Biopesticides in Brazil Growth Rate Double Than United States or Europe
AgriBusiness Global
2023.05.10
Getting in the market there are a couple of dynamics that are happening globally that are having a bit of major impact on the market. First off, and probably most importantly, the Brazilian market is exploding. And it is growing at a rate that is more than double the growth rate in the US, or in Europe. It is being driven largely by the use of biocontrol products and biostimulant products also, but mainly by biocontrols in row crops, and that has been something we’ve been watching to wait and see when that would really start to happen.
We had predicted, when we first started, that Brazil would probably be the first country to see significant use in row crops and that is now really beginning to come to pass. The majority of biological products sold in Brazil are used in the major row crops. We contrast that to the US – about 10% of our products are used in row crops. The vast majority of biocontrol products are used in specialty crops: the fruits and vegetables and tree fruit and tree nuts. So, it’s a much different dynamic that’s occurring, especially for biopesticides in Brazil.
The second big thing that’s happening right now is I’m beginning to see signs of market maturity in Europe, especially Western Europe, and in the US, and that’s a factor in both of those regions where historically, the major use has been in those specialty crops. We are reaching a point where the market is maturing, most of the needs have already been filled by products. There is a lot more competition than there was five or 10 years ago. So, for further growth to really occur in a dramatic way, in those regions, we’re going to need to see them expand into other crop segments. So that’s going to be important for future growth, but we’re seeing that the growth rates in those two regions starting to drop down into the single-digit range, definitely, by the end of this decade.
Getting in the market there are a couple of dynamics that are happening globally that are having a bit of major impact on the market. First off, and probably most importantly, the Brazilian market is exploding. And it is growing at a rate that is more than double the growth rate in the US, or in Europe. It is being driven largely by the use of biocontrol products and biostimulant products also, but mainly by biocontrols in row crops, and that has been something we’ve been watching to wait and see when that would really start to happen.
We had predicted, when we first started, that Brazil would probably be the first country to see significant use in row crops and that is now really beginning to come to pass. The majority of biological products sold in Brazil are used in the major row crops. We contrast that to the US – about 10% of our products are used in row crops. The vast majority of biocontrol products are used in specialty crops: the fruits and vegetables and tree fruit and tree nuts. So, it’s a much different dynamic that’s occurring, especially for biopesticides in Brazil.
The second big thing that’s happening right now is I’m beginning to see signs of market maturity in Europe, especially Western Europe, and in the US, and that’s a factor in both of those regions where historically, the major use has been in those specialty crops. We are reaching a point where the market is maturing, most of the needs have already been filled by products. There is a lot more competition than there was five or 10 years ago. So, for further growth to really occur in a dramatic way, in those regions, we’re going to need to see them expand into other crop segments. So that’s going to be important for future growth, but we’re seeing that the growth rates in those two regions starting to drop down into the single-digit range, definitely, by the end of this decade.
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