SPECIAL ANALYSIS: 75% of biocontrol companies in Brazil risk disappearing, says specialist
Le secteur des biointrants au Brésil, jadis en plein essor et salué comme un pilier de l'agro-industrie, fait face à une contraction alarmante. Les experts préviennent que jusqu'à 75 % des entreprises spécialisées en biocontrôle pourraient disparaitre dans les prochaines années, incapables de s'adapter aux exigences croissantes du marché et aux défis réglementaires.
AgroPages - 13 Oct 2025
Brazil’s bioinput sector, once hailed as among the fastest-growing segments in agribusiness, may now face a wave of market contraction. Industry analysts warn that as many as 75% of the companies currently active in biocontrol products could disappear in the coming years, unable to adapt to stricter market dynamics and the scale required to survive.
The warning comes from agricultural strategist Fábio Sgarbi, who has closely followed the evolution of biologicals in Brazil. According to Sgarbi, what began as a ″boom″ cycle driven by innovation, high demand, and regulatory incentives, is quickly shifting towards a more selective phase, where only companies with a clear strategy, financial resilience, and distribution capacity will remain.
From boom to bottleneck
Between 2018 and 2023, the use of bioinsumos (biological inputs) in Brazil grew at double-digit rates each year, driven by sustainability goals, demand for alternatives to chemical pesticides, and government programs supporting innovation. Additionally, the number of companies entering the market surged, with startups and biofactories multiplying across the country.
However, market maturity is now exposing structural challenges. Many companies lack robust distribution networks, consistent product performance, or large-scale production capacity, Sgarbi noted in a recent analysis published on LinkedIn.
"The Brazilian market for bioinputs is transitioning from a phase of enthusiasm to one of selectivity. The next years will separate those with a well-defined, strategic path from those who only rode the initial wave," he wrote.
A thinning field
With over 400 bioinput registrations already approved and dozens of companies competing in niches, such as biocontrol, biofertilizers, and inoculants, oversupply and operational inefficiencies are beginning to erode margins.
As Sgarbi notes, most of the sector’s revenues are concentrated among a few leading players backed by strong R&D investment and established distribution in the agribusiness chain. The remaining smaller firms struggle to scale, putting their survival at risk.
"Approximately three out of every four companies could vanish, be acquired or merge within the next five years," Sgarbi said, citing the need for consolidation to bring stability and competitiveness to the sector.
Opportunities and risks
Despite the warnings, the sector’s fundamentals remain strong. Brazil, as the world’s largest soybean producer and a global leader in tropical agriculture, has a vast potential for biologicals, especially in integrated pest management (IPM) and sustainable intensification systems.
Yet, experts highlight that maintaining credibility is crucial. Without quality assurance, traceability and real performance in the field, biocontrol products risk losing the confidence of farmers who demand reliability and cost-effectiveness on a large scale.
"Only companies capable of integrating innovation with efficiency, regulatory compliance, and robust commercial strategies will remain strong players in the field," added Sgarbi .
The potential shake-up in Brazil carries broader implications. The country accounts for a large share of the world’s agricultural biologicals usage, making its trajectory a reference for other emerging markets. A wave of mergers and acquisitions could reshape the industry landscape, not just locally but globally, influencing the availability, pricing, and competitiveness of biocontrol products in international supply chains.
For farmers, the short term may involve uncertainty. But for investors and agribusiness giants, the scenario represents a phase of opportunity for strategic consolidation in one of the fastest-growing agritech frontiers.
(Editing by Leonardo Gottems, reporter for AgroPages)
For collaboration opportunities and corporate branding initiatives with AgroPages, please contact Christina Xie at christina@agropages.com
The warning comes from agricultural strategist Fábio Sgarbi, who has closely followed the evolution of biologicals in Brazil. According to Sgarbi, what began as a ″boom″ cycle driven by innovation, high demand, and regulatory incentives, is quickly shifting towards a more selective phase, where only companies with a clear strategy, financial resilience, and distribution capacity will remain.
From boom to bottleneck
Between 2018 and 2023, the use of bioinsumos (biological inputs) in Brazil grew at double-digit rates each year, driven by sustainability goals, demand for alternatives to chemical pesticides, and government programs supporting innovation. Additionally, the number of companies entering the market surged, with startups and biofactories multiplying across the country.
However, market maturity is now exposing structural challenges. Many companies lack robust distribution networks, consistent product performance, or large-scale production capacity, Sgarbi noted in a recent analysis published on LinkedIn.
"The Brazilian market for bioinputs is transitioning from a phase of enthusiasm to one of selectivity. The next years will separate those with a well-defined, strategic path from those who only rode the initial wave," he wrote.
A thinning field
With over 400 bioinput registrations already approved and dozens of companies competing in niches, such as biocontrol, biofertilizers, and inoculants, oversupply and operational inefficiencies are beginning to erode margins.
As Sgarbi notes, most of the sector’s revenues are concentrated among a few leading players backed by strong R&D investment and established distribution in the agribusiness chain. The remaining smaller firms struggle to scale, putting their survival at risk.
"Approximately three out of every four companies could vanish, be acquired or merge within the next five years," Sgarbi said, citing the need for consolidation to bring stability and competitiveness to the sector.
Opportunities and risks
Despite the warnings, the sector’s fundamentals remain strong. Brazil, as the world’s largest soybean producer and a global leader in tropical agriculture, has a vast potential for biologicals, especially in integrated pest management (IPM) and sustainable intensification systems.
Yet, experts highlight that maintaining credibility is crucial. Without quality assurance, traceability and real performance in the field, biocontrol products risk losing the confidence of farmers who demand reliability and cost-effectiveness on a large scale.
"Only companies capable of integrating innovation with efficiency, regulatory compliance, and robust commercial strategies will remain strong players in the field," added Sgarbi .
The potential shake-up in Brazil carries broader implications. The country accounts for a large share of the world’s agricultural biologicals usage, making its trajectory a reference for other emerging markets. A wave of mergers and acquisitions could reshape the industry landscape, not just locally but globally, influencing the availability, pricing, and competitiveness of biocontrol products in international supply chains.
For farmers, the short term may involve uncertainty. But for investors and agribusiness giants, the scenario represents a phase of opportunity for strategic consolidation in one of the fastest-growing agritech frontiers.
(Editing by Leonardo Gottems, reporter for AgroPages)
For collaboration opportunities and corporate branding initiatives with AgroPages, please contact Christina Xie at christina@agropages.com
