Biological Market Opportunities in U.S. and EU

By Lawrence Middler

The U.S. and EU are two leading global biological markets that still offer a spot for new products. While these markets are competitive, growers still face product gaps due to banning of chemical crop protection formulations. Here is an overview of the U.S. and EU biological markets and the opportunities each region offers to biological companies.

U.S. Biologicals Prospects

The U.S. was the third largest country market for biopesticides worldwide, accounting for 16.8% of the market in 2024. Within the country, the biopesticides market share was 5.3% of the total crop protection market. For biostimulants, the U.S. is the second largest market globally with a market share of 10.9%.

In terms of opportunities in this region, AgbioInvestor biologicals market research indicates that there is already a sizeable row crop market for biopesticides and biostimulants in the U.S. for both maize and soybeans, partly due to low-cost seed treatments offered across a high-volume adoption. An example of this is Heads Up Plant Protectant products, based on Chenopodium quinoa saponins, offered as standard with some seed company products at a low cost.

Other key products identified included Bayer’s biofungicide Rhapsody (Bacillus amyloliquefaciens strain QST713) for foliar applications in maize, and the bioinsecticide Serenade Opti (Bacillus amyloliquefaciens strain Qst713), also used for foliar applications in maize.

In terms of biostimulants, Indigo Ag’s product range was significant in the U.S. market, including BIOTRINSIC (microbials) seed treatments in soybean, maize, and cotton; BIOTRINSIC M34 (Bacillus subtilis) seed treatments in maize and soybean; BIOTRINSIC N13 (Bradyrhizobium japonicum) seed treatments in soybean; and BIOTRINSIC WN29 (Cladosporium tenuissimum) seed treatments in soybean and cotton.

Sumitomo Chemical’s market position was mostly based on the MycoApply seed/soil treatment range (Glomus aggregatum/Glomus etunicatum/Glomus intraradices/Glomus mosseae), used in maize, pome and stone fruit, soybean, horticulture, and tree nuts.

Taking the above findings into consideration, it is clear that across both of the biopesticide and biostimulant markets, there is a clear opportunity to launch more plant extract and natural product-based formulations.

Another opportunity will come from the bionematicide market, in part driven by the loss of older chemical nematicides such as the organophosphates and carbamates. Competition may come however from newer generation chemical specific nematicides such as cyclobutrifluram (Syngenta) and fluazaindolizine (Corteva), but this could be mitigated if agreements to cross-licence actives can be made, or through spray programs containing both bio and chemical nematicides.

Another interesting development in the U.S. is the increasing focus on topically applied RNA interference (RNAi) products. In 2023, the U.S. Environmental Protection Agency (EPA) registered Greenlight Biosciences’ biopesticide products containing the new active ingredient Ledprona. The company uses bioengineered yeast in order to produce RNAi molecules in a more cost-effective way. RNA-interference technology can target key agricultural pests, such as the Colorado potato beetle (Leptinotarsa decemlineata) and many others.

The key benefits of this mode of control is that the RNAi biopesticide is extremely pest-specific and only affects that particular target. Any excess yeast containing the active breaks down in the environment with little to no impact. As a result, this product segment is poised for further growth if other companies can find suitable economies of scale to bring the cost of production down, making the product more cost competitive with conventional treatments

Another sector on the rise is that of other classes of peptide-based products, such as Vestaron’s SPEAR bioinsecticide portfolio of products in the U.S. These are based on peptides isolated in spider venom and subsequently synthesised by bio-engineered yeast, which again highlights how innovative biochemical manufacturing techniques can be used to bring products to market in a competitive way. We are likely to see more of this approach in the future.

European Market Openings

Europe as a whole represented 19.3% of the global market for biopesticides in 2024. For biostimulants Europe accounted for 36.1% of the global market, and within the region the share of biopesticides was 2.7% of the total crop protection market, so somewhat behind that of the 5.3% market share in the U.S.

For the European market, although fertilizer prices have come down from the peaks of 2022, they still remain high by recent historical standards and have seen a modest uptick so far this year compared to 2024. This, coupled with the EU’s desire to reduce fertilizer usage, creates opportunities for nitrogen fixing products. However, in the current climate of low farm incomes, only the products with the best cost-to-nitrogen fixing ratio will succeed, and we have noted limited uptake of products that are more costly in this field.

The European Commission has proposed a major reform of the EU’s Common Agricultural Policy (CAP) to reduce bureaucracy, improve competitiveness, and support farmers in responding to crises and environmental challenges. It is estimated that the reforms could save farmers up to €1.58 billion and national administrations €210 million annually.

Key changes include simplifying environmental rules, increasing the annual lump-sum payment for small farmers from €1,250 to €2,500, and limiting farm inspections to once per farm per year. Organic farms will automatically meet some environmental conditions, and farmers will receive more support for preserving peatlands and wetlands.

The other main opportunity in the EU market is for further adoption of biocontrol products and biostimulants in row crops. AgbioInvestor market research indicates that F&V usage still dominates in the region. Farmers have fewer conventional products available to them in the EU and are increasingly turning to biologicals: however, there is currently a disconnect between farm income and the higher price point of many biological products. The new sustainability goals that have been alluded to by the EU Commission do outline a desire to help growers achieve favorable returns for their produce, which could go some way to increasing biologicals uptake.

Outlook for 2025

For 2025, farm economics continue to be challenging in the U.S., where low commodity prices continue to impact the market. Any improvement in weather conditions can be expected to be a positive, while the much improving inventory situation can also be expected to benefit crop protection product sales, particularly from the supply side as there has been a notable shift towards just-in-time purchases.

In the European market, positivity can be expected based on a return to more normal, positive weather conditions, with the winter cereal crop in many western and northern countries showing significant improvement from the prior year.

In addition, the weather-impacted production of 2024 can be expected to limit crop availability and could provide some solidity to crop commodity prices moving forward. Despite this, extended dryness in eastern parts, notably Bulgaria and Romania, is impacting crop production and yield potential, possibly to the detriment of crop protection product usage.  •

TensorSpark – stock.adobe.com
Lawrence Middler – AgbioInvestor