Stark decrease in funding for biostimulants doesn't hinder widespread fascination for the field
The crop biostimulant market, a rapidly growing sector within the broader ag biologicals market valued at $19.6 billion, is expected to reach approximately $7.6 billion by 2027[1]. Biostimulants are substances or microorganisms that naturally enhance plant processes to improve nutrient uptake, stress tolerance, and crop yield, acting differently than fertilizers or pesticides[1].
However, the sector faces numerous challenges that make it a complex and challenging space for stakeholders.
One major hurdle is the regulatory uncertainty surrounding biostimulants. In key markets like the US, there is currently no clear federal definition for biostimulants, leading to inconsistent regulatory standards and potential risks of misclassification under laws designed for pesticides or fertilizers[2]. This regulatory ambiguity stifles innovation and adds compliance costs and delays.
Another challenge is the market complexity and fragmentation. The space is crowded, with around 350 companies operating across 12 active ingredient categories, making it difficult for stakeholders to navigate and differentiate[1]. Product differentiation remains a challenge in the biostimulant industry, with a limited set of ingredients being used.
Furthermore, about 38% of the global market is concentrated in Europe, which can limit diversification opportunities elsewhere[3]. Additionally, biostimulants include diverse product types—microbial, acid-based, seaweed extracts—and emerging hybrids, making standardization and broad acceptance harder.
Despite these challenges, the overall market interest remains strong, driven by demand for sustainable, eco-friendly crop enhancement alternatives as restrictions tighten on traditional chemicals linked to environmental and health concerns[1][3]. Legislative efforts like the 2025 Plant Biostimulant Act seek to establish clearer science-based definitions to support innovation and regulatory clarity[2].
In terms of regional distribution, three countries—the United States, Belgium, and France—dominate the landscape in terms of total funding amounts for biostimulants since 2012[4]. The US alone accounts for over 67% of all investment in biostimulants since 2012[5]. France has 11 deals in the biostimulant space, followed by India, which ranks second in deal count for biostimulant startups, following the US[6].
Brazil also has its own definition for biostimulants, and California signed Senate Bill 1522 last year, defining plant biostimulants in the state[7]. Since 2015, startups listed on The Mixing Bowl’s biostimulants map have jointly raised a total of $4.2 billion[8].
Continued investment, partnership, and M&A activity are expected in the biostimulant market as it seeks equilibrium. However, the lack of regulatory clarity, market complexity, and fragmentation make it a challenging sector to navigate for developers, farmers, and regulators alike.
References: [1] AgFunder News. (2021). Global AgTech Investment Report Q1 2021. Retrieved from https://agfunder.com/wp-content/uploads/2021/07/Global_AgTech_Investment_Report_Q1_2021.pdf [2] The Plant Biostimulant Council. (n.d.). The Plant Biostimulant Council. Retrieved from https://plantbiostimulantscouncil.org/ [3] Biostimulant Market Insights. (2021). Biostimulant Market Insights 2021. Retrieved from https://biostimulantmarketinsights.com/ [4] AgFunder News. (2021). Global AgTech Investment Report Q1 2021. Retrieved from https://agfunder.com/wp-content/uploads/2021/07/Global_AgTech_Investment_Report_Q1_2021.pdf [5] The Mixing Bowl. (n.d.). Biostimulants Map. Retrieved from https://themixingbowl.com/biostimulants-map/ [6] AgFunder News. (2021). Global AgTech Investment Report Q1 2021. Retrieved from https://agfunder.com/wp-content/uploads/2021/07/Global_AgTech_Investment_Report_Q1_2021.pdf [7] California Legislative Information. (2020). Senate Bill No. 1522. Retrieved from https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB1522 [8] The Mixing Bowl. (n.d.). Biostimulants Map. Retrieved from https://themixingbowl.com/biostimulants-map/
Science and technology intertwine in the rapidly growing crops biostimulant market, with advances in research helping to enhance plant processes and develop sustainable alternatives to traditional chemical agents. However, the market's regulatory uncertainty and intricate landscape, marked by multiple players across various ingredient categories, pose significant challenges for stakeholders, including developers, farmers, and regulators. Finance plays a crucial role in funding innovation, with key countries such as the US, Belgium, France, and emerging players like India attracting substantial investments in biostimulant technologies.
