Agricultural Biologicals Market Report

Successful leaders from food and agriculture to pharmaceuticals industrial and specialty chemicals are increasing collaboration to expand cost-effective and large-scale production of complementary products and technology-targeted metabolites that promote sustainable agricultural practices. For instance, in July 2024, Syngenta Crop Protection partnered with Ginkgo Bioworks to develop a microbial strain that can meet the productivity targets of a secondary metabolite leveraging its biological capabilities to optimize secondary metabolite production, pioneering biological solutions.

To reduce the need for synthetic fertilizers, and offer farmers greater flexibility in their nutrient management strategies, market players are collaborating and strengthening their research to bring naturally occurring novel biological solutions while lowering the environmental impact of farming, improving nutrient use efficiency to increase crop yields. For instance, in July 2024, Syngenta Biologicals and Intrinsyx Bio announced a collaboration to bring a novel biological solution to agricultural markets to boost farmers’ access to a custom selection of Intrinsyx Bio’s proprietary endophyte formulations and increase the availability and uptake of key nutrients such as phosphorus and micronutrients that are important for plant health. 

One significant challenge in the agricultural biological market is limited awareness among farmers regarding the benefits and applications of these products, which can slow down widespread adoption. The variable efficacy of biological products, often influenced by environmental conditions complicates its adoption, as farmers may be hesitant to rely on solutions that are not consistently effective. Additionally, the higher costs associated with agricultural biologicals compared to traditional chemical inputs may limit cost-sensitive farmers from making the switch.

Regulatory challenges also pose obstacles as complex and differing frameworks across regions can delay the approval and commercialization processes for biological products. Furthermore, inadequate distribution networks and infrastructure can restrict access, particularly for farmers in rural areas. Resistance to change among farmers accustomed to conventional practices can hinder the transition to biological methods. Lastly, gaps in research and development for certain biological solutions limit their advancement and market entry, while the shorter shelf life of some products complicates storage and usage.

The rising need for cost-effective sustainable biological formulations that can be offered as seed and foliar treatment in crop farming and seed treatment industry providing high and resource-efficient yield led market players to introduce novel biological solutions to agricultural markets that maximize seed performance and agricultural crop viability. For instance, in February 2024, Locus Agriculture announced the introduction of six biological treatments to its Rhizolizer Duo product line including three in-furrow biologicals for corn, cotton, and legumes, and three seed treatments for wheat and cereals, soybeans for upstream and downstream seed applications to meet the evolving needs of row crop farmers, seed treatment companies, agricultural retailers and distributors. The in-furrow and seed treatments feature vital microbial strains that make them a significant advancement in agricultural biologicals.

Growing demand for prime-based products that can be utilized in unique manufacturing processes that can offer more consistent performance, especially in stressful conditions providing growers more confidence in biologicals and allowing them to differentiate from the plethora of microbial-based products on the market, due to which market players are integrating Prime into several existing biofertilizers in their product line. For instance, in June 2024, DPH Biologicals announced its new Prime platform that uses a patented production process for Bacillus spp., to accelerate the germination of bacteria spores, supporting overall plant development while providing crops with more consistent resilience against heat, drought, and alkaline and saline soil conditions.

In North America, the agricultural biologicals market is dominating due to the increasing adoption of biopesticides and biofertilizers by farmers, and seeking effective alternatives to traditional chemicals and its strong emphasis on research and development and sustainable agricultural practices. To develop an advanced agricultural biological solutions market across geographies using technical platforms many market players are partnerships. For instance, in October 2022, Bio Works partnered Bayer with to develop biological solutions in areas such as nitrogen optimization, carbon sequestration, and next-generation crop protection to accelerate Biological's R&D pipeline aiming to complement synthetic fertilizers.

European agricultural biologicals market is witnessing robust growth predominantly in countries like Germany, France, and the U.K. due to increasing consumer demand for eco-friendly products led to increased adoption of biopesticides and biofertilizers. According to the FiBL and IFOAM report of 2023, it states that in 2021, Switzerland had the highest per capita consumption (425 euros) worldwide, followed by Denmark (384 euros), Luxembourg (313 euros), and Austria (268 euros). Market players are expanding biological service centers providing service and application support to customers. For instance, in October 2023, Syngenta Seed Care announced the launch of its first biological service center in Maintal, Germany. The center is equipped with ultramodern technologies addressing the growing farmer demand across the EU for biological seed treatment solutions.

The Asia-Pacific region is experiencing rapid growth in the agricultural biologicals market largely driven by the increasing sustainable agricultural production needs spurred by population growth and food security concerns. According to the FiBL 2023 report, it states that in 2021 more than 6.5 million hectares were managed organically in Asia, which is nine percent of the world's organic farmland. Almost 90 percent of Asia's organic farmland is in China, India, the Philippines, and Thailand. Outreach of sustainable farming practices awareness is on the rise among farmers, enhancing adoption rates in this diverse region with some countries having supportive policies while others impose strict regulations that can hinder market penetration.

In Latin America, particularly in Brazil and Argentina, the agricultural biologicals market is expanding in tandem with a growing agricultural sector focused on exports. Farmers are increasingly interested in sustainable practices and integrated pest management solutions. However, the penetration of biological products remains in a developmental phase, with traditional chemical inputs still dominating the market. As investment in research and development of biological solutions increases, the potential for growth in this region appears promising, albeit with ongoing competition from conventional methods.

In the Middle East and Africa, the agricultural biologicals market is gradually gaining traction due to growing interest in biological products, particularly in commercial farming as countries strive to modernize agricultural practices to enhance food security. However, challenges such as limited infrastructure distribution and less awareness among farmers can impede growth. As the region continues to develop its agricultural framework, the adoption of biological solutions is expected to rise, contributing to sustainable agricultural practices.