The Era of Easy Growth Is Over
The biologicals market is still growing, but it is no longer a segment where companies can simply ride the wave of rapid expansion. The market is entering a maturity phase and becoming more competitive and more demanding in terms of player quality. For investors, manufacturers, and distributors, finding the right partnerships has become critical.
Having a product alone is no longer enough. First, it must be clearly differentiated. Not just a Bacillus-based stimulant, but a specific answer to questions: what problems does it solve, on which soils, and under what conditions does it work? Without this level of specificity, products become easily replaceable and quickly fall into price competition. Second, products must be supported by solid evidence: local trials within the target climate zone, independent testing, and proven production experience.
The bar is even higher in distribution. Without a network of consultants, products can’t scale. Agronomic support has become just as valuable as the product itself. What matters is whether the partner understands biologicals and regulatory specifics, how supply operations are managed, and whether the team can maintain consistent on-field engagement with farmers.
This trend is particularly visible in LATAM. It remains one of the world’s largest and most dynamic regions, with a significant share of the market concentrated in Brazil. The market is crowded with interchangeable products, creating pressure on prices and shrinking margins. This is not an attractive scenario for investors. That is why systematic approaches, quality, differentiation, and strong partnerships are no longer optional in such markets. They are essential for survival.
Climate and Economics Are Reshaping Market Logic
Climate change is already reshaping the market. In its 2025 report, DunhamTrimmer identified drought, heat, and soil salinity as a standalone trend for the first time: they are becoming permanent variables in agriculture.
At the same time, farm economics are changing. Production costs continue to rise, while agricultural commodity prices remain flat or decline. Additional pressure comes from regulation: some low-cost, highly effective chemicals are disappearing from the market, while requirements for residue and environmental impact are becoming stricter. As a result, farmers are caught between rising production costs and tougher regulatory conditions, forcing them to adapt their production technologies.
In this reality, demand for biologicals is driven not by a “bio trend,” but by the need to stabilize production under increasingly difficult conditions. Biologicals are becoming part of the response to stress and a tool for optimization.
For manufacturers, this means a shift in focus from universal solutions to clearly defined use cases tailored to specific stress conditions and crops. For distributors, it means moving from simply selling a product to supporting a solution: explaining where the product works, where it does not, and how to properly integrate it into existing farming practices. Under this new market logic, the winners will not be the companies that simply “have a biological product,” but those that help farmers navigate difficult seasons more effectively.
Biologicals Are Still Being Evaluated Like Chemicals
Traditionally, farmers measure the effectiveness of agrochemicals by measuring yield increase: there is a trial field, a control plot, and the final result is assessed at harvest at the end of the season. This same logic is often applied to biologicals, and after the first disappointing experience, many farmers write off the entire category.
Biologicals often show greater variability in results compared to conventional chemicals. Sometimes yield increases are minimal, and sometimes they are substantial. But this does not mean the product is ineffective. More often, it means its impact extends beyond a single metric.
Biologicals create long-term, systemic effects on the agricultural ecosystem. Their impact is difficult to evaluate with a single indicator over a single season. It is important to consider changes in soil health over time, the effect on CO₂ emissions, shifts in crop behavior under stress conditions, and quality parameters of the harvest. Economic viability should be assessed from this broader perspective.
Within this logic, the role of distribution is also changing. Consultants can no longer simply sell a product. They must explain how and where it works and provide practical, easy-to-understand tools that clearly demonstrate results in the field. Biologicals do not work the same way as conventional chemicals.
More Often, It Is Not About How Much Was Grown, but What Was Grown
Agriculture still largely operates within the logic of volume. Higher yields are seen as better results. But I increasingly see this model changing.
More and more often, conversations with partners are shifting toward a different focus: not only how much was produced, but also what exactly was produced. Wheat yields may be lower, but the crop may deliver better quality indicators such as nutritional value, micronutrient content, or suitability for processing. This is not yet a mainstream practice, but the direction of change is already becoming visible.
For manufacturers and their partners, this means a shift in product logic: not only how a product increases yield, but how it affects quality parameters and how these effects can be clearly demonstrated through data. Within this framework, biologicals are beginning to compete not only on volume, but also on their ability to improve quality. And the solutions that can prove this in practice are likely to be in a much stronger position in the coming years.
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Europe Is Setting the Rules of the Game Through Carbon
Europe is moving toward a system in which it is no longer enough to focus only on what you produce, but also on how it is produced. If products are associated with higher CO₂ emissions, someone will have to pay for it.
Formally, this is a regional policy. But for export-oriented players, it is becoming a market access requirement. Europe remains one of the key destination markets, and its requirements are gradually influencing production approaches far beyond its borders, including among players in Latin America and Asia.
For manufacturers, this means these requirements need to be considered in advance: working with data, understanding their own carbon footprint, and clearly explaining how their products fit into the new market rules. For distributors, it requires a different positioning of solutions, not only as effective products, but as solutions aligned with future market expectations.
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Regulation Is a Market Filter
Regulatory requirements for biologicals are becoming more complex. Europe has already introduced new regulations for fertilizers and biostimulants, while the U.S. is moving toward harmonization. Bringing a product to market is becoming both longer and more expensive.
Product registration is a real barrier to market entry, especially for biopesticides. In Europe, registration can take 5 to 10 years, while in the U.S., it usually takes 1 to 3 years. These rules effectively protect established companies in the market and impose serious limitations on smaller and independent manufacturers. Companies that want to operate in these markets but postpone investment in registration are, in reality, postponing access to the market itself.
At the same time, there are markets where registration can still be completed within a few years, including certain countries in Central Asia and Latin America, where regulatory frameworks are still evolving. This creates opportunities for faster market entry and leads companies to adopt different go-to-market strategies.
The biologicals market is not becoming simpler. These six trends are not a complete list, but rather what I see from the perspective of someone working daily across different markets and trying to understand where real value is actually being created.
Today, success requires local data, the right partners, regulatory understanding, and the patience to build trust season after season. It is more difficult than it used to be. But a market that does not tolerate superficiality rewards those who truly understand its logic.
That is exactly what makes it interesting.
Author: Dmytro Yakovenko, Head of International Development at BTU
Originally published in: AgroPages, 2026 Biologicals Special, pp. 120–122.