The Japan biostimulants market is projected to grow at a CAGR of 6.41% between 2025 to 2030.
Biostimulants are referred to as any substance or a microorganism that, after being applied to plants helps in enhancing nutrition efficiency, and tolerance to abiotic stress, and assists in increasing the crop quality traits. The Japanese biostimulants market is expected to grow in the forecast period due to the initiatives by the increasing number of companies operating in the country. One of the examples includes the entry of Denka Company Limited (headquartered in Tokyo) into the full-scale marketing business of biostimulants.
Research activities in the agriculture sector are further augmenting the demand for biostimulants during the forecast period. With the growing rice demand in Asian countries along with the increasing adoption of organic farming, the Japanese market for biostimulants is expected to surge over the next six years. Furthermore, with the inclination toward modernization of agriculture, prospects for the use of biostimulants are projected to provide an opportunity for the manufacturers to thrive and tap the market potential.
IMPACT OF COVID-19
This market has been moderately impacted by the COVID-19 pandemic, owing to the difficulties imposed by the outbreak of the pandemic. However, the market is expected to recover in the years following the pandemic, reaching closer to the pre-pandemic estimated trend, in the latter half of the forecast period.
The outbreak of the COVID-19 pandemic at the start of 2020 caused the government and businesses to take stringent actions to curb the spread of the virus. These actions, such as nationwide lockdown, quarantine mechanisms, as well as the declaration of self-containment zones, led to a disruption in the supply chain, making it difficult to gain timely access to raw materials, distribute products via the distribution network, and gain access receivables on time. The overall sentiment of uncertainty in the business environment led to the cancellation of orders at some places, while preponement of orders at others. Thie whole atmosphere of unpredictability has cost the market some value in total sales, although the year-on-year growth from 2019 to 2020 has only been around 2%.
Biostimulants form a vital component in the crop protection area, especially in the organic realm. With a rising trend for organic farming and the use of organic agripharma, the market for biostimulants has already been witnessing a sizable growth. Additionally, the COVID-19 pandemic has accelerated the consumer sentiment towards healthier food that is natural and organic in origin. Taking this extra factor into consideration, the growth of Japan's biostimulants market is expected to be slightly higher than the pre-pandemic expected growth in the post-pandemic time period.
There is a burgeoning demand for biostimulants by farmers, attributable to the fact that these can enhance the intrinsic properties of targeted plants and help the crops and plants to adapt better to different surroundings and the environment. In addition, the growing concern among people over the quality of the cultivated crop and the worsening temperature conditions due to climate change affecting the crop growth is encouraging the farmers to adopt and use biostimulants. These factors are leading to the entry of new companies and changes in the strategy of older players to provide new and advanced products as well as expand their operations, resulting in the growing demand for biostimulants over the forecast period. For instance, on February 22, 2019, Denka Company Limited, which deals with providing fertilizers and is headquartered in Tokyo, announced to enter the biostimulant business with the intention to achieve full-scale marketing and accelerate the market growth. Moreover, recently in January, Nippon Soda Co., Ltd. became a supporting member of the Japan Biostimulant Association, a council comprising of companies dealing with fertilizers, biostimulants, and pesticides. This council was formed on January 25, 2018, with the objective to promote the use of biostimulants and contribute to the agricultural industry.
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