Booming Development of the Biological Products Market

Brazil's biological products market has witnessed explosive growth in recent years, emerging as a benchmark for global agricultural green transformation. According to the FarmTrak report released by agricultural market research institute Kynetec, the sales volume of Brazil's crop biocontrol market reached 4.35 billion reals (approximately 820 million US dollars) in the 2024-25 fiscal year, representing an 18% year-on-year increase from 3.692 billion reals in the 2023-24 fiscal year. This data directly confirms the accelerated promotion of biological products in local agriculture.

In terms of market share, biopesticides have accounted for nearly 5% of Brazil's approximately 100 billion reals plant protection market. Looking back to 2020, the total value of Brazil's biological products was only about 1 billion reals. The leapfrog growth achieved in just five years not only demonstrates the rapid expansion of the market scale but also signifies that biological products have become one of the core supporting forces for Brazil's agricultural production.

Amid the global wave of sustainable agriculture, Brazil's practices provide important insights for the industry. With technological iteration and demand release, Brazil's biological products market is expected to continue leading the way and inject stronger impetus into the global agricultural green transformation.

Six Major Crops and Biological Products Sales

The sales of biological products in Brazil are highly concentrated in six major crops, which serve as the core engines driving market growth. Kynetec's data clearly outlines the contribution pattern of each crop, among which soybeans and corn, the two major staple crops, occupy an absolute dominant position, highlighting the in-depth integration of biological products with the core agricultural industry chain.

Soybeans rank first with a 48% sales share (2.088 billion reals). As Brazil's most competitive export crop, biological products have achieved remarkable application results in soybean cultivation. Products such as biological nematicides and insecticides have effectively addressed the challenges of pest and disease control and quality improvement. Felipe Abelha, a research expert at Kynetec, pointed out that the sales of biological inputs for soybeans have soared from 560 million reals to 2 billion reals in five years, representing a nearly threefold increase, which confirms the empowering value of biological products to the soybean industry.

Summer corn and second-crop corn together contribute 31% of the sales (1.35 billion reals), among which second-crop corn has shown particularly impressive growth - its sales have jumped from 100 million reals to 1.1 billion reals, a tenfold increase in a decade. This explosive growth stems from the surging demand for green pest and disease control in the corn industry, and the dual effects of biological products in pest control and soil improvement have been widely recognized.

Sugarcane ranks third with a 12% share (522 million reals). As the core raw material for Brazil's ethanol industry, the demand for sugarcane nematode control has driven the rapid penetration of biological nematicides. Biological agents have contributed significantly to nearly 50% of the growth in the sugarcane nematicide market over the past five years.

Although cotton (4%, 174 million reals), coffee (3%, 130 million reals), and fruits and vegetables (2%, 87 million reals) have relatively smaller shares, they exhibit strong growth resilience. In cotton cultivation, the demand for controlling pests such as caterpillars has driven the application of biological insecticides like baculovirus preparations; the coffee, fruit, and vegetable sectors have benefited from the rigid requirements of export markets for low-pesticide-residue products, leading to a continuous increase in the penetration rate of biological fungicides and insecticides.

Multiple Drivers of Market Growth

The explosive growth of Brazil's biological products market is the result of the resonance of multiple driving factors, covering technology, market, policy, and international demand, forming a sustainable growth ecosystem.

Pest and disease resistance is the core driving force. Long-term reliance on chemical pesticides has led to the rapid development of resistance in pests and diseases such as soybean blight in Brazil, while biological products provide a new solution with their unique mechanism of action. For example, baculovirus preparations can specifically kill pests without causing resistance easily, and have become a key choice for addressing resistance issues.

Price fluctuations of traditional inputs have further accelerated the substitution process. Fertilizer prices surged due to the energy crisis in 2021-2022, while biological products have relatively stable prices. Some products can also reduce fertilizer usage, significantly lowering the risk of planting costs and gaining favor among farmers.

Policy support is also crucial. The Brazilian government has simplified the registration process for biological products and shortened the approval cycle, which has greatly stimulated the R&D enthusiasm of enterprises and accelerated the launch of new products.

Safety requirements from international markets constitute an important external driving force. Major export destinations such as the European Union and the United States have raised pesticide residue standards, prompting Brazilian farmers to increase the use of biological products to ensure export competitiveness, which is particularly prominent in cash crop sectors such as coffee and fruits.

Performance of Different Biological Product Categories

Brazil's biological products market exhibits significant category differentiation. Biological nematicides, insecticides, and fungicides constitute the main market segments, each demonstrating unique growth logic.

Biological nematicides continue to lead the market with a 44% share (1.926 billion reals), achieving steady growth compared to 1.573 billion reals in the previous year. The sales of this category have increased by 711 million reals in five years, surpassing chemical agents to become the preferred solution for nematode control. Currently, Bacillus-based products dominate the market, playing a core role in the cultivation of soybeans, sugarcane, and other crops, and effectively solving the problem of nematode damage to crop roots.

Biological insecticides rank second with a 39% share (1.687 billion reals), achieving steady growth compared to 1.628 billion reals in the previous year. It is worth noting that caterpillar control products represented by baculovirus preparations have become a growth highlight. The core reason is the "breakthrough" of pests due to the decreased efficacy of Bt (Bacillus thuringiensis) transgenic technology, prompting growers to turn to biological control solutions. The application of this category in cotton, corn, and other crops has expanded rapidly.

Biological fungicides have shown the most impressive performance, achieving sales of 735 million reals with a 17% share, a sharp increase of 41% compared to 491 million reals in the previous year. Their potential treatment area reaches 17 million hectares, accounting for 21% of the total treatment area of biological products. The growth is mainly driven by the demand for fungal disease control. The high incidence of diseases such as soybean rust and leaf spot has promoted the popularization of products. More importantly, growers' perception of biological fungicides has shifted from "suitable for low to moderate stress" to "trustworthy for all scenarios", and the enhanced confidence has driven accelerated application.

Focus on Segments of Biological Insecticides

In the segment of biological insecticides, caterpillar control products represented by baculovirus preparations have emerged prominently in the 2024-25 fiscal year, becoming the focus of the market. This phenomenon is closely related to the pest control situation and technological iteration.

As major pests of staple crops such as soybeans, corn, and cotton, caterpillars have the characteristics of rapid reproduction and large food intake, which can cause 30%-50% yield loss in severe cases. However, the traditional control system is facing severe challenges - the long-relied-upon Bt transgenic technology has decreased in efficacy due to the enhanced adaptability of pests, resulting in obvious pest "breakthrough" and significantly increased caterpillar damage pressure.

Against this background, baculovirus preparations have become an alternative solution with their unique advantages: first, strong specificity - they only infect caterpillars without harming non-target organisms, meeting the needs of ecological control; second, low resistance risk - they can maintain control effects for a long time; third, environmental safety - they help reduce pesticide residues in agricultural products. These advantages have enabled them to quickly gain recognition from growers and achieve large-scale application in the control of lepidopteran pests.

Adoption Trend of Biological Inputs

The adoption rate of biological inputs among Brazilian farmers is accelerating, indicating that biological products have moved from technical trials to large-scale application. This transformation has a profound impact on the global agricultural market.

Data shows that the potential treatment area of biological inputs in major crops has soared from 21.9% to 46.7% in the past five years, an increase of more than double. The performance in core planting areas is even more prominent - the adoption rate in major agricultural states such as Goiás and Mato Grosso has exceeded 50%, becoming demonstration windows for biological agriculture. Taking soybean cultivation in Mato Grosso as an example, the widespread application of biological nematicides and insecticides has not only improved yield and quality but also promoted the popularization of green planting models, forming a strong regional driving effect.

A high adoption rate means that biological products have crossed the "adoption gap" in advanced agricultural regions of Brazil, transforming from supplementary tools to essential production inputs. As one of the world's largest agricultural export countries, Brazil's transformation has provided growth momentum for the global biological products market and offered replicable practical experience for other agricultural countries.