an environment along with increasing awareness among consumers about health benefits related to bio-based food consumption will propel biostimulants market growth. The product supports the improvements of beneficial soil microorganisms which improves soil health, favour farmers income, improve storage and make food more nourishing for consumers.
The necessity to improve yield, growing population, limited arable land and improved market access will drive biostimulants market size. Rising awareness towards organic agriculture and food demand, up-regulation of plant growth, tolerance to abiotic stresses and development nutrition will positively influence the product demand.