Farmers and investors need more education in agricultural biologicals

The global agricultural biologicals market continues to expand despite economic uncertainty, with biofertilizers expected to remain one of the fastest-growing segments, according to Dr. Pam Marrone, founder and chair of the Invasive Species Corporation, speaking at the 2026 Salinas Biological Summit in California.

Citing data from market research firm Dunham-Trimmer, Marrone said biological crop inputs continue to post double-digit compound annual growth rates, including 11.08% for biofertilizers, 10.65% for biocontrols and 9.93% for biostimulants. North America is projected to remain the world’s largest market, reaching USD 5.68 billion by 2027, while Latin America is expected to grow to USD 4.97 billion, driven largely by rapid adoption in Brazil.

Marrone attributed Brazil’s success to growers integrating biological products alongside conventional crop protection programs rather than treating them as direct replacements for chemical inputs. She also noted that Brazil’s relatively young farming population has been more willing to adopt new technologies. Unlike many countries where biologicals are concentrated in specialty crops, Brazil has expanded their use across large-scale row crop production.

Funding shifts toward Europe

Investment in agricultural biologicals slowed over the past year as artificial intelligence attracted a growing share of venture capital in the United States. Marrone said European investors have become increasingly active because they were less affected by the high startup valuations seen during 2021 and 2022.

Most of the recently funded biologicals startups highlighted during the presentation were European companies, while private equity firms continued acquiring profitable or near-profitable biological businesses. Marrone also pointed to the emergence of large independent biologicals companies outside the traditional agrochemical industry, including Spain-based Rovensa Next and Belgium’s BioFirst, demonstrating that startups now have additional exit opportunities beyond acquisitions by major crop protection companies.

Education remains the industry’s biggest challenge

Despite strong market growth, Marrone said both investors and farmers need significantly more education about agricultural biologicals. She argued that many venture capital firms still underestimate the technological sophistication of microbial products because they view only genetically engineered solutions as deep technology.

Among growers, uncertainty over product performance continues to limit adoption. Marrone said farmers often struggle to distinguish scientifically validated products from exaggerated marketing claims, with inconsistent field performance remaining the industry’s biggest credibility challenge. She added that growers need better guidance on evaluating biological products before making purchasing decisions.

Bioherbicides gain momentum

Marrone identified several emerging technologies expected to shape the biologicals market over the next year, including AI-designed pesticidal peptides, microbial metabolites, RNA interference technologies with commercially viable delivery systems, abiotic stress mitigation products, regenerative soil inputs, integrated biological programs, and pesticide-enhancing formulations.

She also highlighted growing interest in bioherbicides, an area that has historically lagged behind biofertilizers and biopesticides. New companies such as Quercus are applying artificial intelligence to peptide discovery for weed control, while Corteva recently committed USD 200 million through a partnership with FMC to develop herbicides targeting resistant weeds. Marrone said her own company is developing metabolite-based bioherbicides that have demonstrated weed control approaching glyphosate performance in early trials, including against glyphosate-resistant species.

Source: AgFunder News