Biologicals Expansion Accelerates Globally — But Profitability Will Define the Winners

As the global biologicals market continues its rapid expansion, industry leaders say success will depend on far more than simply bringing products to market. During the recent webinar “Biological Expansions: How To Stay Competitive” hosted by AgriBusiness Global, experts explored how biological companies — and traditional crop protection manufacturers entering the segment — can stay competitive and profitable in an increasingly crowded marketplace.

Panelists included Sebastian Bachem, CEO of Accumont, José Nolasco, Head of Global R&D Bionutrition at Rovensa Next, Kevin Price, Head of Corporate Affairs at Certis Belchim, and Ignacio Moyano Córdoba is Vice President of Business Development, LATAM, for DunhamTrimmer. Among the major themes discussed were shifting regional growth opportunities, the importance of partnerships, technical support requirements, and how companies can maintain profitability while scaling biological portfolios.

Growth Continues — But the Market Is Changing

While Europe and North America were early leaders in biological adoption, panelists agreed the market’s center of gravity is shifting rapidly toward Latin America and Asia.

“Brazil remains one of the most strategic biological markets in the world because of its scale, high pest pressure, progressive growers, and openness to innovation,” said Moyano Córdoba.

Bachem echoed that sentiment, noting that growth in Europe and the U.S. was initially driven by consumer demand for more sustainable production systems. Today, however, regions like Brazil and Asia are experiencing faster acceleration due to favorable market dynamics and regulatory incentives.

At the same time, experts cautioned that growth opportunities are becoming more selective.

“Not every market will grow the same way, and not every company entering those markets will succeed,” Moyano Córdoba said.

Panelists also pointed to several global forces driving biological adoption, including climatic volatility, tightening residue standards, increasing resistance issues, and the shrinking availability of conventional crop protection products.

“Growers can no longer rely on the historical blockbuster chemical approach,” said Price. “Biologicals are going to play an important role as part of a more holistic, integrated crop production system.”

Partnerships Are Critical for Market Entry

One of the clearest messages from the discussion was the importance of selecting the right commercial partners when entering new markets.

For smaller and midsize biological companies without global infrastructure, Bachem said local partnerships often provide the fastest path to success.

“It was often believed that going only with some of the major companies was the best market access,” he explained. “But midsize companies are probably a better choice because they’ll give you more time and have greater local knowledge about the opportunities that are there.”

Moyano Córdoba agreed, emphasizing that the right distributor or strategic partner can dramatically accelerate commercialization timelines.

“In many regions, the right distributor or strategic partner can accelerate years of progress,” he said.

However, partnerships alone are not enough. Panelists repeatedly stressed that biologicals require specialized technical positioning, extensive field support, and realistic expectations about scalability and profitability.

Proof of Concept Matters More Than Marketing

As biological innovation accelerates, multinational companies are being inundated with new technologies and startup pitches. According to Price, companies hoping to secure partnerships or investments must demonstrate clear market need and field-level performance.

“Proof of concept is critical,” Price said. “Companies need to spend time looking at the market and seeing where those unmet needs are.”

Rather than positioning biologicals as direct replacements for chemistry, experts said successful products must integrate into broader crop management systems.

“If you try to position biologicals simply as a substitution for chemicals, it’s a disaster,” Nolasco said. “Biologicals have to fit into an integrated program together with other options.”

Nolasco also emphasized that biological performance is highly dependent on local conditions such as soils, climate, and crop management systems.

“We’re not talking about chemical products,” he said. “Biological solutions are super context dependent.”

That variability makes technical support a major differentiator.

“There is a big gap between the lab and the field,” Nolasco explained. “Technical support, technical support, and technical support all the time.”

Profitability Will Separate Industry Leaders

Despite the excitement surrounding biologicals, panelists acknowledged that growing competition and expanding portfolios are placing pressure on margins.

“Companies need to move from a pure growth mindset to one of value creation,” said Moyano Córdoba. “Selling high volume with low margin is not sustainable.”

Instead, successful companies will focus on differentiation, local execution, and demonstrating measurable value to growers.

Bachem added that profitability also depends heavily on operational execution, including maintaining manageable production costs and building long-term farmer trust.

“Biologicals are not simple plug-and-play products,” he said. “You need specialist companies that can steward your product properly in the field.”

As the biologicals segment matures globally, the consensus among panelists was clear: the next wave of winners will be companies capable of combining innovation, technical expertise, strong partnerships, and disciplined business execution.

To hear the full discussion and gain additional insights from industry leaders, be sure to watch the complete webinar from AgriBusiness Global.