World Agrochemical Network Chinese Network Report: Brazil's agricultural biological input market has maintained a rapid growth momentum in recent years. With the growing awareness of environmental protection, the popularization of sustainable agriculture concepts, and the strong support of government policies, Brazil is gradually becoming an important market and innovation center for global bio-agricultural inputs, attracting global bio-enterprises to expand their business in the country.
How has the Brazilian biopesticides and biostimulants market changed in recent years? What policies are in place in Brazil's agricultural sector to promote the development of the market for biological inputs? What advice are there for businesses that have already entered, or are preparing to enter the country's market? Here's how to answer these questions. The following information is from a report by Yuhong Wu, Director of Market Research at Kynetec in the UK, and Alessandro Cruvinel, National Project Coordinator of Bioagricultural, Ministry of Agriculture, Brazil, at the 5th International Summit Forum on Biopesticides, Biostimulants and Biofertilizers (BioEx 2024) organized by AgroPages.
The current state of the biopesticide market in Brazil
In 2023, Brazil's crops were planted on 81.982 million hectares, with soybeans accounting for 52% of the total planted area, followed by winter corn, sugarcane and summer corn. In its vast arable land, Brazil's pesticide market reached about US$20 billion in 2023 (consumption by end farmers), with soybean pesticides accounting for the largest market value (58%), and it is also the fastest growing market in the past three years.
The share of biopesticides in the overall pesticide market in Brazil is still very low, but the growth rate is very fast, from 1% in 2018 to 4% in 2023 in just five years, with a compound annual growth rate of 38%, far exceeding the 12% growth rate of chemical pesticides.
In 2023, the country's biopesticide market reached a market value of $800 million at the farmer end. Among them, bionematicides are the largest product category in terms of category (mainly used in soybeans and sugarcane); The second largest category is biological pesticides, followed by microbial agents and biological fungicides; During the period 2018-2023, the highest CAGR in market capitalization was recorded by bionematicides, which reached 52%. In terms of applied crops, biopesticides for soybeans have the highest share of the total market capitalization, reaching 55% in 2023; At the same time, soybeans are also the crop with the highest rate of biopesticide application, with 88% of its acreage in 2023 using this product; Winter corn and sugarcane are the second and third largest crops by market capitalization, respectively; The market value of these crops has maintained an upward trend in the past three years.
There are differences in the main types of biopesticides used in these important crops. Among the soybean biopesticides, the largest market value is bionematicides, accounting for 43% in 2023. The most important categories of winter corn and summer corn are biological pesticides, accounting for 66% and 75% of the market value of biopesticides in the two types of crops respectively (mainly used for the control of stinging and sucking pests). The largest product category of sugarcane is bionematicides, accounting for more than half of the market share of sugarcane biopesticides.
In terms of usable area, the figure below lists the 9 most widely used active ingredients, their proportion of treated area on different crops, and the cumulative usable area in a year. Among them, Trichoderma is the largest active ingredient, which is used in 8.87 million hectares of crops a year, mainly for soybean planting; This is followed by Beauveria bassiana (6.845 million hectares), which is mainly used in winter maize. Eight of the nine main active ingredients are biocontrol bacteria, and parasitic wasps are the only natural enemy insects (all used in sugarcane cultivation). There are several reasons why these active ingredients sell well:
- Trichoderma, Beauveria bassiana and Bacillus amyloliques: more than 50 production enterprises, providing good market coverage and supply;
- Rosa sphyllum rose: a significant increase, mainly due to the increased occurrence of corn leafhoppers, with 11 million hectares of product processed in 2021 and 30 million hectares in winter maize in 2024;
- Parasitic wasp: It has a long-term stable position on sugarcane, mainly used for the control of cane borer;
- Metarhizium aeruginosa: rapid growth, mainly due to the increased occurrence of nematodes and the cancellation of the registration of carbofuran (the main chemical agent for the control of nematodes).
Why is the Brazilian biopesticide market growing so fast?
The reasons for the rapid growth of the Brazilian biopesticide market are as follows. The problem of pest resistance is becoming more and more serious, and biopesticides have become an important tool for integrated pest management. The emphasis on sustainable agricultural development has increased the demand for biopesticides. More and more enterprises are producing and registering biopesticides, increasing product supply, and the market share of biopesticides is increasing. In terms of registration regulations, the period for biopesticides to be registered in Brazil is much shorter than that of chemical pesticides.
Challenges facing the Brazilian biopesticide market and recommendations for companies
Due to the short shelf life of biopesticides compared to chemical pesticides, the effectiveness is not immediate, and many growers, especially traditional farmers (more in southern Brazil), lack confidence in biopesticides, and most mainstream products are not differentiated, making it more challenging for biocides to enter the market. Based on this, it is recommended that practitioners in the industry strengthen the research on product stability and extend the shelf life of products; educate and train growers to enhance their understanding of biopesticides and help them accept such products; Enhance innovation, develop products with differentiated selling points, and do a good job as a brand to stand out.
The current state of the soybean biostimulant market in Brazil
The current state of the biostimulant market is presented with soybeans, which are the largest under cultivation.
The proportion of soybean acreage applied with biostimulants has increased in recent years, from 28% in 2020 to 39% in 2023, while farmers have also seen a slight increase in the number of times farmers use biostimulants each season – a very positive trend for biostimulant producers. The cost of using biostimulants on soybeans in the 2023 planting season is US$13.9/ha, up from US$10.4/ha in 2020. The market value of soy biostimulants has reached $222 million in 2023, double that of 2020.
In terms of application, soybean biostimulants are mainly applied through stem and leaf spray, which accounts for 87% in 2023, and the application method through soil treatment is relatively low.
The area of use of soy biostimulants varies in different regions of Brazil. The regions with the largest area of application are in the states of Goiás, the Federal District, Minas Gerais and São Paulo. In recent years, the area of biostimulants used in these areas has been increasing year by year. For companies that want to tap into the soybean biostimulant market, they may want to consider expanding their business in these regions.
Brazilian Ministry of Agriculture's support policy for the biologics industry
In addition to registration regulations, the Brazilian Ministry of Agriculture has issued a number of policies to promote the development of the sector.
The Brazilian National Bioinputs Project, launched in 2020, aims to expand and strengthen the use of these products for sustainable agriculture. The National Biological Inputs Project is headed by a strategy committee that brings together representatives from various groups, such as the environmental sector, farmers, industry and organic production. The project sets up a framework for different areas of investment in scientific and technological innovation, quality, production and promotion, knowledge and training, start-up of biofactories, and local projects.
In the case of investment, such support is particularly useful for underfunded universities and private companies to develop new products, with about $10 million spent on innovation and new product development last year. Brazil's Ministry of Agriculture is also investing in BioFabLabs, which has a large number of biofactories that conduct trials to develop new products. Brazil continues to support the construction of BioFabLabs, and has now established five that benefit researchers, students, and farmers.
The Brazilian federal government also provides financial support for local bioinput projects. Local governments understand the pain points and needs of the local industry. The Brazilian Ministry of Agriculture's support to the local community has helped to effectively address the difficulties and challenges faced.
In addition, the Brazilian government has launched the SEASON PLAN program, which provides credit to small and medium-sized farmers to help them produce biofertilizers and biocontrol products on their farms and to purchase such agricultural commodities.
The Brazilian National Bioinputs Project has also launched the app Bioinsumos. The app showcases biological control products registered with the Brazilian Ministry of Agriculture. At present, more than 600 biological products have been registered in Brazil, and about 100 new products have been registered every year in the past three years. The app makes it easy for people to get information about these products. The program is currently in Portuguese, and the Brazilian government is working to make it bilingual so that it can be used by more people in the future.
Another effort carried out by the Brazilian Ministry of Agriculture is to provide online courses on biological products for training. The course is supported by researchers from the National Agricultural Research Corporation of Brazil and awarded two types of certificates, one for quality control related to the production of biological products and the other for soil health and soil bioanalysis.
Brazil also has a Bioinputs Innovation Network to find out how many microbes are sampled in Brazil. The network has an electronic platform that connects all samples. In addition, the web is linked to the interactive platform CATALISA HUB, where users can log in to see microbial collection information. The project aims to use its species diversity to drive innovation and transform resources into final products. The project will bring together private companies, universities, the National Agricultural Research Corporation of Brazil and other research institutions, and will welcome more institutions to join the network to discover more potential microorganisms.
In addition, Brazil is conducting research to replace chemical agents with biological products, and has established the ABC+ PLAN for low-carbon agriculture, which includes biological products to reduce carbon emissions and address climate challenges, while expanding the area where such products can be used.
Brazil is working with other MERCOSUL (Mercosur) countries on the SGT 8 project. The project is entirely focused on biological products, and Brazil is discussing with other countries how to harmonize concepts, among other things, to exchange ideas and develop policies for sustainable agricultural development.
Finally, Brazil will launch a new platform for agritech startups and investors this year. The platform is available in Portuguese and English and is also available outside of Brazil. The platform was launched to help investors who want to invest in Brazil connect with startups and discover promising innovative technologies. The platform now has nearly 2,000 agri-tech start-ups, of which bio-product companies account for a very large proportion.
Biological products market outlook
Kynetec believes that the Brazilian biologics market will continue to grow rapidly in the coming years, and the outlook for the market is as follows:
- The growth rate of the biopesticide market in Brazil will far outpace the growth rate of chemical pesticides. The share of the Brazilian biologics market is still very low, with 2.2 billion hectares of product processed in Brazil in 2023, compared to less than 120 million hectares for biologics. There are still large areas of farmland that do not use such products, and there is great potential for growth in the future.
- Some leading companies are investing in biosterilization, and this market will accelerate growth.
- There will also be very large growth opportunities in corn bionematicides and seed treatments.
- The mergers and acquisitions of leading companies and the investment of private equity funds will boost the growth of biological products to a certain extent.
Brazil's bioproducts sector is gaining momentum. Relevant policies, supply and end-users have formed a synergy to jointly promote the rapid development of the biological products market. This is a win-win sustainable development for food safety, the environment, consumers, farmers and enterprises, and provides an inspiring example for the development of global agriculture.
For more market and policy information, please join us at the 6th International Summit on Biopesticides, Biostimulants and Biofertilizers (BioEx 2025). For more information, please contact Xie Xuefeng, AgroPages, 18806513367
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