Biologicals industry watch (2020-2023) - Popular fields and outlook

Various companies have expanded biologicals business for crop protection and nutrition over the past years. 

Biologicals market growth is now much more rapid than chemical products in numerous regions worldwide. The companies have increased biologicals offering capacity and consolidated their position in the biologicals sector through R&D collaboration, acquisition, product registrations or launches.

Agrochemical giants achieved rapid increase in biologicals sales, leading continuous growth of biologicals sector

The agrochemical giants have tremendously increased the sales of biologicals. Below is their biologicals sales growth over the past three years, reflecting the popularity of biologicals in the market. (Below data source: companies’ financial reports)

In 2020, Syngenta acquired Valagro, which enhanced Syngenta’s position in the global biostimulant and specialty nutrient markets. Syngenta’s sales of biologicals went up from US$122 million in 2020 to $312 million in 2021. This nearly doubled rise was driven by the successful first full-year sales of Valagro products. In 2022, their biologicals sales further increased to $336 million. Apart from this acquisition, expanding its portfolio through distribution agreements, increased grower demand and geographical expansion were the key drivers for Syngenta’s growth in the biologicals business.

The biopesticide business unit is the fastest growing unit in Corteva Agriscience, and the acquisition of Stoller and Symborg completed in 2023 has widely extended Corteva’s biologicals portfolio, especially biostimulant product lines, positioning Corteva as one of the largest biological plant health companies in the world. The development of the biologicals business will strongly boost Corteva’s sales growth in the future.

The revenue of FMC Plant Health, the biologicals business, was increased by 30% from $180.2 million in 2020 to $234.1 million in 2022. After acquiring BioPhero, a Danish pheromone provider, FMC estimates that pheromones and pheromone-based products will contribute about $1 billion in revenue at above company-average EBITDA margin by 2030. Their Plant Health is now outpacing market growth.

UPL established the Natural Plant Protection business unit in 2021 for focused growth. In FY23, their BioSolutions revenue reached $409 million, and its sales in LATAM accounted for 38%, the largest proportion of the total BioSolutions sales. The NPP business growth benefited from the collaboration with start-ups and universities, distribution agreement, increased focus on NPP, promotion for ProNutiva offerings (combining crop protection chemicals with BioSolutions) and geographical expansion. UPL has become the largest BioSolutions player in the world and intends for half of its revenue to come from differentiated and sustainable solutions by 2027. 

The giants and other numerous manufacturers and distributors contribute to the fast-developing biologicals market. According to the reports published on AgroPages over the past three years, popular product categories and R&D technologies are listed here with typical examples.

Artificial intelligence accelerates discovery of novel ingredients 

Artificial intelligence (AI), such as machine learning, is applied by giants and other companies to their biologicals research to improve the process of product development and quality.

ICL is working with Lavie Bio to develop novel biostimulants to improve fertilizer efficiency. This collaboration utilizes MicroBoost AI, developed by Lavie Bio’s parent company Evogene. Lavie Bio combines big-data, advanced AI and biological knowledge to develop microbial formulations to increase crop quality and yield. MicroBoost AI’s function-based approach and proprietary microbial function catalog can help identify high-potential product-specific candidates. MicroBoost AI pinpoints the biological reasoning behind the selection, and increase the possibility of finding desired microbes that can be successfully formulated to produce end products. This collaboration benefits from Lavie Bio’s ag-biologicals expertise and cutting-edge technology, as well as ICL’s knowledge of fertilizer use and farmers’ needs, facilitating the development of innovative products.

Bayer and Kimitec formed a global strategic partnership to discover biologicals. Kimitec’s MAAVi Innovation Center utilizes an AI platform, LINNA, which accelerates the discovery of natural molecules. LINNA integrates information from the chemical profiles, phenotyping and transcriptomics of various microorganisms and natural molecules, to replace synthesis molecules with sustainable solutions. LINNA was created by the combination of Kimitec’s expertise in natural compounds and AI platforms, which enable Bayer to increase the capacity of providing markets with next generation BioSolutions. 

FMC and Zymergen collaborate in developing a faster natural product discovery process for the development of novel crop protection solutions. This collaboration benefits from Zymergen’s data science and machine learning techniques, to optimize experimental designs and the iteration process. Zymergen's molecular library is, according to the company, the largest metagenomic database in the world, which is the foundation for a genomic search platform enabled by machine learning. 

FMC also works with Micropep Technologies to develop bioherbicides, leveraging Micropep’s AI-powered micropeptide discovery platform. Micropep harnesses computational biology and AI to rapidly browse genomes and identify micropeptides sequence candidates, and utilizes a predefined set of criteria to select and prioritize candidates, reducing the number of candidates from trillions to a few hundred, for the efficient selection through their internal efficacy assays.

Marrone Bio Innovations (MBI) utilizes Terramera’s AI technology to enhance product performance and accelerate novel product development. Their AI-powered Intelligence Engine enables predictive models to facilitate the discovery of potential solutions before conducting lab or farm trials, as well as reduce discovery costs. The collaboration is expected to increase the performance and consistency of active ingredients in MBI’s products, including Regalia biofungicide, Stargus biofungicide, Venerat XC bioinsecticide and Grandevo WDG bioinsecticide.

Prevalent benefits of biologicals

Increasing nutrient use efficiency

Some companies have included products that improve nutrient use efficiency into their portfolios through distribution agreements. Stoller Ukraine distributes Groundwork BioAg’s Rootella mycorrhizal inoculants, which improve plant nutrient uptake. Syngenta distributes Aphea.Bio’s ACTIV in Europe to increase wheat nutrient efficiency. UPL launched Chr. Hansen’s Zoatin in India to solubilize unavailable forms of phosphorous in the soil, to improve nutrient uptake and utilization by crops. Novozymes distributes Plant Health Care’s Harpin αβ in India, to increase nutrient efficiency and tolerance to abiotic stress. 

Other companies have expanded their portfolio with such products through acquisitions. Valent BioSciences acquired FBSciences, whose flagship biostimulant technology, FBS Transit, increases the uptake and translocation of nutrients, enhancing plant tolerance to stress. Summit Nutrients acquired AGVNT and currently has multiple nutrient efficiency technologies, such as natural chelation technology that hosts the Lipophilic Nano Molecule, enabling nutrients to easily penetrate the waxy cuticle of and be fully metabolized by plants. Verdesian Life Sciences’ acquisition of Cytozyme Laboratories strengthened its stature as a nutrient use efficiency provider.

In addition, several companies have launched related products. FMC launched Petra Biosolution in India to mobilize phosphorus in the soil and facilitate nutrient uptake. NutriAg launched M-BOS in Canada, which mobilizes nutrients by Methylobacterium organophilum. Bioline Agroscience has launched Zeamax, which stimulates root growth, increases the uptake of soil nutrients and reduces abiotic stress.

Decreasing use of synthetic nitrogen fertilizers

Many nitrogen-fixing microbial products have been registered or launched in various markets over the past three years. Azotic Technologies’ Encera has been registered in Europe. NexusBioAg launched Optimize LV and Envita in Canada. Yara launched YaraVita in Brazil. Kimitec launched Agrobiotik in Spain. Lallemand Plant Care launched LALFIX PROYIELD LIQUID SOYBEAN in Canada.

Business collaborations and acquisitions also target such products. Azotic's Envita is distributed by Syngenta in Canada, and Azotic collaborates with AMVAC to develop and commercialize this product. Symborg’s Utrisha N/BlueN was distributed by Corteva in multiple countries in Europe and Americas, and after Symborg was acquired by Corteva, their nitrogen-fixing products were included in Corteva’s own portfolio. Ginkgo Bioworks has integrated Joyn Bio, a joint venture created by Bayer and Ginkgo Bioworks that specializes in nitrogen fixation. Bayer retains the right to commercialize the technology and began a new collaboration with Ginkgo Bioworks in the areas of nitrogen fixation and others. Moreover, Syngenta distributes Unium Bioscience’ NUELLO iN in northwest Europe.

Increasing plant tolerance to biotic and abiotic stress

Some products help plants strengthen their resistance to pests. Plant Health Care’s Saori seed treatment stimulates soybean to defend itself, and the product is distributed by Nutrien Ag Solutions in Brazil. Biobest launched FytoSave in Finland to trigger plants’ natural defenses against powdery mildew and downy mildew. FBSciences' FBS Defense increases the ability of plants to defend itself from insects and diseases.

More products have been registered or launched that improve plant resistance to abiotic stress. Futureco Bioscience offers Botamisol Pro 80 in Brazil and Guatemala to improve the nutritional status of crops and protect them from environmental and chemical stress, as well as FITOMAAT in Peru and other regions to help crops overcome salinity, drought, extreme temperatures and other stress conditions. Fyteko’s Nurspray has been registered in France, the US and other regions to activate plant's tolerance to heat and drought. Puna Bio launched Kunza in Argentina to make soybean tolerant to drought and salinity.

Some products help crops resist both biotic and abiotic stress, such as SEGA-TBA launched in China by Zhejiang Sega, and Cynosa launched in Europe and the Americas by Maxstim.

Prevalent active ingredients in biologicals

Pheromones

BioPhero, acquired by FMC, utilizes a highly efficient yeast fermentation process to produce pheromones with fewer production steps compared to traditional chemical synthesis procedures. Their yeast fermentation process significantly lowers the costs of pheromone production, enabling a wider application of such products to not only high value fruits and vegetables but also to row crops. 

Several pheromone products have entered the markets or been included in distribution agreements. Bayer launched Vynyty Citrus (pheromone + natural pyrethrum) in Mediterranean countries to control California red louse, citrus cotonet and South African cotonet. Bayer also announced a partnership to distribute M2i’s pheromones to control lepidoptera pests on fruits and vegetables worldwide. Syngenta distributes M2i’s Exployo Vit in France and Portugal to suppress Lobesia botrana, and offers Provivi’s Nelvium in Indonesia to control insect pests in rice. Suterra’s Checkmate CRS has been registered in Australia to disrupt the mating behavior of California red scale.

Viruses

The most viral pesticides are used to suppress insect pests. BioTEPP’s Virosoft CP4, containing cydia pomonella granulosis, is registered in Canada and California to fight against the codling moth and oriental fruit moth. UPL distributes AgBiTech’s viral insecticides in the US. Andermatt offers various viral pesticides, such as Loopex (Autographa californica nucleopolyhedrovirus), launched in the US to control cabbage looper in vegetables. BaculoMip SF (Spodoptera frugiperda multiple nucleopolyhedrovirus) has been launched by Embrapa to control fall armyworm.

Apart from insecticides, some viruses can be applied to combat virus diseases. A&L Biological launched Cuc-GUARD, a mild strain of cucumber green mottle mosaic virus, in Canada to prevent cucumber green mottle mosaic virus. Koppert’s V10, a mild pepino mosaic virus isolate VX1/VC1, is registered in Italy and other regions to prevent infections by aggressive isolates of the European and Chilean-genotype of pepino mosaic virus.

Seaweed extracts

Seaweed extracts have a long history of use in agriculture, and such products can be found in many multinationals’ portfolios. BASF has launched Wangqiu (望秋) in China to help crops resist stress and strengthen their roots. Corteva launched KINSIDRO in China to improve plants’ nutrient uptake and resistance to stress, as well as modulate hormone signaling. Koppert’s Vidi Terrum is registered in Belgium and Serbia to stimulate plant metabolism and improve the transport of nutrients in plants. Carboplex (seaweed extract + fermented plant materials) was launched by Olmix in the UK to stimulate fruits to convert carbohydrates to sugar.

Outlook

Abiotic stress currently attracts much attention, especially in light of climate change, as the increasingly frequent occurrence of extreme weather is severely affecting crop production. In Europe, the effects of severe heatwaves and droughts on crop production tripled over the past half century, from losses of 2.2% from 1964 to 1990 to 7.3% from 1991 to 2015 [1]. According to the Blue Book on Climate Change in China (2023), the occurrence of extreme high-temperature and precipitation significantly increased from 1961 to 2022, and the risk index of heat and drought in 2022 was the highest in the country since 1961. In July 2023, the temperature in many regions broke records. Various crops are vulnerable to heat. When the temperature reaches over 35 °C, corn growth will slow down or stop, and soybean will produce less seeds. Moreover, drought may aggravate the degree of soil salinization. The threats from extreme weather to crops will continue to increase in the future, leading to huge demand for solutions to these challenges.

Another huge demand is for synthetic fertilizer alternatives and products that increase nutrient use efficiency, due to the pollution from fertilizers leaching and unavailable nutrients binding in the soil. China, the world’s biggest fertilizer consumer, decreased its synthetic fertilizer consumption by 13.8% in 2021, compared to 2016 (source: MARA of China). The EU aims to reduce the use of synthetic fertilizers by 20% by 2030 under its Farm to Fork strategy. To ensure synthetic fertilizer use reduction while maintaining or even increasing crop yield, products, such as nitrogen-fixing microbes, phosphorus-solubilizing formulations and other nutrient efficiency solutions, will remain prevalent in biologicals markets.

Apart from reducing synthetic fertilizer use, decreasing the use of chemical pesticides is also a key path to sustainable agriculture. Pheromones and viral pesticides provide target-specific mode of actions, making them safe to other organisms and beneficial to biodiversity preservation. These biocontrol tools can be components of IPM systems, and have other advantages and prospects.

When pheromones are positioned in the proper place, their efficacy can last months and are barely affected by temperature, sunlight, rain or other weather conditions, except for sprayable formulations. Pheromones are mostly used on high value crops due to their high production costs, but as cheaper pheromones produced by lower-cost fermentation process enter the markets, their adoption will expand to major row crop markets.

Viruses from bioinsecticides enter the bodies of hosts and causes fatal infections. The infected host spreads the virus, which continuously decrease the pest population. When making viral formulations, the virus production process is pollution-free and have a low energy cost, as an insect can be a virus producing factory. However, their narrow host range can sometimes be a disadvantage as crops can be attacked by different pests. But a study showed the possibility of including mixtures of different species of virus to enlarge target range, enabling a wider product adoption [2].

Numerous biological launches and supportive polices boost the growth of biologicals markets. An example is Brazil, whose government adopted policies to financially support start-ups and set relatively fewer regulatory barriers for foreign companies to expand their biologicals businesses in the country. The number of registered biopesticides increased by 404% in March 2022 over nine years. In the 2021-22 harvest season, Brazil’s biologicals market increased by 67% compared to the previous season (source: FarmTrak survey). This is just the beginning of the explosive growth of Brazilian biologicals market.

The growth rates of biologicals markets in Brazil and other major agricultural countries are very high, even faster than chemical products, but their market share is still low compared to their synthetic competitors. Novel biological ingredients have yet to be developed to address various challenges in crop production. Emerging AI technologies are revolutionizing ingredient discovery. It is estimated that more and more companies will harness AI to boost R&D, which is made possible by improving AI technologies and algorithms, increasing computing power, improving the availability of data and other methods. We look forward to the launches of more innovative biologicals, accelerated by emerging R&D technologies. 

[1] https://iopscience.iop.org/article/10.1088/1748-9326/abf004

[2] https://journals.asm.org/doi/10.1128/AEM.02180-20

This article was originally published in the magazine 2023 Biologicals Special.