The global agricultural biological market is expected to grow at a compound annual growth rate (CAGR) of 13.5 per cent, reaching $31.8 billion by 2029. Agricultural biologicals—including biopesticides, biofertilisers, and biostimulants—are essential to sustainable farming practices. These products enhance crop protection, improve nutrient efficiency, and restore soil health while avoiding the environmental damage associated with synthetic chemicals.
Several key factors are driving this shift:
•Consumer Demand for Organic Produce: Globally, consumers increasingly seek natural, chemical-free products, pushing farmers to adopt biological alternatives.
•Stricter Regulations: Governments in Europe, North America, and other regions are implementing stricter controls on chemical inputs, speeding up the transition to biologicals.
•Environmental Awareness: The adverse effects of chemical-intensive farming on ecosystems are becoming more apparent. Biologicals offer a sustainable solution with minimal environmental harm.
Regional Drivers of Growth
The Asia-Pacific region is set to be a significant growth engine for agricultural biologicals. Countries like India and China, with vast agricultural sectors and growing populations, are increasingly focusing on sustainable farming practices. Thanks to its stringent regulatory environment, Europe continues to play a leading role, mainly through the EU’s Farm to Fork strategy, which aims for a 50 per cent reduction in pesticide use by 2030.
The U.S. market is expanding rapidly in North America due to increased investment in biological research and innovation. Latin America, especially Brazil, is emerging as a critical player in biologicals, driven by its leadership in organic farming and alternatives to agrochemicals.
Agrochemicals: A Market in Transition
Despite the rise of biologicals, the agrochemicals market is expected to grow from $365.6 billion in 2024 to $491.69 billion by 2032 (Market Research Future, 2024). However, the narrative surrounding agrochemicals is shifting. Farmers are increasingly adopting integrated pest management (IPM) strategies that combine biologicals with synthetic chemicals, balancing yield targets with environmental sustainability.
Agrochemicals will still play a role in global food production, but their use will increasingly be complemented by biological solutions to reduce environmental impact. This hybrid approach is critical in regions where fully transitioning to biological methods is not feasible due to scale, cost, or other constraints.
Organic Food: A Powerhouse Market
The global organic food market is forecasted to rise from $228.35 billion in 2024 to $658.38 billion by 2034 (Precedence Research, 2024). This reflects a significant shift in consumer preferences toward healthier, environmentally friendly food choices.
Organic farming emphasises sustainability, biodiversity, and soil health, making agricultural biologicals a natural fit for this market. Biopesticides, biofertilisers, and biostimulants are at the core of organic farming systems, replacing chemical inputs with natural solutions aligned with organic certification principles. Countries like Germany, the U.S., and France lead this trend, with robust organic farming sectors and consumers willing to pay premiums for organic products.
Regulatory frameworks shaping the market
The regulatory landscape is pivotal to the growth of agricultural biologicals. In the European Union, the regulatory framework has become increasingly favourable for biologicals, particularly with the implementation of the European Green Deal and the Farm to Fork strategy, which promote sustainable food systems and aim to reduce pesticide use significantly. The U.S. Environmental Protection Agency (EPA) has also streamlined the biopesticide registration process, encouraging faster adoption.
In Brazil, one of the world’s largest agricultural markets, regulatory reforms have accelerated the approval of biological products. The country’s leadership in organic farming and favourable policy environment make it a key player in driving biological adoption in Latin America. Similarly, India has introduced initiatives through the Indian Council of Agricultural Research (ICAR) and its Farm Science Centres (KVKs) network to promote biological products.
However, challenges remain, particularly in harmonising regulations across regions. Global regulatory collaboration is necessary to establish consistent standards, reduce registration bottlenecks, and foster innovation.
