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Biological Product Outlook: 5 Key Takeaways Moving the Global Marketplace

High-value fruits and vegetables in controlled environments, permanent crops, and sophisticated specialty production systems in advanced economies create the lion’s share of demand, but that could be changing. Environmental, societal, and governmental metrics are putting more pressure on growers to improve soil health and reduce synthetic inputs. Meanwhile biological product costs have been dropping and becoming more accessible amid manufacturing innovation and consolidation that has involved multinational companies with established marketing and distribution.

To get a closer look at trends around the world, we interviewed Mark Trimmer, Managing Partner with research consultancy DunhamTrimmer, who discusses emerging product categories and geographies where biological products are positioned to grow.

 

Here are five key takeaways:

  1. A Renaissance in Nitrogen Fixation: Advances in molecular biology and plant biome studies have led to discovery of novel bacteria in non-legume crops, driving new product introductions in North America. About 2-4 million acres are currently being treated, and the area is expected to grow.
  2. Improved Production Methods Driving Pheromones: Pheromones have been around for decades, but cost of chemical synthesis has been a limiting factor and has relegated the technology to high-value specialty fruits and vegetables. But during the past 5 years, new synthesis technologies are lowering the cost of production and driving feasibility to a broader range of crops and geographies.
  3. EU Farm to Fork Creating Opportunities: The EU Green Deal and its goals to reduce synthetic chemicals and fertilizers for food production creates a great number of opportunities, but Europe’s regulatory framework could be an obstacle for widespread product approvals. But the review process could be evolving in some member states.
  4. Regenerative Agriculture is Pushing Biostimulants: Focus on soil health, carbon sequestration, water optimization, crop rotation, biodiversity, and reduced tillage are maximizing soil productivity, making biostimulants compatible with new operational objectives, incentives, and consumer demand.
  5. Mergers & Acquisitions Will Continue to Strengthen all Sectors: M&A activity is rebounding post-COVID, and activity is increasing significantly in the fragmented biostimulant space in the wake of the Syngenta/Valagro deal. There has also been $300 million invested in pheromones in the last 3 years, a substantial amount in a segment that has about $300-$500 million in annual turnover.

 Source – By David Frabotta

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Salveo, Inc. is an agriculture biotech manufacturer of natural biostimulants, fungicides and bactericides. Tectus Matrix® is our flagship productline.

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