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What are the implications for companies entering the Brazilian market for biological products and the new trends in supporting policies

The Brazilian agrobiological inputs market has maintained a rapid growth momentum in recent years. In the context of increased awareness of environmental protection, the popularity of sustainable farming concepts, and strong government policy support, Brazil is gradually becoming an important market and innovation center for global bio-agricultural inputs, attracting global bio-companies to set up operations in the country.

Current situation of biopesticide market in Brazil

In 2023, the planting area of Brazilian crops reached 81.82 million hectares, of which the largest crop is soybeans, accounting for 52% of the total planted area, followed by winter corn, sugarcane and summer corn. On its vast arable land, Brazil’s pesticide market reached about $20 billion (end-farm consumption) in 2023, with soybean pesticides accounting for the largest share of market value (58%) and the fastest growing market in the past three years.

The share of biopesticides in the overall pesticide market in Brazil is still very low, but it is growing very fast, increasing from 1% in 2018 to 4% in 2023 in just five years, with a compound annual growth rate of 38%, far exceeding the 12% growth rate of chemical pesticides.

In 2023, the country’s biopesticide market reached a market value of $800 million at the farmer’s end. Among them, in terms of category, biological nematocides are the largest product category (mainly used in soybeans and sugarcane); The second largest category is biological insecticides, followed by microbial agents and biocides; The highest CAGR in market value over the period 2018-2023 is for biological nematocides, up to 52%. In terms of applied crops, the share of soybean biopesticides in the entire market value is the highest, reaching 55% in 2023; At the same time, soybeans are also the crop with the highest rate of application of biopesticides, with 88% of its planted area using such products in 2023. Winter corn and sugarcane are the second and third largest crops in market value respectively. The market value of these crops has increased in the past three years.

There are differences in the main categories of biopesticides for these important crops. The largest market value of soybean biopesticides is biological nematocides, accounting for 43% in 2023. The most important categories used in winter corn and summer corn are biological pesticides, accounting for 66% and 75% of the market value of biological pesticides in the two types of crops, respectively (mainly for the control of stinging pests). The largest product category of sugarcane is biological nematocides, which account for more than half of the market share of sugarcane biological pesticides.

In terms of area of use, the following chart shows the nine most widely used active ingredients, the proportion of treated area on different crops, and the cumulative area of use in one year. Among them, Trichoderma is the largest active component, which is used in 8.87 million hectares of crops a year, mainly for soybean cultivation. This was followed by Beauveria bassiana (6.845 million hectares), which was mainly applied to winter maize. Eight of these nine main active ingredients are bioresistant, and parasitoids are the only natural enemy insects (all used in sugarcane cultivation). There are several reasons why these active ingredients sell well:

Trichoderma, Beauveria bassiana and Bacillus amylus: more than 50 production enterprises, providing good market coverage and supply;

Rhodospore: a significant increase, mainly due to increased occurrence of corn leafhopper, product treatment area of 11 million hectares in 2021, and 30 million hectares in 2024 on winter corn;

Parasitic wasps: have a long-term stable position on sugarcane, mainly used in the control of cane borer;

Metarhizium anisopliae: Rapid growth, mainly due to increased incidence of nematodes and cancellation of registration of carbofuran (the main chemical for controlling nematodes).


Post time: Jul-15-2024