Substantial Interest in Biostimulants Maintained Despite a Significant 86% Decrease in Funding for the Sector

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The crop biostimulant market is experiencing robust growth, with a global market size projected to reach around $3 billion in 2023 and projected to expand to approximately $7 billion by 2034, exhibiting a CAGR of approximately 8.7% to 12% depending on sources. This growth is driven by increasing global demand for sustainable agricultural inputs that improve crop productivity, nutrient efficiency, and stress tolerance, amid tighter regulations on conventional agrochemicals and rising environmental concerns.

Regulatory Developments

Stricter regulations on chemical pesticides and fertilizers are encouraging farmers to shift towards biostimulants as safer, environmentally friendly alternatives. Government and public sector initiatives enhance adoption by supporting pilot programs, policy frameworks, and sustainability-linked incentives, especially in regions like Europe and developing countries with high sustainability priorities. However, the regulatory environment remains a key challenge due to heterogeneous standards worldwide and the complexity of classifying and registering biostimulant products, which impacts market navigation and product approval speed.

Product Differentiation Challenges

The crop biostimulant field is highly fragmented and crowded, with about 350 companies competing globally across 12 active ingredient categories, making it difficult for individual products or companies to stand out. Biostimulants work by activating natural plant processes rather than directly supplying nutrients or controlling pests, which complicates clear product efficacy claims and market positioning. Rapid technological advancement and the rise of precision farming are pushing product innovation but also raise the bar for differentiation based on formulation, mode of action, and application method (e.g., foliar vs. seed treatment).

Geographical Distribution of Investments

North America and Europe currently hold the largest shares of the market due to advanced farming practices, regulatory support, and higher adoption rates of new agricultural technologies. Asia-Pacific, Latin America, and parts of Africa and the Middle East are emerging growth regions due to expanding agricultural activities, increasing awareness of sustainable practices, and supportive government policies. Commercial agriculture dominates investment and adoption because of better capital access and mechanization, yet smallholder and family farms in developing regions represent vital segments for growth due to food security needs and cost-effective solutions.

Outlook

The crop biostimulant market is expected to continue strong growth towards 2034, supported by global population growth, food security concerns, and sustainability mandates. Future growth depends on continued innovation in product efficacy, clearer regulatory pathways, and strategic regional market penetration, especially in fast-developing agricultural economies. Companies are investing heavily in R&D and partnerships to improve product performance and regulatory compliance, aiming to capture market share in this rapidly evolving and crowded landscape.

In California, plant biostimulants have been defined in Senate Bill 1522. The entire ag biologicals market is expected to be worth $19.6 billion by 2027, with biostimulants accounting for about $7.6 billion. Three countries, the United States, Belgium, and France, dominate the landscape in terms of total funding amounts, with the US alone accounting for over 67% of all investment since 2012.

The crop biostimulant space is incredibly crowded, with 350 companies categorized into 12 "active ingredient" groups. Since 2015, startups listed on The Mixing Bowl's biostimulants map have jointly raised a total of $4.2 billion. Biostimulants are increasingly seen as potential alternatives to traditional chemicals, which are linked to environmental degradation and problems with human health.

Continued investment, partnership, and M&A activity is expected in the biostimulant market as it seeks equilibrium. Funding for ag biologicals, including biostimulants, has been a challenge, with VC funding dropping 86% in 2024 to just $135 million. Regulation and clearer messaging from manufacturers and retailers could help differentiate biostimulant products. France has 11 biostimulant deals in 2024, and Belgium has 10.

In summary, the crop biostimulant market is vibrant but challenging, characterized by strong growth potential tempered by regulatory complexity and intense competition, with geographic investment focused on regions leading in sustainable agricultural adoption. Interest in biostimulants has been "extraordinary" but the space continues to be "a challenging one to navigate", as stated by Chris Taylor, a partner at The Mixing Bowl. The 2025 Crop Biostimulant Landscape was unveiled at the 2025 Salinas Biological Summit in June. India ranks second in deal count for biostimulant startups in 2024, following the US. The US does not have a definition or framework for biostimulants, but the Plant Biostimulant Act has been reintroduced to address this. The EU and Brazil have their own definitions for biostimulants. Biostimulant manufacturers should consider specific crops, practices, location, risk tolerance, and other factors when developing products. Biostimulants are substances or microorganisms used to boost productivity and resiliency in crops, activating processes already present in the plant to improve nutrient uptake and efficiency, stress tolerance, and yield.